1 Hidden Catalyst That Could Ignite Dye & Durham Stock
1 Hidden Catalyst That Could Ignite Dye & Durham Stock
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Tech stocks, especially those which entered the TSX in the 2021 tech bubble, have been volatile. Legal practice management software provider Dye & Durham (TSX:DND) is among those. After surging almost 250% in the tech bubble, the stock has returned to its IPO price. DND stock is up for growth from this point forward as it puts behind the weak business environment and short-term headwinds and prepares for a recovery. The stock could surge triple digits if its hidden catalyst is ignited.
科技股,尤其是那些在2021年科技泡沫中進入多倫多證券交易所的科技股,一直波動不定。法律執業管理軟件提供商戴伊和達勒姆(多倫多證券交易所股票代碼:DND)就是其中之一。在科技泡沫中飆升了近250%之後,該股已恢復了首次公開募股價格。DND股票從現在開始有望增長,因爲它爲疲軟的商業環境和短期不利因素提供了支持,爲復甦做準備。如果其隱藏的催化劑被點燃,該股可能會飆升三位數。
A hidden catalyst that could drive up Dye & Durham stock
一種隱藏的催化劑,可能會推動戴伊和達勒姆股價上漲
This cloud-based software company caters to a niche market of legal professionals. Among legal professionals, almost 43% of its revenue comes from real estate transactions. The seasonal nature of the real estate market makes the second half of the year strong for Dye & Durham. The company took a hit in 2022 as rising interest rates slowed real estate transactions. While the buying activity has not yet recovered, a 25-basis point interest rate cut by the Bank of Canada has opened doors of recovery.
這家基於雲的軟件公司迎合了法律專業人士的利基市場。在法律專業人士中,其收入的近43%來自房地產交易。房地產市場的季節性質使Dye & Durham的下半年表現強勁。由於利率上升減緩了房地產交易,該公司在2022年受到打擊。儘管購買活動尚未恢復,但加拿大銀行下調25個點子的利率爲復甦打開了大門。
An increase in property settlements could boost revenue for Dye & Durham in the coming months.
房地產和解的增加可能會在未來幾個月內增加Dye & Durham的收入。
Other reasons to be bullish on Dye & Durham
看好 Dye & Durham 的其他理由
Dye & Durham had two failed acquisitions last year, which slowed its sales and income growth. In August 2023, DND divested its newly acquired TM Group, followed by the cancellation of the Link acquisition. While Link increased DNDâs financing cost, TM Group affected DND's balance sheet. DND completed the TM Group acquisition, which was later cancelled by a regulator. Hence, it was forced to divest TM Group. Its revenue before August 2023 includes revenue from TM Group.Â
Dye & Durham去年有兩次收購失敗,這減緩了其銷售和收入的增長。2023年8月,DND剝離了其新收購的Tm集團,隨後取消了對Link的收購。雖然Link增加了DNDA的融資成本,但Tm集團影響了DND的資產負債表。DND完成了對Tm集團的收購,該收購後來被監管機構取消。因此,它被迫剝離Tm集團。其在 2023 年 8 月之前的收入包括 Tm Group.A的收入
Including TM Groupâs acquisition impact, DNDâs revenue grew 3% in the third quarter of fiscal 2024. Excluding the TM Group acquisition, revenue grew 16% year-over-year. The worst is over for DND.
包括Tm Groupa的收購影響在內,DNDA的收入在2024財年第三季度增長了3%。不包括對Tm集團的收購,收入同比增長16%。對於 DND 來說,最糟糕的時刻已經過去。
Whatâs next is organic growth. The next six months are seasonally strong for DND. Its revenue growth could shoot up as the impact of TM Group fades. The stock has already surged 16% in the last two weeks.
接下來是有機增長。未來六個月DND的季節性表現強勁。隨着Tm Group的影響力減弱,其收入增長可能會激增。該股在過去兩週內已經飆升了16%。
If the company continues to pay down its debt and focus on organic growth, it could turn profitable. The legal software purveyor has demand for its products as it operates in a niche segment.
如果該公司繼續償還債務並專注於有機增長,它可能會實現盈利。這家合法軟件供應商在利基細分市場開展業務時對其產品有需求。
DND has been growing its annual recurring revenue, which now contributes 30% of its total revenue. Around 53% of its revenue comes from contract revenue. Its focus in 2024 is to reduce debt and increase its free cash flow to more than $70 million. It plans to repay up to $185 million in debt now. This debt repayment and acquisition-related costs pushed the company into losses.
DND一直在增長其年度經常性收入,現在佔其總收入的30%。其收入中約有53%來自合同收入。它在2024年的重點是減少債務並將其自由現金流增加到7000萬美元以上。它現在計劃償還高達1.85億澳元的債務。債務償還和收購相關成本使公司陷入虧損。
Final thoughts
最後的想法
Dye & Durham is a stock to buy and hold for the long term. It could grow gradually and return to steady growth in the long term. However, it is a small-cap stock, which means high volatility and lower trading volumes increase the risk. Invest only the amount you are willing to lose or donât need urgently. Alongside DND, invest in resilient growth stocks like Constellation Software and Descartes Systems.
Dye & Durham是一隻值得長期購買和持有的股票。它可能會逐步增長並長期恢復穩定增長。但是,它是一隻小盤股,這意味着高波動性和較低的交易量會增加風險。只投資您願意損失或不急需的金額。除DND外,還投資Constellation Software和笛卡爾系統等彈性成長型股票。
The post 1 Hidden Catalyst That Could Ignite Dye & Durham Stock appeared first on The Motley Fool Canada.
《可以點燃 Dye & Durham Stocka的隱藏催化劑》一文首次出現在 The Motley Fool Canada 上。