ADF Group Inc. SV (DRX) AI Stock Analysis

• Market Cap: C$252.41M
• Dividend Yield: 0.46%
• Average Volume (3M): 67.60K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.29
• Revenue Growth: -26.61%
• EPS Growth: -45.62%
• Country: CA
• Employees: 561
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.36
• Shares Outstanding: 16,476,336
• 10 Day Avg. Volume: 58,672
• 30 Day Avg. Volume: 67,603
• PEG Ratio: 0.07
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 0.73
• P/FCF Ratio: 5.28
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$13.00
• Price Target Upside: 61.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: C$11.00 ▲(36.65% Upside)

The score is primarily supported by strong profitability and a conservative balance sheet, reinforced by an established uptrend in the share price and attractive valuation (low P/E). Offsetting these positives are weak cash-flow performance and a cautious earnings backdrop where tariffs pressured revenue and margins despite a larger, more diversified backlog.

Positive Factors

Order Backlog Growth

A significant increase in order backlog indicates strong future revenue potential and demand for ADF Group's services, supporting long-term growth.

Improved Diversification

Reduced dependency on the U.S. market enhances ADF Group's resilience against regional economic fluctuations and trade policy impacts.

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility to invest in growth opportunities and withstand economic downturns.

Negative Factors

Revenue Decline

A significant decline in revenue indicates challenges in maintaining market share and could impact profitability and cash flow if not addressed.

Cash Flow Challenges

Deteriorating cash flow limits ADF Group's ability to fund operations and growth initiatives, potentially affecting long-term financial health.

Impact of U.S. Tariffs

Tariff-related disruptions increase costs and operational inefficiencies, potentially affecting competitiveness and profitability in key markets.

ADF Group Inc. SV Business Overview & Revenue Model

Company Description

ADF Group Inc. SV (DRX) is an engineering and construction company that specializes in the design, manufacture, and installation of steel structures and other related products. Operating primarily in the infrastructure, commercial, and industrial sectors, ADF Group offers a range of services including project management, fabrication, and installation of complex steel structures for various projects such as bridges, buildings, and industrial facilities. The company is known for its commitment to quality, safety, and innovative engineering solutions.

How the Company Makes Money

ADF Group generates revenue primarily through contracts for steel fabrication and installation services. The company bids on projects in the construction sector, often securing contracts from both public and private entities. Key revenue streams include earnings from large-scale infrastructure projects, commercial buildings, and industrial facilities. Additionally, ADF Group may enter strategic partnerships with construction firms and government entities to enhance its market reach and secure more significant projects. The company's diversified portfolio and focus on quality service delivery help sustain its earnings, even in fluctuating market conditions.

ADF Group Inc. SV Financial Statement Overview

Summary

Strong profitability (13.23% net margin TTM) and a solid balance sheet (low 0.27 debt-to-equity; 21.14% ROE) support the score, but it is held back by revenue contraction (-3.21% TTM) and weak cash-flow trends (free cash flow growth -227.26% TTM and low operating cash flow to net income).

Income Statement

ADF Group Inc. shows strong profitability with a solid net profit margin of 13.23% TTM, although there is a slight decline in revenue growth at -3.21% TTM. The company maintains healthy EBIT and EBITDA margins, indicating efficient operations. However, the recent revenue contraction is a concern that needs monitoring.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.27 TTM, indicating prudent financial leverage. Return on equity is robust at 21.14% TTM, reflecting effective use of equity capital. The equity ratio is healthy, suggesting a stable financial position.

