DIRTT ENVIRONMENTAL SOLUTION (DRT.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:DRT - CA25490H1064 - Common Stock
0.91 CAD
+0.01 (+1.11%)
We assign a fundamental rating of 4 out of 10 to DRT. DRT was compared to 2 industry peers in the Building Products industry. The financial health of DRT is average, but there are quite some concerns on its profitability. DRT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
DRT had negative earnings in the past year.
DRT had a positive operating cash flow in the past year.
In the past 5 years DRT reported 4 times negative net income.
The reported operating cash flow has been mixed in the past 5 years: DRT reported negative operating cash flow in multiple years.
1.2 Ratios
DRT's Return On Assets of -6.14% is in line compared to the rest of the industry. DRT outperforms 50.00% of its industry peers.
Looking at the Return On Equity, with a value of -21.31%, DRT is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.14% | ||
| ROE | -21.31% | ||
| ROIC | N/A |
ROA(3y)-12.5%
ROA(5y)-14.12%
ROE(3y)-158.75%
ROE(5y)-113.03%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
In the last couple of years the Operating Margin of DRT has grown nicely.
The Gross Margin of DRT (32.59%) is better than 100.00% of its industry peers.
DRT's Gross Margin has been stable in the last couple of years.
The Profit Margin and Operating Margin are not available for DRT so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 32.59% |
OM growth 3YN/A
OM growth 5Y31.76%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y32.37%
GM growth 5Y1.15%
2. Health
2.1 Basic Checks
DRT does not have a ROIC to compare to the WACC, probably because it is not profitable.
DRT has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DRT has been increased compared to 5 years ago.
Compared to 1 year ago, DRT has an improved debt to assets ratio.
2.2 Solvency
DRT has an Altman-Z score of 0.33. This is a bad value and indicates that DRT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.33, DRT is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Debt to FCF ratio of DRT is 3.32, which is a good value as it means it would take DRT, 3.32 years of fcf income to pay off all of its debts.
DRT has a better Debt to FCF ratio (3.32) than 100.00% of its industry peers.
DRT has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.34, DRT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.32 | ||
| Altman-Z | 0.33 |
ROIC/WACCN/A
WACC8.16%
2.3 Liquidity
A Current Ratio of 1.39 indicates that DRT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.39, DRT is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 1.03 indicates that DRT should not have too much problems paying its short term obligations.
DRT has a Quick ratio (1.03) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
DRT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -168.00%.
The Earnings Per Share has been growing by 20.89% on average over the past years. This is a very strong growth
The Revenue has decreased by -5.41% in the past year.
DRT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -6.79% yearly.
EPS 1Y (TTM)-168%
EPS 3YN/A
EPS 5Y20.89%
EPS Q2Q%-166.67%
Revenue 1Y (TTM)-5.41%
Revenue growth 3Y5.7%
Revenue growth 5Y-6.79%
Sales Q2Q%-13.05%
3.2 Future
Based on estimates for the next years, DRT will show a very strong growth in Earnings Per Share. The EPS will grow by 25.65% on average per year.
DRT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.01% yearly.
EPS Next Y-27.86%
EPS Next 2Y12.36%
EPS Next 3Y25.65%
EPS Next 5YN/A
Revenue Next Year3.16%
Revenue Next 2Y6.45%
Revenue Next 3Y6.01%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for DRT. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 9.40, the valuation of DRT can be described as reasonable.
Based on the Price/Forward Earnings ratio, DRT is valued cheaper than 100.00% of the companies in the same industry.
DRT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.4 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DRT is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DRT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.36 | ||
| EV/EBITDA | 33.97 |
4.3 Compensation for Growth
DRT's earnings are expected to grow with 25.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y12.36%
EPS Next 3Y25.65%
5. Dividend
5.1 Amount
DRT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TSX:DRT (12/31/2025, 7:00:00 PM)
0.91
+0.01 (+1.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners31.66%
Inst Owner ChangeN/A
Ins Owners2.8%
Ins Owner ChangeN/A
Market Cap174.57M
Revenue(TTM)166.82M
Net Income(TTM)-6.71M
Analysts80
Price Target1.53 (68.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-8.11%
Min Revenue beat(2)-8.9%
Max Revenue beat(2)-7.33%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)25%
PT rev (3m)25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.4 | ||
| P/S | 0.76 | ||
| P/FCF | 18.36 | ||
| P/OCF | 12.28 | ||
| P/B | 4.05 | ||
| P/tB | 4.5 | ||
| EV/EBITDA | 33.97 |
EPS(TTM)-0.05
EYN/A
EPS(NY)0.1
Fwd EY10.64%
FCF(TTM)0.05
FCFY5.45%
OCF(TTM)0.07
OCFY8.14%
SpS1.19
BVpS0.22
TBVpS0.2
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.14% | ||
| ROE | -21.31% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 32.59% | ||
| FCFM | 4.16% |
ROA(3y)-12.5%
ROA(5y)-14.12%
ROE(3y)-158.75%
ROE(5y)-113.03%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5Y31.76%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y32.37%
GM growth 5Y1.15%
F-Score5
Asset Turnover1.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.32 | ||
| Debt/EBITDA | 2.99 | ||
| Cap/Depr | 52.06% | ||
| Cap/Sales | 2.06% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 286.65% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 0.33 |
F-Score5
WACC8.16%
ROIC/WACCN/A
Cap/Depr(3y)38.92%
Cap/Depr(5y)77.85%
Cap/Sales(3y)2.11%
Cap/Sales(5y)5.59%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-168%
EPS 3YN/A
EPS 5Y20.89%
EPS Q2Q%-166.67%
EPS Next Y-27.86%
EPS Next 2Y12.36%
EPS Next 3Y25.65%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.41%
Revenue growth 3Y5.7%
Revenue growth 5Y-6.79%
Sales Q2Q%-13.05%
Revenue Next Year3.16%
Revenue Next 2Y6.45%
Revenue Next 3Y6.01%
Revenue Next 5YN/A
EBIT growth 1Y-147.07%
EBIT growth 3YN/A
EBIT growth 5Y22.82%
EBIT Next Year50.59%
EBIT Next 3Y37.51%
EBIT Next 5YN/A
FCF growth 1Y61.04%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y30.65%
OCF growth 3YN/A
OCF growth 5Y-11.28%
DIRTT ENVIRONMENTAL SOLUTION / DRT.CA FAQ
What is the fundamental rating for DRT stock?
ChartMill assigns a fundamental rating of 4 / 10 to DRT.CA.
What is the valuation status of DIRTT ENVIRONMENTAL SOLUTION (DRT.CA) stock?
ChartMill assigns a valuation rating of 4 / 10 to DIRTT ENVIRONMENTAL SOLUTION (DRT.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for DIRTT ENVIRONMENTAL SOLUTION?
DIRTT ENVIRONMENTAL SOLUTION (DRT.CA) has a profitability rating of 3 / 10.
How financially healthy is DIRTT ENVIRONMENTAL SOLUTION?
The financial health rating of DIRTT ENVIRONMENTAL SOLUTION (DRT.CA) is 5 / 10.