Dorel Class B (DII.B) AI Stock Analysis

• Market Cap: C$63.96M
• Dividend Yield: N/A
• Average Volume (3M): 20.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.75
• 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): -0.48
• Shares Outstanding: 30,518,936
• 10 Day Avg. Volume: 34,464
• 30 Day Avg. Volume: 20,788
• PEG Ratio: 0.02
• Price to Book (P/B): -0.39
• Price to Sales (P/S): 0.03
• P/FCF Ratio: -0.59
• 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$2.25
• Price Target Upside: 28.44% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): -1.08
• Revenue Forecast (FY): C$1.19B

• Rating: 43 Neutral
• Price Target: C$1.50 ▼(-14.29% Downside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is primarily driven down by weak financial performance, including ongoing losses, negative operating/free cash flow in 2025, and negative equity, which elevates balance-sheet risk. Technical indicators are broadly neutral and provide limited support, while valuation metrics are not constructive due to losses (negative P/E) and no provided dividend yield.

Positive Factors

Diversified Segments

Having two distinct operating segments (home furniture and juvenile safety/mobility products) provides diversified revenue streams across product cycles and channels. This reduces single-market exposure and supports resilience as consumer demand shifts across categories and regions over months.

Retail & e‑commerce Partnerships

Established distribution through mass merchants, e-commerce platforms and distributors gives scale access to large, repeat customers and broad shelf/online presence. Durable retailer relationships aid predictable order flow, private‑label programs, and negotiating leverage on volume and logistics over quarters.

Operational Progress (EBITDA)

Improving EBITDA versus the prior year suggests operating fixes, cost discipline or mix improvements beginning to take hold. If sustained, modest EBITDA recovery can expand margins and support cash generation improvements over the next several quarters as restructuring and sourcing gains compound.

Negative Factors

Multi‑year Revenue Decline

A persistent, multi‑year revenue contraction indicates structural demand, market share, or product competitiveness issues. Continued top‑line erosion constrains operating leverage, hampers margin recovery, and makes sustaining fixed costs and investments difficult without clear growth initiatives or regained retailer traction.

Negative Equity / Elevated Leverage

Negative shareholders' equity materially raises solvency and creditor risk, limits capital‑raising options, and magnifies leverage metrics. This structural balance‑sheet weakness reduces ability to absorb shocks, fund working capital, or pursue strategic investments over the medium term.

Inconsistent & Negative Cash Generation

Volatile operating cash flow that reversed to negative and negative free cash flow erodes liquidity and forces reliance on external financing or asset sales. Persistent cash generation weakness undermines long‑term viability of turnaround plans and constrains reinvestment in products, sourcing, or marketing.

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 primarily makes money by selling physical consumer products through its two operating segments. 1) Dorel Home (furniture) - Revenue model: product sales (wholesale and, where applicable, direct-to-consumer/online sales) of home furniture and storage products. - Key revenue streams: high-volume shipments to large retailers (including mass merchants) and e-commerce platforms; sales to other retail partners and distributors. - Value capture: Dorel earns a gross margin between its product selling price and its cost to design/source/manufacture, package, transport, and distribute RTA and other furniture. Scale, sourcing efficiency, logistics execution, and product mix (higher margin categories or private-label programs) are typical drivers of segment profitability. 2) Dorel Juvenile (juvenile products) - Revenue model: product sales of juvenile safety and mobility products (notably car seats and strollers) and related accessories. - Key revenue streams: wholesale sales to brick-and-mortar retailers and online retailers; sales via distributors in certain markets; and, where applicable, brand-led online/direct channels. - Value capture: Dorel earns margin on branded juvenile products supported by product development, safety/testing and regulatory compliance, marketing, and retailer placement. Revenue and profitability are influenced by brand strength, innovation cycles, compliance costs, retailer demand, and regional channel mix. Other earnings factors - Partnerships and distribution: Dorel’s earnings are supported by relationships with major retailers and e-commerce partners, as well as third-party distribution arrangements in some geographies. - Operations and sourcing: The company’s ability to manage global sourcing/manufacturing, freight and warehousing, and inventory levels materially affects costs and therefore profitability. Specific customer names, contract structures, and segment-level margin figures are null.

Dorel Class B Financial Statement Overview

Summary

Financial performance is very weak: multi-year revenue contraction, persistent operating/net losses, and a return to negative operating and free cash flow in 2025. The most material risk is stockholders’ equity turning negative in 2025, reducing financial flexibility and increasing leverage risk, despite some EBITDA improvement versus 2024.

