DIRTT ENVIRONMENTAL SOLUTION (DRT.CA) Stock Fundamental Analysis
TSX:DRT - Toronto Stock Exchange - CA25490H1064 - Common Stock - Currency: CAD
Taking everything into account, DRT scores 5 out of 10 in our fundamental rating. 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on DRT. These ratings could make DRT a good candidate 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.
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 Return On Assets of 9.89%. This is amongst the best in the industry. DRT outperforms 100.00% of its industry peers.
The Return On Equity of DRT (28.22%) is better than 100.00% of its industry peers.
DRT has a better Return On Invested Capital (5.22%) than 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.
Looking at the Operating Margin, with a value of 3.03%, DRT is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
DRT's Operating Margin has improved in the last couple of years.
The Gross Margin of DRT (36.78%) is better than 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.
DRT has more shares outstanding than it did 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 0.95. This is a bad value and indicates that DRT is not financially healthy and even has some risk of bankruptcy.
DRT has a worse Altman-Z score (0.95) than 66.67% 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's Debt to FCF ratio of 2.24 is amongst the best of the industry. DRT outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that DRT is not too dependend on debt financing.
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 | 0.95 |
ROIC/WACC0.57
WACC9.15%
2.3 Liquidity
DRT has a Current Ratio of 1.61. This is a normal value and indicates that DRT is financially healthy and should not expect problems in meeting its short term obligations.
DRT has a better Current ratio (1.61) than 66.67% of its industry peers.
DRT has a Quick Ratio of 1.24. This is a normal value and indicates that DRT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.24, DRT is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| 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%.
DRT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -6.79% yearly.
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.
The Revenue is expected to grow by 15.81% on average over the next years. This is quite good.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 15.33, the valuation of DRT can be described as correct.
100.00% of the companies in the same industry are more expensive than DRT, based on the Price/Earnings ratio.
DRT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.45.
The Price/Forward Earnings ratio is 9.57, which indicates a very decent valuation of DRT.
Compared to the rest of the industry, the Price/Forward 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/Forward Earnings ratio is at 21.90. DRT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.33 | ||
| Fwd PE | 9.57 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DRT indicates a somewhat cheap valuation: DRT is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.87 | ||
| EV/EBITDA | 10.34 |
4.3 Compensation for Growth
The decent profitability rating of DRT 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)0.86
EPS Next 2Y12.36%
EPS Next 3Y25.65%
5. Dividend
5.1 Amount
No dividends for DRT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:DRT (7/4/2025, 7:00:00 PM)
0.92
+0.08 (+9.52%)
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 Cap174.35M
Analysts80
Price Target1.68 (82.61%)
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 | 15.33 | ||
| Fwd PE | 9.57 | ||
| P/S | 0.73 | ||
| P/FCF | 12.87 | ||
| P/OCF | 9.81 | ||
| P/B | 3.27 | ||
| P/tB | 3.52 | ||
| EV/EBITDA | 10.34 |
EPS(TTM)0.06
EY6.52%
EPS(NY)0.1
Fwd EY10.45%
FCF(TTM)0.07
FCFY7.77%
OCF(TTM)0.09
OCFY10.19%
SpS1.25
BVpS0.28
TBVpS0.26
PEG (NY)N/A
PEG (5Y)0.86
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 | 0.95 |
F-Score8
WACC9.15%
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%