Cash Flow

ADF Group Inc. faces challenges in cash flow management, with a significant decline in free cash flow growth at -227.26% TTM. The operating cash flow to net income ratio is low, indicating potential cash flow constraints. Improvement in cash flow generation is necessary to support long-term growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	257.34M	339.63M	331.02M	250.89M	280.74M	172.59M
Gross Profit	66.45M	107.24M	71.65M	35.57M	24.69M	26.20M
EBITDA	47.43M	85.68M	55.82M	24.18M	17.29M	15.45M
Net Income	29.05M	56.79M	37.62M	14.94M	9.56M	6.87M
Balance Sheet
Total Assets	317.65M	307.90M	328.61M	271.62M	201.05M	189.95M
Cash, Cash Equivalents and Short-Term Investments	32.71M	59.98M	72.38M	7.19M	7.13M	17.81M
Total Debt	42.74M	45.63M	48.84M	51.52M	36.67M	25.58M
Total Liabilities	136.46M	138.59M	166.47M	146.63M	92.60M	90.39M
Stockholders Equity	181.19M	169.31M	162.13M	124.98M	108.45M	99.56M
Cash Flow
Free Cash Flow	5.34M	46.77M	71.37M	-14.77M	-19.40M	27.02M
Operating Cash Flow	13.99M	55.06M	77.86M	-2.61M	2.67M	28.84M
Investing Cash Flow	-26.40M	-8.71M	-6.27M	-12.08M	-21.99M	-1.75M
Financing Cash Flow	-21.05M	-62.07M	-6.69M	14.16M	9.20M	-12.44M

ADF Group Inc. SV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DRX, the sentiment is Positive. The current price of 8.05 is below the 20-day moving average (MA) of 8.71, below the 50-day MA of 8.33, and above the 200-day MA of 7.94, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 70.49 is Negative, neither overbought nor oversold. The STOCH value of 64.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DRX.

ADF Group Inc. SV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DRX	74 Outperform	C$252.41M	8.77	16.89%	0.46%	-26.61%	-45.62%
BDT	69 Neutral	C$1.67B	17.79	21.68%	2.88%	6.26%	0.52%
WJX	69 Neutral	C$617.25M	13.27	8.84%	5.09%	3.71%	-12.70%
WTE	68 Neutral	C$1.79B	21.96	11.46%	5.63%	-4.67%	-22.54%
ARE	65 Neutral	C$2.26B	270.29	0.92%	2.38%	25.68%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AFN	48 Neutral	C$546.60M	-61.01	-2.30%	2.62%	-5.64%	-121.91%

ADF Group Inc. SV Corporate Events

ADF Group Lands $140 Million in North American Steel Structure Contracts

ADF Group Inc. has secured a series of new contracts in Quebec, Ontario and on the U.S. West Coast worth a combined $140 million, spanning public transportation, commercial, industrial, manufacturing and hydroelectric projects. The work, which will engage ADF’s facilities in Quebec and Montana as well as the recently acquired Groupe LAR plant, is scheduled to begin fabrication in June 2026 and run largely through the end of 2027, adding to an order backlog that already stood at $497.1 million as of October 31, 2025 and underscoring the strategic contribution of Groupe LAR to the company’s growth trajectory and capacity utilization.

The most recent analyst rating on (TSE:DRX) stock is a Hold with a C$9.50 price target. To see the full list of analyst forecasts on ADF Group Inc. SV stock, see the TSE:DRX Stock Forecast page.

ADF Group Inc. Reports Third Quarter 2025 Financial Results Amid Tariff Challenges

ADF Group Inc. reported a decrease in revenues for the three and nine-month periods ending October 31, 2025, compared to the previous year, attributed to the impact of U.S. tariffs. Despite this, the company saw an increase in its order backlog, bolstered by the acquisition of Groupe LAR Inc., which contributed significantly to the backlog. The company’s net income and gross margin percentages also declined year-over-year, reflecting the ongoing challenges from tariffs, though the acquisition has positioned ADF for future growth.

The most recent analyst rating on (TSE:DRX) stock is a Hold with a C$8.00 price target. To see the full list of analyst forecasts on ADF Group Inc. SV stock, see the TSE:DRX Stock Forecast page.

ADF Group Inc. Schedules Q3-2026 Financial Results Conference Call

ADF Group Inc. announced it will release its financial results for the three-month and nine-month periods ending October 31, 2025, on December 11, 2025. A conference call hosted by the CFO, Jean-François Boursier, will discuss the results and future outlook, with a Q&A session featuring the CEO and Chairman, Jean Paschini. This announcement is significant for stakeholders as it provides insights into the company’s financial health and strategic direction.

The most recent analyst rating on (TSE:DRX) stock is a Hold with a C$7.50 price target. To see the full list of analyst forecasts on ADF Group Inc. SV stock, see the TSE:DRX Stock Forecast page.