Income Statement

Operating performance is weak and deteriorating. Revenue has trended down meaningfully from 2020 to 2025 (with sharp declines in 2021 and continued contraction in 2022–2025), and profitability remains negative: 2025 shows an operating loss and a net loss with a roughly -12% net margin. Gross margin has also compressed versus earlier years (down from ~21% in 2020 to ~16% in 2025), limiting the ability to absorb costs. A modest positive is that EBITDA improved versus 2024, but it is still negative, indicating the turnaround is not yet established.

Balance Sheet

Balance sheet risk is elevated. Stockholders’ equity turned negative in 2025, which weakens financial flexibility and makes leverage more concerning despite total debt being broadly stable over time. Total assets have fallen materially since 2021, suggesting balance sheet shrinkage alongside operational pressure. The 2025 debt-to-equity ratio is distorted by negative equity, but directionally it signals high leverage and limited cushion for creditors and shareholders.

Cash Flow

Cash generation is inconsistent and currently pressured. Operating cash flow swung from positive in 2023–2024 to negative in 2025, and free cash flow is also negative in 2025 after being positive in 2023–2024—raising near-term liquidity and funding risk. Cash flow has been volatile across the period (including a very weak 2022), indicating uneven working-capital and profitability dynamics. A relative positive is that cash outflow is not consistently worsening every year, but the latest year’s reversal is a clear setback.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.21B	1.38B	1.39B	1.57B	1.76B
Gross Profit	189.46M	246.04M	243.78M	205.01M	294.37M
EBITDA	-3.94M	-23.40M	17.31M	-34.14M	68.92M
Net Income	-144.71M	-171.96M	-62.35M	135.96M	-31.62M
Balance Sheet
Total Assets	718.81M	802.79M	1.00B	1.06B	1.85B
Cash, Cash Equivalents and Short-Term Investments	60.50M	41.27M	24.09M	32.41M	52.17M
Total Debt	392.60M	366.79M	392.95M	431.57M	544.38M
Total Liabilities	809.40M	760.65M	776.23M	779.30M	1.38B
Stockholders Equity	-90.59M	42.14M	224.70M	281.14M	469.00M
Cash Flow
Free Cash Flow	-60.20M	38.77M	53.38M	-160.66M	-16.45M
Operating Cash Flow	-46.18M	62.37M	76.93M	-133.01M	19.82M
Investing Cash Flow	-24.88M	-17.60M	-20.54M	734.89M	14.14M
Financing Cash Flow	88.08M	-24.39M	-65.95M	-608.38M	-23.69M

Dorel Class B Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.75
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 1.75 is above the 20-day moving average (MA) of 1.72, below the 50-day MA of 1.85, and above the 200-day MA of 1.61, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 49.91 is Neutral, neither overbought nor oversold. The STOCH value of 41.53 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LNF	67 Neutral	C$1.76B	12.20	15.07%	3.11%	1.99%	31.36%
GIL	64 Neutral	C$14.85B	23.55	20.31%	1.47%	6.64%	27.37%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TOY	60 Neutral	C$1.88B	-9.31	-11.45%	2.40%	3.71%	80.35%
CTC	55 Neutral	$10.13B	16.32	13.16%	3.17%	-0.13%	13.73%
DOO	48 Neutral	$6.44B	23.28	5.55%	0.86%	-5.14%	-87.15%
DII.B	43 Neutral	C$63.96M	-0.24	3926.21%	―	-9.30%	-89.41%

Dorel Class B Corporate Events

Dorel narrows losses as Juvenile segment shines and Home restructuring nears completion

Dorel Industries reported a fourth-quarter revenue decline of 14.7% to US$278.9 million and a reduced net loss of US$24.6 million, as well as a full-year revenue drop of 13.8% to US$1.19 billion with an improved net loss of US$142.2 million. Adjusted net losses narrowed significantly for both the quarter and the year, signaling progress on cost control despite a weaker top line.

The Dorel Juvenile segment posted its third consecutive year of earnings improvements, with an 84.7% increase in adjusted operating profit in 2025 driven by margin gains, cost discipline, and strong demand for rotating car seats and Maxi-Cosi products, particularly in the U.S. and Europe. Dorel Home, still affected by downsizing, SKU rationalization, and product constraints, nonetheless improved its adjusted operating loss and is nearing completion of a major restructuring, leaving it with a leaner footprint and simplified business model that could support better execution in 2026.

The most recent analyst rating on ($TSE:DII.B) stock is a Hold with a C$2.50 price target. To see the full list of analyst forecasts on Dorel Class B stock, see the TSE:DII.B Stock Forecast page.