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ADENTRA (ADEN) AI Stock Analysis
ADENTRA
(TSX:ADEN)
The score is driven primarily by steady financial quality supported by cash generation and manageable (improving) leverage, though tempered by a sharp TTM revenue decline and lower profitability versus prior peak years. Technicals are constructive with the stock above key moving averages and positive MACD, while valuation is favorable at a low P/E with a modest dividend. The latest earnings call reinforced cautious but positive execution (pricing, margin, EPS growth) alongside ongoing volume and tariff-related risks.
ADENTRA (ADEN) vs. iShares MSCI Canada ETF (EWC)
- Market Cap
- CAD 602.26M
- Dividend Yield
- 1.80%
- Average Volume (3M)
- 43.26K
- Price to Earnings (P/E)
- 9.1
- Beta (1Y)
- 1.27
- Revenue Growth
- 0.83%
- EPS Growth
- 54.74%
- Country
- Canada
- Employees
- 2,940
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Industrial - Distribution
ADENTRA Business Overview & Revenue Model
Company Description
ADENTRA Inc. engages in the wholesale distribution of architectural building products to the residential, repair and remodel, and commercial construction markets in Canada and the United States. It offers doors, decorative surfaces, mouldings, stair...
How the Company Makes Money
ADENTRA makes money primarily by distributing building materials and earning a gross margin (the spread between its purchase cost from manufacturers and its selling price to customers) on product sales. Its key revenue stream is the sale of building...
ADENTRA Earnings Call Summary
The call highlighted multiple financial and operational positives: revenue growth driven by pricing, gross margin expansion, positive operating leverage, mid-single-digit adjusted EBITDA growth, double-digit adjusted EPS growth, a strong balance sheet (2.5x leverage), active capital returns and an accretive tuck-in acquisition. Key risks discussed include persistent macro uncertainty, a modest volume decline, a dynamic tariff environment (and a nonrecurring $7.5M tariff recovery), seasonal working capital build and potential margin variability. On balance the company emphasized durable execution, strategic investments in digital and supply-chain diversification, and financial flexibility to pursue M&A, which collectively outweigh the near-term demand and trade-related headwinds.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
The company gave cautious near‑term guidance rather than formal numeric targets, emphasizing disciplined execution on pricing, costs, purchasing and inventory while advancing AI/digital initiatives, supply‑chain diversification and M&A: they reiterated low single‑digit organic growth in a soft market (Q2 sales were $607.1M, +1.7% year‑over‑year), noted pricing up 2.9% offsetting volume down 1.2%, gross margin of 22% (≈+20 bps), adjusted EBITDA of $57.7M (+6.2%) and a 9.5% adjusted EBITDA margin (+40 bps), adjusted basic EPS $0.98 (+11.4%), H1 sales $1.17B (+2.6%, volumes +0.6%), operating cash flow before working capital $55.7M, leverage 2.5x and ~$5.6M returned to shareholders in the quarter; they completed the tuck‑in Mount Storm deal (~$20M annualized sales, immediately accretive with synergies realized over 4–6 quarters), plan $50–150M of annual acquisition investment, have e‑commerce representing ~20% of sales, and flagged that ~30% of U.S. sales are imported subject to tariffs (roughly 10–12.5%), all while stressing balance‑sheet flexibility to invest, return capital and pursue disciplined, accretive transactions.
ADENTRA Financial Statement Overview
Summary
Steady-to-moderate fundamentals: profitability remains positive with relatively stable recent margins, leverage is manageable and improving, and free cash flow conversion is solid. Offsetting these positives, TTM revenue is down sharply versus prior periods and profitability is still well below the 2021–2022 peak, leaving less room for error if demand stays soft.
