Dorel Class B (DII.B) AI Stock Analysis

• Market Cap: C$66.89M
• Dividend Yield: N/A
• Average Volume (3M): 20.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.70
• Revenue Growth: -9.30%
• EPS Growth: -89.41%
• Country: CA
• Employees: 3,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -1.26
• Shares Outstanding: 28,530,352
• 10 Day Avg. Volume: 34,464
• 30 Day Avg. Volume: 20,788
• PEG Ratio: >-0.01
• Price to Book (P/B): 2.09
• Price to Sales (P/S): 0.06
• P/FCF Ratio: 2.27
• 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$1.75
• Price Target Upside: -14.17% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: C$2.00 ▼(-1.96% Downside)

The score is held down primarily by very weak financial performance, especially negative equity/high leverage and ongoing losses, which create elevated solvency and execution risk. Technicals are currently constructive with strong trend/momentum, but overbought signals add near-term risk. Valuation is also constrained by negative earnings (negative P/E) and no dividend yield data.

Positive Factors

Business Diversification

Multi-segment exposure across juvenile products, bicycles and home goods spreads demand and execution risk across different consumer cycles and channels. This structural diversity supports steadier revenues and allows reallocation of resources if one segment weakens over the next several quarters.

Gross Margin Resilience

A mid-teens gross margin indicates product-level pricing power and manufacturing or sourcing advantages that help absorb cost pressure. Sustained gross margin provides a base to cover SG&A and restructure operations, supporting recovery prospects over a 2-6 month strategic turnaround horizon.

Cash Conversion Strength

A high free cash flow-to-net-income ratio shows the company can convert accounting losses into meaningful cash, improving near-term liquidity despite profitability issues. This structural cash conversion ability can fund operations and targeted fixes while the company executes longer-term recovery plans.

Negative Factors

Weak Balance Sheet

Negative equity and implied extreme leverage signal solvency and refinancing risk, constraining strategic flexibility. High leverage can impede capital expenditures, limit margin recovery initiatives, and raise the cost or availability of external funding over the coming quarters, pressuring stability.

Revenue & Profit Decline

Ongoing revenue declines and negative profit margins reflect structural demand or execution shortfalls. Persistent losses undermine reinvestment capacity and erode competitive positioning, making sustained recovery dependent on successful product, pricing, or distribution fixes over multiple quarters.

Falling Free Cash Flow

A steep drop in free cash flow weakens liquidity and heightens reliance on external financing or asset sales to meet obligations. Reduced cash generation limits ability to invest in product development and operational improvements, increasing execution risk during any multi-quarter restructuring.

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 multiple streams across its three operating segments. In the Dorel Juvenile segment, revenue is primarily derived from the sale of safety-oriented products for infants and children, such as car seats, strollers, and play yards, which are marketed through various retail channels globally. The Dorel Sports segment earns income from the sale of bicycles and related accessories, targeting both recreational and competitive cyclists, while also benefiting from partnerships with bike retailers and sporting events. The Dorel Home segment focuses on furniture and home decor products, generating sales through both online and brick-and-mortar retail channels. Additionally, Dorel may engage in strategic partnerships and collaborations to expand its market reach and enhance product offerings, further contributing to its overall earnings.

Dorel Class B Financial Statement Overview

Summary

Dorel Class B is facing significant financial challenges, with declining revenues, negative profitability, and high financial leverage. However, there is some improvement in cash flow generation, which could provide a foundation for recovery.

Income Statement

Dorel Class B has experienced declining revenue over the TTM period, with a negative revenue growth rate of -4.13%. The company is also facing profitability challenges, as indicated by negative net profit and EBIT margins. The gross profit margin has slightly decreased compared to the previous year, reflecting pressure on cost management. Overall, the income statement shows a need for improvement in revenue generation and cost control.

Balance Sheet

The balance sheet reveals significant financial leverage, with a high debt-to-equity ratio of 16.09 in the TTM period, indicating potential financial risk. The negative stockholders' equity suggests that liabilities exceed assets, which is a concerning sign of financial instability. Return on equity is also negative, reflecting ongoing losses. The company needs to address its leverage and improve its equity position to enhance financial stability.

Cash Flow

Despite the challenges in profitability, Dorel Class B has shown a significant improvement in free cash flow growth, with a rate of 319.57% in the TTM period. The operating cash flow to net income ratio is positive, indicating that the company is generating cash from operations, albeit at a low coverage ratio. The free cash flow to net income ratio is also positive, suggesting some ability to cover net losses with cash flow. However, the company needs to sustain and improve cash flow generation to support its financial recovery.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.24B	1.38B	1.39B	1.57B	1.76B	2.76B
Gross Profit	203.61M	246.04M	243.78M	205.01M	294.37M	568.62M
EBITDA	-48.50M	-23.40M	17.31M	-34.14M	68.92M	87.49M
Net Income	-190.64M	-171.96M	-62.35M	135.96M	-31.62M	-43.40M
Balance Sheet
Total Assets	834.59M	802.79M	1.00B	1.06B	1.85B	1.72B
Cash, Cash Equivalents and Short-Term Investments	118.25M	41.27M	24.09M	32.41M	52.17M	38.23M
Total Debt	401.04M	366.79M	392.95M	431.57M	544.38M	613.35M
Total Liabilities	899.40M	760.65M	776.23M	779.30M	1.38B	1.22B
Stockholders Equity	-64.81M	42.14M	224.70M	281.14M	469.00M	496.21M
Cash Flow
Free Cash Flow	32.21M	38.77M	53.38M	-160.66M	-16.45M	100.82M
Operating Cash Flow	54.76M	62.37M	76.93M	-133.01M	19.82M	134.53M
Investing Cash Flow	-21.99M	-17.60M	-20.54M	734.89M	14.14M	-27.26M
Financing Cash Flow	57.71M	-24.39M	-65.95M	-608.38M	-23.69M	-109.80M

Dorel Class B Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 2.04 is above the 20-day moving average (MA) of 1.67, above the 50-day MA of 1.61, and above the 200-day MA of 1.56, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 67.47 is Neutral, neither overbought nor oversold. The STOCH value of 85.28 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LNF	81 Outperform	C$1.96B	11.17	15.07%	3.11%	1.99%	31.36%
GIL	75 Outperform	$16.29B	20.10	31.12%	1.47%	6.64%	27.37%
TOY	68 Neutral	C$1.90B	24.38	6.75%	2.40%	3.71%	80.35%
CTC	64 Neutral	C$9.51B	16.60	13.16%	3.17%	-0.13%	13.73%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DOO	48 Neutral	$7.99B	328.29	45.71%	0.86%	-5.14%	-87.15%
DII.B	47 Neutral	C$66.89M	-0.25	-683.97%	―	-9.30%	-89.41%

Dorel Class B Corporate Events

Dorel Industries Reports Q3 2025 Results Amid Market Challenges

Dorel Industries Inc. reported a challenging third quarter of 2025 with a 15.7% decline in revenue compared to the previous year, alongside a significant net loss increase. Despite these challenges, the company secured new financial arrangements to support its strategic goals, particularly in enhancing the Juvenile segment and restructuring the Home segment. The company faced external pressures, such as tariff uncertainties and a slowing retail environment in the U.S., but maintained stable revenue in the Juvenile segment due to strong international performance. Dorel Home is progressing with its restructuring plan, which includes ceasing manufacturing operations and reducing workforce and inventory.

The most recent analyst rating on ($TSE:DII.B) stock is a Hold with a C$1.50 price target. To see the full list of analyst forecasts on Dorel Class B stock, see the TSE:DII.B Stock Forecast page.