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 3 industry peers in the Building Products industry. DRT has an average financial health and profitability rating. DRT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year DRT was profitable.
DRT had a positive operating cash flow in the past year.
DRT had negative earnings in 4 of the past 5 years.
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 has a better Return On Assets (12.49%) than 100.00% of its industry peers.
DRT has a better Return On Equity (34.68%) than 100.00% of its industry peers.
DRT has a Return On Invested Capital of 4.77%. This is amongst the best in the industry. DRT outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.49% | ||
| ROE | 34.68% | ||
| ROIC | 4.77% |
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 Profit Margin of 8.47% is amongst the best of the industry. DRT outperforms 100.00% of its industry peers.
With an excellent Operating Margin value of 3.37%, DRT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
DRT's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 36.93%, 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 | 3.37% | ||
| PM (TTM) | 8.47% | ||
| GM | 36.93% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DRT is destroying value.
DRT has more shares outstanding than it did 1 year ago.
DRT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for DRT has been reduced compared to a year ago.
2.2 Solvency
DRT has an Altman-Z score of 1.08. This is a bad value and indicates that DRT is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.08, DRT is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
DRT has a debt to FCF ratio of 5.38. This is a neutral value as DRT would need 5.38 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.38, DRT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
DRT has a Debt/Equity ratio of 0.52. This is a neutral value indicating DRT is somewhat dependend on debt financing.
DRT has a better Debt to Equity ratio (0.52) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 5.38 | ||
| Altman-Z | 1.08 |
ROIC/WACC0.5
WACC9.48%
2.3 Liquidity
DRT has a Current Ratio of 2.27. This indicates that DRT is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.27, DRT is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
A Quick Ratio of 1.76 indicates that DRT should not have too much problems paying its short term obligations.
The Quick ratio of DRT (1.76) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 1.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 131.49% over the past year.
The Earnings Per Share has been growing by 19.43% on average over the past years. This is quite good.
Looking at the last year, DRT shows a decrease in Revenue. The Revenue has decreased by -4.19% in the last year.
Measured over the past years, DRT shows a decrease in Revenue. The Revenue has been decreasing by -6.79% on average per year.
EPS 1Y (TTM)131.49%
EPS 3YN/A
EPS 5Y19.43%
EPS Q2Q%100%
Revenue 1Y (TTM)-4.19%
Revenue growth 3Y5.7%
Revenue growth 5Y-6.79%
Sales Q2Q%-4.01%
3.2 Future
The Earnings Per Share is expected to grow by 18.96% on average over the next years. This is quite good.
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-41.17%
EPS Next 2Y-2.98%
EPS Next 3Y18.96%
EPS Next 5YN/A
Revenue Next Year17.46%
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 stable.
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 10.67 indicates a reasonable 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 rather cheap valuation when compared to the S&P500 average which is at 29.35.
The Price/Forward Earnings ratio is 18.97, which indicates a rather expensive current valuation of DRT.
Based on the Price/Forward Earnings ratio, DRT is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, DRT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.67 | ||
| Fwd PE | 18.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DRT is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
66.67% of the companies in the same industry are more expensive than DRT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.16 | ||
| EV/EBITDA | 9.85 |
4.3 Compensation for Growth
The decent profitability rating of DRT may justify a higher PE ratio.
A more expensive valuation may be justified as DRT's earnings are expected to grow with 18.96% in the coming years.
PEG (NY)N/A
PEG (5Y)0.55
EPS Next 2Y-2.98%
EPS Next 3Y18.96%
5. Dividend
5.1 Amount
DRT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:DRT (3/7/2025, 7:00:00 PM)
0.96
-0.02 (-2.04%)
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 Cap185.63M
Analysts80
Price Target1.84 (91.67%)
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)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)1
Avg Revenue beat(2)19.46%
Min Revenue beat(2)-12.27%
Max Revenue beat(2)51.2%
Revenue beat(4)1
Avg Revenue beat(4)6.52%
Min Revenue beat(4)-12.27%
Max Revenue beat(4)51.2%
Revenue beat(8)4
Avg Revenue beat(8)5.21%
Revenue beat(12)5
Avg Revenue beat(12)3.05%
Revenue beat(16)7
Avg Revenue beat(16)-0.1%
PT rev (1m)0%
PT rev (3m)-2.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.67 | ||
| Fwd PE | 18.97 | ||
| P/S | 0.74 | ||
| P/FCF | 31.16 | ||
| P/OCF | 17.63 | ||
| P/B | 3.04 | ||
| P/tB | 3.23 | ||
| EV/EBITDA | 9.85 |
EPS(TTM)0.09
EY9.38%
EPS(NY)0.05
Fwd EY5.27%
FCF(TTM)0.03
FCFY3.21%
OCF(TTM)0.05
OCFY5.67%
SpS1.29
BVpS0.32
TBVpS0.3
PEG (NY)N/A
PEG (5Y)0.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.49% | ||
| ROE | 34.68% | ||
| ROCE | 6.62% | ||
| ROIC | 4.77% | ||
| ROICexc | 7.12% | ||
| ROICexgc | 7.44% | ||
| OM | 3.37% | ||
| PM (TTM) | 8.47% | ||
| GM | 36.93% | ||
| FCFM | 2.38% |
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-Score7
Asset Turnover1.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 5.38 | ||
| Debt/EBITDA | 1.77 | ||
| Cap/Depr | 48.5% | ||
| Cap/Sales | 1.83% | ||
| Interest Coverage | 2.04 | ||
| Cash Conversion | 59.02% | ||
| Profit Quality | 28.13% | ||
| Current Ratio | 2.27 | ||
| Quick Ratio | 1.76 | ||
| Altman-Z | 1.08 |
F-Score7
WACC9.48%
ROIC/WACC0.5
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)131.49%
EPS 3YN/A
EPS 5Y19.43%
EPS Q2Q%100%
EPS Next Y-41.17%
EPS Next 2Y-2.98%
EPS Next 3Y18.96%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.19%
Revenue growth 3Y5.7%
Revenue growth 5Y-6.79%
Sales Q2Q%-4.01%
Revenue Next Year17.46%
Revenue Next 2Y14.74%
Revenue Next 3Y15.81%
Revenue Next 5YN/A
EBIT growth 1Y221.44%
EBIT growth 3YN/A
EBIT growth 5Y22.82%
EBIT Next YearN/A
EBIT Next 3Y85.29%
EBIT Next 5YN/A
FCF growth 1Y-63.51%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-50.45%
OCF growth 3YN/A
OCF growth 5Y-11.28%