DIRTT Environmental Solutions (DRT) AI Stock Analysis

• Market Cap: $133.23M
• Dividend Yield: N/A
• Average Volume (3M): 25.89K
• Price to Earnings (P/E): 48.7
• Beta (1Y): 0.47
• Revenue Growth: -2.68%
• EPS Growth: N/A
• Country: CA
• Employees: 842
• Sector: Industrials
• Sector Strength: 80
• Industry: Engineering & Construction
• EPS (TTM): -0.02
• Shares Outstanding: 190,329,210
• 10 Day Avg. Volume: 23,272
• 30 Day Avg. Volume: 25,892
• 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: 1.47
• Enterprise Value/Revenue: 1.13
• Enterprise Value/Gross Profit: 3.27
• Enterprise Value/Ebitda: 14.36
• 1Y Price Target: $0.50
• Price Target Upside: -33.39% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 44 Neutral
• Price Target: C$0.50 ▼(-33.33% Downside)

The overall stock score of 44 reflects significant financial challenges, including declining revenue, low profitability, and high leverage. Technical indicators suggest a bearish trend, with the stock trading below key moving averages and approaching oversold conditions. The high P/E ratio indicates potential overvaluation, and the lack of a dividend yield further detracts from its appeal. Despite some optimism from an expanded sales pipeline, the current financial and market conditions present substantial risks.

DIRTT Environmental Solutions Business Overview & Revenue Model

Company Description

DIRTT Environmental Solutions (DRT) is a leading provider of customizable, sustainable interior construction solutions. Operating in the construction and real estate sectors, the company specializes in the design and manufacture of modular, prefabricated interior components, which include walls, power networks, millwork, and floors. DIRTT's innovative approach allows for high levels of customization and rapid installation, catering to a wide range of industries including healthcare, education, commercial, and residential spaces.

How the Company Makes Money

DIRTT Environmental Solutions generates revenue primarily through the sale of its modular interior construction products and services. The company designs and manufactures custom interior components that are sold to clients across various industries. Its revenue streams are bolstered by strategic partnerships with architectural and design firms, construction companies, and end clients who seek sustainable and flexible building solutions. Additionally, DIRTT's revenue model includes consulting services, where they provide expertise in the planning and implementation of their modular systems, ensuring a tailored solution for each project. This combination of product sales and consulting services forms the core of DIRTT's financial model.

DIRTT Environmental Solutions Financial Statement Overview

Summary

DIRTT Environmental Solutions shows moderate financial performance with notable strengths in operational efficiency, indicated by improved EBIT and EBITDA margins. However, inconsistent revenue growth and high leverage are concerns, despite robust cash flow performance supporting operations.

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	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: Negative
• Last Price: 0.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 0.75 is below the 20-day moving average (MA) of 0.79, below the 50-day MA of 0.82, and below the 200-day MA of 0.96, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 42.48 is Neutral, neither overbought nor oversold. The STOCH value of 29.17 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
BDGI	78 Outperform	$1.86B	24.43	21.65%	1.33%	11.48%	38.41%
ARE	68 Neutral	C$1.28B	50.57	2.78%	3.69%	20.53%	74.96%
BDT	66 Neutral	C$1.30B	13.20	25.25%	3.24%	8.49%	14.10%
Sector *	59 Neutral	C$7.28B	-0.89	4.17%	2.31%	9.14%	-34.12%
AEP	50 Neutral	C$52.64M	50.00	-0.16%	―	18.02%	-101.42%
DRT	44 Neutral	$133.23M	48.70	11.65%	―	-2.68%	―
MSP	21 Underperform	C$7.05M	6.99	22.10%	―	―	―

DIRTT Environmental Solutions Corporate Events

DIRTT Environmental Solutions Appoints Adrian Zarate to Board of Directors

DIRTT Environmental Solutions has appointed Adrian Zarate to its Board of Directors, representing its largest shareholder, 22NW Fund, LP. This move is part of DIRTT’s ongoing efforts to strengthen its leadership and capture more market share, following a successful turnaround led by 22NW since 2022.

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 Faces Tariff Challenges but Remains Optimistic for Future Growth

DIRTT Environmental Solutions reported a decline in revenue and gross profit margin for the second quarter of 2025, largely due to increased tariffs on Canadian aluminum exports to the United States. The company experienced a net loss and decreased liquidity, but remains optimistic about future growth through product innovation and market expansion. Despite macroeconomic challenges, DIRTT is focused on revenue growth and expects to return to positive Adjusted EBITDA by the fourth quarter of 2025.

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 to Release Q2 2025 Financial Results

DIRTT Environmental Solutions announced it will release its second quarter 2025 financial results on July 30, 2025, after market close. The company will host a live webcast on July 31, 2025, to discuss the results, featuring CEO Benjamin Urban and CFO Fareeha Khan. This announcement is part of DIRTT’s ongoing efforts to maintain transparency with stakeholders and could impact its market positioning by providing insights into its financial health and operational performance.

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 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.