Dorel Class B (DII.B) AI Stock Analysis

• Market Cap: C$43.62M
• Dividend Yield: N/A
• Average Volume (3M): 34.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: -5.50%
• EPS Growth: -85.31%
• Country: CA
• Employees: 3,600
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.90
• Shares Outstanding: 28,524,113
• 10 Day Avg. Volume: 60,913
• 30 Day Avg. Volume: 34,809
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: C$1.34
• Price Target Upside: 3.08% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 46 Neutral
• Price Target: C$1.50 ▲(15.38% Upside)

Dorel Industries faces significant financial challenges, with declining revenues and high leverage being the most critical issues. The technical analysis suggests a bearish trend, and valuation metrics are poor due to ongoing losses. The earnings call provided some optimism with strategic initiatives, but the overall outlook remains cautious due to liquidity issues and restructuring challenges.

Positive Factors

Global Market Performance

Dorel's Juvenile segment showed growth in most markets, with revenue increasing by 0.8%.

Restructuring Initiatives

Restructuring initiatives are expected to return the Home segment to profitability, driven by significant cost reductions.

Tariff Mitigation

Worldwide footprint and domestic U.S. manufacturing help to mitigate tariff-related pressures.

Negative Factors

Earnings Visibility

Low earnings visibility will limit upside for the stock due to challenges in the Home segment.

E-commerce and Factory Operations

Home adj. EBIT well below forecast; revenue declined reflecting e-commerce declines and factory closures.

Home Segment Performance

Home segment sales declined significantly as tariff-related pressures and restructuring initiatives weighed.

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 Class B generates revenue through the sale of its core products across its three main sectors: juvenile products, bicycles, and home products. Each sector contributes significantly to the company's overall earnings. The juvenile products division, which includes car seats and strollers, benefits from strong consumer demand driven by safety regulations and parental preferences for high-quality products. The bicycle segment capitalizes on the growing trend towards cycling for recreation and transportation, particularly in urban areas. Revenue is further bolstered by strategic partnerships with major retailers and e-commerce platforms, enhancing distribution and market reach. Additionally, the company invests in product innovation and marketing to strengthen brand loyalty and drive sales.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.35B	1.38B	1.39B	1.57B	1.76B	2.76B
Gross Profit	237.94M	246.04M	243.78M	205.01M	294.37M	568.62M
EBITDA	-31.55M	-23.40M	17.31M	-34.14M	68.92M	87.49M
Net Income	-179.64M	-171.96M	-62.35M	135.96M	-31.62M	-43.40M
Balance Sheet
Total Assets	791.03M	802.79M	1.00B	1.06B	1.85B	1.72B
Cash, Cash Equivalents and Short-Term Investments	30.66M	41.27M	24.09M	32.41M	52.17M	38.23M
Total Debt	387.20M	366.79M	392.95M	431.57M	544.38M	613.35M
Total Liabilities	766.97M	760.65M	776.23M	779.30M	1.38B	1.22B
Stockholders Equity	24.06M	42.14M	224.70M	281.14M	469.00M	496.21M
Cash Flow
Free Cash Flow	18.04M	38.77M	53.38M	-160.66M	-16.45M	100.82M
Operating Cash Flow	42.88M	62.37M	76.93M	-133.01M	19.82M	134.53M
Investing Cash Flow	-22.08M	-17.60M	-20.54M	734.89M	14.14M	-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: Negative
• Last Price: 1.30
• 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 1.3 is below the 20-day moving average (MA) of 1.43, below the 50-day MA of 1.44, and below the 200-day MA of 2.92, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 40.89 is Neutral, neither overbought nor oversold. The STOCH value of 26.24 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	74 Outperform	C$54.41M	14.46	8.22%	3.37%	8.43%	―
SXP	69 Neutral	C$105.12M	―	-12.57%	4.44%	-3.54%	-244.21%
KDOZ	63 Neutral	C$31.25M	19.35	15.79%	―	14.71%	―
Sector *	56 Neutral	HK$25.64B	4.99	-2.69%	5.51%	-0.50%	-53.30%
DII.B	46 Neutral	C$43.62M	―	-274.08%	―	-5.50%	-85.31%

Dorel Class B Corporate Events

Dorel Industries Faces Revenue Decline Amidst Restructuring Efforts

Dorel Industries Inc. reported a challenging second quarter of 2025, with a 16% decrease in revenue compared to the previous year, totaling US$292.4 million. Despite a net loss of US$44.9 million, the Dorel Juvenile segment showed strong performance in international markets, driven by growth in Europe and favorable foreign exchange rates. Meanwhile, Dorel Home faced difficulties due to tariff uncertainties and liquidity issues, prompting a restructuring strategy aimed at cost reduction and operational streamlining, with expected benefits to emerge by the fourth quarter of 2025 and full impact anticipated in 2026.

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 Secures Loan Amendments Amid Financial Restructuring

Dorel Industries Inc. has announced amendments to its asset-backed loan and term loan facilities, extending the forbearance period until September 16, 2025, due to a default on certain financial covenants. This amendment provides Dorel with an additional US$20 million in liquidity to finance new inventory, although the maximum availability under the ABL facility has been reduced to US$150 million. The company is also working with capital market advisors to restructure its debt to better align with its growth needs in the Juvenile segment and reorganization plans for the Home segment.

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 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.