DIRTT ENVIRONMENTAL SOLUTION (DRT.CA) Stock Fundamental Analysis
TSX:DRT - Toronto Stock Exchange - CA25490H1064 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to DRT. DRT was compared to 4 industry peers in the Building Products industry. Both the profitability and the financial health of DRT get a neutral evaluation. Nothing too spectacular is happening here. DRT may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make DRT suitable for value investing!
1. Profitability
1.1 Basic Checks
DRT had positive earnings in the past year.
DRT had a positive operating cash flow in the past year.
DRT had negative earnings in 4 of the past 5 years.
In multiple years DRT reported negative operating cash flow during the last 5 years.
1.2 Ratios
DRT has a Return On Assets of 9.89%. This is amongst the best in the industry. DRT outperforms 100.00% of its industry peers.
DRT has a better Return On Equity (28.22%) than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.22%, DRT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| 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
Looking at the Profit Margin, with a value of 6.33%, DRT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
DRT's Operating Margin of 3.03% is fine compared to the rest of the industry. DRT outperforms 75.00% of its industry peers.
In the last couple of years the Operating Margin of DRT has grown nicely.
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.
In the last couple of years the Gross Margin of DRT has remained more or less at the same level.
| 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.
The number of shares outstanding for DRT has been increased compared to 1 year ago.
The number of shares outstanding for DRT has been increased compared to 5 years ago.
DRT has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.87, we must say that DRT is in the distress zone and has some risk of bankruptcy.
DRT's Altman-Z score of 0.87 is on the low side compared to the rest of the industry. DRT is outperformed by 75.00% 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.
Looking at the Debt to FCF ratio, with a value of 2.24, DRT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that DRT is not too dependend on debt financing.
DRT's Debt to Equity ratio of 0.27 is amongst the best of the industry. DRT outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 2.24 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.57
WACC9.11%
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 75.00% of its industry peers.
A Quick Ratio of 1.24 indicates that DRT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.24, DRT is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 17.80% on average over the past years. This is quite good.
DRT shows a decrease in Revenue. In the last year, the revenue decreased by -6.08%.
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.
Based on estimates for the next years, DRT will show a quite strong growth in Revenue. The Revenue will grow by 15.81% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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.
DRT's Price/Earnings ratio is rather cheap when compared to the industry. DRT is cheaper than 100.00% of the companies in the same industry.
DRT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.52.
A Price/Forward Earnings ratio of 8.77 indicates a reasonable valuation of DRT.
DRT's Price/Forward Earnings ratio is rather cheap when compared to the industry. DRT is cheaper than 100.00% of the companies in the same industry.
DRT is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.17 | ||
| Fwd PE | 8.77 |
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.
DRT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DRT is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.79 | ||
| EV/EBITDA | 9.54 |
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
DRT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:DRT (7/14/2025, 7:00:00 PM)
0.85
-0.01 (-1.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners30.94%
Inst Owner ChangeN/A
Ins Owners5.83%
Ins Owner ChangeN/A
Market Cap160.93M
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)0%
PT rev (3m)-8.33%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)-100%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
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 | 8.77 | ||
| P/S | 0.67 | ||
| P/FCF | 11.79 | ||
| P/OCF | 8.99 | ||
| P/B | 3 | ||
| P/tB | 3.22 | ||
| EV/EBITDA | 9.54 |
EPS(TTM)0.06
EY7.06%
EPS(NY)0.1
Fwd EY11.4%
FCF(TTM)0.07
FCFY8.48%
OCF(TTM)0.09
OCFY11.13%
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 | 0.87 |
F-Score8
WACC9.11%
ROIC/WACC0.57
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%