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Dye & Durham
(TSX:DND)
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Rating:55Neutral
Price Target:
C$1.50
▲(94.81% Upside)
Action:Reiterated
Date:10/20/26
The score is held back primarily by financial risk—high leverage and continued net losses—despite improving cash flow and operating profitability. Technical indicators add support via positive momentum, while valuation remains constrained by negative earnings. Earnings-call commentary is moderately supportive due to cost savings and deleveraging progress, but tempered by revenue/EBITDA declines, limited guidance, and leadership/strategic-review uncertainty.
Positive Factors
Cost efficiency and margin expansion
Automation, process standardization, and a more efficient operating model are producing measurable savings and stronger margins. Completing the remaining initiatives through fiscal 2027 could support durable operating leverage while allowing reinvestment in products, automation, and customers.
Negative Factors
Stretched balance sheet
Despite debt reduction, the capital structure remains highly leveraged and equity has declined, leaving limited room for operational setbacks. Elevated borrowing also increases financing pressure and constrains the cash available for product investment, acquisitions, or other strategic initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Cost efficiency and margin expansion
Automation, process standardization, and a more efficient operating model are producing measurable savings and stronger margins. Completing the remaining initiatives through fiscal 2027 could support durable operating leverage while allowing reinvestment in products, automation, and customers.
Read all positive factors
Dye & Durham (DND) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$106.18M
Dividend Yield3.91%
Average Volume (3M)959.17K
Price to Earnings (P/E)―
Beta (1Y)-0.22
Revenue Growth-9.57%
EPS Growth82.23%
CountryCA
Employees1,059
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.20
Shares Outstanding67,200,000
10 Day Avg. Volume1,222,349
30 Day Avg. Volume959,170
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)0.33
Price to Sales (P/S)0.23
P/FCF Ratio2.28
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$1.67Price Target Upside116.45% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)-0.2
Revenue Forecast (FY)C$398.87M
Dye & Durham Business Overview & Revenue Model
Company Description
Dye & Durham Limited, through its subsidiary Dye & Durham Corporation, provides cloud-based software and technological solutions to legal practices, financial institutions, and government bodies. Its operations extend across Canada, Australia, Ire...
Dye & Durham Earnings Call Summary
Earnings Call Date:Sep 29, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jan 28, 2027
Earnings Call Sentiment Positive
The call had a cautiously positive tone. Fourth-quarter revenue excluding Credas returned to growth, adjusted EBITDA and margins improved materially, operating cash flow increased, cost savings exceeded target, and debt was reduced while covenant compliance was maintained. However, fiscal-year revenue and adjusted EBITDA declined, the business remains in transition, technical reporting corrections were required, and permanent leadership and the strategic review remain unresolved.Positive Updates
Fourth-Quarter Revenue Returned to Growth Excluding Credas
Fourth-quarter revenue was $104.2 million, down $1 million or 1% year-over-year overall, but increased by $3.5 million or 4% excluding the impact of the Credas disposal. The increase was primarily driven by the practice management and payment infrastructure platforms in Canada, with stronger revenue recognition and stabilizing transaction volumes also noted.
Negative Updates
Full-Year Revenue Decline
Fiscal 2026 revenue was $410.7 million, down $30.1 million or 7% year-over-year. Excluding the Credas disposal, revenue decreased by $24.6 million or 6%, primarily driven by the market downturn and lower volumes and pricing in the practice management and data insight platforms, reflecting customer losses and contract renewal terms.
Read all updates
Q4-2026 Updates
Positive
Negative
Fourth-Quarter Revenue Returned to Growth Excluding Credas
Fourth-quarter revenue was $104.2 million, down $1 million or 1% year-over-year overall, but increased by $3.5 million or 4% excluding the impact of the Credas disposal. The increase was primarily driven by the practice management and payment infrastructure platforms in Canada, with stronger revenue recognition and stabilizing transaction volumes also noted.
