DIRTT Environmental Solutions (DRT) AI Stock Analysis

• Market Cap: C$195.67M
• Dividend Yield: N/A
• Average Volume (3M): 48.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.79
• Revenue Growth: -2.73%
• EPS Growth: -155.71%
• Country: CA
• Employees: 842
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): >-0.01
• Shares Outstanding: 191,832,030
• 10 Day Avg. Volume: 64,196
• 30 Day Avg. Volume: 48,776
• PEG Ratio: -0.06
• Price to Book (P/B): 3.27
• Price to Sales (P/S): 0.80
• P/FCF Ratio: 33.56
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: C$1.00 ▼(-1.96% Downside)

DIRTT Environmental Solutions is facing financial difficulties with declining revenue and profitability, which significantly impacts its overall score. While there is some technical strength in the short term, the high P/E ratio suggests overvaluation. The earnings call provided a mixed outlook, with challenges from tariffs and costs but optimism about future growth. These factors combined result in a moderate overall stock score.

Positive Factors

Sales Pipeline Growth

The increase in the sales pipeline suggests potential for future revenue growth, indicating strong demand for DIRTT's offerings and strategic positioning in the market.

Product Innovation

Innovative products like fire-rated walls and office pods can drive market expansion and meet evolving customer needs, enhancing competitive advantage.

Operational Efficiency

High operational efficiency and strong safety records improve customer satisfaction and reduce costs, supporting long-term profitability and market reputation.

Negative Factors

Revenue Decline

A decline in revenue reflects challenges in maintaining sales momentum, potentially impacting future profitability and market share.

Decreased Gross Profit Margin

A significant drop in gross profit margin indicates cost pressures and pricing challenges, which could affect long-term financial health and competitiveness.

High Leverage

High leverage limits financial flexibility and increases risk, potentially hindering the company's ability to invest in growth opportunities or weather economic downturns.

DIRTT Environmental Solutions Business Overview & Revenue Model

Company Description

DIRTT Environmental Solutions (DRT) is a Canadian-based company that specializes in providing innovative, sustainable interior construction solutions using prefabricated modular components. The company operates primarily in the commercial real estate sector, offering customizable wall systems, electrical and technology solutions, and furniture systems that can be tailored to meet the unique needs of various industries, including healthcare, education, and corporate office spaces. DIRTT leverages advanced technology, including virtual reality and building information modeling (BIM), to enhance the design and manufacturing processes, ensuring high-quality and efficient project delivery.

How the Company Makes Money

DIRTT generates revenue primarily through the sale of its modular construction products and systems to commercial clients. The company operates a business-to-business model where it partners with architects, designers, and contractors to integrate its products into larger construction projects. Key revenue streams include direct sales of modular wall systems, as well as recurring revenue from services related to installation, maintenance, and upgrades of its products. Additionally, DIRTT has established strategic partnerships with various construction firms and technology providers, enhancing its market reach and enabling collaborative projects that can lead to increased sales. The company's focus on sustainability and efficiency also positions it well to capitalize on the growing demand for environmentally friendly building solutions.

DIRTT Environmental Solutions Financial Statement Overview

Summary

DIRTT Environmental Solutions faces financial challenges with declining revenue, low profitability, and high leverage. The cash flow situation is concerning, with significant declines in free cash flow. The company needs to address operational inefficiencies and improve its financial stability to enhance performance.

Income Statement

DIRTT Environmental Solutions has shown fluctuating revenue with a recent decline of 1.3% in TTM. The gross profit margin is moderate at 34.6%, but the net profit margin is low at 2.2%, indicating limited profitability. EBIT and EBITDA margins are also low, reflecting operational challenges.

Balance Sheet

The company has a high debt-to-equity ratio of 1.51, indicating significant leverage. Return on equity is modest at 9.9%, suggesting limited returns for shareholders. The equity ratio is low, highlighting potential financial instability.

Cash Flow

Free cash flow has decreased significantly by 58.7% in TTM, and the operating cash flow to net income ratio is low at 0.18, indicating cash flow challenges. The free cash flow to net income ratio is moderate at 0.54, but overall cash flow performance is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	172.48M	174.31M	181.93M	172.16M	147.59M	171.51M
Gross Profit	59.71M	64.38M	59.54M	28.16M	23.46M	53.28M
EBITDA	13.60M	25.79M	-391.00K	-37.77M	-45.42M	3.78M
Net Income	3.87M	14.77M	-14.58M	-54.96M	-53.67M	-11.30M
Balance Sheet
Total Assets	109.50M	118.22M	124.32M	143.65M	199.44M	183.14M
Cash, Cash Equivalents and Short-Term Investments	23.10M	29.29M	24.74M	10.82M	60.31M	45.85M
Total Debt	52.17M	52.32M	89.75M	98.86M	104.12M	47.22M
Total Liabilities	75.01M	75.63M	117.22M	125.66M	131.67M	66.61M
Stockholders Equity	34.49M	42.59M	7.10M	17.99M	67.77M	116.53M
Cash Flow
Free Cash Flow	4.09M	4.16M	11.79M	-48.33M	-45.33M	-7.63M
Operating Cash Flow	7.51M	7.34M	14.82M	-44.26M	-31.21M	12.48M
Investing Cash Flow	-3.04M	-1.90M	7.66M	-4.02M	-14.14M	-19.39M
Financing Cash Flow	-20.64M	-415.00K	-11.61M	-874.00K	62.45M	5.72M

