Education
About Us
Working with TipRanks
Follow Us
Dexterra Group (TSE:DXT)
TSX:DXT
Top Page
Dexterra Group
(TSX:DXT)
63Neutral
Dexterra Group (DXT) vs. S&P 500 (SPY)
Market Cap
C$448.99M
Dividend Yield4.85%
Average Volume (3M)38.73K
Price to Earnings (P/E)23.2
Beta (1Y)0.53
Revenue Growth-10.24%
EPS Growth-23.79%
CountryCA
Employees8,597
SectorIndustrials
Sector Strength72
IndustryCorporate Services
Share Statistics
EPS (TTM)0.31
Shares Outstanding62,795,464
10 Day Avg. Volume58,220
30 Day Avg. Volume38,734
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.45
Price to Cash Flow (P/CF)27.40
P/FCF Ratio82.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$11.75Price Target Upside64.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Dexterra Group Business Overview & Revenue Model
Company DescriptionDexterra Group is a publicly listed corporation (TSX: DXT.TO) delivering a range of support services for the creation, management, and operation of infrastructure across Canada. Powered by people, Dexterra Group brings best-in-class regional expertise to every challenge and delivers innovative solutions, giving clients confidence in their day-to-day operations. Activities include a comprehensive range of facilities management services, industry leading workforce accommodation solutions, innovative modular building capabilities, and other support services for diverse clients in the public and private sectors.
How the Company Makes MoneyDexterra Group generates revenue through its comprehensive suite of services offered across its three main business segments. In Facilities Management, the company earns money by providing integrated services including cleaning, maintenance, and property management to a variety of clients. In the Workforce Accommodations segment, Dexterra offers remote workforce accommodations and related services, earning revenue from long-term contracts with companies in resource-rich areas requiring on-site employee housing. The Modular Solutions segment contributes to revenue through the design, manufacturing, and installation of modular buildings used for various purposes, including offices, schools, and residential units. Key revenue streams include long-term contracts, service agreements, and project-based engagements. The company's strategic partnerships with industries in sectors such as oil and gas, government, and commercial enterprises also play a significant role in its earnings.
Dexterra Group Financial Statement Overview
Summary
Dexterra Group demonstrates strong revenue growth and operational efficiency, with improved margins and a stable balance sheet. However, the recent decline in net income and challenges in free cash flow growth warrant monitoring.Income Statement
Dexterra Group has shown a consistent revenue growth trajectory from 2019 to 2023, although there was a decline in 2024. The gross profit margin and net profit margin have generally been positive, with gross profit margin remaining strong despite fluctuations in revenue. The EBIT and EBITDA margins have improved over time, indicating operational efficiency. However, the recent decline in net income points to potential profitability challenges.70
Positive
Balance Sheet
The balance sheet reflects a moderate debt-to-equity ratio, suggesting manageable leverage. The return on equity has been positive but shows volatility over the years. The equity ratio indicates a solid foundation of stockholders' equity relative to total assets, contributing to financial stability, although the decrease in stockholders' equity in 2024 warrants attention.65
Positive
Cash Flow
The cash flow statement reveals a strong operating cash flow relative to net income, suggesting efficient cash generation from operations. The free cash flow has been positive, despite fluctuations in capital expenditures. Recent declines in free cash flow growth rate may indicate pressures on cash flow generation capabilities.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.00B | 1.12B | 971.52M | 733.38M | 477.81M | Gross Profit |
| 160.03M | 141.97M | 90.55M | 110.54M | 98.31M | EBIT |
| 67.10M | 47.55M | 10.15M | 35.95M | 50.75M | EBITDA |
| 101.90M | 89.75M | 48.75M | 74.02M | 105.70M | Net Income Common Stockholders |
| 19.87M | 26.62M | 3.43M | 24.36M | 64.03M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 0.00 | 0.00 | -28.09M | -25.07M | -26.08M | Total Assets |
| 524.89M | 607.09M | 611.40M | 531.55M | 513.52M | Total Debt |
| 85.13M | 117.30M | 122.14M | 90.39M | 111.45M | Net Debt |
| 85.13M | 117.30M | 150.23M | 115.46M | 137.53M | Total Liabilities |
| 245.94M | 320.07M | 324.42M | 227.20M | 212.55M | Stockholders Equity |
| 278.55M | 286.83M | 286.79M | 304.38M | 299.15M |
| Cash Flow | Free Cash Flow | |||
| 40.49M | 59.89M | 56.86M | 56.70M | 67.82M | Operating Cash Flow |
| 66.92M | 80.55M | 63.99M | 64.49M | 72.81M | Investing Cash Flow |
| 6.82M | -24.05M | -49.84M | -7.99M | -2.36M | Financing Cash Flow |
| -73.74M | -56.50M | -14.15M | -56.49M | -73.03M |
Dexterra Group Technical Analysis
Negative
7.15
Price Trends
7.86
Negative
7.34
Negative
6.57
Positive
Market Momentum
-0.17
Positive
27.72
Positive
8.61
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DXT, the sentiment is Negative. The current price of 7.15 is below the 20-day moving average (MA) of 7.81, below the 50-day MA of 7.86, and above the 200-day MA of 6.57, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 27.72 is Positive, neither overbought nor oversold. The STOCH value of 8.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:DXT.
