ADF Group Inc. SV (DRX) AI Stock Analysis

• Market Cap: C$197.00M
• Dividend Yield: 0.52%
• Average Volume (3M): 67.60K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 0.37
• Revenue Growth: -24.64%
• EPS Growth: -27.22%
• Country: CA
• Employees: 561
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.03
• Shares Outstanding: 16,026,392
• 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$12.00
• Price Target Upside: 57.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: C$7.50 ▼(-1.70% Downside)

ADF Group Inc.'s overall stock score is driven by its strong valuation and profitability, offset by weak technical indicators and significant challenges highlighted in the earnings call. The company's strategic initiatives provide some optimism, but current financial and operational hurdles weigh on the score.

Positive Factors

Strategic Acquisition

The acquisition of Group LAR enhances ADF Group's capabilities and market reach, particularly in Canada, potentially diversifying revenue streams and reducing reliance on the U.S. market.

Order Backlog

A strong order backlog provides revenue visibility and stability, supporting future growth and operational planning, which is crucial for project-based businesses like ADF Group.

Nuclear Certification

Achieving nuclear certification allows ADF Group to enter the growing nuclear sector in Ontario, potentially unlocking new revenue streams and enhancing its competitive position.

Negative Factors

Revenue Decline

Significant revenue decline indicates challenges in maintaining market share and growth, potentially impacting long-term financial health and operational capacity.

Decreased Gross Margins

Falling gross margins suggest increased costs and pricing pressures, which could erode profitability and hinder reinvestment in business growth.

Impact of U.S. Tariffs

Tariffs create structural cost challenges, impacting competitiveness and profitability, especially for companies reliant on cross-border trade like ADF Group.

ADF Group Inc. SV Business Overview & Revenue Model

Company Description

ADF Group Inc. SV (DRX) is a leading provider of specialized services and solutions within the construction and engineering sectors. The company primarily focuses on the design, manufacturing, and installation of complex steel structures and other related services, catering to a diverse range of industries including infrastructure, energy, and commercial construction. By leveraging advanced technology and a skilled workforce, ADF Group aims to deliver high-quality products that meet the evolving needs of its clientele.

How the Company Makes Money

ADF Group generates revenue through multiple streams, including the fabrication and installation of steel structures, which are key components in various construction projects. The company's revenue model is primarily project-based, where it enters into contracts with clients to provide custom solutions for specific construction needs. Additionally, ADF Group benefits from long-term partnerships with major construction firms and developers, which facilitate a steady flow of contracts and projects. Factors contributing to its earnings include the ability to secure large-scale contracts, efficiency in project execution, and a strong reputation for quality and reliability in the industry.

ADF Group Inc. SV Financial Statement Overview

Summary

ADF Group Inc. demonstrates strong profitability with healthy margins and a stable balance sheet, highlighted by low leverage and high ROE. However, challenges in revenue growth and significant cash flow constraints pose risks, resulting in a moderate financial health score.

Income Statement

ADF Group Inc. shows a mixed performance in its income statement. The TTM data indicates a decline in revenue growth rate by 7.6%, which is concerning. However, the company maintains a healthy gross profit margin of 26.9% and a net profit margin of 13.2%, indicating strong profitability. The EBIT and EBITDA margins are also solid at 18.2% and 20.6%, respectively, suggesting efficient operations despite the revenue decline.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.24, indicating low leverage. The return on equity (ROE) is strong at 21.1%, showcasing effective use of equity to generate profits. The equity ratio stands at 54.1%, highlighting a solid equity base relative to total assets, which enhances financial stability.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth by 104.5% in the TTM period. The operating cash flow to net income ratio is low at 0.02, indicating potential issues in converting income into cash. Additionally, the free cash flow to net income ratio is negative, suggesting cash flow constraints despite profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	265.88M	339.63M	331.02M	250.89M	280.74M	172.59M
Gross Profit	71.44M	107.24M	71.65M	35.57M	24.69M	26.20M
EBITDA	54.73M	85.68M	55.82M	24.18M	17.29M	15.45M
Net Income	35.17M	56.79M	37.62M	14.94M	9.56M	6.87M
Balance Sheet
Total Assets	306.77M	307.90M	328.61M	271.62M	201.05M	189.95M
Cash, Cash Equivalents and Short-Term Investments	50.93M	59.98M	72.38M	7.19M	7.13M	17.81M
Total Debt	44.32M	45.63M	48.84M	51.52M	36.67M	25.58M
Total Liabilities	140.74M	138.59M	166.47M	146.63M	92.60M	90.39M
Stockholders Equity	166.03M	169.31M	162.13M	124.98M	108.45M	99.56M
Cash Flow
Free Cash Flow	-4.20M	46.77M	71.37M	-14.77M	-19.40M	27.02M
Operating Cash Flow	1.68M	55.06M	77.86M	-2.61M	2.67M	28.84M
Investing Cash Flow	-5.83M	-8.71M	-6.27M	-12.08M	-21.99M	-1.75M
Financing Cash Flow	-21.65M	-62.07M	-6.69M	14.16M	9.20M	-12.44M

