ADF Group

DRX.TO

Manufacturing - Metal Fabrication · Industrials

Price

C$16.35

-0.01 (-0.06%)

Market Cap

C$466.8M

Exchange

Toronto Stock Exchange

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Apr 30, 2026

How the score breaks down

Quality

Good

Growth

Mixed

Cash Flow

Good

Stability

Exceptional

Valuation

Strong

Dividends

Good

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Share count falling — buybacks

−12.9% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 32.6M (2022) → 28.4M (2026)

Winston Score History

The full picture

ADF Group is a Canadian company that designs and builds large steel structures used in construction projects. Its main products include structural steel frameworks, architectural metalwork, and complex steel connections used in skyscrapers, stadiums, bridges, and industrial facilities. The company serves general contractors and large construction firms, primarily on major commercial and infrastructure projects across North America.

ADF makes money by winning contracts to fabricate and sometimes install these steel structures, so revenue comes project by project rather than through subscriptions or recurring sales. The company is headquartered in Terrebonne, Quebec, and does most of its business in Canada and the United States, with a strong focus on large, complex projects that smaller fabricators cannot handle — that specialization is its main competitive edge. Because ADF depends on winning new contracts continuously, its biggest risk is a slowdown in commercial construction spending, which can dry up quickly when interest rates rise or the economy weakens.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+78.8% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+40.0% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

C$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

10.4%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

C$62M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

ADF Group grew revenue 79% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

23.8%

Thin — 23.8% gross margin

Profit after running costs

Operating Margin

16.5%

Healthy — 16.5% operating margin

Return on the money invested

ROCE

19.0%

Strong — 19.0% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth

Sales YoY

+5.1%

Slow sales growth (+5.1% YoY)

Profit growth

EPS YoY

-28.0%

Earnings shrinking (-28.0% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

110%

Turns 110% of profit into real cash

Spare cash per sale

FCF Margin

5.9%

Thin free cash flow (5.9%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

0.19

Conservative — low debt load (0.19)

Covers its interest

Interest Cover

39.56x

Comfortably covers interest (39.6x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

13.6x

Attractive valuation — P/E 13.6

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year

P/E vs Forward

+4.0

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (13.6 → 9.6)

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Dividends

Dividend

Dividend Yield

0.24%

Small dividend — 0.24% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

+100.0%

Dividend growing fast (100.0% YoY)

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