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 4 industry peers in the Building Products industry. DRT has only an average score on both its financial health and profitability. DRT is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make DRT a good candidate for value investing.
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.
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
The Return On Assets of DRT (9.89%) is better than 100.00% of its industry peers.
With an excellent Return On Equity value of 28.22%, DRT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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
With an excellent Profit Margin value of 6.33%, DRT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
DRT has a better Operating Margin (3.03%) than 75.00% of its industry peers.
In the last couple of years the Operating Margin of DRT has grown nicely.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DRT is destroying value.
The number of shares outstanding for DRT has been increased compared to 1 year ago.
Compared to 5 years ago, DRT has more shares outstanding
DRT has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.90, we must say that DRT is in the distress zone and has some risk of bankruptcy.
DRT has a worse Altman-Z score (0.90) than 75.00% of its industry peers.
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 better Debt to FCF ratio (2.24) than 100.00% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that DRT is not too dependend on debt financing.
The Debt to Equity ratio of DRT (0.27) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 2.24 | ||
| Altman-Z | 0.9 |
ROIC/WACC0.57
WACC9.09%
2.3 Liquidity
A Current Ratio of 1.61 indicates that DRT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.61, DRT is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
A Quick Ratio of 1.24 indicates that DRT should not have too much problems paying its short term obligations.
The Quick ratio of DRT (1.24) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 161.23% over the past year.
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.
DRT shows a decrease in Revenue. In the last year, the revenue decreased by -6.08%.
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)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
The Earnings Per Share is expected to grow by 25.65% on average over the next years. This is a very strong growth
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.50, the valuation of DRT can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of DRT indicates a rather cheap valuation: DRT is cheaper than 100.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.50. DRT is valued slightly cheaper when compared to this.
DRT is valuated reasonably with a Price/Forward Earnings ratio of 9.56.
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 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.5 | ||
| Fwd PE | 9.56 |
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 | 12.84 | ||
| EV/EBITDA | 9.84 |
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 25.65% in the coming years.
PEG (NY)N/A
PEG (5Y)0.87
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 (7/18/2025, 7:00:00 PM)
0.93
+0.04 (+4.49%)
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 Cap176.08M
Analysts80
Price Target1.68 (80.65%)
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 | 15.5 | ||
| Fwd PE | 9.56 | ||
| P/S | 0.73 | ||
| P/FCF | 12.84 | ||
| P/OCF | 9.79 | ||
| P/B | 3.26 | ||
| P/tB | 3.51 | ||
| EV/EBITDA | 9.84 |
EPS(TTM)0.06
EY6.45%
EPS(NY)0.1
Fwd EY10.46%
FCF(TTM)0.07
FCFY7.79%
OCF(TTM)0.1
OCFY10.22%
SpS1.27
BVpS0.28
TBVpS0.26
PEG (NY)N/A
PEG (5Y)0.87
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 | 0.9 |
F-Score8
WACC9.09%
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%