DIRTT Environmental Solutions Ltd.
DIRTT Environmental Solutions Ltd. Fundamental Analysis
DIRTT Environmental Solutions Ltd. (DRT.TO) shows weak financial fundamentals with a PE ratio of -7.84, profit margin of -8.55%, and ROE of -43.41%. The company generates $0.2B in annual revenue with weak year-over-year growth of -4.19%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -48.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DRT.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakDRT.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentDRT.TO trades at attractive valuation levels.
Growth Score
WeakDRT.TO faces weak or negative growth trends.
Financial Health Score
ModerateDRT.TO shows balanced financial health with some risks.
Profitability Score
WeakDRT.TO struggles to sustain strong margins.
Key Financial Metrics
Is DRT.TO Expensive or Cheap?
P/E Ratio
DRT.TO trades at -7.84 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, DRT.TO's PEG of 0.15 indicates potential undervaluation.
Price to Book
The market values DIRTT Environmental Solutions Ltd. at 3.99 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 35.97 times EBITDA. This signals the market has high growth expectations.
How Well Does DRT.TO Make Money?
Net Profit Margin
For every $100 in sales, DIRTT Environmental Solutions Ltd. keeps $-8.55 as profit after all expenses.
Operating Margin
Core operations generate -4.27 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-43.41 in profit for every $100 of shareholder equity.
ROA
DIRTT Environmental Solutions Ltd. generates $-14.18 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
DIRTT Environmental Solutions Ltd. generates limited operating cash flow of $-274.41K, signaling weaker underlying cash strength.
Free Cash Flow
DIRTT Environmental Solutions Ltd. generates weak or negative free cash flow of $-4.11M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.02 in free cash annually.
FCF Yield
DRT.TO converts -3.53% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-7.84
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.68
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.19
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.10
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.43
vs 25 benchmark
ROA
Return on assets percentage
-0.14
vs 25 benchmark
ROCE
Return on capital employed
-0.16
vs 25 benchmark
How DRT.TO Stacks Against Its Sector Peers
| Metric | DRT.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -7.84 | 26.72 | Better (Cheaper) |
| ROE | -43.41% | 1297.00% | Weak |
| Net Margin | -8.55% | -38908.00% (disorted) | Weak |
| Debt/Equity | 2.19 | 0.72 | Weak (High Leverage) |
| Current Ratio | 1.10 | 10.10 | Neutral |
| ROA | -14.18% | -1511770.00% (disorted) | Weak |
DRT.TO outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews DIRTT Environmental Solutions Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-70.01%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
243.20%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-76.57%
Industry Style: Cyclical, Value, Infrastructure
Declining