DIRTT Environmental Solutions (DRT) AI Stock Analysis

• Market Cap: C$197.21M
• Dividend Yield: N/A
• Average Volume (3M): 47.53K
• Price to Earnings (P/E): 11.6
• Beta (1Y): -0.02
• Revenue Growth: -2.68%
• EPS Growth: N/A
• Country: CA
• Employees: 874
• Sector: Industrials
• Sector Strength: 64
• Industry: Construction
• EPS (TTM): 0.09
• Shares Outstanding: 189,629,170
• 10 Day Avg. Volume: 27,441
• 30 Day Avg. Volume: 47,528
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.81
• Price to Cash Flow (P/CF): 5.60
• P/FCF Ratio: 5.90
• 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$2.84
• Price Target Upside: 173.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Overall, DIRTT Environmental Solutions receives a score of 56, reflecting ongoing financial recovery with improved profitability and operational efficiency. Key strengths include increased net income and reduced debt. However, revenue challenges, high leverage, and external risks like tariffs weigh on the score. The stock's technical indicators suggest stabilization, but not strong momentum.

DIRTT Environmental Solutions Business Overview & Revenue Model

Company Description

DIRTT Environmental Solutions (DRT) is a leading provider in the modular interior construction industry, specializing in creating highly customizable, sustainable, and technologically integrated interior spaces. The company operates across various sectors, including corporate, healthcare, education, and government, offering core products and services that include prefabricated interior construction solutions, such as walls, doors, flooring, and casework, which are designed to enhance functionality and adaptability of interior environments.

How the Company Makes Money

DIRTT Environmental Solutions generates revenue primarily through the sale of its modular interior construction solutions. The company leverages a unique revenue model that combines the production and sale of customizable prefabricated components with integrated design and project delivery services. Key revenue streams include direct sales to clients across its target sectors and partnerships with a network of distribution partners and certified installation teams, which help to broaden its market reach and provide comprehensive service offerings. Additionally, DIRTT's innovative ICE software platform plays a significant role in its earnings by enhancing design precision and project efficiency, reducing costs and improving client satisfaction, thereby driving sales. The company also benefits from its focus on sustainability and customization, which differentiates its offerings in the competitive construction market and attracts clients seeking environmentally friendly and adaptable interior solutions.

DIRTT Environmental Solutions Financial Statement Overview

Summary

DIRTT Environmental Solutions shows signs of recovery with improved profitability margins and positive free cash flow. However, challenges persist in revenue growth, high leverage, and the need to reduce debt for sustainable financial health.

Income Statement

DIRTT Environmental Solutions has faced challenges in maintaining consistent revenue levels, with a slight decline in total revenue from 2023 to 2024. However, the company has improved its profitability margins, with a gross profit margin of 36.9% and a net profit margin of 8.5% in 2024, a significant improvement from negative margins in previous years. EBIT and EBITDA margins have also turned positive, indicating a recovering operational performance.

Balance Sheet

The balance sheet shows a mixed picture with improvements in stockholders' equity from 2023 to 2024, but a high debt-to-equity ratio of 1.23, suggesting significant leverage. The equity ratio stands at 36.0%, indicating moderate financial stability. Positive changes in equity and asset management are offset by the risks associated with high leverage.

Cash Flow

Cash flow analysis reveals a decrease in operating cash flow from 2023 to 2024, but free cash flow remains positive at $4.16 million. The operating cash flow to net income ratio is 0.50, indicating that cash flow is not fully supporting net income levels. However, maintaining positive free cash flow is a positive sign for liquidity.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
174.31M	181.93M	172.16M	147.59M	171.51M
	Gross Profit
64.38M	59.54M	28.16M	23.46M	53.28M
	EBIT
4.23M	-16.55M	-37.82M	-49.04M	-8.55M
	EBITDA
25.79M	-391.00K	-37.77M	-45.42M	3.78M
	Net Income Common Stockholders
14.77M	-14.58M	-54.96M	-53.67M	-11.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
29.29M	24.74M	10.82M	60.31M	45.85M
	Total Assets
118.22M	124.32M	143.65M	199.44M	183.14M
	Total Debt
52.32M	89.75M	98.86M	104.12M	41.25M
	Net Debt
23.04M	65.00M	88.04M	43.81M	-4.59M
	Total Liabilities
75.63M	117.22M	125.66M	131.67M	66.61M
	Stockholders Equity
42.59M	7.10M	17.99M	67.77M	116.53M
Cash Flow		Free Cash Flow
4.16M	11.79M	-48.33M	-45.33M	-7.63M
	Operating Cash Flow
7.34M	14.82M	-44.26M	-31.21M	12.48M
	Investing Cash Flow
-1.90M	7.66M	-4.02M	-14.14M	-19.39M
	Financing Cash Flow
-415.00K	-11.61M	-874.00K	62.45M	5.72M

