Analysts rate Dye & Durham Ltd.(DND:TSX) with a Strong Buy rating and a target price of $37

by: Gillian Lawrence
Dye & Durham stock forecast

Analysts rate Dye & Durham Ltd. with a consensus Strong Buy rating and a 12-month average target price of $37.06 per share.

Based on the Dye & Durham stock forecast from 5 analysts, the average analyst target price for Dye & Durham Ltd is CAD 37.06 over the next 12 months. Dye & Durham Ltd’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Dye & Durham Ltd is Slightly Bullish , which is based on 9 positive signals and 4 negative signals. At the last closing, Dye & Durham Ltd’s stock price was CAD 13.02Dye & Durham Ltd’s stock price has changed by -2.11% over the past week, -20.37% over the past month and -69.81% over the last year.

About Dye & Durham Ltd (DND:CA:TSX)

Dye & Durham Limited, through its subsidiary, Dye & Durham Corporation, provides cloud-based software and technology solutions for legal firms, financial service institutions, and government organizations in Canada, Australia, Ireland, and the United Kingdom. It offers legal software solutions, such as due diligence, incorporation and business organization, PPSA and securities filings, litigation, and practice management solutions that automates workflow and streamlines access to public records to support end-to-end legal transactions. The company also provides investigative and compliance service, personal property security act (PPSA) service, court filing, and process serving solutions to Government. In addition, it offers a range of technology-enabled risk mitigation solutions comprising AML and KYC, lien management, financial risk management, payout exchange, and mortgage discharge solutions. The company was founded in 1874 and is headquartered in Toronto, Canada.

What we like:

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced compared to book value

The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

What we don’t like:

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector.

Disclaimer

Stock Target Advisor is not a broker/dealer, investment advisor, or platform for making stock buying or selling decisions. Our goal is to democratize and simplify financial information through automated analysis, aggregation of stock information, and education to help investors with their research. No content on our site, blogs or newsletters constitutes – or should be understood as constituting – a recommendation to enter into any securities transactions or to engage in any of the investment strategies presented in our site content. We also cannot guarantee the accuracy of any information presented on our site and in our analysis.

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