Dorel Class B (DII.B) AI Stock Analysis

• Market Cap: $51.08M
• Dividend Yield: N/A
• Average Volume (3M): 30.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: -1.10%
• EPS Growth: -282.53%
• Country: CA
• Employees: 3,600
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.99
• Shares Outstanding: 28,524,113
• 10 Day Avg. Volume: 11,574
• 30 Day Avg. Volume: 30,232
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $1.74
• Price Target Upside: 12.56% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 49 Neutral
• Price Target: C$1.50 ▼(-3.23%Downside)

Dorel Class B's overall stock score reflects significant financial challenges, including declining revenues, persistent losses, and high leverage, weighing heavily on its performance. While the company has initiated strategic restructuring, the lack of profitability and poor valuation metrics present substantial risks. Positive developments in the Juvenile segment and strategic corporate actions provide some optimism, but the overall outlook remains cautious due to ongoing operational and economic challenges.

Dorel Class B Business Overview & Revenue Model

Company Description

Dorel Industries Inc. designs, manufactures, sources, markets, and distributes home products and juvenile products worldwide. The company's Dorel Home segment engages in the design, manufacture, sourcing, and distribution of ready-to assemble furniture and home furnishings products, folding chair and tables, outdoor and juvenile furniture, futons, bunk beds, mattresses, bedroom, dining, home entertainment, and office furniture, upholstery, step stools and ladders, and hand trucks. This segment markets its products under the Ameriwood, Altra, System Build, Ridgewood, DHP, Dorel Fine Furniture, Dorel Living, Signature Sleep, Cosmo Living, Novagratz, Little Seeds, Queer Eye, Cosco, and Alphason brands. Its Dorel Juvenile segment manufactures and distributes infant car seats, strollers, travel systems high chairs, play yards, safety aids, swings/toys, early learning/infant health, mobiles, baby toys, playpens, and developmental toys under the Maxi-Cosi, Quinny, Tiny Love, Safety 1st, BebeConfort, Cosco, Mother's Choice, Disney, and Infanti brands. The company sells its products to mass merchant discount chains, department stores, club format outlets, and hardware/home centers; Internet retailers; independent boutiques and juvenile specialty stores; and sporting goods stores. It also owns and operates approximately 88 retail stores in Chile and Peru, as well as various factory outlet retail locations in Europe. The company was formerly known as Dorel Co. Ltd. and changed its name to Dorel Industries Inc. in May 1987. Dorel Industries Inc. was incorporated in 1962 and is headquartered in Westmount, Canada.

How the Company Makes Money

Dorel Industries makes money through the sale of its diverse range of products across its three main business segments. In the Dorel Home segment, revenue is generated through the design, manufacture, and distribution of home furniture to retailers and consumers, including e-commerce platforms. Dorel Juvenile earns income by selling juvenile products under various brand names to both retailers and directly to consumers. The Dorel Sports segment generates revenue by manufacturing and marketing bicycles and related products, leveraging strong brand names like Cannondale and Schwinn. The company’s earnings are significantly supported by its global distribution network and strategic partnerships with major retailers and online platforms, enabling it to reach a wide consumer base. Additionally, Dorel prioritizes innovation and quality in its product offerings, which helps maintain its competitive edge and contributes to its revenue streams.

Dorel Class B Financial Statement Overview

Summary

Dorel Industries faces significant financial challenges, with declining revenues and persistent losses. The high Debt-to-Equity ratio and decreasing equity base indicate financial instability. While there is some positive cash flow from operations, the overall financial health is weak due to unprofitable operations and financial risk from high debt levels.

Income Statement

The company shows a downward trend in revenue with a TTM revenue of $1.35 billion compared to $1.57 billion in 2022 and $1.75 billion in 2021. Gross Profit Margin is at 17.63% TTM, which is relatively low, indicating cost pressures. Net Profit Margin has been consistently negative, reaching -13.31% TTM, showing persistent losses. The firm struggles with profitability as evidenced by negative EBIT and EBITDA margins, reflecting operational inefficiencies.