DIRTT Environmental Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 1.02 is above the 20-day moving average (MA) of 0.99, above the 50-day MA of 0.91, and above the 200-day MA of 0.90, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 57.53 is Neutral, neither overbought nor oversold. The STOCH value of 75.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DRT.

DIRTT Environmental Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BDGI	67 Neutral	$2.44B	31.99	22.05%	1.02%	13.02%	52.88%
BDT	64 Neutral	C$1.62B	16.39	21.68%	3.17%	6.26%	0.52%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ARE	62 Neutral	C$1.83B	222.05	0.92%	2.79%	25.68%	―
DRT	51 Neutral	C$195.67M	-19.39	-18.77%	―	-2.73%	-155.71%
AEP	44 Neutral	C$41.31M	-71.26	-1.07%	―	9.30%	-151.79%
MSP	21 Underperform	C$3.65M	3.23	―	―	―	―

DIRTT Environmental Solutions Corporate Events

DIRTT to Release Q3 2025 Financial Results

DIRTT Environmental Solutions announced it will release its third quarter 2025 financial results on November 5, 2025, after market close. The company will host a conference call and webcast on November 6, 2025, to discuss the results, led by CEO Benjamin Urban and CFO Fareeha Khan. This announcement is part of DIRTT’s ongoing efforts to engage with stakeholders and provide transparency about its financial performance.

The most recent analyst rating on (TSE:DRT) stock is a Hold with a C$1.00 price target. To see the full list of analyst forecasts on DIRTT Environmental Solutions stock, see the TSE:DRT Stock Forecast page.

DIRTT Secures $7 Million in New Projects Amid Market Growth

DIRTT Environmental Solutions has secured over $7 million in new projects, indicating a strong commercial pipeline with contracts across healthcare, workplace, and aviation sectors. Notable projects include The Hospitals of Providence in El Paso and The Ohio State University Wexner Medical Center, showcasing DIRTT’s success in scalable healthcare programs. The company’s forward pipeline has grown, reflecting sustained demand for its adaptable construction solutions, while favorable market trends suggest continued expansion in construction planning.

The most recent analyst rating on (TSE:DRT) stock is a Hold with a C$1.00 price target. To see the full list of analyst forecasts on DIRTT Environmental Solutions stock, see the TSE:DRT Stock Forecast page.

DIRTT Environmental Solutions to Engage Investors at Upcoming Conferences

DIRTT Environmental Solutions announced its participation in two upcoming investor conferences: the Smallcap Discoveries Conference in Vancouver and the Planet MicroCap Showcase in Toronto. This participation reflects DIRTT’s ongoing efforts to engage with investors and stakeholders, potentially enhancing its visibility and positioning in the industrialized construction industry.

The most recent analyst rating on (TSE:DRT) stock is a Hold with a C$1.00 price target. To see the full list of analyst forecasts on DIRTT Environmental Solutions stock, see the TSE:DRT Stock Forecast page.

DIRTT Environmental Solutions Announces Major Project Wins and Pipeline Growth

DIRTT Environmental Solutions has announced significant project wins and an increased forward pipeline, highlighting continued commercial momentum across various sectors. The company secured a $3.5 million contract with Google for its Caribbean campus in Sunnyvale, California, and expanded its relationship with Allina Health for a $16 million project in Minneapolis, MN. These developments, along with a 5.7% increase in their 12-month forward pipeline, underscore DIRTT’s growth trajectory and market expansion in its core sectors.

The most recent analyst rating on (TSE:DRT) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on DIRTT Environmental Solutions stock, see the TSE:DRT Stock Forecast page.

DIRTT Environmental Solutions Renews NCIB for Debentures

On August 26, 2025, DIRTT Environmental Solutions announced that the Toronto Stock Exchange accepted its notice to renew its normal course issuer bid (NCIB) for its convertible unsecured subordinated debentures. The renewed NCIB allows DIRTT to purchase a specified principal amount of its debentures, representing 10% of the total public float, with the purchases commencing on August 28, 2025. The company plans to make these purchases based on market conditions and other factors, with all acquired debentures being immediately canceled. This move is expected to provide DIRTT with flexibility in managing its capital and responding to market conditions.

The most recent analyst rating on (TSE:DRT) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on DIRTT Environmental Solutions stock, see the TSE:DRT Stock Forecast page.