Fundamental Analysis of DIRTT ENVIRONMENTAL SOLUTION(NASDAQ:DRTT) stock

Fundamental Rating

DRTT gets a fundamental rating of 1 out of 10. The analysis compared the fundamentals against 39 industry peers in the Building Products industry. DRTT has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, DRTT is valued expensive at the moment.

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1. Profitability

1.1 Basic Checks

DRTT had negative earnings in the past year.

DRTT had a negative operating cash flow in the past year.

In the past 5 years DRTT reported 4 times negative net income.

The reported operating cash flow has been mixed in the past 5 years: DRTT reported negative operating cash flow in multiple years.

1.2 Ratios

DRTT has negative profitability rations, so we won't be analyzing them here.

		Industry Rank	Sector Rank
ROA	N/A
ROE	N/A
ROIC	N/A

ROA(3y)N/A

ROA(5y)N/A

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

Looking at the Gross Margin, with a value of 19.67%, DRTT is doing worse than 75.56% of the companies in the same industry.

DRTT's Gross Margin has declined in the last couple of years.

DRTT 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	19.67%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-22.31%

GM growth 5Y-17.09%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

DRTT does not have a ROIC to compare to the WACC, probably because it is not profitable.

Compared to 1 year ago, DRTT has more shares outstanding

The number of shares outstanding for DRTT has been increased compared to 5 years ago.

DRTT has a worse debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of -1.12, we must say that DRTT is in the distress zone and has some risk of bankruptcy.

DRTT has a Altman-Z score of -1.12. This is amonst the worse of the industry: DRTT underperforms 93.33% of its industry peers.

A Debt/Equity ratio of 8.35 is on the high side and indicates that DRTT has dependencies on debt financing.

The Debt to Equity ratio of DRTT (8.35) is worse than 93.33% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	8.35
Debt/FCF	N/A
Altman-Z	-1.12

ROIC/WACCN/A

WACC8.43%

2.3 Liquidity

DRTT has a Current Ratio of 1.51. This is a normal value and indicates that DRTT is financially healthy and should not expect problems in meeting its short term obligations.

DRTT's Current ratio of 1.51 is on the low side compared to the rest of the industry. DRTT is outperformed by 82.22% of its industry peers.

A Quick Ratio of 0.89 indicates that DRTT may have some problems paying its short term obligations.

With a Quick ratio value of 0.89, DRTT is not doing good in the industry: 82.22% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	1.51
Quick Ratio	0.89

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 35.97% over the past year.

DRTT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.06%.

Measured over the past years, DRTT shows a decrease in Revenue. The Revenue has been decreasing by -5.31% on average per year.

EPS 1Y (TTM)35.97%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%55.56%

Revenue 1Y (TTM)9.06%

Revenue growth 3Y-11.42%

Revenue growth 5Y-5.31%

Sales Q2Q%-4.12%

3.2 Future

The Earnings Per Share is expected to grow by 35.11% on average over the next years. This is a very strong growth

DRTT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.38% yearly.

EPS Next Y65.08%

EPS Next 2Y35.11%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year-2.82%

Revenue Next 2Y2.38%

Revenue Next 3YN/A

Revenue Next 5YN/A

3.3 Evolution

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.

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4. Valuation

4.1 Price/Earnings Ratio

DRTT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.

Also next year DRTT is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A

4.2 Price Multiples

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	N/A

4.3 Compensation for Growth

DRTT's earnings are expected to grow with 35.11% in the coming years. This may justify a more expensive valuation.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y35.11%

EPS Next 3YN/A

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5. Dividend

5.1 Amount

No dividends for DRTT!.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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DIRTT ENVIRONMENTAL SOLUTION

NASDAQ:DRTT (9/14/2023, 9:21:28 PM)

After market: 0.2849 -0.05 (-14.78%)

0.3343

0 (-0.36%)

Chartmill FA Rating

GICS SectorIndustrials

GICS IndustryGroupCapital Goods

GICS IndustryBuilding Products

Earnings (Last)

Earnings (Next)

Inst Owners

Inst Owner Change

Ins Owners

Ins Owner Change

Market Cap34.92M

Analysts

Price Target

Dividend

		Industry Rank	Sector Rank
Dividend Yield	N/A

Dividend Growth(5Y)

Div Incr Years

Div Non Decr Years

Ex-Date

Surprises & Revisions

EPS beat(2)

Avg EPS beat(2)

Min EPS beat(2)

Max EPS beat(2)

EPS beat(4)

Avg EPS beat(4)

Min EPS beat(4)

Max EPS beat(4)

EPS beat(8)

Avg EPS beat(8)

EPS beat(12)

Avg EPS beat(12)

EPS beat(16)

Avg EPS beat(16)

Revenue beat(2)

Avg Revenue beat(2)

Min Revenue beat(2)

Max Revenue beat(2)

Revenue beat(4)

Avg Revenue beat(4)

Min Revenue beat(4)

Max Revenue beat(4)

Revenue beat(8)

Avg Revenue beat(8)

Revenue beat(12)

Avg Revenue beat(12)

Revenue beat(16)

Avg Revenue beat(16)

PT rev (1m)

PT rev (3m)

EPS NQ rev (1m)

EPS NQ rev (3m)

EPS NY rev (1m)

EPS NY rev (3m)

Revenue NQ rev (1m)

Revenue NQ rev (3m)

Revenue NY rev (1m)

Revenue NY rev (3m)

Valuation

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA

EPS(TTM)

EPS(NY)

Fwd EY

FCF(TTM)

FCFY

OCF(TTM)

OCFY

SpS

BVpS

TBVpS

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	N/A
ROE	N/A
ROCE
ROIC
ROICexc
ROICexgc
OM	N/A
PM (TTM)	N/A
GM	19.67%
FCFM

ROA(3y)

ROA(5y)

ROE(3y)

ROE(5y)

ROIC(3y)

ROIC(5y)

ROICexc(3y)

ROICexc(5y)

ROICexgc(3y)

ROICexgc(5y)

ROCE(3y)

ROCE(5y)

ROICexcg growth 3Y

ROICexcg growth 5Y

ROICexc growth 3Y

ROICexc growth 5Y

OM growth 3Y

OM growth 5Y

PM growth 3Y

PM growth 5Y

GM growth 3Y

GM growth 5Y

F-Score

Asset Turnover1.22

Health

		Industry Rank	Sector Rank
Debt/Equity	8.35
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio	1.51
Quick Ratio	0.89
Altman-Z

F-Score

WACC

ROIC/WACC

Cap/Depr(3y)

Cap/Depr(5y)

Cap/Sales(3y)

Cap/Sales(5y)

Profit Quality(3y)

Profit Quality(5y)

High Growth Momentum

Growth

EPS 1Y (TTM)35.97%

EPS 3YN/A

EPS 5Y

EPS Q2Q%

EPS Next Y65.08%

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)9.06%

Revenue growth 3Y-11.42%

Revenue growth 5Y

Sales Q2Q%

Revenue Next Year

Revenue Next 2Y

Revenue Next 3Y

Revenue Next 5Y

EBIT growth 1Y

EBIT growth 3Y

EBIT growth 5Y

EBIT Next Year

EBIT Next 3Y

EBIT Next 5Y

FCF growth 1Y

FCF growth 3Y

FCF growth 5Y

OCF growth 1Y

OCF growth 3Y

OCF growth 5Y

DIRTT ENVIRONMENTAL SOLUTION (DRTT)

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

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