TSX:DRT

Stock Analysis Report

DIRTT Environmental Solutions

Executive Summary

DIRTT Environmental Solutions Ltd. designs, manufactures, and installs customized prefabricated interiors.

Snowflake

Fundamentals

Flawless balance sheet with reasonable growth potential.

Risks

  • DIRTT Environmental Solutions has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

2.7%

TSX:DRT

2.3%

CA Building

1.2%

CA Market


1 Year Return

-1.5%

TSX:DRT

2.7%

CA Building

-0.1%

CA Market

DRT underperformed the Building industry which returned 2.7% over the past year.

DRT underperformed the Market in Canada which returned -0.2% over the past year.


Share holder returns

DRTIndustryMarket
7 Day2.7%2.3%1.2%
30 Day-7.7%-7.3%4.0%
90 Day-25.5%7.9%1.4%
1 Year-1.5%-1.5%4.5%2.7%3.4%-0.1%
3 Year18.2%18.2%15.5%14.2%19.3%8.6%
5 Year74.6%74.6%81.3%78.7%19.0%2.0%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

DIRTT Environmental Solutions's share price is below the future cash flow value, and at a moderate discount (> 20%).

DIRTT Environmental Solutions's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

DIRTT Environmental Solutions is loss making, we can't compare its value to the North America Building industry average.

DIRTT Environmental Solutions is loss making, we can't compare the value of its earnings to the Canada market.


Price Based on Expected Growth

Unable to calculate PEG ratio for DIRTT Environmental Solutions, we can't assess if its growth is good value.


Price Based on Value of Assets

DIRTT Environmental Solutions is overvalued based on assets compared to the CA Building industry average.


Next Steps

Future Growth

How is DIRTT Environmental Solutions expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

98.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

DIRTT Environmental Solutions's revenue is expected to grow by 8.2% yearly, however this is not considered high growth (20% yearly).

DIRTT Environmental Solutions's earnings are expected to grow significantly at over 20% yearly.

DIRTT Environmental Solutions's revenue growth is expected to exceed the Canada market average.

DIRTT Environmental Solutions's earnings growth is expected to exceed the Canada market average.

DIRTT Environmental Solutions's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if DIRTT Environmental Solutions will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

-22.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

DIRTT Environmental Solutions does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare DIRTT Environmental Solutions's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare DIRTT Environmental Solutions's 1-year growth to the North America Building industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if DIRTT Environmental Solutions has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if DIRTT Environmental Solutions has efficiently used its assets last year compared to the North America Building industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if DIRTT Environmental Solutions improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is DIRTT Environmental Solutions's financial position?


Financial Position Analysis

DIRTT Environmental Solutions is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

DIRTT Environmental Solutions's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

DIRTT Environmental Solutions has no debt.

DIRTT Environmental Solutions has no debt compared to 5 years ago when it was 16.4%.

DIRTT Environmental Solutions has no debt, it does not need to be covered by operating cash flow.

DIRTT Environmental Solutions has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

DIRTT Environmental Solutions has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate DIRTT Environmental Solutions's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate DIRTT Environmental Solutions's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as DIRTT Environmental Solutions has not reported any payouts.

Unable to verify if DIRTT Environmental Solutions's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as DIRTT Environmental Solutions has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of DIRTT Environmental Solutions's salary, the management and board of directors tenure and is there insider trading?

0.7yrs

Average management tenure


CEO

Kevin O'Meara (54yo)

1yrs

Tenure

CA$6,129,801

Compensation

Mr. Kevin P. O'Meara, CPA has been Chief Executive Officer and Director of DIRTT Environmental Solutions since September 10, 2018. He has served on the Advisory Board of GHK Capital Partners LP. He serves  ...


CEO Compensation Analysis

Kevin's remuneration is higher than average for companies of similar size in Canada.

Insufficient data for Kevin to compare compensation growth.


Management Age and Tenure

0.7yrs

Average Tenure

The average tenure for the DIRTT Environmental Solutions management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.1yrs

Average Tenure

62yo

Average Age

The average tenure for the DIRTT Environmental Solutions board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by DIRTT Environmental Solutions individual insiders in the past 3 months.


