a person watches a downward arrow crash through the floor© Provided by The Motley Fool
What happened?
Shares of Dye & Durham (TSX:DND) have consistently been trading on a negative note for the last four months now. In the third quarter of the calendar year 2022, DND stock has tanked by nearly 42% so far, taking its year-to-date losses to a massive 72%. By comparison, the TSX Composite benchmark has seen a 12.9% value erosion in the ongoing year.
So what?
Dye & Durham is a Toronto-headquartered software firm with a market cap of about $875.4 million. The company primarily focuses on providing cloud-based software solutions to help legal and business professionals automate workflow and streamline access to public records to support end-to-end legal and real estate transactions. While the company generates most of its revenue from its home market, the United Kingdom and Australia accounted for nearly 28% and 11% of its fiscal year 2021 revenue, respectively.
Now what?
Its noteworthy that Dye & Durham, being a growth company, is focused on new global acquisitions in the software industry to accelerate its financial growth and expand its client base. For example, its total revenue rose 78% year over year in the March quarter to $54 million due mainly to the realization of revenue synergies from its recent acquisitions.
It recently faced a setback after the Australian software giant Link Group terminated discussions regarding Dye & Durhams acquisition proposal. Nonetheless, the Canadian companys management plans to remain focused on quality acquisition deals in the future to accelerate its financial growth and deliver value to its shareholders.
While ongoing real estate industry challenges are likely to affect Dye & Durhams financial growth in the coming quarters, its long-term fundamentals remain strong — with continued demand for its software solutions and its focus on new acquisitions. Given that, DND stock could be worth considering for long-term investors when its down more than 70% year to date.
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