DIRTT Environmental Solutions (DRT) AI Stock Analysis

• Market Cap: $157.15M
• Dividend Yield: N/A
• Average Volume (3M): 32.13K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.10
• 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: 189,334,350
• 10 Day Avg. Volume: 15,399
• 30 Day Avg. Volume: 32,128
• PEG Ratio: 0.00
• Price to Book (P/B): 2.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.81
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 3.38
• Enterprise Value/Ebitda: 2.62
• 1Y Price Target: $1.00
• Price Target Upside: 16.29% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: C$1.00 ▲(16.28%Upside)

DIRTT Environmental Solutions presents a balanced investment profile. Financial performance is a mixed bag with strong cash flow but inconsistent revenue and high leverage. Technical signals suggest cautious trading, while valuation remains fair. Positive corporate events and strategic initiatives from the earnings call provide optimism for future growth.

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 moderate financial performance with strengths in cash flow and operational efficiency, but faces challenges in revenue growth and high leverage.

Income Statement

DIRTT Environmental Solutions showed moderate improvement in financial performance. The gross profit margin for TTM stands at 36.76%, indicating efficient cost management relative to production costs. However, the net profit margin is modest at 6.33% for TTM, reflecting challenges in achieving higher profitability. Revenue growth has been inconsistent, with a recent decrease of 4.19% from 2023 to 2024 and a slight increase of 0.26% from 2024 to TTM, suggesting fluctuating demand or market conditions. EBIT and EBITDA margins have improved to 2.35% and 12.27% respectively for TTM, showing operational improvements.

Balance Sheet

The balance sheet reveals a mixed financial stability picture. The debt-to-equity ratio is high at 1.31 for TTM, signaling potential leverage risks and reliance on debt financing. However, equity has improved, with a positive return on equity (ROE) of 28.22% for TTM, indicating effective utilization of shareholder funds. The equity ratio stands at 35.03%, reflecting a moderate level of equity financing relative to total assets, which could be strengthened further to enhance financial stability.

Cash Flow

Cash flow analysis shows positive trends, with a strong free cash flow growth rate of 138.12% from 2023 to 2024, and an operating cash flow to net income ratio of 1.18 for TTM, indicating effective cash generation relative to earnings. The free cash flow to net income ratio is 0.89 for TTM, highlighting solid conversion of profit into cash, which supports operational and strategic initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	174.76M	174.31M	181.93M	172.16M	147.59M	171.51M
Gross Profit	64.27M	64.38M	59.54M	28.16M	23.46M	53.28M
EBITDA	21.44M	25.79M	-391.00K	-37.77M	-45.42M	3.78M
Net Income	11.06M	14.77M	-14.58M	-54.96M	-53.67M	-11.30M
Balance Sheet
Total Assets	111.87M	118.22M	124.32M	143.65M	199.44M	183.14M
Cash, Cash Equivalents and Short-Term Investments	28.44M	29.29M	24.74M	10.82M	60.31M	45.85M
Total Debt	51.30M	52.32M	89.75M	98.86M	104.12M	47.22M
Total Liabilities	72.67M	75.63M	117.22M	125.66M	131.67M	66.61M
Stockholders Equity	39.20M	42.59M	7.10M	17.99M	67.77M	116.53M
Cash Flow
Free Cash Flow	9.89M	4.16M	11.79M	-48.33M	-45.33M	-7.63M
Operating Cash Flow	13.07M	7.34M	14.82M	-44.26M	-31.21M	12.48M
Investing Cash Flow	-2.91M	-1.90M	7.66M	-4.02M	-14.14M	-19.39M
Financing Cash Flow	-20.15M	-415.00K	-11.61M	-874.00K	62.45M	5.72M

DIRTT Environmental Solutions Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.86
• 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 Neutral. The current price of 0.86 is above the 20-day moving average (MA) of 0.81, below the 50-day MA of 0.87, and below the 200-day MA of 0.96, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.00 is Neutral, neither overbought nor oversold. The STOCH value of 45.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 *	65 Neutral	$10.89B	15.56	5.22%	1.87%	3.09%	-26.84%
DRT	64 Neutral	$157.15M	12.90	31.34%	―	-3.13%	―
BDGIF		$1.22B	25.62	19.89%	1.50%	―	―
BDT	79 Outperform	C$1.64B	16.38	26.31%	2.83%	16.14%	27.71%
AEP	68 Neutral	C$60.63M	50.00	-0.16%	―	18.02%	-101.42%
ARE	55 Neutral	C$1.32B	―	-9.26%	3.64%	1.70%	-154.73%
MSP	21 Underperform	C$6.08M	―	22.10%	―	―	80.69%

DIRTT Environmental Solutions Corporate Events

DIRTT Environmental Solutions Reports Positive Shareholder Meeting Outcomes

DIRTT Environmental Solutions announced the results of its annual general and special meeting of shareholders, where all nominated directors were elected with strong support. The approval of all other matters voted on at the meeting reflects shareholder confidence in the company’s strategic direction and leadership, potentially strengthening its position in the industrialized construction industry.

The most recent analyst rating on (TSE:DRT) stock is a Hold with a C$2.00 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 Upgrades to OTCQX Best Market

DIRTT Environmental Solutions Ltd has announced its approval to trade on the OTCQX® Best Market, upgrading from the Pink® market. This move is expected to enhance the marketability of its securities and attract U.S.-based institutional investors, wealth advisors, and individual investors, potentially increasing trading volume and liquidity. The company will continue trading on the Toronto Stock Exchange under the symbol ‘DRT’.

The most recent analyst rating on (TSE:DRT) stock is a Hold with a C$2.00 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 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.