1 Hidden Catalyst That Could Ignite Dye & Durham Stock
1 Hidden Catalyst That Could Ignite Dye & Durham Stock
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. 
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.
2021年科技股，尤其是加拿大多倫多證券交易所（TSX）在科技泡沫時期上市的那些股票一直很不穩定。律所管理軟件供應商Dye&Durham (TSX:DND)也是其中之一。該股票在科技泡沫中飆升了近250％之後，現在回到了其首次公開募股（IPO）時的價格。DND股票未來增長可觀，因它擺脫了蕭條的商業環境和短期風險，併爲復甦做好了準備。如果該股票的潛在催化劑被點燃，其股票價格可能會暴漲三位數。
A hidden catalyst that could drive up Dye & Durham stock
可以推動Dye&Durham股票上漲的潛在催化劑
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一個專業律師的利基市場。在律師行業，其營業收入的近43％來自房地產交易。房地產市場的季節性使得Dye&Durham的下半年增長強勁。隨着加拿大銀行的25個點子利率降低，該公司在2022年受到利率上升放緩房地產交易的影響。雖然購買活動尚未恢復，但增加物業結算可能會在未來幾個月內提高Dye&Durham的營業收入。
An increase in property settlements could boost revenue for Dye & Durham in the coming months.
物業結算的增加可能會在未來幾個月提高Dye&Durham的營業收入。
Other reasons to be bullish on Dye & Durham
看好Dye&Durham的其他原因
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去年有兩次失敗的收購，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 Group，然後取消了Link收購。儘管Link增加了DND的融資成本，但Tm Group影響了DND的資產負債表。DND完成了Tm Group的收購，但隨後被監管機構取消了。因此，被迫剝離Tm Group。截至2023年8月前，其營業收入包括來自Tm Group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 Group的收購對DND的營業收入在2024財年第三季度增長了3％，不包括Tm Group的收購，營業收入同比增長了16％。DND的最糟糕的時期已經過去了。
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。對於DND而言，接下來的六個月是季節性強勁期。隨着Tm Group的影響逐漸消退，其營收增長可能會激增。該股票在過去兩週中已經上漲了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.
如果該公司繼續還清債務並專注於有機增長，它可能會變得盈利。這家法律軟件提供商的產品需求強勁，因爲它是在一個利基市場中運營的。
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一直在增加其年度循環收入，該收入現在佔其總收入的30％。其營業收入約53％來自合同收入。其2024年的重點是降低債務並將其自由現金流增加到7000萬加元以上。它計劃現在償還18500萬加元的債務。這些債務償還和相關的收購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是一隻可長期買入並持有的股票。它可能會逐漸增長，並在長期內回報穩定增長。但它是一家小市值股票，這意味着高波動率和較低的交易量增加了風險。請只投入您願意虧損或不急需的資金。與DND一起投資於像Constellation軟件和Descartes Systems這樣的有韌性增長股票。
The post 1 Hidden Catalyst That Could Ignite Dye & Durham Stock appeared first on The Motley Fool Canada.
發帖：1 Hidden Catalyst That Could Ignite Dye&Durham Stock(A)譯者追求實時翻譯
譯文內容由第三人軟體翻譯。