ADF Group Inc. SV Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.63
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DRX, the sentiment is Neutral. The current price of 7.63 is above the 20-day moving average (MA) of 7.28, above the 50-day MA of 7.53, and below the 200-day MA of 7.71, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 57.18 is Neutral, neither overbought nor oversold. The STOCH value of 97.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
DE	64 Neutral	C$160.51M	27.04	10.07%	7.73%	16.69%	111.74%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DRX	58 Neutral	C$197.00M	5.85	22.54%	0.52%	-24.64%	-27.22%
DRT	51 Neutral	C$197.59M	-19.58	-18.77%	―	-2.73%	-155.71%
IB	46 Neutral	C$24.03M	-5.00	―	―	―	―
ACT	45 Neutral	C$613.58M	-36.08	-114.59%	―	-33.91%	-40.26%

ADF Group Inc. SV Corporate Events

ADF Group Inc. Acquires Groupe LAR to Boost Hydroelectric Market Presence

ADF Group Inc. has completed the acquisition of Groupe LAR Inc., a leader in the design and fabrication of mechanically welded steel structures, particularly in the hydroelectricity market. The acquisition, valued at $20.4 million, is part of ADF’s strategy to double LAR’s order backlog by 2027 and capitalize on upcoming hydroelectric projects across Canada. To support this growth, ADF plans to invest over $35 million in LAR’s main plant to enhance fabrication capacity and modernize equipment, while also increasing the workforce. This strategic move is expected to create significant synergies, diversify ADF’s offerings, and mitigate risks associated with U.S. tariffs, ultimately contributing positively to ADF’s net results.

The most recent analyst rating on (TSE:DRX) stock is a Hold with a C$8.50 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. Announces Acquisition of Groupe LAR

ADF Group Inc. has announced a conference call scheduled for October 29, 2025, to discuss its acquisition of Groupe LAR. This strategic move is expected to enhance ADF’s market position and operational capabilities, potentially benefiting stakeholders by expanding the company’s portfolio and industry reach.

The most recent analyst rating on (TSE:DRX) stock is a Hold with a C$8.50 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. Completes Acquisition of Groupe LAR Inc.

ADF Group Inc. has successfully completed the acquisition of Groupe LAR Inc., a Canadian leader in the design, manufacture, and installation of mechanically welded steel structures. This acquisition is expected to enhance ADF’s capabilities in the large-scale hydroelectricity market and expand its offerings in customized overhead crane solutions for heavy industry, potentially strengthening its market position and operational capacity.

The most recent analyst rating on (TSE:DRX) stock is a Hold with a C$8.50 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. SV Earnings Call: Navigating Challenges with Strategic Initiatives

The recent earnings call of ADF Group Inc. SV painted a picture of a company navigating through significant challenges while actively pursuing strategic initiatives to foster growth. The sentiment conveyed during the call was one of cautious optimism, as the company grapples with declining revenues, gross margins, and EBITDA, primarily due to U.S. tariffs and rising costs. Despite these hurdles, ADF is taking decisive steps to adapt and expand, such as acquiring Group LAR and announcing new projects in Quebec to mitigate reliance on the U.S. market.

ADF Group Inc. Reports Revenue Decline Amid U.S. Tariff Uncertainty

ADF Group Inc. reported a decline in revenues and net income for the three and six-month periods ending July 31, 2025, attributed to the uncertainty surrounding U.S. tariffs and increased steel prices. Despite these challenges, the company saw a 60% increase in its order backlog, indicating strong future demand, although it faced operational disruptions at its Terrebonne plant due to a Work-Sharing program, which has since ended.

The most recent analyst rating on (TSE:DRX) stock is a Buy with a C$11.50 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. Announces Upcoming Financial Results Release and Conference Call

ADF Group Inc. has announced that it will release its financial results for the three-month and six-month periods ending July 31, 2025, on September 11, 2025. The announcement includes an invitation to a conference call hosted by the CFO, Jean-François Boursier, to discuss the results and future outlook. This event is significant for stakeholders as it provides insights into the company’s performance and strategic direction.

The most recent analyst rating on (TSE:DRX) stock is a Buy with a C$11.50 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. to Acquire Groupe LAR Inc., Expanding Market Reach

ADF Group Inc. has announced an agreement to acquire Groupe LAR Inc., a Canadian leader in the design and manufacture of mechanically welded steel structures, primarily serving the hydroelectricity market. The acquisition is expected to create significant synergies, contribute positively to ADF’s net income, and diversify its offerings amidst U.S. tariff threats, while maintaining and potentially increasing jobs in the Saguenay-Lac-Saint-Jean region.

The most recent analyst rating on (TSE:DRX) stock is a Buy with a C$10.50 price target. To see the full list of analyst forecasts on ADF Group Inc. SV stock, see the TSE:DRX Stock Forecast page.