Up Nearly 200% Over the Past 7 Months, Can This Top TSX Stock Continue its Run?

Cindy Dye
·3 min read
stocks rising

Dye & Durham (TSX:DND) has been trading on the TSX for just over seven months, but the stock has already rewarded investors with gains of nearly 200%.

Can this stock continue its massive run?

Dye & Durham

With key markets in Canada, the United Kingdom, and Australia, Dye & Durham provides cloud-based software and technology solutions designed to improve efficiency and increase productivity.

The company primarily serves the legal and business professions, and its customers include many well-known blue-chip firms. Dye & Durham provides critical information services and workflows, which clients use to manage their process, information, and regulatory requirements.

Dye & Durham boasts over 25,000 active customers, with no single customer accounting for more than 2% of its total revenues. This highly diversified customer base with long-term contracts and high retention rate helped the company recently deliver strong second-quarter results.

Strong quarterly results

In announcing the company’s recent second-quarter results, CEO Matt Proud said, “The company’s strong second quarter results reflect the successful execution of our business strategy over the period, highlighting our ability to achieve our stated goals. As we have an established platform and financial scale now in our key markets, the opportunities in our pipeline are becoming more sizeable as we look to acquire strategic vertical assets.”

Compared to the same period last year, Dye & Durham generated revenues of $33.7 million and adjusted EBITDA of $17.1 million, representing growth of 96% for both.

Dye & Durham’s decrease in net income (which totaled $21.5 million), was attributable to its non-cash stock-based compensation expense of $20.3 million.

The company’s market capitalization increased by a whopping $1.8 billion during the quarter. Currently, the market cap is nearly $2.7 billion, with the stock trading at $42.57 as of this writing.

Aggressive acquisition strategy

As Proud noted, Dye & Durham has an aggressive acquisition strategy.

For the quarter, Dye & Durham spent approximately $630 million on strategic acquisitions. The company finalized equity financings of approximately $430 million and secured debt facilities of $570 million.

Earlier this month, Dye & Durham entered an agreement to acquire GlobalX Information Pty Ltd. for approximately $166 million. The deal is expected to close by June 30, 2021. GlobalX is one of Australia’s most successful technology companies with operations across Australia and the United Kingdom. The company focuses on integrated services and software solutions for law firms, financial institutions, property planning professionals, and government bodies.

The bottom line

Management at Dye & Durham forecasts that by June 30, 2022, adjusted EBITDA will grow to over $200 million, and revenue will grow to approximately $340 million. This projected growth translates to its adjusted EBITDA to more than double in FY21 and jump over 150% in FY22.

Certainly, shares of Dye & Durham have shown some volatility since they began trading on the TSX in the summer of 2020. However, if you can handle short-term volatility, consider Dye & Durham for its long-term potential growth.

With the company’s impressive financial quarterly report, strong customer base, management’s rosy outlook, and its continued acquisition strategy, Dye & Durham has definite long-term growth potential.

The post Up Nearly 200% Over the Past 7 Months, Can This Top TSX Stock Continue its Run? appeared first on The Motley Fool Canada.

More reading

Fool contributor Cindy Dye has no position in any of the stocks mentioned.

The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Motley Fool Canada 2021

  • Up next
  • Up next
  • Up next
  • Up next

Latest Stories

  • US House pushes ahead with $95bn foreign aid package for Ukraine, Israel and Taiwan

    Coalition of lawmakers helped legislation clear procedural hurdle to reach final votes, following opposition from rightwing Republicans

  • Who was Clara Bow? The original 'it girl' who inspired Taylor Swift's new song

    Taylor Swift's latest album has been out for less than a day - but fans and critics alike are already deep into decoding the meaning of her somewhat cryptic lyrics. The pop icon's mammoth project, The Tortured Poets Department, ended up being a secret double album, with the first part ending on a track simply titled Clara Bow. American actress Clara Bow was one of the most successful film stars of the silent era and became the original "it girl" after starring in the 1927 hit film, It.

  • What's Ryan Garcia really selling us with his erratic behavior ahead of his fight vs. Devin Haney?

    The central question clouding Ryan Garcia's fight with Devin Haney is whether Garcia should really be put into a professional boxing match right now?

  • Muted Iranian reaction to attack provides short-term wins for Netanyahu

    Israeli prime minister’s main concern is his political survival but a multi-front war is still a strong possibility

  • Mounties awarded 8 per cent salary increase over 2 years

    Unionized RCMP officers are set to get a raise.An arbitration decision this week awards an eight per cent increase over two years. The decision awards a four per cent increase retroactive to April 1, 2023, and another four per cent as of April 1 this year. The increase will affect about 20,000 RCMP members across the country from constable to staff sergeant major represented by the National Police Federation.Martin Potvin, a spokesperson for the Treasury Board of Canada Secretariat, said in an e

  • Equities platform Midas raises $45M Series A as fintech retains its sparkle in Turkey

    Midas, a fintech startup that allows people in Turkey to invest in U.S. and Turkish equities, says it has raised $45 million in a funding round led by Portage Ventures of Canada. The startup is aimed at Turkey’s retail investor market and claims to have more than 2 million users.

