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Dorel Industries Class B (TSE:DII.B)
:DII.B

Dorel Class B (DII.B) AI Stock Analysis

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Dorel Class B

(OTC:DII.B)

Rating:47Neutral
Price Target:
C$1.50
▼(-7.41%Downside)
Dorel Class B's stock score is primarily impacted by weak financial performance and poor valuation due to persistent losses and high debt levels. Technical analysis shows a bearish trend, though there is some positive sentiment from restructuring efforts and potential growth in the Juvenile segment. The overall outlook remains cautious due to financial instability and ongoing operational challenges.

Dorel Class B (DII.B) vs. iShares MSCI Canada ETF (EWC)

Dorel Class B Business Overview & Revenue Model

Company DescriptionDorel 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 MoneyDorel Industries Inc. generates revenue through the sale of its products in the home, juvenile, and sports segments. In the Dorel Home segment, the company makes money by manufacturing and selling a wide array of ready-to-assemble furniture products to mass merchants and online retailers. Dorel Juvenile contributes to the company's earnings by offering products such as car seats, strollers, and other juvenile safety and convenience items, primarily sold through retail partners and direct-to-consumer channels. The Dorel Sports segment earns revenue by designing and distributing bicycles and related accessories under various brands, catering to both mass market and specialty retailers. The company's earnings are further supported by strategic partnerships and licensing agreements that enhance brand visibility and distribution capabilities globally.

Dorel Class B Earnings Call Summary

Earnings Call Date:May 09, 2025
(Q1-2025)
|
% Change Since: 3.18%|
Next Earnings Date:Aug 08, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in the Juvenile segment, driven by product innovation and market expansion, particularly in Europe and the US. However, the Home segment faced significant challenges with a large decline in revenue and ongoing restructuring efforts. Tariff changes add to the complexity of the situation, but the company is optimistic about future opportunities, particularly in the Juvenile segment.
Q1-2025 Updates
Positive Updates
Juvenile Segment Growth
Dorel Juvenile achieved its eighth consecutive quarter of year-over-year organic revenue growth. The Maxi-Cosi brand grew by 9% over the prior year and now accounts for 37% of sales. Improved performance in Chile and Peru led to an earnings improvement of $1.4 million.
New Product Innovations
The launch of the Maxi-Cosi Fame Stroller in over 40 countries and its new cabin version is expected to positively impact sales. The new Coral Slide Pro car seat as part of the Zero G Travel System showcases innovative features like being the lightest ever and fitting in airplane overhead bins.
US Manufacturing Opportunities
The company is exploring incremental opportunities for its US factory, which already produces 3 million car seats annually, as part of a strategy to capitalize on tariff changes.
Negative Updates
Home Segment Underperformance
Dorel Home experienced a difficult quarter with a 33% decline in revenue, largely due to lower-than-expected e-commerce sales. The operating loss for the Home segment was $7.9 million.
Tariff and Economic Challenges
The tariff situation with China, despite a reduction to 30%, remains challenging. The previous high tariff rate of 145% affected the ability to ship products, particularly impacting the Home segment.
Overall Revenue Decline
Dorel's overall revenue decreased by $30 million, or almost 9%, with organic revenue declining by approximately 7%. The gross profit for the quarter decreased by $8.1 million.
Company Guidance
During the Dorel Industries first quarter 2025 results conference call, management provided guidance highlighting the ongoing challenges and opportunities facing the company. For Dorel Juvenile, the segment achieved its eighth consecutive quarter of year-over-year organic revenue growth, with Maxi-Cosi brand sales increasing by 9% and now comprising 37% of sales. Notably, there was a $1.4 million earnings improvement in Chile and Peru. In contrast, Dorel Home experienced a 33% decline in revenue due to lower e-commerce sales, leading to a restructuring to streamline operations and reduce overhead. Overall, Dorel's revenue decreased by $30 million, or 9%, with an operating loss of $14 million compared to $7.7 million last year. The weakening of the US dollar positively impacted earnings, while the revised US-China tariffs are expected to affect future financial performance. Despite these challenges, the company remains optimistic about its Juvenile segment's long-term prospects and is actively restructuring the Home segment to improve profitability.

Dorel Class B Financial Statement Overview

Summary
Dorel Class B faces significant financial challenges with declining revenues, persistent losses, and high leverage. The high Debt-to-Equity ratio and decreasing equity base are concerning, indicating 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
45
Neutral
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
40
Negative
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
50
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.35B1.38B1.39B1.57B1.76B2.76B
Gross Profit237.94M246.04M243.78M205.01M294.37M568.62M
EBITDA-31.55M-23.40M17.31M-34.14M68.92M87.49M
Net Income-179.64M-171.96M-62.35M135.96M-31.62M-43.40M
Balance Sheet
Total Assets791.03M802.79M1.00B1.06B1.85B1.72B
Cash, Cash Equivalents and Short-Term Investments30.66M41.27M24.09M32.41M52.17M38.23M
Total Debt387.20M366.79M392.95M431.57M544.38M613.35M
Total Liabilities766.97M760.65M776.23M779.30M1.38B1.22B
Stockholders Equity24.06M42.14M224.70M281.14M469.00M496.21M
Cash Flow
Free Cash Flow18.04M38.77M53.38M-160.66M-16.45M100.82M
Operating Cash Flow42.88M62.37M76.93M-133.01M19.82M134.53M
Investing Cash Flow-22.08M-17.60M-20.54M734.89M14.14M-27.26M
Financing Cash Flow-14.18M-24.39M-65.95M-608.38M-23.69M-109.80M

Dorel Class B Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.62
Price Trends
50DMA
1.51
Positive
100DMA
2.15
Negative
200DMA
3.52
Negative
Market Momentum
MACD
0.02
Negative
RSI
65.23
Neutral
STOCH
61.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DII.B, the sentiment is Positive. The current price of 1.62 is above the 20-day moving average (MA) of 1.41, above the 50-day MA of 1.51, and below the 200-day MA of 3.52, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 65.23 is Neutral, neither overbought nor oversold. The STOCH value of 61.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DII.B.

Dorel Class B Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSICE
67
Neutral
C$56.95M20.615.42%2.81%9.07%124.97%
TSICE
67
Neutral
C$56.95M20.615.42%2.81%9.07%124.97%
63
Neutral
C$26.92M16.6715.79%7.31%
62
Neutral
$16.90B11.24-7.48%2.95%1.60%-23.76%
TSSXP
58
Neutral
C$94.56M-10.60%7.13%-3.15%-222.64%
TSSXP
58
Neutral
C$94.56M-10.60%7.13%-3.15%-222.64%
47
Neutral
C$53.65M-156.53%-1.10%-282.53%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:DII.B
Dorel Class B
1.62
-5.14
-76.04%
TSE:ICE
Canlan Ice Sports
4.27
0.56
15.09%
TSE:ICE
Canlan Ice Sports
4.27
0.56
15.09%
TSE:SXP
Supremex
3.85
0.15
4.05%
TSE:SXP
Supremex
3.85
0.15
4.05%
TSE:KDOZ
Kidoz Inc
0.20
0.04
25.00%

Dorel Class B Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Dorel Industries Announces Strategic Overhaul to Boost Profitability
Positive
Jun 30, 2025

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.

Executive/Board ChangesShareholder Meetings
Dorel Industries Re-elects Board Members and Reappoints Auditors at Annual Meeting
Positive
May 29, 2025

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.

Business Operations and StrategyFinancial Disclosures
Dorel Industries Faces Mixed Results in Q1 2025
Negative
May 12, 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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 03, 2025