Dexterra Group (DXT) AI Stock Analysis

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Dexterra Group

(TSX:DXT)

Rating:72Outperform

Price Target:―

Dexterra Group's strong revenue growth and operational efficiency, coupled with a robust balance sheet, underpin its solid financial health. Positive earnings sentiment and market momentum contribute to a favorable outlook, while valuation concerns and potential economic risks warrant caution.

Dexterra Group (DXT) vs. iShares MSCI Canada ETF (EWC)

Market Cap

C$542.39M

Dividend Yield4.02%

Average Volume (3M)47.67K

Price to Earnings (P/E)17.3

Beta (1Y)0.62

Revenue Growth-10.24%

EPS Growth-23.79%

CountryCA

Employees8,157

SectorIndustrials

Sector Strength93

IndustrySpecialty Business Services

Share Statistics

EPS (TTM)0.14

Shares Outstanding62,343,970

10 Day Avg. Volume45,695

30 Day Avg. Volume47,670

Financial Highlights & Ratios

PEG Ratio0.26

Price to Book (P/B)1.97

Price to Sales (P/S)0.00

P/FCF Ratio12.03

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

C$11.75

Price Target Upside33.67% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Dexterra Group Business Overview & Revenue Model

Company DescriptionDexterra Group (DXT) is a publicly traded Canadian company that operates across various sectors including facilities management, workforce accommodations, modular solutions, and environmental services. Dexterra provides integrated solutions to a range of industries such as energy, mining, construction, defense, and government. The company's core services include facilities operations and maintenance, catering, housekeeping, modular building manufacturing, and environmental consulting.

How the Company Makes MoneyDexterra Group generates revenue through multiple streams aligned with its diverse service offerings. Its facilities management division provides ongoing operations and maintenance services for commercial and industrial clients, earning steady income through long-term contracts. The workforce accommodations sector supplies and manages remote workforce housing, generating revenue from rental and service fees. The modular solutions division earns income by designing, manufacturing, and installing modular buildings for various applications, including educational institutions and healthcare facilities. Additionally, Dexterra's environmental services contribute to earnings through consulting and project management fees. Strategic partnerships and contracts with public and private sector clients, notably in resource-rich regions, also significantly bolster Dexterra's revenue.

Dexterra Group Earnings Call Summary

Earnings Call Date:May 06, 2025

(Q1-2025)

% Change Since: 4.27%|

Next Earnings Date:Aug 12, 2025

Earnings Call Sentiment Positive

Dexterra Group's earnings call conveyed a strong financial performance with significant revenue and EBITDA growth, a solid balance sheet, and positive shareholder returns. Despite challenges such as delayed receivables and cold weather impacts, the company maintained a robust pipeline and high asset utilization, suggesting a positive market outlook. However, some market uncertainties and contract delays were acknowledged.

Q1-2025 Updates

Positive Updates

Strong Financial Performance

Dexterra reported over $25 million in adjusted EBITDA, a 28% increase over Q1 2024, driven by high occupancy at new camps and a full quarter contribution of CMI Management. Adjusted EBITDA margins improved to 9.5% from 8.2% in Q1 2024.

Support Services Revenue Growth

Support Services segment saw a 7% increase in revenue to $199 million and a 24% increase in adjusted EBITDA to $19 million compared to Q1 2024.

Resilient Balance Sheet

Dexterra maintained a strong balance sheet with net debt of $82 million, less than 1x trailing 12-month EBITDA, providing flexibility for share buybacks and acquisitions.

Shareholder Returns

Returned $13 million to shareholders through dividends and share buybacks. Share price increased by 10% despite market volatility.

Positive Market Outlook

Strong pipeline in Support Services and continued high camp equipment utilization above 90% with expectations of adjusted EBITDA margins between 30% to 40% for 2025.

Negative Updates

Delayed Receivable Impact on Cash Flow

Free cash flow was impacted by the delayed collection of a $20 million customer receivable funded by the Canadian federal government, expected to be collected in Q2.

Cold Weather Impact

Early cold weather in the quarter led to lower demand for access matting, partially offsetting positive financial performance.

Market Uncertainty and Delayed Contract Awards

Some delays in contract awards were noted, which could moderate the pace of new sales growth until business uncertainty subsides.

Company Guidance

During the Dexterra Group's First Quarter 2025 Results Conference Call, the company provided a comprehensive overview of its financial performance and strategic outlook. Dexterra reported a robust $25 million in adjusted EBITDA, marking a 28% increase over Q1 2024, with a return on equity reaching the target of 15%. The Support Services segment saw revenues of $199 million, a 7% increase from the prior year, with adjusted EBITDA rising by 24% to $19 million. Asset Based Services reported revenue of $41 million, with a strong adjusted EBITDA margin of 33%, up from 22% in Q1 2024. The company returned $13 million to shareholders through dividends and share buybacks and maintained a strong balance sheet with net debt under 1x trailing 12-month EBITDA. Looking ahead, Dexterra is focused on maintaining an adjusted EBITDA conversion to free cash flow above 50% and achieving a return on equity of 15% or greater, bolstered by strategic investments in technology and a proactive approach to managing economic uncertainties.

Dexterra Group Financial Statement Overview

Summary

Dexterra Group demonstrates strong revenue growth and operational efficiency, with improved margins. The balance sheet reflects financial stability and manageable debt, though profitability and cash flow trends should be monitored.