DIRTT Environmental Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.04
• 50DMA: Negative
• 100DMA: Negative
• 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:DRT, the sentiment is Negative. The current price of 1.04 is above the 20-day moving average (MA) of 1.02, below the 50-day MA of 1.06, and above the 200-day MA of 0.88, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.24 is Neutral, neither overbought nor oversold. The STOCH value of 59.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:DRT.

DIRTT Environmental Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAE	72 Outperform	$9.60B	―	-5.31%	―	1.44%	-183.14%
BDGI	71 Outperform	C$1.21B	18.62	19.03%	2.12%	10.64%	17.15%
Sector *	62 Neutral	$7.16B	12.21	3.05%	3.43%	3.62%	-14.48%
DRT	56 Neutral	C$197.21M	11.63	59.45%	―	-2.68%	―
ARE	51 Neutral	C$1.05B	―	-5.87%	4.60%	-8.64%	-136.62%
NFI	50 Neutral	C$1.26B	―	-0.38%	―	18.07%	98.61%

DIRTT Environmental Solutions Corporate Events

DIRTT Named Top Innovator in Manufacturing by Fast Company

DIRTT Environmental Solutions has been recognized as the top company in Manufacturing on Fast Company’s list of the World’s Most Innovative Companies of 2025. This accolade highlights DIRTT’s innovative approach in the construction industry, where it combines advanced technology with precision manufacturing to deliver adaptable and efficient interior construction solutions. The company’s technology-driven methods address the inefficiencies of traditional construction by reducing waste and enhancing speed and precision, benefiting industries such as healthcare, education, and commercial offices.

DIRTT Environmental Solutions Reports Q4 2024 Financial Results and Strategic Initiatives

DIRTT Environmental Solutions reported a slight decrease in revenue for the fourth quarter of 2024 compared to the previous year, but saw improvements in net income and adjusted EBITDA. The company announced strategic initiatives including a share repurchase agreement and an extension of its credit facility with the Royal Bank of Canada. Additionally, DIRTT is preparing for a significant legal trial against Falkbuilt Ltd. in Canada, seeking damages for losses incurred.

DIRTT to Release Q4 2024 Financial Results

DIRTT Environmental Solutions Ltd. announced it will release its fourth quarter 2024 financial results on February 26, 2025, post-market. The company plans a conference call and webcast the following day to discuss the results, led by CEO Benjamin Urban and CFO Fareeha Khan. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction, potentially impacting its market positioning in the industrialized construction sector.

DIRTT Environmental Solutions Initiates Share Repurchase Agreement with NGEN III, LP

DIRTT Environmental Solutions announced a share repurchase agreement to buy back and cancel 3,920,844 common shares from NGEN III, LP, at a discounted price, leaving 189,643,903 shares outstanding post-transaction. This move is financed using cash reserves and is part of DIRTT’s strategic initiatives to optimize its capital structure, with the transaction being assessed and endorsed by an independent Special Committee and supported by a fairness opinion from KPMG LLP, reflecting DIRTT’s commitment to its shareholders and strategic goals.

DIRTT Environmental Solutions Pursues Legal Claims in Canada

DIRTT Environmental Solutions has provided an update on its legal proceedings against Falkbuilt, Smed, and Loberg. The U.S. District Court for the Northern District of Utah has dismissed DIRTT’s case in favor of Canada, recognizing it as the appropriate forum for the trade secret dispute. Consequently, DIRTT will pursue its claims in the Court of King’s Bench of Alberta, where a trial is scheduled for early 2026. The company seeks damages that could exceed $50 million, reflecting significant potential impacts on its operations and market presence.