Groupe Dynamite Inc. Fundamental Analysis
Groupe Dynamite Inc. (GRGD.TO) shows moderate financial fundamentals with a PE ratio of 19.31, profit margin of 19.83%, and ROE of 1.63%. The company generates $1.4B in annual revenue with strong year-over-year growth of 36.69%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze GRGD.TO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentGRGD.TO demonstrates superior asset utilization.
Valuation Score
ExcellentGRGD.TO trades at attractive valuation levels.
Growth Score
ExcellentGRGD.TO delivers strong and consistent growth momentum.
Financial Health Score
WeakGRGD.TO carries high financial risk with limited liquidity.
Profitability Score
ExcellentGRGD.TO achieves industry-leading margins.
Key Financial Metrics
Is GRGD.TO Expensive or Cheap?
P/E Ratio
GRGD.TO trades at 19.31 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, GRGD.TO's PEG of 0.20 indicates potential undervaluation.
Price to Book
The market values Groupe Dynamite Inc. at 94.09 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.31 times EBITDA. This is generally considered low.
How Well Does GRGD.TO Make Money?
Net Profit Margin
For every $100 in sales, Groupe Dynamite Inc. keeps $19.83 as profit after all expenses.
Operating Margin
Core operations generate 29.68 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.63 in profit for every $100 of shareholder equity.
ROA
Groupe Dynamite Inc. generates $34.50 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Groupe Dynamite Inc. generates strong operating cash flow of $384.73M, reflecting robust business health.
Free Cash Flow
Groupe Dynamite Inc. generates strong free cash flow of $298.27M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.75 in free cash annually.
FCF Yield
GRGD.TO converts 5.69% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.31
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.20
vs 25 benchmark
P/B Ratio
Price to book value ratio
94.09
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.82
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
9.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.62
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.63
vs 25 benchmark
ROA
Return on assets percentage
0.34
vs 25 benchmark
ROCE
Return on capital employed
0.73
vs 25 benchmark
How GRGD.TO Stacks Against Its Sector Peers
| Metric | GRGD.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.31 | 30.42 | Better (Cheaper) |
| ROE | 163.49% | 1208.00% | Weak |
| Net Margin | 19.83% | -20780.00% (disorted) | Strong |
| Debt/Equity | 9.09 | 0.39 | Weak (High Leverage) |
| Current Ratio | 0.62 | 21.63 | Weak Liquidity |
| ROA | 34.50% | -1316011.00% (disorted) | Strong |
GRGD.TO outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Groupe Dynamite Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
107.35%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
129.57%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
230.88%
Industry Style: Cyclical, Value, Infrastructure
High Growth