Professional
Added to YB: 2026-04-20
Pitch date: 2026-04-16
DRX.TO [neutral]
ADF Group Inc.
-0.65%
current return
Author Info
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Company Info
ADF Group Inc. engages in the design and engineering of connections including industrial coatings in Canada and the United States.
Market Cap
CAD 305.8M
Pitch Price
CAD 9.17
Price Target
13.00 (+44%)
Dividend
N/A
EV/EBITDA
6.54
P/E
11.57
EV/Sales
1.10
Sector
Metals and Mining
Category
turnaround
ADF Group – Q4 Financials; Growing Again but Weaker Margins
DRX.TO (earnings): Q4 rev $78.8M (+2% YoY) vs est $77.5M, EBITDA $11.1M (14% margin) vs est $17.9M; FY26 rev $258.7M (-24% YoY), EBITDA $43.5M (17% margin), 14% ROE, 12% ROIC, $42M FCFF (17% yield). Record backlog $718M post-$297M new contracts. New 10% tariff on full product value impacts margins. LAR integration ongoing, $35M capex program. FY27 transitional w/ 32% rev growth, 42% EBITDA growth est; margins flat H1, improving H2/FY28. PT $13 (5.4x FY27E EBITDA, 3.7x FY28E), 41% upside.
Read full article (5 min)