# ADF Group Inc. (DRX.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Industrials / Building Products. Price C$15.78, market value C$449 million.

## Valuation
- **P/E (trailing): 15.0×** (5-yr avg 6.2×, 3-yr avg 6.9×). ADF Group Inc. trades at 15.0× trailing earnings, well above its own five-year average of 6.2×: investors are paying up relative to the company's past. The Industrials median in the September 2026 study was 25.7×.
- **Price / sales: 1.5×**. Each dollar of revenue is priced at 1.5×.
- **Price / book: 2.3×**. The shares trade at 2.3× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 8.8×**. Enterprise value is 8.8× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 4.0%** (5-yr avg 1.2%). Free cash flow equals 4.0% of the market value, above its five-year average of 1.2%, so the shares are cheaper on cash than they have usually been.
- **Earnings yield: 6.7%**. The inverse of the P/E: 6.7% of the price is earned each year.

## Profitability
- **Gross margin: 23.4%**. ADF Group Inc. keeps 23.4% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 14.6%**. 14.6% of revenue is left after running the business.
- **Net margin: 10.2%**. 10.2% of each dollar of sales reaches the bottom line.
- **Return on equity: 14.3%**. 14.3% on shareholders' equity is solid.
- **Return on invested capital: 19.9%**. Return on all capital, debt included, is 19.9%: comfortably above what that capital costs.
- **Return on assets: 9.0%**. Each dollar of assets produces 9.0% of profit.

## Growth
- **Revenue growth (1 yr): -23.8%** (3-yr 1.0%/yr, 5-yr 8.4%/yr). Revenue fell 23.8% over the last year, against 8.4% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -49.5%** (3-yr 26.4%/yr, 5-yr 34.7%/yr). Earnings per share fell 49.5%, slower than revenue, so margins compressed.

## Financial health
- **Debt to equity: 0.23**. Debt is 0.23 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. ADF Group Inc. holds more cash than debt.
- **Interest coverage: 39.6×**. Operating profit covers interest 39.6× over, a safe margin.
- **Current ratio: 2.21** (quick 1.98). Current assets cover the next year's liabilities 2.21 times.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 0.25%** (C$0.04 per share, trailing). ADF Group Inc. yields 0.25%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 4%** (6% of free cash flow). 4% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 15**. 15 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 14.9%/yr** (1-yr 33.3%). The dividend has compounded at 14.9% a year over five years, doubling roughly every 5 years at that pace.
- **Shareholder yield: 1.1%**. Dividends plus net buybacks return 1.1% of the market value a year.

## Price and momentum
- **Total return (1 yr): 60.5%** (YTD 71.7%, 3-mo 48.0%). The shares are up 60.5% over twelve months including dividends.
- **From 52-week high: -14.4%** (128.7% above the low). Trading 14% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 48**. An RSI of 48 is neutral.
- **Beta (1 yr): 1.00** (volatility 60%). Beta of 1.00 against the S&P/TSX Composite: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=DRX.TO · Page: https://foliofundamentals.com/stocks/drx.to

Not investment advice.