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 6 out of 10. We evaluated DRT against 2 industry peers in the Building Products industry. DRT has an average financial health and profitability rating. DRT scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, DRT could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
DRT had positive earnings in the past year.
In the past year DRT had a positive cash flow from operations.
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 Return On Equity of 28.22%. This is amongst the best in the industry. DRT outperforms 100.00% of its industry peers.
DRT has a Return On Invested Capital of 5.22%. This is amongst the best in 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
DRT has a Profit Margin of 6.33%. This is amongst the best in the industry. DRT outperforms 100.00% of its industry peers.
The Operating Margin of DRT (3.03%) is better than 100.00% of its industry peers.
DRT's Operating Margin has improved in the last couple of years.
DRT has a Gross Margin of 36.78%. This is amongst the best in the industry. DRT outperforms 100.00% of its industry peers.
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.
DRT has more shares outstanding than it did 5 years ago.
DRT has a better debt/assets ratio than last year.
2.2 Solvency
DRT has an Altman-Z score of 0.88. This is a bad value and indicates that DRT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.88, DRT is in line with its industry, outperforming 50.00% of the companies in the same industry.
DRT has a debt to FCF ratio of 2.24. This is a good value and a sign of high solvency as DRT would need 2.24 years to pay back of all of its debts.
DRT has a Debt to FCF ratio of 2.24. This is amongst the best in the industry. DRT outperforms 100.00% of its industry peers.
DRT has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.27, DRT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 2.24 | ||
| Altman-Z | 0.88 |
ROIC/WACC0.58
WACC8.98%
2.3 Liquidity
A Current Ratio of 1.61 indicates that DRT should not have too much problems paying its short term obligations.
The Current ratio of DRT (1.61) is better than 100.00% of its industry peers.
A Quick Ratio of 1.24 indicates that DRT should not have too much problems paying its short term obligations.
DRT's Quick ratio of 1.24 is amongst the best of the industry. DRT outperforms 100.00% 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.
DRT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.80% yearly.
DRT shows a decrease in Revenue. In the last year, the revenue decreased by -6.08%.
The Revenue has been decreasing by -6.79% on average over the past years.
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
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
With a Price/Earnings ratio of 14.50, DRT is valued correctly.
Based on the Price/Earnings ratio, DRT is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.29, DRT is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 9.01, the valuation of DRT can be described as reasonable.
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 (21.74), we can say DRT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.5 | ||
| Fwd PE | 9.01 |
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.
Based on the Price/Free Cash Flow ratio, DRT is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.12 | ||
| EV/EBITDA | 9.7 |
4.3 Compensation for Growth
DRT has a very decent profitability rating, which 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)0.81
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 (7/7/2025, 7:00:00 PM)
0.87
-0.05 (-5.43%)
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 Cap164.87M
Analysts80
Price Target1.68 (93.1%)
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)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 | 14.5 | ||
| Fwd PE | 9.01 | ||
| P/S | 0.69 | ||
| P/FCF | 12.12 | ||
| P/OCF | 9.24 | ||
| P/B | 3.08 | ||
| P/tB | 3.31 | ||
| EV/EBITDA | 9.7 |
EPS(TTM)0.06
EY6.9%
EPS(NY)0.1
Fwd EY11.1%
FCF(TTM)0.07
FCFY8.25%
OCF(TTM)0.09
OCFY10.83%
SpS1.26
BVpS0.28
TBVpS0.26
PEG (NY)N/A
PEG (5Y)0.81
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 | 0.88 |
F-Score8
WACC8.98%
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%