Dye & Durham Ltd
TSX:DND
Intrinsic Value
Dye & Durham Ltd. engages in the development of software solutions for business law and real estate conveyancing. [ Read More ]
The intrinsic value of one DND stock under the Base Case scenario is 22.58 CAD. Compared to the current market price of 15.72 CAD, Dye & Durham Ltd is Undervalued by 30%.
Valuation Backtest
Dye & Durham Ltd
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Fundamental Analysis
Revenue and EBITDA Growth with Debt Reduction Focus
2024-Q2 Earnings Call
In a recent quarter, the company achieved 17% YoY revenue growth, reaching $110 million, albeit 3% growth when factoring in the TM Group sale. Adjusted EBITDA rose by 9% to $60 million, with margins a healthy 54.5%. Operating costs are projected to be 40-50% of revenues, indicating efficiency gains. Debt reduction is a priority, with net debt at $1.05 billion, and actions are in place to bring the net debt to adjusted EBITDA ratio below 4x. Meanwhile, annual contracted revenue (ACR) grew by 49%. The company is committed to growing ARR by 15% over the next 2.5 years, and has set ACR to outpace ARR.
Balance Sheet Decomposition
Dye & Durham Ltd
Current Assets | 127.1m |
Cash & Short-Term Investments | 20.5m |
Receivables | 94.6m |
Other Current Assets | 12m |
Non-Current Assets | 1.9B |
PP&E | 17.7m |
Intangibles | 1.9B |
Other Non-Current Assets | 15.1m |
Current Liabilities | 150.7m |
Accounts Payable | 112.5m |
Other Current Liabilities | 38.2m |
Non-Current Liabilities | 1.5B |
Long-Term Debt | 1.3B |
Other Non-Current Liabilities | 204.3m |
Earnings Waterfall
Dye & Durham Ltd
Revenue
|
451.1m
CAD
|
Cost of Revenue
|
-47.2m
CAD
|
Gross Profit
|
403.9m
CAD
|
Operating Expenses
|
-335.9m
CAD
|
Operating Income
|
68m
CAD
|
Other Expenses
|
-240.7m
CAD
|
Net Income
|
-172.7m
CAD
|
Free Cash Flow Analysis
Dye & Durham Ltd
What is Free Cash Flow?
DND Profitability Score
Profitability Due Diligence
Dye & Durham Ltd's profitability score is 50/100. The higher the profitability score, the more profitable the company is.
Score
Dye & Durham Ltd's profitability score is 50/100. The higher the profitability score, the more profitable the company is.
DND Solvency Score
Solvency Due Diligence
Dye & Durham Ltd's solvency score is 18/100. The higher the solvency score, the more solvent the company is.
Score
Dye & Durham Ltd's solvency score is 18/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
DND Price Targets Summary
Dye & Durham Ltd
According to Wall Street analysts, the average 1-year price target for DND is 21.59 CAD with a low forecast of 16.16 CAD and a high forecast of 26.25 CAD.
Shareholder Return
DND Price
Dye & Durham Ltd
Average Annual Return | 51.32% |
Standard Deviation of Annual Returns | 152.1% |
Max Drawdown | -85% |
Market Capitalization | 1.1B CAD |
Shares Outstanding | 66 864 700 |
Percentage of Shares Shorted | 2.17% |
Company Profile
Country
Industry
Market Cap
Dividend Yield
Description
Dye & Durham Ltd. engages in the development of software solutions for business law and real estate conveyancing. The company is headquartered in Toronto, Ontario and currently employs 1,501 full-time employees. The company went IPO on 2020-07-17. The firm provides critical workflow software and information services, which clients use to manage their process information and regulatory requirements. Its legal software automates workflow and streamlines access to public records to support end-to-end legal transactions-solutions range from due diligence searches on an acquisition or financing to corporate registrations and the automation of all documents required to complete a real estate purchase, sale and mortgage. The company provides government agencies with searches on corporations and individuals to facilitate investigations and compliance reviews. The company offers financial institutions a range of technology-enabled risk mitigation solutions focused on challenges related to anti-money launderings/know-your-customer and lien management. The company serves over 50,000 legal firms, financial service institutions and government organizations.
Contact
IPO
Employees
Officers
The intrinsic value of one DND stock under the Base Case scenario is 22.58 CAD.
Compared to the current market price of 15.72 CAD, Dye & Durham Ltd is Undervalued by 30%.