Dorel Class B (DII.B) AI Stock Analysis

• Market Cap: $61.34M
• Dividend Yield: N/A
• Average Volume (3M): 20.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.93
• 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): -1.28
• 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: 6.94
• Enterprise Value/Revenue: 0.33
• Enterprise Value/Gross Profit: 1.92
• Enterprise Value/Ebitda: -19.91
• 1Y Price Target: $1.75
• Price Target Upside: 15.62% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): -2.58
• Revenue Forecast (FY): $1.67B

• Rating: 42 Neutral
• Price Target: C$1.50 ▼(-0.66% Downside)

Dorel Class B's overall stock score is primarily impacted by its financial challenges, including declining revenues and high leverage, which are reflected in a low financial performance score. Technical indicators suggest a bearish trend, and valuation metrics are unattractive due to ongoing losses. While the earnings call provides some optimism with restructuring plans and international growth, immediate financial outlook remains cautious.

Positive Factors

International Growth

Strong international growth in the Juvenile segment, especially in Europe and other markets, indicates expanding global reach and potential for sustained revenue increases.

Product Innovation

Successful product launches, such as the Maxi-Cosi Fame stroller, demonstrate Dorel's commitment to innovation and can drive long-term sales growth and brand loyalty.

Restructuring Plans

The restructuring plan to focus on profitable segments and integrate operations could lead to substantial cost savings and improved operational efficiency over time.

Negative Factors

Revenue Decline

Significant revenue decline in the Home segment due to tariff uncertainties and liquidity constraints poses a challenge to overall financial performance.

High Financial Leverage

High financial leverage increases financial risk, limiting flexibility and potentially impacting the company's ability to invest in growth opportunities.

Liquidity Challenges

Ongoing liquidity challenges and the need for additional financing highlight financial instability, which could hinder strategic initiatives and operational stability.

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, including declining revenues, negative profitability, and high financial leverage. However, there is some improvement in cash flow generation, which could provide a foundation for recovery. The company needs to focus on revenue growth, cost management, and reducing financial leverage.

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	1.29B	1.38B	1.39B	1.57B	1.76B	2.76B
Gross Profit	221.30M	246.04M	243.78M	205.01M	294.37M	568.62M
EBITDA	-21.39M	-23.40M	17.31M	-34.14M	68.92M	87.49M
Net Income	-165.09M	-171.96M	-62.35M	135.96M	-31.62M	-43.40M
Balance Sheet
Total Assets	730.39M	802.79M	1.00B	1.06B	1.85B	1.72B
Cash, Cash Equivalents and Short-Term Investments	24.71M	41.27M	24.09M	32.41M	52.17M	38.23M
Total Debt	335.06M	366.79M	392.95M	431.57M	544.38M	613.35M
Total Liabilities	751.20M	760.65M	776.23M	779.30M	1.38B	1.22B
Stockholders Equity	-20.81M	42.14M	224.70M	281.14M	469.00M	496.21M
Cash Flow
Free Cash Flow	75.68M	38.77M	53.38M	-160.66M	-16.45M	100.82M
Operating Cash Flow	101.50M	62.37M	76.93M	-133.01M	19.82M	134.53M
Investing Cash Flow	-25.43M	-17.60M	-20.54M	734.89M	14.14M	-27.26M
Financing Cash Flow	-75.12M	-24.39M	-65.95M	-608.38M	-23.69M	-109.80M

Dorel Class B Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1.51 is below the 20-day moving average (MA) of 1.58, below the 50-day MA of 1.74, and below the 200-day MA of 1.82, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 44.63 is Neutral, neither overbought nor oversold. The STOCH value of 15.10 is Positive, 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	71 Outperform	C$59.35M	15.77	9.11%	27.36%	6.53%	714.72%
KDOZ	63 Neutral	C$40.70M	77.50	9.46%	―	32.71%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SXP	54 Neutral	C$89.34M	5.41	15.15%	17.29%	-4.69%	―
DII.B	42 Neutral	$61.34M	―	-683.97%	―	-9.30%	-89.41%

Dorel Class B Corporate Events

Dorel Industries Faces Challenges Amid Restructuring

Dorel Industries Inc. is a global company operating in the juvenile and home products sectors, known for its diverse and innovative product range and strong brand portfolio, including Maxi-Cosi and Safety 1st in the juvenile segment, and a wide assortment of furniture in the home segment. The company is listed on the Toronto Stock Exchange under the symbols DII.B and DII.A.

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.

Dorel Industries Secures New Credit Facilities and Preferred Shares to Boost Growth

Dorel Industries Inc. has successfully closed new credit facilities totaling US$310 million and issued US$75 million in preferred shares. These financial moves are aimed at recapitalizing the company’s balance sheet, allowing Dorel to repay existing debt and invest in the growth of its Juvenile segment and the restructuring of its Home segment. This strategic financial restructuring positions Dorel to advance its strategic agenda and improve its market positioning.

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.

Dorel Industries Extends Forbearance Period Amid Debt Restructuring Efforts

Dorel Industries Inc. has announced an extension of the forbearance period for its asset-backed loan and term loan facilities to September 30, 2025, as part of its ongoing efforts to restructure its debt. The company is working with capital market advisors to recapitalize its balance sheet, aiming to support growth in its Juvenile segment and reorganize its Home segment. This strategic move is intended to replace the current debt structure, aligning it better with the company’s needs and potentially enhancing its market position.

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.

Dorel Industries Extends Forbearance Period and Plans Debt Restructuring

Dorel Industries Inc. announced an extension of the forbearance period under its asset-backed loan and term loan facilities to September 30, 2025. This extension is part of the company’s efforts to re-capitalize its balance sheet, aiming to support growth in its Juvenile segment and re-organize its Home segment. The company has engaged capital market advisors to assist in implementing a new debt structure, which is expected to be in place by the end of the extended forbearance period.

The most recent analyst rating on ($TSE:DII.B) stock is a Hold with a C$1.00 price target. To see the full list of analyst forecasts on Dorel Class B stock, see the TSE:DII.B Stock Forecast page.