DRX.TO (DRX) Fair Value & Analysis
Industrials · CA · Market cap C$512M (≈ $370M) · ISIN CA00089N1033
What is DRX.TO really worth?
A solid business, trading 17% below our fair value of C$19.44.
Strengths
Risks
For context
Fair value as of: Aug 22, 2026
From 26 valuation models · updated 14 days ago
Share price +3.8% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- Solid quality (62/100) at a price below fair value, the discount is the argument here, not the business quality.
- The price sits in the lower half of our model range, the side with the larger margin of safety.
- The data supports the verdict: every model runs on fully documented inputs.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 22, 2026.
How to read this chart
60‑month range C$1.33 – C$20.30 · fair‑value band C$14.12 – C$24.30 · the C$16.10 price screens below the C$19.44 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 22, 2026.
Analysis
DRX.TO (DRX) currently trades at C$16.10, while our model-based Fair Value estimate is C$19.44, implying the stock looks roughly 17.2% undervalued today. The Quality Score stands at 62/100 (solid quality), in the Industrials sector. Bull case: the DCF Models group reads highest at a median of C$20.30 per share, and 15 of the 26 models we run sit above the C$16.10 price. Bear case: the Asset-Based group reads lowest at C$4.33, and 11 of the 26 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, DRX.TO generated revenue of C$259M at a net margin of 10.2%. Revenue grew 1.8% year over year. It earns a return on equity of 14.9%. The balance sheet holds a net cash position of C$21.1M. Fundamentals as of Aug 22, 2026
Our scenario range runs from C$14.12 (bear case) to C$24.30 (bull case); at C$16.10, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 142% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at −58% fair-value upside, at 21%, DRX screens cheaper than that median.
Fair Value models
This estimate rests on fiscal year 2026 figures, and about 7 months have passed since. In that time the company retained roughly C$0.5291 per share, which is 2.7 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.
All 26 models by family
Widest divergence: DCF Models (C$20.30) versus Dividend Discount (C$0.5000). Highest evidence: FCF DCF (77).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 22, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 64 · Market factors (momentum, volatility) 83
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
ADF Group Inc. engages in the design and engineering of connections including industrial coatings in Canada and the United States. It also fabricates and installs complex steel structures; heavy steel built up components; and miscellaneous and architectural metalwork services.
Full company description
ADF Group Inc. engages in the design and engineering of connections including industrial coatings in Canada and the United States. It also fabricates and installs complex steel structures; heavy steel built up components; and miscellaneous and architectural metalwork services. In addition, the company offers products and services for various segments of the non-residential construction industry, such as office towers and high-rises, commercial and recreational buildings, airport facilities, industrial complexes, and transport infrastructures and energy. Further, it operates in the field of machining, welding and industrial mechanics and offers design, fabrication, and installation of welded steel structures; and customized overhead crane solutions for heavy industry. It serves general contractors, project owners, engineering firms and project architects, structural steel erectors, and other steel structure fabricators. The company was formerly known as Les Entreprises El Drago Ltée and changed its name to ADF Group Inc. in August 1998. ADF Group Inc. was founded in 1956 and is headquartered in Terrebonne, Canada.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2022 – FY2026 · reported fiscal years
DRX.TO reported revenue of C$259M in FY2026 versus C$281M in FY2022, a compound −2.0%/yr. Reported net income was C$26.3M in FY2026, compounding +28.8%/yr from FY2022.
of which total revenue +14.2 % · buybacks/dilution +0.8 %
Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).
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Peer Group
Metal Fabrication · 251 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Metal Fabrication median · lower = cheaper
Strength profile in five axes (Snowflake)
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
Insider activity: 35/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Metal Fabrication stocks, each showing price versus our Fair Value estimate (as of Aug 22, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Carpenter Technology Corporation CRS | $490.58 | $101.35 | −79% |
| ATI Inc ATI | $210.76 | $35.74 | −83% |
| Mueller Industries, Inc MLI | $62.80 | $59.33 | −6% |
| Aurubis AG NDA | €178.90 | €223.43 | +25% |
| China International Marine Containers (Group) Co 000039 | ¥8.87 | ¥3.39 | −62% |
| Commercial Metals Company CMC | $68.16 | $13.01 | −81% |
| JL Mag Rare-Earth Co 300748 | ¥27.08 | ¥8.34 | −69% |
| Viohalco S.A VIO | €16.46 | €14.98 | −9% |
| ESAB Corporation ESAB | $86.05 | $52.40 | −39% |
| Ningbo Zhenyu Technology Co 300953 | ¥104.36 | ¥44.23 | −58% |
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