DIRTT ENVIRONMENTAL SOLUTION (DRT.CA) Stock Fundamental Analysis
TSX:DRT - Toronto Stock Exchange - CA25490H1064 - Common Stock - Currency: CAD
Overall DRT gets a fundamental rating of 5 out of 10. We evaluated DRT against 1 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year DRT was profitable.
In the past year DRT had a positive cash flow from operations.
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
With an excellent Return On Assets value of 12.49%, DRT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Equity value of 34.68%, DRT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
DRT has a better Return On Invested Capital (4.77%) than 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.
DRT's Operating Margin of 3.37% is amongst the best of the industry. DRT outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of DRT has grown nicely.
The Gross Margin of DRT (36.93%) is better than 100.00% of its industry peers.
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
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.
Compared to 1 year ago, DRT has an improved debt to assets ratio.
2.2 Solvency
DRT has an Altman-Z score of 1.14. This is a bad value and indicates that DRT is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of DRT (1.14) is better than 100.00% of its industry peers.
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.
The Debt to FCF ratio of DRT (5.38) is better than 100.00% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that DRT is somewhat dependend on debt financing.
The Debt to Equity ratio of DRT (0.52) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 5.38 | ||
| Altman-Z | 1.14 |
ROIC/WACC0.52
WACC9.15%
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.
DRT has a better Current ratio (2.27) than 100.00% of its industry peers.
DRT has a Quick Ratio of 1.76. This is a normal value and indicates that DRT is financially healthy and should not expect problems in meeting its short term obligations.
DRT's Quick ratio of 1.76 is amongst the best of the industry. DRT outperforms 100.00% 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.
DRT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.43% yearly.
Looking at the last year, DRT shows a decrease in Revenue. The Revenue has decreased by -4.19% in the last year.
The Revenue has been decreasing by -6.79% on average over the past years.
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
Based on estimates for the next years, DRT will show a very strong growth in Earnings Per Share. The EPS will grow by 22.80% on average per year.
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-32.67%
EPS Next 2Y8.55%
EPS Next 3Y22.8%
EPS Next 5YN/A
Revenue Next Year17.46%
Revenue Next 2Y14.74%
Revenue Next 3Y15.81%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
Based on the Price/Earnings ratio of 12.25, the valuation of DRT can be described as correct.
Based on the Price/Earnings ratio, DRT is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.79. DRT is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 17.50, which indicates a rather expensive current 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.
When comparing the Price/Forward Earnings ratio of DRT to the average of the S&P500 Index (21.38), we can say DRT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.25 | ||
| Fwd PE | 17.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DRT is valued cheaper than 100.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DRT is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.9 | ||
| EV/EBITDA | 10.43 |
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 22.80% in the coming years.
PEG (NY)N/A
PEG (5Y)0.63
EPS Next 2Y8.55%
EPS Next 3Y22.8%
5. Dividend
5.1 Amount
No dividends for DRT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:DRT (4/24/2025, 7:00:00 PM)
0.98
-0.05 (-4.85%)
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 Cap189.49M
Analysts80
Price Target1.84 (87.76%)
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)-3.29%
Min Revenue beat(2)-12.27%
Max Revenue beat(2)5.69%
Revenue beat(4)1
Avg Revenue beat(4)-4.86%
Min Revenue beat(4)-12.27%
Max Revenue beat(4)5.69%
Revenue beat(8)4
Avg Revenue beat(8)-0.48%
Revenue beat(12)5
Avg Revenue beat(12)-0.74%
Revenue beat(16)7
Avg Revenue beat(16)-2.94%
PT rev (1m)0%
PT rev (3m)-2.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)14.45%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.25 | ||
| Fwd PE | 17.5 | ||
| P/S | 0.78 | ||
| P/FCF | 32.9 | ||
| P/OCF | 18.61 | ||
| P/B | 3.21 | ||
| P/tB | 3.41 | ||
| EV/EBITDA | 10.43 |
EPS(TTM)0.08
EY8.16%
EPS(NY)0.06
Fwd EY5.71%
FCF(TTM)0.03
FCFY3.04%
OCF(TTM)0.05
OCFY5.37%
SpS1.25
BVpS0.31
TBVpS0.29
PEG (NY)N/A
PEG (5Y)0.63
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 | 1.14 |
F-Score7
WACC9.15%
ROIC/WACC0.52
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-32.67%
EPS Next 2Y8.55%
EPS Next 3Y22.8%
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 Year163.53%
EBIT Next 3Y64.45%
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%