Read all positive updates
Company Guidance
Management said it is on track to complete the remaining cost-reduction initiatives by the end of fiscal 2027, after achieving approximately $20 million in annualized run rate cost savings in fiscal 2026, and plans to continue to reinvest a portion of these savings into product development, automation and customers. The transition will continue through fiscal 2027, with the focus remaining on cost discipline, cash generation, strengthening the balance sheet and continuing to deleverage; management said it was “100%” a priority. Management declined to provide future revenue guidance, including for Q1.Dye & Durham Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
27
Negative
Cash Flow
56
Neutral
| Breakdown | Jun 2026 | Dec 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 410.68M | 440.73M | 457.70M | 451.11M | 474.81M |
| Gross Profit | 147.04M | 144.88M | 312.90M | 304.78M | 417.25M |
| EBITDA | 193.53M | 172.34M | 114.48M | 80.12M | 232.35M |
| Net Income | -38.55M | -88.05M | -174.98M | -170.64M | 7.67M |
Balance Sheet | |||||
| Total Assets | 1.80B | 2.15B | 2.24B | 2.12B | 2.25B |
| Cash, Cash Equivalents and Short-Term Investments | 41.43M | 228.10M | 80.32M | 36.27M | 223.62M |
| Total Debt | 1.30B | 1.62B | 1.55B | 1.35B | 1.17B |
| Total Liabilities | 1.52B | 1.90B | 1.85B | 1.70B | 1.49B |
| Stockholders Equity | 279.88M | 254.81M | 389.34M | 423.08M | 763.42M |
Cash Flow | |||||
| Free Cash Flow | 40.66M | 30.68M | 141.92M | 108.30M | 161.63M |
| Operating Cash Flow | 41.54M | 34.86M | 180.87M | 141.40M | 185.44M |
| Investing Cash Flow | 271.21M | -270.69M | -40.28M | -158.27M | -923.58M |
| Financing Cash Flow | -312.19M | 14.23M | 90.16M | -164.87M | 535.30M |
Dye & Durham Technical Analysis
Neutral
0.77
Price Trends
0.98
Positive
1.22
Positive
2.52
Negative
Market Momentum
0.23
Negative
57.06
Neutral
37.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DND, the sentiment is Neutral. The current price of 0.77 is below the 20-day moving average (MA) of 1.38, below the 50-day MA of 0.98, and below the 200-day MA of 2.52, indicating a neutral trend. The MACD of 0.23 indicates Negative momentum. The RSI at 57.06 is Neutral, neither overbought nor oversold. The STOCH value of 37.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:DND.
Dye & Durham Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | C$7.31B | 64.83 | 10.62% | ― | 13.76% | ― | |
59 Neutral | C$8.06B | 136.67 | 7.58% | 1.98% | 28.27% | -64.80% | |
58 Neutral | C$475.83M | -16.77 | -19.77% | ― | 9.70% | 11.90% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | C$106.18M | -7.90 | -5.58% | 3.91% | -9.57% | 82.23% | |
54 Neutral | C$218.85M | -1.94 | -34.04% | ― | -15.02% | -1478.50% |
* General Sector Average
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Dye & Durham
1.53
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-69.40%
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Dye & Durham Corporate Events
Business Operations and StrategyFinancial Disclosures
Dye & Durham narrows losses as it reshapes operations
Neutral
Sep 29, 2026
Dye Durham reported fourth-quarter fiscal 2026 revenue of $104.2 million, down 1% year over year, though revenue rose 4% when excluding the disposal of Credas Technologies. The quarter showed a narrower net loss of $19.9 million, a 15% increase i...
Business Operations and StrategyExecutive/Board Changes
Dye & Durham installs interim CEO and new board chair as transformation committee winds down
Positive
Aug 31, 2026
Dye Durham has appointed Chief Operating Officer Todd Schulte as interim chief executive officer, ending the temporary leadership structure overseen by its Transformation Committee as the board continues its search for a permanent CEO. Schulte, w...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.