Research from Atrium Research, Atrium Research Corporation

Atrium Research

Research from Atrium Research

Atrium Research Corporation

Atrium Research provides institutional quality issuer paid research on public equities in North America. Our investment philosophy takes a 3-5 year view on equities currently being overlooked by the market. Our research process emphasizes understanding the key performance metrics for each specific company, trustworthy management teams, unit economics, and an in-depth valuation analysis. 

Our research product includes in-depth initiation reports, research notes, thematic research pieces, and company fact sheets.

Equity Bottom-Up

<ul>
<li>ADF announced a series of new contracts totalling $90M spanning the pharmaceutical, industrial, and public infrastructure sectors.</li>
<li>This includes additional work awarded for the pharmaceutical project in the Midwest U.S. which ADF was recently awarded phase 2 for.</li>
<li>ADF will be reporting Q1/25 on June 11th, we are expecting $90.1M revenue (12% YoY), 23.5% gross margin, and $17.2M EBITDA (19% margin).</li>
</ul>


ADF announced a series of new contracts totalling $90M spanning the pharmaceutical, industrial, and public infrastructure sectors.
This includes additional work awarded for the pharmaceutical project in the Midwest U.S. which ADF was recently awarded phase 2 for.
ADF will be reporting Q1/25 on June 11th, we are expecting $90.1M revenue (12% YoY), 23.5% gross margin, and $17.2M EBITDA (19% margin).


DRX: Here We Go Again; Increasing TP on Contract Announcement

<ul>
<li>ADF Group reported Q4 &amp; FY24 financial results this morning that beat our expectations across the board.</li>
<li>For Q4, revenue came in at $88.4M (+72% YoY) vs. our estimate of $77.1M and EBITDA came in at $15.5M (+164% YoY) vs. our estimate of $13.6M.</li>
<li>FY24 marked another stellar year for ADF as it benefits from infrastructure spending across North America and the automation capex program at its Terrebonne facility.</li>
</ul>


ADF Group reported Q4 &amp; FY24 financial results this morning that beat our expectations across the board.
For Q4, revenue came in at $88.4M (+72% YoY) vs. our estimate of $77.1M and EBITDA came in at $15.5M (+164% YoY) vs. our estimate of $13.6M.
FY24 marked another stellar year for ADF as it benefits from infrastructure spending across North America and the automation capex program at its Terrebonne facility.


DRX: Another Quarter, Another Beat; Increasing Target Price

<ul>
<li>ADF Group will be reporting Q4 &amp; FY24 financial results on April 11th before market open.</li>
<li>For Q4, we are expecting revenue of $77.1M (+50% YoY), gross margin of 22% (vs.</li>
<li>18% last year), and adjusted EBITDA of $13.6M (+132% YoY).</li>
</ul>


ADF Group will be reporting Q4 &amp; FY24 financial results on April 11th before market open.
For Q4, we are expecting revenue of $77.1M (+50% YoY), gross margin of 22% (vs.
18% last year), and adjusted EBITDA of $13.6M (+132% YoY).


<ul>
<li>We are revisiting the assumptions in our model for ADF following strong industry data and positive conversations with management. </li>
<li>We are increasing our revenue and profitability estimates from Q4 onward to reflect the more bullish outlook.</li>
<li>We have increased our target multiple to 6.5x FY25 EBITDA (previously 6.0x), leading to a new $13.00/share target price (previously $10.00/share).</li>
</ul>


We are revisiting the assumptions in our model for ADF following strong industry data and positive conversations with management. 
We are increasing our revenue and profitability estimates from Q4 onward to reflect the more bullish outlook.
We have increased our target multiple to 6.5x FY25 EBITDA (previously 6.0x), leading to a new $13.00/share target price (previously $10.00/share).


DRX: Increasing Target Price on Improved Outlook

<ul>
<li>ADF reported stellar Q3 financials that largely beat our estimates. </li>
<li>Revenue came in at $82.1M (+26% YoY) vs. our estimate of $73.0M and EBITDA came in at $17.8M (+146% YoY) vs. our estimate of $7.7M.</li>
<li>This morning, ADF Group (DRX:TSX, ADFJF:OTC) reported Q3/24 financial results that largely beat our estimates across the board.</li>
</ul>


ADF reported stellar Q3 financials that largely beat our estimates. 
Revenue came in at $82.1M (+26% YoY) vs. our estimate of $73.0M and EBITDA came in at $17.8M (+146% YoY) vs. our estimate of $7.7M.
This morning, ADF Group (DRX:TSX, ADFJF:OTC) reported Q3/24 financial results that largely beat our estimates across the board.


DRX: Q3 Financials Smash Expectations; Increasing Target Price

Canada

ADF Group Inc. manufactures and erects structural steel for complex structures and miscellaneous metal work. The Company offers Standard Structural Steel, Complex Steel Structures, and Trial Assemblies. ADF Group serves clients throughout North America and Canada.

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ADF Group (DRX CN)

DRX: Here We Go Again; Increasing TP on Contract Announcement

ADF announced a series of new contracts totalling $90M spanning the pharmaceutical, industrial, and public infrastructure sectors. This includes...

Atrium Research

DRX: Another Quarter, Another Beat; Increasing Target Price

FY24 marked another stellar year for ADF as it benefits from infrastructure spending across North America and the automation capex program at its...

Atrium Research

DRX: Q4 Financials Preview

What you need to know: • ADF Group will be reporting Q4 & FY24 financial results on April 11th before market open. • For Q4, we are expecting...

Atrium Research

DRX: Increasing Target Price on Improved Outlook

We are revisiting the assumptions in our model for ADF following strong industry data and positive conversations with management.

Atrium Research

DRX: Q3 Financials Smash Expectations; Increasing Target Price

ADF reported stellar Q3 financials that largely beat our estimates. Revenue came in at $82.1M (+26% YoY) vs. our estimate of $73.0M and EBITDA...

Atrium Research

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