Added to YB: 2026-04-23
Pitch date: 2026-04-21
DRX.TO [bullish]
ADF Group Inc.
-0.31%
current return
Author Info
Inflexio Research looks for special situation & long-term micro-cap plays in the US & Canada. Sign up for the newsletter.
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 267.0M
Pitch Price
CAD 9.66
Price Target
17.00 (+77%)
Dividend
0.43%
EV/EBITDA
5.65
P/E
10.10
EV/Sales
0.95
Sector
Metals and Mining
Category
turnaround
I recently bought $DRX.TO - ADF Group
DRX.TO: Complex steel fabricator at <4x depressed EBITDA, net cash balance sheet. Backlog doubled to $650M+. LAR acquisition adds hydro/nuclear certifications for Canada's $100B+ infra buildout (Hydro-Québec $35-45B, BC Hydro $36B, Ontario nuclear). Near-term margin hit from LAR legacy jobs (~10% vs 20%+ core) + US steel tariffs. H2 2026 inflection as $35M LAR automation completes. Target $17 (6x EBITDA on 15% margin, $500M+ rev). 2-3yr horizon.
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