Income Statement

Positive

Dexterra Group has shown a consistent revenue growth trajectory from 2019 to 2023, although there was a decline in 2024. The gross profit margin and net profit margin have generally been positive, with gross profit margin remaining strong despite fluctuations in revenue. The EBIT and EBITDA margins have improved over time, indicating operational efficiency. However, the recent decline in net income points to potential profitability challenges.

Balance Sheet

Positive

The balance sheet reflects a moderate debt-to-equity ratio, suggesting manageable leverage. The return on equity has been positive but shows volatility over the years. The equity ratio indicates a solid foundation of stockholders' equity relative to total assets, contributing to financial stability, although the decrease in stockholders' equity in 2024 warrants attention.

Cash Flow

Positive

The cash flow statement reveals a strong operating cash flow relative to net income, suggesting efficient cash generation from operations. The free cash flow has been positive, despite fluctuations in capital expenditures. Recent declines in free cash flow growth rate may indicate pressures on cash flow generation capabilities.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.01B	1.00B	1.12B	971.52M	733.38M	477.81M
	Gross Profit
161.03M	160.03M	141.97M	90.55M	110.54M	98.31M
	EBIT
70.55M	67.10M	47.55M	10.15M	35.95M	50.75M
	EBITDA
107.02M	101.90M	89.75M	48.75M	74.02M	105.70M
	Net Income Common Stockholders
32.05M	19.87M	26.62M	3.43M	24.36M	64.03M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.00	0.00	0.00	-28.09M	-25.07M	-26.08M
	Total Assets
607.09M	524.89M	607.09M	611.40M	531.55M	513.52M
	Total Debt
117.30M	85.13M	117.30M	122.14M	90.39M	111.45M
	Net Debt
117.30M	85.13M	117.30M	150.23M	115.46M	137.53M
	Total Liabilities
320.07M	245.94M	320.07M	324.42M	227.20M	212.55M
	Stockholders Equity
286.83M	278.55M	286.83M	286.79M	304.38M	299.15M
Cash Flow		Free Cash Flow
44.94M	40.49M	59.89M	56.86M	56.70M	67.82M
	Operating Cash Flow
72.62M	66.92M	80.55M	63.99M	64.49M	72.81M
	Investing Cash Flow
30.38M	6.82M	-24.05M	-49.84M	-7.99M	-2.36M
	Financing Cash Flow
-103.00M	-73.74M	-56.50M	-14.15M	-56.49M	-73.03M

Dexterra Group Technical Analysis

Technical Analysis Sentiment

Positive

Last Price8.79

Price Trends

50DMA

8.18

Positive

100DMA

7.95

Positive

200DMA

7.31

Positive

Market Momentum

MACD

0.13

Positive

RSI

59.24

Neutral

STOCH

69.13

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DXT, the sentiment is Positive. The current price of 8.79 is above the 20-day moving average (MA) of 8.60, above the 50-day MA of 8.18, and above the 200-day MA of 7.31, indicating a bullish trend. The MACD of 0.13 indicates Positive momentum. The RSI at 59.24 is Neutral, neither overbought nor oversold. The STOCH value of 69.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DXT.

Dexterra Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KBL	74 Outperform	C$370.69M	20.66	9.69%	3.40%	16.35%	3.98%
GDI	73 Outperform	C$772.69M	20.01	7.93%	―	1.49%	152.09%
DXT	72 Outperform	C$542.39M	17.25	15.03%	4.02%	-10.24%	-23.79%
DCM	69 Neutral	C$99.56M	13.81	21.19%	1.39%	-5.30%	―
Sector *	66 Neutral	$4.49B	12.28	5.32%	248.53%	4.08%	-12.00%
CGY	63 Neutral	C$462.07M	10,824.32	0.01%	2.78%	3.03%	-99.78%

* Industrials Sector Average

Performance Comparison

TSE:DXT

Dexterra Group

8.73

3.51

67.24%

TSE:KBL

K-Bro Linen

35.23

4.02

12.88%

TSE:GDI

GDI Integrated

31.86

-0.20

-0.62%

TSE:DCM

Data Commun Management

1.73

-0.92

-34.72%

TSE:CGY

Calian Group

40.69

-13.01

-24.23%

Dexterra Group Corporate Events

Shareholder MeetingsFinancial Disclosures

Dexterra Group Sets Date for Q1 Results and Annual Meeting

Neutral

Apr 15, 2025

Dexterra Group Inc. has announced the release of its Q1 2025 financial results scheduled for May 6, 2025, followed by a conference call and webcast on May 7, 2025. Additionally, Dexterra will hold its Annual and Special Meeting virtually on May 7, 2025. These events are significant for stakeholders as they provide insights into the company’s financial performance and strategic direction.

Spark’s Take on TSE:DXT Stock

According to Spark, TipRanks’ AI Analyst, TSE:DXT is a Outperform.

Dexterra Group’s strong revenue growth and operational efficiency, coupled with a robust balance sheet, underpin its solid financial health. Positive earnings sentiment and market momentum contribute to a favorable outlook, while valuation concerns and potential economic risks warrant caution.

To see Spark’s full report on TSE:DXT stock, click here.

Financial Disclosures

Dexterra Group to Announce Q4 2024 Financial Results on March 6, 2025

Positive

Feb 13, 2025

Dexterra Group Inc. has announced the release of its Q4 2024 financial results scheduled for March 6, 2025, after market close, with a subsequent conference call and webcast on March 7, 2025. This announcement is significant as it reflects Dexterra’s ongoing commitment to transparency and communication with stakeholders, potentially impacting its market positioning and stakeholder relations positively.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.