Dorel Class B (DII.B) AI Stock Analysis

• Market Cap: C$53.65M
• Dividend Yield: N/A
• Average Volume (3M): 25.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• Revenue Growth: -1.10%
• EPS Growth: -282.53%
• Country: CA
• Employees: 3,600
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.98
• Shares Outstanding: 28,524,113
• 10 Day Avg. Volume: 48,036
• 30 Day Avg. Volume: 25,463
• PEG Ratio: -0.17
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.78
• Enterprise Value/Market Cap: 9.77
• Enterprise Value/Revenue: 0.09
• Enterprise Value/Gross Profit: 2.20
• Enterprise Value/Ebitda: -8.69
• 1Y Price Target: C$1.76
• Price Target Upside: 8.78% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 47 Neutral
• 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 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 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 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

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: Positive
• Last Price: 1.62
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 1.62 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ICE	67 Neutral	C$56.95M	20.61	5.42%	2.81%	9.07%	124.97%
ICE	67 Neutral	C$56.95M	20.61	5.42%	2.81%	9.07%	124.97%
KDOZ	63 Neutral	C$26.92M	16.67	15.79%	―	7.31%	―
Sector *	62 Neutral	$16.90B	11.24	-7.48%	2.95%	1.60%	-23.76%
SXP	58 Neutral	C$94.56M	―	-10.60%	7.13%	-3.15%	-222.64%
SXP	58 Neutral	C$94.56M	―	-10.60%	7.13%	-3.15%	-222.64%
DII.B	47 Neutral	C$53.65M	―	-156.53%	―	-1.10%	-282.53%

Dorel Class B Corporate Events

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.