Income Statement
58NeutralBalance Sheet
62PositiveCash Flow
64Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.27B | 2.29B | 2.18B | 2.97B | 3.47B | 2.06B |
| Gross Profit | 447.57M | 419.14M | 474.06M | 617.81M | 748.07M | 475.27M |
| EBITDA | 194.83M | 191.30M | 169.82M | 214.54M | 431.12M | 230.45M |
| Net Income | 67.67M | 69.63M | 46.48M | 47.78M | 172.88M | 131.46M |
Balance Sheet | ||||||
| Total Assets | 1.47B | 1.37B | 1.40B | 1.63B | 1.92B | 1.42B |
| Cash, Cash Equivalents and Short-Term Investments | 4.55M | 12.99M | 33.74M | 17.24M | 88.10M | 9.82M |
| Total Debt | 613.55M | 573.89M | 623.07M | 747.62M | 1.06B | 727.21M |
| Total Liabilities | 782.72M | 701.68M | 763.08M | 934.81M | 1.24B | 893.28M |
| Stockholders Equity | 686.99M | 668.80M | 634.57M | 698.36M | 686.41M | 527.68M |
Cash Flow | ||||||
| Free Cash Flow | 146.55M | 149.86M | 133.54M | 299.96M | 268.56M | -92.89M |
| Operating Cash Flow | 158.76M | 163.45M | 142.75M | 327.98M | 283.09M | -83.37M |
| Investing Cash Flow | -2.47M | -6.70M | -147.46M | -18.20M | -375.51M | -387.74M |
| Financing Cash Flow | -151.63M | -176.72M | 30.00M | -386.00M | 172.80M | 479.07M |
ADENTRA Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ADEN, the sentiment is Positive. The current price of 35.56 is above the 20-day moving average (MA) of 34.98, above the 50-day MA of 35.30, and above the 200-day MA of 35.41, indicating a bullish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 54.94 is Neutral, neither overbought nor oversold. The STOCH value of 84.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ADEN.
ADENTRA Peers Comparison
Overall Rating
TSE:RUS74.7Outperform- TSE:ADEN68Neutral
TSE:WJX68Neutral
TSE:ALC65Neutral
TSE:DBM65Neutral
TSE:TBL44Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TSE:RUS | 75Outperform | CAD 4.78B | 22.25 | 13.09% | 2.00% | 18.28% | 35.28% |
| TSE:ADEN | 68Neutral | CAD 862.17M | 9.10 | 10.11% | 1.80% | 0.83% | 54.74% |
| TSE:WJX | 68Neutral | CAD 729.44M | 11.15 | 12.07% | 4.16% | -4.10% | 82.03% |
| TSE:ALC | 65Neutral | CAD 1.24B | 6.64 | 18.59% | 5.34% | 17.55% | 85.13% |
| TSE:DBM | 65Neutral | CAD 861.37M | 10.10 | 12.64% | 5.71% | 1.80% | 13.21% |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| TSE:TBL | 44Neutral | CAD 392.92M | 13.57 | 9.04% | ― | -5.27% | -37.28% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TSE:ADEN | Adentra Inc. | 35.56 | 0.81 | 2.34% | |
| TSE:ALC | Algoma Central | 30.50 | 13.77 | 82.31% | |
| TSE:DBM | Doman Building Materials Group Ltd. | 9.80 | 1.31 | 15.38% | |
| TSE:TBL | Taiga Building Prod | 3.64 | 0.19 | 5.51% | |
| TSE:WJX | Wajax Corporation | 33.68 | 10.15 | 43.13% | |
| TSE:RUS | Russel Metals | 86.99 | 45.58 | 110.06% |
ADENTRA Corporate Events
ADENTRA Sets November 9 Date to Unveil Q3 2026 Results
NeutralADENTRA Inc. plans to release its third quarter 2026 financial results before markets open on November 9, 2026, and will hold a conference call later that morning led by Chief Executive Officer Rob Brown and Chief Financial Officer Faiz Karmally. The...
ADENTRA Delivers Margin Gains and EPS Growth in Soft Q2 Market
PositiveADENTRA reported solid second-quarter 2026 results, posting 1.7% sales growth to $607.1 million and expanding gross margin to 22.0% despite soft market conditions. Adjusted EBITDA rose 6.2%, adjusted EPS increased 11.4%, and normalized operating expe...
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.
Date of analysis: Aug 10, 2026