Added to YB: 2026-09-15
Pitch date: 2026-09-11
DRX.TO [neutral]
ADF Group Inc.
+5.3%
current return
Author Info
No bio for this author
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 375.5M
Pitch Price
CAD 13.01
Price Target
18.10 (+38%)
Dividend
0.30%
EV/EBITDA
5.73
P/E
11.84
EV/Sales
0.94
Sector
Metals and Mining
Category
value
ADF Group: Record backlog, a well-timed Canada pivot and disciplined capital allocation create a compelling long-term opportunity - if margins recover.
DRX.TO (earnings): ADF Group’s Q2 headline growth masked deterioration: revenue rose 79% year over year to C$95.0M and backlog reached C$693.7M, but gross margin fell to 18.7% as Groupe LAR generated roughly 2% underlying gross margin while legacy ADF remained near 25%. Falling fabrication content and steel inflation pressure recovery; C$55.3M of net cash supports the hold and a C$18.10 target at 9x FY2027 EV/adjusted EBITDA, 31.6% above C$13.75.
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