DIRTT Environmental Solutions (DRT) AI Stock Analysis

• Market Cap: $170.62M
• Dividend Yield: N/A
• Average Volume (3M): 50.51K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.09
• Revenue Growth: -3.13%
• EPS Growth: N/A
• Country: CA
• Employees: 842
• Sector: Industrials
• Sector Strength: 92
• Industry: Engineering & Construction
• EPS (TTM): 0.01
• Shares Outstanding: 189,576,800
• 10 Day Avg. Volume: 79,862
• 30 Day Avg. Volume: 50,514
• PEG Ratio: -11.85
• Price to Book (P/B): 3.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 32.03
• 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: $2.77
• Price Target Upside: 207.82% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: C$1.00 ▲( 11.11% Upside)

DIRTT Environmental Solutions has a balanced score driven by moderate financial performance and positive corporate recognition. While technical indicators show bearish signals, the company's focus on innovation and strategic growth initiatives are positive. However, high leverage and inconsistent revenue growth remain key risks.

DIRTT Environmental Solutions Business Overview & Revenue Model

Company Description

DIRTT Environmental Solutions Ltd. designs, manufactures, and installs prefabricated interior solutions for use in commercial spaces across various industries and businesses in the United States, Canada, internationally. Its ICE software interior construction software provides end-to-end integration, design, order engineering, manufacturing, and installation services. The company's interior construction solutions include prefabricated, customized interior modular walls, ceilings, and floors; decorative and functional millwork; power infrastructure; network infrastructure; and pre-installed medical gas piping systems. It offers interior construction solutions through a network of independent distribution partners. It serves commercial, healthcare, education, hospitality, and other industries, as well as medical gas piping systems for healthcare. DIRTT Environmental Solutions Ltd. was incorporated in 2003 and is headquartered in Calgary, Canada.

How the Company Makes Money

DIRTT Environmental Solutions generates revenue predominantly through the sale of its modular interior construction solutions. The company's key revenue streams include the design, manufacturing, and installation of customized interior spaces. DIRTT's proprietary ICE software plays a crucial role in its revenue model, enabling the company to offer highly customized and efficient solutions. The software integrates design, engineering, and manufacturing processes, allowing for precise and rapid production of interior components. Additionally, DIRTT partners with a network of distribution partners and local contractors to deliver and install its solutions, further expanding its market reach and contributing to its earnings. Significant factors contributing to DIRTT's revenue include its focus on sustainability and efficiency, which appeal to clients seeking environmentally friendly and cost-effective construction 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: 0.90
• 50DMA: Negative
• 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:DRT, the sentiment is Negative. The current price of 0.9 is below the 20-day moving average (MA) of 0.92, below the 50-day MA of 0.97, and below the 200-day MA of 0.94, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 46.35 is Neutral, neither overbought nor oversold. The STOCH value of 68.98 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
Sector *	64 Neutral	$4.39B	11.81	5.20%	249.38%	3.96%	-12.36%
DRT	63 Neutral	$170.62M	13.66	31.34%	―	-3.13%	―
BADFF		$1.09B	22.51	19.89%	1.62%	―	―
BDT	81 Outperform	C$1.47B	14.65	26.31%	2.55%	16.14%	27.71%
AEP	59 Neutral	C$50.08M	50.00	-0.51%	―	12.98%	-109.59%
ARE	56 Neutral	C$1.20B	―	-9.26%	3.99%	1.70%	-154.73%
MSP	21 Underperform	C$2.16M	―	22.10%	―	―	80.69%

DIRTT Environmental Solutions Corporate Events

DIRTT Environmental Solutions Navigates Tariff Challenges with Strategic Growth Initiatives

DIRTT Environmental Solutions reported a slight revenue increase to $41.3 million for the first quarter of 2025, despite facing challenges from tariffs affecting their profit margins. The company is navigating these economic pressures by expanding its partnerships and increasing its project pipeline, notably in healthcare and integrated solutions, while also pursuing legal actions and financial restructuring to bolster its market position.

DIRTT Environmental Solutions Navigates Tariff Challenges with Strategic Growth Initiatives

DIRTT Environmental Solutions reported a slight increase in revenue to $41.3 million for the first quarter of 2025, despite facing challenges such as tariffs on Canadian aluminum exports and Chinese hardware imports. The company experienced a net loss of $0.7 million, influenced by these tariffs and related costs. However, DIRTT is actively pursuing growth strategies, including a partnership with HB Work Places and the establishment of a DIRTT Experience Centre in Houston. Additionally, the company has extended its credit facility with the Royal Bank of Canada, enhancing its financial flexibility.

DIRTT to Release Q1 2025 Financial Results

DIRTT Environmental Solutions Ltd. announced it will release its first quarter 2025 financial results on May 7, 2025, after market close. The company will host a conference call and webcast on May 8, 2025, to discuss the results, with CEO Benjamin Urban and CFO Fareeha Khan leading the discussion. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction.

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.