TSE:DND

12.44
0.44 (3.42%) 1d
0

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Investor Insights

This summary was created by AI, based on 3 opinions in the last 12 months.

DND is a company with a portfolio of high-quality businesses and decent pricing power, actively repurchasing shares and implementing cost control initiatives. However, the company has a controversial business model with high leverage and potential risks associated with growth through acquisitions. The company is trading at the lower end of historical averages since going public, making it an attractive option at the current valuation.

Consensus
HOLD
Valuation
Fair Value
HOLD
Dye & Durham
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

We think DND is still a HOLD for a few reasons:

DND possesses a portfolio of high-quality businesses with decent pricing power (gross margin around 87%).
In recent quarters, management is also committed to doing share repurchases at an aggressive pace, cancelling more than 20% of total shares outstanding within one year. 
Also, cost control initiatives and a recovery in the real estate market as interest rates peak could be a near-term catalyst for the share price to gain momentum.
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Technology
BUY
Dye & Durham
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

We think DND is quite cheap given the quality of the portfolio of legal software businesses they possess strong competitive advantage positions (few competitors). The company is also actively repurchasing shares recently at an aggressive pace, and management also believes shares are significantly undervalued. However, the leverage is high.

The recent lawsuit is relatively minor, we think it is just normal business issues. On the other hand, the business model is quite controversial as DND will acquire niche legal software companies that possess strong pricing power (only one or a few providers) through a leveraged balance sheet, and raise prices to create shareholder value (the practice similar to Valeant in the past or TDG). DND did raise prices quite aggressively but we don’t think DND gouges its customers like Valeant in the past.
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Technology
BUY
Dye & Durham
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

DND is a highly volatile name, trading either up or down a lot on occasion without any significant news (none of note yesterday). Fundamentally, the company is trading at 7.1x Forward P/E. Management is aggressive in repurchasing shares, they cancelled 20% of the share outstanding within the last year. Management is implementing cost-cutting initiatives and DND expects revenue to recover when the real estate market comes back. Having said that, the leverage level is quite high, with the net debt/ EBITDA currently around 8.9x, and growth was mainly through acquisitions, which investors need to monitor as potential risks. Overall, the company is trading at the lower end of historical averages since going public. We would be comfortable adding at this valuation, but being cognizant of leverage and small cap risk. 
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Technology
DON'T BUY
Dye & Durham

Doesn't have the proven business model he's looking for.

Technology
BUY
Dye & Durham

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Management-led buyout proposal. Proposal at 7x IPO price last year. Revenue grew an impressive 300% YoY. High ROI leading to strong shareholder value. Unlock Premium - Try 5i Free

Technology
Unspecified
Dye & Durham
It has not been getting its deals done and has experienced a rapid reduction in real estate transactions. It is doing a buyback since it is probably too cheap. Be careful and if buying, buy it in a taxable account where tax losses can be claimed.
Technology
WATCH
Dye & Durham
Previously announced issuer bid to purchase up to $150M of shares. Follows it. Pretty competitive market. Tough year, especially as SaaS. Many SaaS business models were very leveraged. (Analysts’ price target is $28.00)
Technology
HOLD
Dye & Durham
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Dye & Durham Ltd (DND) stock was down 26.2% on the month and 69.63% YTD. It is a leading provider of cloud-based software and technology solutions to improve efficiency and productivity for legal and business professionals. There have been no earnings announcements since May 12th and so the movement in the share price in August is due to the collective views of the shareholders. We need to await evidence that management has got its expenses under better control before the stock price will get on a rising trajectory.
Technology
PARTIAL BUY
Dye & Durham
Has owned shares in the past, but not at the moment. Is a good bet on the rebound of the economy (if you believe economy is going to rebound).
Technology
BUY
Dye & Durham

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Market sentiment continues to be weak. There has been a trend of many high growth names guiding for lower growth resulting in a massive drop in shares. At 6.8x earnings, it is very cheap. The risks are more than priced in at this point. Would be very comfortable at these levels with a 5 year+ time horizon. Unlock Premium - Try 5i Free

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It's a Monthly Gems opinion which is available only for Premium members

Curated by Allan Tong since 2019.
99+ opinions with 4.15 rating.

TOP PICK
Dye & Durham

A Toronto law firm has just slapped D&D with a $200-million class-action lawsuit. Lawyers hate this “disgusting” company for pumping up the cost of legal software. Now, I don't expect investors to shed a tear for lawyers. Regardless, D&D controls so much of this industry that they exercise uber pricing power. Perhaps too much, and that has thrown them in legal hot water that could hit their bottom line.

Technology
BUY
Dye & Durham

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Management is confident they can meet targets, including higher prices. There is little concern for negative media attention. Shares are down after a large sell-off in tech in general. The risks are most likely priced in already. Unlock Premium - Try 5i Free

Technology
BUY
Dye & Durham

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They have recently processed a large acquisition and increased prices to customers. Management is motivated to deliver shareholder value. Debt is rising, which is a main concern. Management has done a good job. Unlock Premium - Try 5i Free

Technology
PAST TOP PICK
Dye & Durham
(A Top Pick Dec 08/20, Up 28%) Rocky road this past year when plan to go private was scrapped. Favourable recent acquisition has boosted the price. Strong product. A monopoly. He recently added.
Technology
WATCH
Dye & Durham
Is an attractive sector (software), however, caution on buying as strategic plan is flawed. Concerns on IPO and privatization plans.
Technology
Showing 1 to 15 of 30 entries

Dye & Durham(DND-T) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 2

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 3

Stockchase rating for Dye & Durham is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Dye & Durham(DND-T) Frequently Asked Questions

What is Dye & Durham stock symbol?

Dye & Durham is a Canadian stock, trading under the symbol DND-T on the Toronto Stock Exchange (DND-CT). It is usually referred to as TSX:DND or DND-T

Is Dye & Durham a buy or a sell?

In the last year, 3 stock analysts published opinions about DND-T. 2 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Dye & Durham.

Is Dye & Durham a good investment or a top pick?

Dye & Durham was recommended as a Top Pick by on . Read the latest stock experts ratings for Dye & Durham.

Why is Dye & Durham stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Dye & Durham worth watching?

3 stock analysts on Stockchase covered Dye & Durham In the last year. It is a trending stock that is worth watching.

What is Dye & Durham stock price?

On 2024-05-29, Dye & Durham (DND-T) stock closed at a price of $12.44.