  • Caitlin Clark's WNBA salary showcases wage gap in pro sports

    The University of Iowa college basketball star Caitlin Clark entered the WNBA draft and was picked up as the number one overall pick by the Indiana Fever. Clark led the Iowa Hawkeyes through the March Madness tournament all the way to the finals, ultimately losing to South Carolina. Clark's rookie contract of $338,056 over the next four years further illustrates the monumental pay disparities between men's and women's professional sports. Yahoo Finance's Seana Smith joins Wealth! to compare Clark's rookie compensation package with that of her male counterparts, including the number one NBA draft pick Victor Wembanyama who will be paid a whopping $12 million for his first year in the league. For more expert insight and the latest market action, click here to watch this full episode of Wealth! This post was written by Luke Carberry Mogan.

  • Oil prices have muted reaction to Israel, Iran conflict

    Oil prices (BZ=F, CL=F) are on the move on Friday after Israel launched a retaliatory strike against Iran. In addition, national gas prices have begun to move higher with northeastern states potentially feeling more pain at the pump due to late adaptation of summer-blend gas. Yahoo Finance Reporter Ines Ferré joins Wealth! to break down the price movements in oil and what consumers can expect moving forward. For more expert insight and the latest market action, click here to watch this full episode of Wealth! This post was written by Nicholas Jacobino

  • The Magic has only begun

    Two world-renowned Vegas magicians; Sean Watson and Chanelle Munroe recently gave Thompson a glimpse of their illusionist performance. They held a teaser show for the community's council and leaders to excite their taste for more on a much bigger scale. With just a few tricks pulled out of the hat, their showmanship made us all scratch our heads, giving the highest quality of stage presence and sleight of hand. Anticipation has been building up the last few weeks as Sean and Chanelle plan to do

  • Grey Highlands Council Digest

    Grey Highlands council received review of its new waste cart system, looks at year-end financials and chooses a representative for the Rotary Park committee. EUGENIA & DISTRICT CIA The minutes for Eugenia and District Community Improvement Association came to council. These noted that weather interfered with skating this winter, although the rink was used for a few weeks. The date for the Gold Rush celebration is Saturday, June 22. Plans are to have a scaled-down event due to less money being av

  • New technology featured in better learning

    The University College of the North (UCN) has entered into a partnership with Georgian College in Barrie, Ontario, to bring interactive teaching tools to UCN's Centre for Aboriginal Languages and Culture. The initiative dubbed the "XR Project," aims to provide context-based language learning for Indigenous and non-Indigenous people in Northern Manitoba. The "XR" in "XR Project" stands for virtual, hybrid, and augmented reality technology, which will enable UCN to leverage the latest teaching too

  • What Makes Airbnb (ABNB) a Potential Investment?

    Polen Capital, an investment management company, released its “Polen Global Growth Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the first quarter, the fund increased 8.10% gross and 7.81% net, respectively, trailing the MSCI ACW Index’s 8.20% return. The market dynamics that were in place at the end […]

  • Bomb threat evacuates Louisville zoo

    The zoo has been given the all-clear after police said it appears to be a ‘false call’

  • Deb Haaland makes milestone signing for Placitas

    Deb Haaland makes milestone signing for Placitas

  • Boynton Beach Firefighters Fishing Tournament and Chili Cook-off

    Boynton Beach Firefighters Fishing Tournament and Chili Cook-off

  • Stock market today: Wall Street stumbles toward its longest weekly losing streak since September

    NEW YORK (AP) — Wall Street is stumbling to close out its latest losing week. U.S. stocks fell after oil prices briefly surged overnight on worries about fighting in the Middle East. The S&P 500 was 0.7% lower in afternoon trading and on track for its third straight losing week. That would be its longest such streak since September, before it broke out into a record-setting romp. The Dow Jones Industrial Average was up 125 points, or 0.3%, as of 12:46 p.m. Eastern time, and the Nasdaq composite

  • Emma Raducanu vs Iga Swiatek LIVE: Updates and scores from Tennis Grand Prix quarter-finals in Stuttgart

    The 21-year-old Brit has returned to form but now faces the world No1 in the last eight of the Porsche Grand Prix

  • Stock Market Today: Dow Jones Holds Up, Techs Slammed After Israel Strike; Supermicro Flashes Sell Signal

    Super Micro Computer flashed a sell signal in the stock market today after the AI bellwether crashed through a key support level.

  • This versatile Amazon maxi dress is a 'must buy' for summer — and it's under $65

    Amazon shoppers call this 100 per cent cotton dress “a total win" that you can dress up or down.

  • Caviar, champagne, and IPOs: At the Jefferies Private Internet Conference, tech dealmaking was back

    Jefferies resumed this conference in 2022 but there was not much to talk about in the way of actual deals. Now the logjam is finally breaking.