Balance Sheet

The balance sheet reveals a high Debt-to-Equity Ratio of 16.10 TTM, indicating significant leverage and potential financial risk. Stockholders' Equity has dramatically decreased, suggesting declining investor confidence or financial stress. The Equity Ratio is only 3.04% TTM, highlighting a weak equity base relative to total assets. These factors suggest financial instability and risk.

Cash Flow

Operating cash flow has shown some improvement, with a positive trend reaching $42.88 million TTM. However, Free Cash Flow has diminished compared to previous years, currently at $18.04 million TTM. The Operating Cash Flow to Net Income Ratio indicates some ability to generate cash despite losses, but financial health remains weak due to declining free cash generation.

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Dorel Class B Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DII.B, the sentiment is Negative. The current price of 1.55 is above the 20-day moving average (MA) of 1.51, above the 50-day MA of 1.45, and below the 200-day MA of 3.17, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 44.64 is Neutral, neither overbought nor oversold. The STOCH value of 62.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:DII.B.

Dorel Class B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ICE	75 Outperform	C$62.68M	22.68	5.42%	3.26%	9.07%	124.97%
SXP	73 Outperform	C$104.87M	―	-10.60%	4.45%	-3.15%	-222.64%
KDOZ	63 Neutral	C$31.51M	19.51	15.79%	―	7.31%	―
Sector *	57 Neutral	HK$25.34B	4.18	-2.03%	5.87%	-0.23%	-68.02%
DII.B	49 Neutral	$51.08M	―	-156.53%	―	-1.10%	-282.53%
DII.A	―	C$49.65M	―	-159.64%	―	―	―
AEG	―	C$34.11M	―	6.54%	―	―	―

Dorel Class B Corporate Events

Dorel Industries Announces Strategic Overhaul to Boost Profitability

Dorel Industries Inc. announced a strategic overhaul of its Home segment, aiming to return it to profitability by 2026 through a significant reduction in size and a focus on profitable categories. This involves ceasing domestic manufacturing in Cornwall, Ontario, and consolidating operations with the Juvenile North America division to create synergies. The company is also working on new financing arrangements to support growth in its Juvenile segment and facilitate the Home segment’s reorganization. These changes are expected to improve earnings by the fourth quarter of 2025, with further details to be provided in the upcoming earnings release.

The most recent analyst rating on ($TSE:DII.B) stock is a Hold with a C$7.00 price target. To see the full list of analyst forecasts on Dorel Class B stock, see the TSE:DII.B Stock Forecast page.

Dorel Industries Re-elects Board Members and Reappoints Auditors at Annual Meeting

Dorel Industries Inc. announced the re-election of all nominees listed in its Management Proxy Circular as directors at the Annual Meeting of Shareholders. The reappointment of KPMG LLP as auditors was also confirmed. This decision reflects continuity in leadership and stability in governance, potentially reinforcing investor confidence and ensuring ongoing strategic direction for the company.

The most recent analyst rating on ($TSE:DII.B) stock is a Hold with a C$7.00 price target. To see the full list of analyst forecasts on Dorel Class B stock, see the TSE:DII.B Stock Forecast page.

Dorel Industries Faces Mixed Results in Q1 2025

Dorel Industries Inc. reported a challenging first quarter of 2025 with a decrease in revenue by 8.7% to US$320.5 million and a net loss of US$25.3 million. Despite this, the Dorel Juvenile segment showed strong performance with a 1.5% revenue increase, driven by the success of the Maxi-Cosi brand and favorable currency movements. However, Dorel Home faced difficulties with lower-than-expected e-commerce sales, prompting the company to adjust its strategy and reduce its e-commerce footprint.

The most recent analyst rating on ($TSE:DII.B) stock is a Hold with a C$7.00 price target. To see the full list of analyst forecasts on Dorel Class B stock, see the TSE:DII.B Stock Forecast page.