Recent Insider Transactions

BuyCA$32,00210 Sep 19
Steven Parry
EntityIndividual
Role
Chairman of the Board
Chairman
Shares4,000
Max PriceCA$8.02
BuyCA$154,11810 Sep 19
Kevin O'Meara
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares25,000
Max PriceCA$6.17
BuyCA$7,67610 Jun 19
Denise Karkkainen
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceCA$7.68
BuyCA$5,59617 May 19
Christine McGinley
EntityIndividual
Role
Member of the Board of Directors
Director
Shares722
Max PriceCA$7.75
BuyCA$58,83515 May 19
Wayne Boulais
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,500
Max PriceCA$7.84
BuyCA$13,19815 May 19
Christine McGinley
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,703
Max PriceCA$7.75
BuyCA$80,72015 May 19
Joseph Zirkman
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares10,000
Max PriceCA$8.07
BuyCA$46,82414 May 19
Christine McGinley
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,908
Max PriceCA$8.01
BuyCA$80,45013 May 19
John Elliott
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceCA$8.05
SellCA$80,33013 May 19
John Elliott
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceCA$8.03
BuyCA$40,25313 May 19
Steven Parry
EntityIndividual
Role
Chairman of the Board
Chairman
Shares5,000
Max PriceCA$8.05
SellCA$1,610,16112 Nov 18
Geoff Gosling
EntityIndividual
Role
Top Key Executive
Co-Founder & Director of Innovation
Shares230,000
Max PriceCA$7.00
SellCA$436,10006 Nov 18
Geoff Gosling
EntityIndividual
Role
Top Key Executive
Co-Founder & Director of Innovation
Shares62,300
Max PriceCA$7.00
SellCA$213,99306 Nov 18
Tracy Baker
EntityIndividual
Shares30,658
Max PriceCA$6.98
BuyCA$5,79107 Oct 18
Denise Turner
EntityIndividual
Shares900
Max PriceCA$6.43
SellCA$978,66907 Oct 18
Geoff Gosling
EntityIndividual
Role
Top Key Executive
Co-Founder & Director of Innovation
Shares149,500
Max PriceCA$6.55
SellCA$228,70407 Oct 18
Tracy Baker
EntityIndividual
Shares35,735
Max PriceCA$6.40
SellCA$162,50030 Sep 18
Geoff Gosling
EntityIndividual
Role
Top Key Executive
Co-Founder & Director of Innovation
Shares25,000
Max PriceCA$6.50
BuyCA$48,83830 Sep 18
Wayne Boulais
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,500
Max PriceCA$6.51
SellCA$1,146,18923 Sep 18
Geoff Gosling
EntityIndividual
Role
Top Key Executive
Co-Founder & Director of Innovation
Shares178,100
Max PriceCA$6.45
SellCA$334,04623 Sep 18
Tracy Baker
EntityIndividual
Shares52,800
Max PriceCA$6.37
SellCA$1,022,38020 Sep 18
Geoff Gosling
EntityIndividual
Role
Top Key Executive
Co-Founder & Director of Innovation
Shares158,300
Max PriceCA$6.46

Ownership Breakdown


Management Team

  • Kevin O'Meara (54yo)

    CEO & Director

    • Tenure: 1yrs
    • Compensation: CA$6.13m
  • Joe Zirkman (58yo)

    Senior VP

    • Tenure: 0.7yrs
  • Geoff Krause

    Chief Financial Officer

    • Tenure: 1.3yrs
    • Compensation: CA$478.17k
  • Geoff Gosling

    Co-Founder & Director of Innovation

    • Tenure: 15.6yrs
    • Compensation: CA$1.25m
  • Peter Henry

    • Tenure: 1.3yrs
    • Compensation: CA$563.86k
  • Kim MacEachern

    Director of Investor Relations

    • Tenure: 0yrs
  • Jeffrey Calkins

    Chief Operating Officer

    • Tenure: 0.7yrs
  • Mark Greffen

    Chief Technology Officer

    • Tenure: 0.7yrs
  • Krista Pell

    Senior Vice President of Talent

    • Tenure: 0.7yrs
  • Kingsley Koch

    Vice President of Sales

    • Tenure: 0.7yrs

Board Members

  • Kevin O'Meara (54yo)

    CEO & Director

    • Tenure: 1yrs
    • Compensation: CA$6.13m
  • Ron Kaplan (67yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: CA$455.30k
  • Wayne Boulais (55yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: CA$155.50k
  • Steve Parry (63yo)

    Chairman

    • Tenure: 0.9yrs
    • Compensation: CA$181.00k
  • Jack Elliott (67yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: CA$79.28k
  • Todd Lillibridge (63yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: CA$160.00k
  • Richard Haray (62yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: CA$136.00k
  • Christine McGinley (60yo)

    Director

    • Tenure: 5.8yrs
    • Compensation: CA$131.00k
  • Denise Karkkainen (55yo)

    Director

    • Tenure: 4.1yrs
    • Compensation: CA$244.00k

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$517.403m
  • Shares outstanding: 84.68m
  • Website: https://www.dirtt.net

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DRTTSX (The Toronto Stock Exchange)YesCommon SharesCACADNov 2013
D13DB (Deutsche Boerse AG)YesCommon SharesDEEURNov 2013
DRTT.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDNov 2013

Biography

DIRTT Environmental Solutions Ltd. designs, manufactures, and installs customized prefabricated interiors. The company combines its proprietary 3D design, configuration, and manufacturing software with int ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 00:30
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.