Dorel Class B (DII.B) AI Stock Analysis

• Market Cap: C$44.15M
• Dividend Yield: N/A
• Average Volume (3M): 33.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.31
• Revenue Growth: -5.51%
• EPS Growth: -85.27%
• Country: CA
• Employees: 3,600
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.90
• Shares Outstanding: 28,530,352
• 10 Day Avg. Volume: 14,781
• 30 Day Avg. Volume: 33,833
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$1.24
• Price Target Upside: -7.98% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 41 Neutral
• Price Target: C$1.00 ▼(-25.93% Downside)

Dorel Class B faces substantial financial and operational challenges, with declining revenues and high leverage being the most significant factors. Technical indicators suggest a bearish trend, and the valuation reflects ongoing losses. While there is some potential for recovery through improved cash flow and restructuring, the immediate outlook remains challenging.

Positive Factors

Juvenile Segment Performance

Juvenile adj. EBIT above forecast; reiterated expectation for improved results, driven by most markets, offset by a decline in U.S. sales.

Restructuring and Profitability

Dorel's Home restructuring activities being implemented are expected to return the segment to profitability, though off a significantly smaller base.

Negative Factors

Earnings Visibility

Absent sale clarity and reflecting Home challenges, low earnings visibility will limit upside for the stock.

Home Segment Challenges

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

Dorel Class B Business Overview & Revenue Model

Company Description

Dorel Class B (DII.B) is a diversified global company primarily operating in the juvenile, sports, and home products sectors. The company designs and manufactures a wide range of products, including bicycles, car seats, and furniture, catering to various consumer needs. With a focus on innovation and safety, Dorel Class B serves customers through multiple retail channels, including e-commerce and traditional outlets, making its offerings accessible to a broad audience.

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 Class B is experiencing significant financial challenges, with declining revenues, negative profitability, and high financial leverage. Despite these issues, there is some improvement in cash flow generation, which could support recovery efforts. However, the overall financial health remains weak, necessitating focus on revenue growth, cost management, and reducing 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: Neutral
• Last Price: 1.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 1.35 is above the 20-day moving average (MA) of 1.25, below the 50-day MA of 1.40, and below the 200-day MA of 2.64, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 53.81 is Neutral, neither overbought nor oversold. The STOCH value of 93.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	75 Outperform	C$52.95M	14.07	8.22%	3.46%	8.43%	―
KDOZ	63 Neutral	C$27.31M	52.00	5.76%	―	17.05%	―
Sector *	61 Neutral	$17.92B	12.81	-0.76%	2.98%	1.30%	-14.28%
SXP	58 Neutral	C$108.06M	―	-12.57%	4.39%	-3.54%	-244.21%
DII.B	41 Neutral	C$44.15M	―	-268.94%	―	-5.51%	-85.27%
DII.A	―	C$44.15M	―	-279.33%	―	―	―
AEG	―	C$29.68M	―	6.84%	―	―	―

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.