Professional
Added to YB: 2024-01-10
Pitch date: 2024-01-10
DRX.TO [bullish]
ADF Group Inc.
+6.43%
current return
Author Info
ToffCap are full-time fund managers finding undervalued opportunities and a reason why the price should (start to) move in the right direction. Sign up for their 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 231.9M
Pitch Price
CAD 7.34
Price Target
11.33 (+45%)
Dividend
0.48%
EV/EBITDA
3.91
P/E
6.83
EV/Sales
0.84
Sector
Metals and Mining
Category
growth
DRX.TO could have 50% upside
$DRX.TO ADF Group: Undervalued, strong growth ahead w/ infra cycle tailwinds. Peer acquired at 7.5x EBIT, implying 50% upside for DRX at >$45M EBIT run-rate. Increased efficiency + B/S improvement provides downside protection when cycle turns.
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