DIRTT ENVIRONMENTAL SOLUTION (DRT.CA) Stock Fundamental Analysis
TSX:DRT - Toronto Stock Exchange - CA25490H1064 - Common Stock - Currency: CAD
Taking everything into account, DRT scores 5 out of 10 in our fundamental rating. DRT was compared to 3 industry peers in the Building Products industry. DRT has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on DRT. This makes DRT very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year DRT was profitable.
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
Looking at the Return On Assets, with a value of 9.89%, DRT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Equity of DRT (28.22%) is better than 100.00% of its industry peers.
DRT's Return On Invested Capital of 5.22% is amongst the best of the industry. DRT outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.89% | ||
| ROE | 28.22% | ||
| ROIC | 5.22% |
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
The Profit Margin of DRT (6.33%) is better than 100.00% of its industry peers.
DRT's Operating Margin of 3.03% is amongst the best of the industry. DRT outperforms 100.00% of its industry peers.
DRT's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 36.78%, DRT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
DRT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.03% | ||
| PM (TTM) | 6.33% | ||
| GM | 36.78% |
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 has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
DRT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, DRT has more shares outstanding
Compared to 1 year ago, DRT has an improved debt to assets ratio.
2.2 Solvency
DRT has an Altman-Z score of 0.86. This is a bad value and indicates that DRT is not financially healthy and even has some risk of bankruptcy.
DRT has a worse Altman-Z score (0.86) than 66.67% of its industry peers.
The Debt to FCF ratio of DRT is 2.24, which is a good value as it means it would take DRT, 2.24 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 2.24, DRT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
DRT has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
DRT has a Debt to Equity ratio of 0.27. This is amongst the best in the industry. DRT outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 2.24 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.58
WACC9.06%
2.3 Liquidity
A Current Ratio of 1.61 indicates that DRT should not have too much problems paying its short term obligations.
DRT's Current ratio of 1.61 is fine compared to the rest of the industry. DRT outperforms 66.67% of its industry peers.
A Quick Ratio of 1.24 indicates that DRT should not have too much problems paying its short term obligations.
DRT has a better Quick ratio (1.24) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
DRT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 161.23%, which is quite impressive.
Measured over the past years, DRT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.80% on average per year.
Looking at the last year, DRT shows a decrease in Revenue. The Revenue has decreased by -6.08% in the last year.
DRT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -6.79% yearly.
EPS 1Y (TTM)161.23%
EPS 3YN/A
EPS 5Y17.8%
EPS Q2Q%-100%
Revenue 1Y (TTM)-6.08%
Revenue growth 3Y5.7%
Revenue growth 5Y-6.79%
Sales Q2Q%1.1%
3.2 Future
DRT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.65% yearly.
DRT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.81% yearly.
EPS Next Y-27.86%
EPS Next 2Y12.36%
EPS Next 3Y25.65%
EPS Next 5YN/A
Revenue Next Year17.05%
Revenue Next 2Y14.74%
Revenue Next 3Y15.81%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.17 indicates a correct valuation of DRT.
100.00% of the companies in the same industry are more expensive than DRT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.53. DRT is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 8.78, the valuation of DRT can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DRT indicates a rather cheap valuation: DRT is cheaper than 100.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.27. DRT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.17 | ||
| Fwd PE | 8.78 |
4.2 Price Multiples
DRT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DRT is cheaper than 100.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DRT is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.8 | ||
| EV/EBITDA | 9.44 |
4.3 Compensation for Growth
The decent profitability rating of DRT may justify a higher PE ratio.
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)0.8
EPS Next 2Y12.36%
EPS Next 3Y25.65%
5. Dividend
5.1 Amount
No dividends for DRT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:DRT (6/6/2025, 7:00:00 PM)
0.85
-0.04 (-4.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners30.32%
Inst Owner ChangeN/A
Ins Owners5.69%
Ins Owner ChangeN/A
Market Cap161.08M
Analysts80
Price Target1.68 (97.65%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)1
Avg EPS beat(2)-20.79%
Min EPS beat(2)-100%
Max EPS beat(2)58.42%
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
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)-8.33%
PT rev (3m)-8.33%
EPS NQ rev (1m)-100%
EPS NQ rev (3m)-100%
EPS NY rev (1m)0%
EPS NY rev (3m)14.45%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.17 | ||
| Fwd PE | 8.78 | ||
| P/S | 0.67 | ||
| P/FCF | 11.8 | ||
| P/OCF | 9 | ||
| P/B | 3 | ||
| P/tB | 3.23 | ||
| EV/EBITDA | 9.44 |
EPS(TTM)0.06
EY7.06%
EPS(NY)0.1
Fwd EY11.39%
FCF(TTM)0.07
FCFY8.47%
OCF(TTM)0.09
OCFY11.11%
SpS1.26
BVpS0.28
TBVpS0.26
PEG (NY)N/A
PEG (5Y)0.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.89% | ||
| ROE | 28.22% | ||
| ROCE | 7.25% | ||
| ROIC | 5.22% | ||
| ROICexc | 8.55% | ||
| ROICexgc | 9.12% | ||
| OM | 3.03% | ||
| PM (TTM) | 6.33% | ||
| GM | 36.78% | ||
| FCFM | 5.7% |
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
ROICexcg growth 3YN/A
ROICexcg growth 5Y32.94%
ROICexc growth 3YN/A
ROICexc growth 5Y34.65%
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-Score8
Asset Turnover1.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 2.24 | ||
| Debt/EBITDA | 0.9 | ||
| Cap/Depr | 47.65% | ||
| Cap/Sales | 1.78% | ||
| Interest Coverage | 2.38 | ||
| Cash Conversion | 110.61% | ||
| Profit Quality | 90.06% | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 0.86 |
F-Score8
WACC9.06%
ROIC/WACC0.58
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)161.23%
EPS 3YN/A
EPS 5Y17.8%
EPS Q2Q%-100%
EPS Next Y-27.86%
EPS Next 2Y12.36%
EPS Next 3Y25.65%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.08%
Revenue growth 3Y5.7%
Revenue growth 5Y-6.79%
Sales Q2Q%1.1%
Revenue Next Year17.05%
Revenue Next 2Y14.74%
Revenue Next 3Y15.81%
Revenue Next 5YN/A
EBIT growth 1Y13.21%
EBIT growth 3YN/A
EBIT growth 5Y22.82%
EBIT Next Year50.59%
EBIT Next 3Y37.51%
EBIT Next 5YN/A
FCF growth 1Y133.09%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y149.87%
OCF growth 3YN/A
OCF growth 5Y-11.28%