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DIRTT Environmental Solutions

Market Cap

CA$334.5m

Last Updated

2021/04/11 23:18 UTC

Data Sources

Company Financials +

Executive Summary

DIRTT Environmental Solutions Ltd. designs, manufactures, and installs prefabricated interior solutions for use primarily in commercial spaces across various industries and businesses in the United States, Canada, internationally. More Details

Rewards

Trading at 21.4% below our estimate of its fair value

Revenue is forecast to grow 11.13% per year

Risk Analysis

No risks detected for DRT from our risk checks.


Snowflake Analysis

Excellent balance sheet and fair value.

Share Price & News

How has DIRTT Environmental Solutions's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DRT is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: DRT's weekly volatility (11%) has been stable over the past year.


Market Performance


7 Day Return

0.5%

DRT

2.3%

CA Building

1.0%

CA Market


1 Year Return

168.7%

DRT

102.7%

CA Building

39.2%

CA Market

Return vs Industry: DRT exceeded the Canadian Building industry which returned 102.7% over the past year.

Return vs Market: DRT exceeded the Canadian Market which returned 39.2% over the past year.


Shareholder returns

DRTIndustryMarket
7 Day0.5%2.3%1.0%
30 Day0.5%4.8%1.4%
90 Day27.4%14.4%7.5%
1 Year168.7%168.7%105.4%102.7%44.0%39.2%
3 Year-28.1%-28.1%89.8%74.8%32.2%19.6%
5 Year-33.4%-33.4%138.7%107.2%59.4%35.3%

Long-Term Price Volatility Vs. Market

How volatile is DIRTT Environmental Solutions's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is DIRTT Environmental Solutions undervalued compared to its fair value and its price relative to the market?

21.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DRT (CA$3.95) is trading below our estimate of fair value (CA$5.03)

Significantly Below Fair Value: DRT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DRT is unprofitable, so we can't compare its PE Ratio to the XN Building industry average.

PE vs Market: DRT is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DRT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DRT is good value based on its PB Ratio (2.3x) compared to the XN Building industry average (2.9x).


Future Growth

How is DIRTT Environmental Solutions forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

56.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DRT is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: DRT is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: DRT is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: DRT's revenue (11.1% per year) is forecast to grow faster than the Canadian market (7.2% per year).

High Growth Revenue: DRT's revenue (11.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if DRT's Return on Equity is forecast to be high in 3 years time


Past Performance

How has DIRTT Environmental Solutions performed over the past 5 years?

-63.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DRT is currently unprofitable.

Growing Profit Margin: DRT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DRT is unprofitable, and losses have increased over the past 5 years at a rate of 63.5% per year.

Accelerating Growth: Unable to compare DRT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DRT is unprofitable, making it difficult to compare its past year earnings growth to the Building industry (23.9%).


Return on Equity

High ROE: DRT has a negative Return on Equity (-9.7%), as it is currently unprofitable.


Financial Health

How is DIRTT Environmental Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: DRT's short term assets ($84.8M) exceed its short term liabilities ($31.3M).

Long Term Liabilities: DRT's short term assets ($84.8M) exceed its long term liabilities ($35.3M).


Debt to Equity History and Analysis

Debt Level: DRT's debt to equity ratio (5.1%) is considered satisfactory.

Reducing Debt: DRT's debt to equity ratio has reduced from 5.3% to 5.1% over the past 5 years.

Debt Coverage: DRT's debt is well covered by operating cash flow (209.2%).

Interest Coverage: Insufficient data to determine if DRT's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is DIRTT Environmental Solutions's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate DRT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate DRT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DRT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DRT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DRT's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure


CEO

Kevin O'Meara (55 yo)

2.58yrs

Tenure

US$1,751,053

Compensation

Mr. Kevin P. O'Meara, CPA has been the President, Chief Executive Officer and Director of DIRTT Environmental Solutions since September 10, 2018. Prior to joining DIRTT, Mr. O’Meara was an independent advi...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD1.75M) is above average for companies of similar size in the Canadian market ($USD438.03K).

Compensation vs Earnings: Kevin's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: DRT's management team is considered experienced (2 years average tenure).


Board Members

Experienced Board: DRT's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DRT insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

DIRTT Environmental Solutions Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: DIRTT Environmental Solutions Ltd.
  • Ticker: DRT
  • Exchange: TSX
  • Founded: 2003
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: CA$334.491m
  • Shares outstanding: 84.68m
  • Website: https://www.dirtt.com

Number of Employees


Location

  • DIRTT Environmental Solutions Ltd.
  • 7303-30th Street SE
  • Calgary
  • Alberta
  • T2C 1N6
  • Canada

Listings


Biography

DIRTT Environmental Solutions Ltd. designs, manufactures, and installs prefabricated interior solutions for use primarily in commercial spaces across various industries and businesses in the United States,...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/11 23:18
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.