Dexterra Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | C$758.76M | 23.67 | 6.73% | ― | 4.84% | 67.68% | |
63 Neutral | C$448.99M | 23.23 | 13.20% | 4.85% | -10.24% | -23.79% | |
62 Neutral | $8.16B | 12.85 | 0.64% | 3.04% | 3.83% | -15.83% | |
61 Neutral | C$1.92B | 22.99 | 9.36% | 1.71% | 2.49% | -22.94% | |
51 Neutral | C$1.13B | ― | -5.87% | 4.21% | -8.64% | -136.62% |
* Industrials Sector Average
Performance Comparison
TSE:DXT
Dexterra Group
7.15
1.95
37.50%
BTE
Baytex Energy
2.03
-1.17
-36.56%
BIREF
Birchcliff Energy
3.52
-0.30
-7.85%
TSE:ARE
Aecon Group Inc.
18.05
2.54
16.38%
TSE:GDI
GDI Integrated
32.22
-6.08
-15.87%
TSE:RCH
Richelieu Hardware
34.79
-8.04
-18.77%
Dexterra Group Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: -4.41% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive sentiment with strong financial performance in 2024, particularly in the Support Services segment, and a robust balance sheet. However, there were challenges in the Asset Based Services segment due to normalized wildfire activity and potential economic risks from trade policies.Highlights
Record Revenue and EBITDA
Dexterra Group ended 2024 with record revenue from continuing operations of $1 billion and adjusted EBITDA of $107 million.
Support Services Segment Growth
Q4 2024 saw strong year-over-year revenue growth in Support Services of over 18%, driven by the acquisition of CMI and organic growth, with adjusted EBITDA margin improving to 8.8% from 7% in Q4 2023.
Shareholder Returns
Return on equity in 2024 was 13.3%, with $30 million or about 40% of free cash flow returned to shareholders through dividends and share buybacks.
Strong Balance Sheet
Net debt was reduced to 0.6 times adjusted EBITDA or $68 million at the end of 2024, indicating strong financial management and flexibility for future investments.
Positive Market Outlook
Strong activity levels across the natural resources market, including energy and mining, are expected to continue into 2025.
Lowlights
Asset Based Services Revenue Decline
For 2024, Asset Based Services revenues and adjusted EBITDA were lower compared to 2023 due to a more normalized wildfire season, with adjusted EBITDA margin for the year at 29.3% compared to 36.7% in 2023.
Potential Economic Risks
The possibility of increased protectionist trade and other policies pose risks to both the Canadian and U.S. economies, which could impact Dexterra's operations.
Wide Range in Asset Based Services Margins
Adjusted EBITDA margins in Asset Based Services are expected to fluctuate between 30% to 40% depending on business mix, highlighting variability in profitability.
Company Guidance
During the Dexterra Group's Fourth Quarter 2024 Results Conference Call, the company provided guidance indicating strong financial performance for the year. Dexterra reported record revenue from continuing operations of $1 billion and adjusted EBITDA of $107 million for 2024. The company achieved a return on equity of 13.3% and returned $30 million to shareholders through dividends and share buybacks, with a total dividend of $0.35 per share for the year. In the fourth quarter alone, revenue growth was over 7%, with adjusted EBITDA reaching $26.6 million, a rise from $23.6 million in the previous year. Dexterra completed a re-segmentation into two business segments: Support Services and Asset Based Services, which reported adjusted EBITDA margins of 8.8% and 33.7%, respectively, in Q4. The company maintains a strong balance sheet with net debt at 0.6 times adjusted EBITDA, providing significant financial flexibility. The guidance for 2025 includes an expected organic growth rate of 5% to 7% in Support Services and 2% to 5% in Asset Based Services, with adjusted EBITDA conversion to free cash flow anticipated to remain above 50%.Dexterra Group Corporate Events
Financial Disclosures
Dexterra Group to Announce Q4 2024 Financial Results on March 6, 2025
Positive
Feb 13, 2025
Dexterra Group Inc. has announced the release of its Q4 2024 financial results scheduled for March 6, 2025, after market close, with a subsequent conference call and webcast on March 7, 2025. This announcement is significant as it reflects Dexterra’s ongoing commitment to transparency and communication with stakeholders, potentially impacting its market positioning and stakeholder relations positively.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.