DIRTT ENVIRONMENTAL SOLUTION (DRT.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:DRT - CA25490H1064 - Common Stock
0.87 CAD
-0.01 (-1.14%)
We assign a fundamental rating of 4 out of 10 to DRT. DRT was compared to 3 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 has reported negative net income.
- 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
- The Return On Assets of DRT (-6.14%) is better than 100.00% of its industry peers.
- DRT's Return On Equity of -21.31% is amongst the best of the industry. DRT outperforms 100.00% 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.
- The Gross Margin of DRT (32.59%) is better than 100.00% of its industry peers.
- DRT's Gross Margin has been stable in the last couple of years.
- DRT does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| 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.
- 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 0.30, we must say that DRT is in the distress zone and has some risk of bankruptcy.
- DRT has a Altman-Z score of 0.30. 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 has a better Debt to FCF ratio (3.32) than 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.
- The Debt to Equity ratio of DRT (0.34) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.32 | ||
| Altman-Z | 0.3 |
ROIC/WACCN/A
WACC8.42%
2.3 Liquidity
- A Current Ratio of 1.39 indicates that DRT should not have too much problems paying its short term obligations.
- With an excellent Current ratio value of 1.39, DRT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- A Quick Ratio of 1.03 indicates that DRT should not have too much problems paying its short term obligations.
- The Quick ratio of DRT (1.03) is better than 100.00% 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%.
- DRT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.89% yearly.
- The Revenue has decreased by -5.41% in the past 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 5Y20.89%
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.
- DRT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.01% yearly.
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
- 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
- DRT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- Based on the Price/Forward Earnings ratio of 8.94, the valuation of DRT can be described as reasonable.
- 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.
- When comparing the Price/Forward Earnings ratio of DRT to the average of the S&P500 Index (25.98), we can say DRT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8.94 |
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.
- DRT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DRT is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.47 | ||
| EV/EBITDA | 32.64 |
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
- No dividends for DRT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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 of DIRTT ENVIRONMENTAL SOLUTION (DRT.CA) 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.
How financially healthy is DIRTT ENVIRONMENTAL SOLUTION?
The financial health rating of DIRTT ENVIRONMENTAL SOLUTION (DRT.CA) is 5 / 10.