ADF Group, Inc. (DRX) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Spark Power Group, Inc.

Why is ADF Group, Inc. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 26.53

Healthy long term growth as Operating profit has grown by an annual rate 24.83%

Flat results in Apr 26

INTEREST(HY) At CAD 0.71 MM has Grown at 218.83%
ROCE(HY) Lowest at 16.31%

With ROE of 15.92%, it has a attractive valuation with a 2.18 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 77.63%, its profits have fallen by -38.1%

Market Beating performance in long term as well as near term

Along with generating 77.63% returns in the last 1 year, the stock has outperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to ADF Group, Inc. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is ADF Group, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

ADF Group, Inc.

77.63%

-0.29

66.85%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.29%

EBIT Growth (5y)

24.83%

EBIT to Interest (avg)

26.53

Debt to EBITDA (avg)

0.39

Net Debt to Equity (avg)

-0.20

Sales to Capital Employed (avg)

1.46

Tax Ratio

27.02%

Dividend Payout Ratio

4.34%

Pledged Shares

Institutional Holding

ROCE (avg)

26.33%

ROE (avg)

17.63%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.18

EV to EBIT

9.12

EV to EBITDA

7.81

EV to Capital Employed

2.35

EV to Sales

1.33

PEG Ratio

Dividend Yield

ROCE (Latest)

25.72%

ROE (Latest)

15.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -12.06% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 2.95 times

NET SALES(Q)

Highest at CAD 99.26 MM

OPERATING PROFIT(Q)

Highest at CAD 18.49 MM

PRE-TAX PROFIT(Q)

Highest at CAD 16.47 MM

NET PROFIT(Q)

Highest at CAD 12.04 MM

EPS(Q)

Highest at CAD 0.42

-10What is not working for the Company

INTEREST(HY)

At CAD 0.71 MM has Grown at 218.83%

ROCE(HY)

Lowest at 16.31%

Here's what is working for ADF Group, Inc.

Net Sales

At CAD 99.26 MM has Grown at 78.77%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CAD MM)

Net Sales

Highest at CAD 99.26 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Profit

Highest at CAD 18.49 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Pre-Tax Profit

Highest at CAD 16.47 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

Highest at CAD 12.04 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

EPS

Highest at CAD 0.42

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Debtors Turnover Ratio

Highest at 2.95 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -12.06% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at CAD 2.08 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for ADF Group, Inc.

Interest

At CAD 0.71 MM has Grown at 218.83%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)