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Dexterra Group (TSE:DXT)
TSX:DXT
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Dexterra Group (DXT) AI Stock Analysis

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TSE:DXT

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)

Dexterra Group Business Overview & Revenue Model

Company DescriptionDexterra Group Inc. provides support services for the creation, management, and operation of infrastructure in Canada. It operates through three segments: Integrated Facilities Management; Modular Solutions; and Workforce Accommodations, Forestry and Energy Services (WAFES). The Integrated Facilities Management segment delivers operation and maintenance solutions for built assets and infrastructure in the public and private sectors, including aviation, defense, retail, healthcare, business and industry, education, rail, hotels and leisure, and government. The Modular Solutions segment designs, manufactures, transports, and installs multi-unit residential, retail, and commercial modular buildings for housing, commercial, residential, and industrial clients. The WAFES segment provides workforce accommodation, camp management, and catering services; offers tree planting and thinning services; and rents and sells office units, lavatory units, mine dry units, wellsite units, and associated equipment, as well as provides access mat rentals. The company was formerly known as Horizon North Logistics Inc. and changed its name to Dexterra Group Inc. in November 2020. Dexterra Group Inc. was founded in 1985 and is headquartered in Mississauga, Canada.
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:Aug 05, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Mar 11, 2026
Earnings Call Sentiment Positive
The earnings call highlighted Dexterra's strategic growth through significant acquisitions and strong financial performance, including a dividend increase and expanded credit facility. However, challenges such as a decrease in asset-based services revenue and a free cash flow deficit were noted.
Q2-2025 Updates
Positive Updates
Strategic Investments in the U.S.
Dexterra acquired a 40% interest in Pleasant Valley Corporation, significantly expanding its U.S. FM/IFM capability and scale, with PVC generating approximately USD 175 million in annual revenues at an 8% adjusted EBITDA margin.
Acquisition of RIGHT CHOICE Camps & Catering
Dexterra announced an agreement to acquire RIGHT CHOICE Camps & Catering, adding 2,000 beds and $75 million in annual revenues, reinforcing its leading position in the Canadian workforce accommodations market.
Dividend Increase
Dexterra's Board approved a 14% increase in the annual dividend to $0.40 per share, reflecting confidence in the company's business strength and cash flow generation.
Strong Q2 Financial Performance
Q2 2025 adjusted EBITDA was over $30 million, driven by strong camp occupancy and improved IFM margins, with a return on equity of 15%.
Increased Credit Facility
Dexterra successfully negotiated an amendment to its credit facility, increasing the available limit to $425 million, providing additional capacity and flexibility.
Negative Updates
Decrease in Asset-Based Services Revenue
The asset-based services segment saw an 18% decrease in revenue compared to Q2 2024, primarily due to a lower volume of camp mobilization and installation projects.
Free Cash Flow Deficit
Q2 2025 saw a small free cash flow deficit, similar to the same period in 2024, attributed to seasonal fluctuations in working capital.
Company Guidance
During the Dexterra Group's second quarter 2025 results conference call, management provided guidance on several key metrics and strategic initiatives. The company announced a 14% increase in its annual dividend to $0.40 per share, reflecting confidence in its financial health and robust cash flow. Dexterra also detailed two major acquisitions: a 40% interest in Pleasant Valley Corporation and the full acquisition of RIGHT CHOICE Camps & Catering. These acquisitions are expected to significantly enhance Dexterra's U.S. integrated facility management capabilities and expand its workforce accommodation services in Canada. The company reported over $30 million in adjusted EBITDA for the quarter, with a return on equity of 15%. Dexterra's net debt stood at $93 million as of June 30, 2025, up from $67.9 million at the end of 2024. The management expects the debt-to-EBITDA ratio to be below 1.75x by year-end. The company remains focused on maintaining a strong balance sheet, executing high-return capital investments, and pursuing opportunistic share buybacks under its NCIB program.

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
70
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
65
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
72
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.01B1.00B1.12B971.52M733.38M477.81M
Gross Profit174.27M160.03M141.02M90.55M110.54M98.31M
EBITDA106.46M101.90M89.75M48.75M74.02M105.70M
Net Income34.78M19.87M26.62M3.43M24.36M64.03M
Balance Sheet
Total Assets561.37M524.89M607.09M611.40M531.55M513.52M
Cash, Cash Equivalents and Short-Term Investments0.000.000.00-28.09M-25.07M-26.08M
Total Debt111.19M85.13M117.30M122.14M90.39M111.45M
Total Liabilities283.90M245.94M320.07M324.42M227.20M212.55M
Stockholders Equity276.93M278.55M286.83M286.79M304.38M299.15M
Cash Flow
Free Cash Flow54.51M40.49M59.89M56.86M56.70M67.82M
Operating Cash Flow74.38M66.92M80.55M63.99M64.49M72.81M
Investing Cash Flow27.65M6.82M-24.05M-49.84M-7.99M-2.36M
Financing Cash Flow-102.04M-73.74M-56.50M-14.15M-56.49M-73.03M

Dexterra Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price9.93
Price Trends
50DMA
9.59
Positive
100DMA
8.95
Positive
200DMA
8.21
Positive
Market Momentum
MACD
0.10
Positive
RSI
54.57
Neutral
STOCH
22.56
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 9.93 is above the 20-day moving average (MA) of 9.89, above the 50-day MA of 9.59, and above the 200-day MA of 8.21, indicating a bullish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 54.57 is Neutral, neither overbought nor oversold. The STOCH value of 22.56 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 (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
C$617.47M17.9914.80%3.52%-5.62%88.69%
66
Neutral
C$603.62M13,697.30-0.21%2.11%1.44%-103.80%
66
Neutral
C$465.41M20.668.27%3.30%17.75%7.68%
64
Neutral
$10.72B16.047.75%2.00%2.65%-15.66%
63
Neutral
C$636.40M18.157.32%-0.87%117.78%
49
Neutral
C$84.07M12.2617.74%3.29%-8.92%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:DXT
Dexterra Group
9.93
4.10
70.33%
TSE:CGY
Calian Group
53.20
10.04
23.26%
TSE:DCM
Data Commun Management
1.52
-1.11
-42.21%
TSE:GDI
GDI Integrated
27.01
-7.50
-21.73%
TSE:KBL
K-Bro Linen
36.41
3.05
9.14%

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
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Mar 28, 2025