ADF Group Inc T.DRX

Alternate Symbol(s): ADFJF

Steel Steel

ADF Group Inc. is a Canada-based company. The Company is engaged in the design and engineering of connections, fabrication, including the application of industrial coatings, and installation of complex steel structures, heavy steel-built ups, as well as in miscellaneous and architectural metals for the non-residential infrastructure sector. Its products and services are intended for the five principal segments of the non-residential construction industry: office towers and high-rises, commercial and recreational buildings, airport facilities, industrial complexes, and transport infrastructure. The Company operates two fabrication plants and two paint shops, in Canada and in the United States, and a Construction Division in the United States, which specializes in the installation of steel structures and other related products. It has the capacity to manufacture approximately 125,000 tons of structural steel annually.

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ADF Group Inc

Bullboard Posts

Comment by Bookendson Dec 09, 2020 12:51pm

161 Views

Post# 32068362

RE:RE: True Value not reflected in the SP

I'd be curious for you to include a few things in that table...

Price to sales
Price to operating cash flow
Price to free cash flow
...

For Doubling the dividend, I think they should just run a SCIB or a NCIB and try to grab shares until they get to Book value, then they could play with the dividend. Or even just use that nice balance sheet and make an acquisition. Something to bring reliability to their free cash flows.

nozzpack wrote: Exactly

Here is a comparison with BDT Construction..

BDT DRX

Price to Book 1.98 0.6
P/E 13.3 4.5
Ebitda Margin 4.2 % 9.3 %
Net Margin 1.73 % 5.3 %
Net Debt $60 m $5 m
Dividend 3.25 cents 2 cents

These financial metrics, in their composite, indicate a fair value close to $4 per share.

Doubling the dividend to 4 cents per share should get us very close to BDT valuations