DIRTT ENVIRONMENTAL SOLUTION (DRT.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:DRT - CA25490H1064 - Common Stock
0.94 CAD
+0.01 (+1.08%)
Taking everything into account, DRT scores 4 out of 10 in our fundamental rating. DRT was compared to 3 industry peers in the Building Products industry. The financial health of DRT is average, but there are quite some concerns on its profitability. DRT is not valued too expensively and it also shows a decent growth rate.
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
With a decent Return On Assets value of -6.14%, DRT is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Return On Equity of DRT (-21.31%) is better than 66.67% of its industry peers.
| 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
DRT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 32.59%, DRT belongs to the top 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.
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.
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 0.38. This is a bad value and indicates that DRT is not financially healthy and even has some risk of bankruptcy.
DRT has a Altman-Z score of 0.38. This is in the lower half of the industry: DRT underperforms 66.67% of its industry peers.
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's Debt to FCF ratio of 3.32 is amongst the best of the industry. DRT outperforms 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 | 0.38 |
ROIC/WACCN/A
WACC8.9%
2.3 Liquidity
A Current Ratio of 1.39 indicates that DRT should not have too much problems paying its short term obligations.
DRT has a better Current ratio (1.39) than 66.67% of its industry peers.
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 of 1.03. This is in the better half of the industry: DRT outperforms 66.67% of its industry peers.
| 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%.
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 -5.41% 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)-168%
EPS 3YN/A
EPS 5Y17.8%
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.
Based on estimates for the next years, DRT will show a small growth in Revenue. The Revenue will grow by 6.01% on average per year.
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
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
The Price/Earnings Ratio is negative for DRT. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 9.72 indicates a reasonable valuation of DRT.
Based on the Price/Forward Earnings ratio, DRT is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
DRT is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DRT is valued a bit cheaper than 66.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DRT is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.99 | ||
| EV/EBITDA | 35.55 |
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 (12/24/2025, 7:00:00 PM)
0.94
+0.01 (+1.08%)
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 Cap180.32M
Revenue(TTM)166.82M
Net Income(TTM)-6.71M
Analysts80
Price Target1.53 (62.77%)
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 | 9.72 | ||
| P/S | 0.79 | ||
| P/FCF | 18.99 | ||
| P/OCF | 12.7 | ||
| P/B | 4.19 | ||
| P/tB | 4.65 | ||
| EV/EBITDA | 35.55 |
EPS(TTM)-0.05
EYN/A
EPS(NY)0.1
Fwd EY10.29%
FCF(TTM)0.05
FCFY5.27%
OCF(TTM)0.07
OCFY7.87%
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 | 0.38 |
F-Score5
WACC8.9%
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 5Y17.8%
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 for DRT 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.
What is the expected EPS growth for DIRTT ENVIRONMENTAL SOLUTION (DRT.CA) stock?
The Earnings per Share (EPS) of DIRTT ENVIRONMENTAL SOLUTION (DRT.CA) is expected to decline by -27.86% in the next year.