TSX:DRT

Stock Analysis Report

DIRTT Environmental Solutions

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.


Snowflake Analysis

Flawless 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.7%

DRT

6.0%

CA Building

3.7%

CA Market


1 Year Return

-83.4%

DRT

-16.8%

CA Building

-23.7%

CA Market

Return vs Industry: DRT underperformed the Canadian Building industry which returned -16.8% over the past year.

Return vs Market: DRT underperformed the Canadian Market which returned -23.7% over the past year.


Shareholder returns

DRTIndustryMarket
7 Day-2.7%6.0%3.7%
30 Day-42.0%-25.2%-19.7%
90 Day-67.3%-29.7%-24.3%
1 Year-83.4%-83.4%-15.5%-16.8%-21.2%-23.7%
3 Year-79.2%-79.2%-14.8%-18.7%-13.3%-21.4%
5 Year-80.9%-80.9%1.2%-11.8%-0.8%-15.5%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DRT (CA$1.42) is trading below our estimate of fair value (CA$4.23)

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 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 (0.7x) compared to the XN Building industry average (1.2x).


Next Steps

Future Growth

How is DIRTT Environmental Solutions forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

63.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DRT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.4%).

Earnings vs Market: DRT is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: DRT's is expected to become profitable in the next 3 years.

Revenue vs Market: DRT's revenue (2.5% per year) is forecast to grow slower than the Canadian market (3.7% per year).

High Growth Revenue: DRT's revenue (2.5% 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


Next Steps

Past Performance

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

-48.6%

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 -48.6% 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 (-15.9%).


Return on Equity

High ROE: DRT has a negative Return on Equity (-3.52%), as it is currently unprofitable.


Next Steps

Financial Health

How is DIRTT Environmental Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: DRT's short term assets ($93.0M) exceed its short term liabilities ($34.4M).

Long Term Liabilities: DRT's short term assets ($93.0M) exceed its long term liabilities ($16.2M).


Debt to Equity History and Analysis

Debt Level: DRT is debt free.

Reducing Debt: DRT has no debt compared to 5 years ago when its debt to equity ratio was 10.3%.


Balance Sheet

Inventory Level: DRT has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if DRT's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: DRT has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: DRT has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

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 payouts.

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

1.3yrs

Average management tenure


CEO

Kevin O'Meara (54yo)

1.58s

Tenure

US$586,457

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD586.46K) is above average for companies of similar size in the Canadian market ($USD158.74K).

Compensation vs Earnings: Kevin's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kevin O'Meara
President1.58yrsUS$586.46k0.089% $106.5k
Geoffrey Krause
Chief Financial Officer1.83yrsUS$989.20k0.031% $37.3k
Jeffrey Calkins
Chief Operating Officer1.25yrsUS$902.04k0.032% $37.9k
Mark Greffen
Chief Technology Officer0.83yrno data0.015% $17.9k
Kim MacEachern
Director of Investor Relationsno datano datano data
Charles Kraus
Senior VP & General Counsel0.083yrno datano data
Jennifer Warawa
Senior VP & Chief Commercial Officer0.58yrno datano data
Colin Blehm
Director of Product Developmentno datano datano data
Peter Henry
1.83yrsUS$563.86kno data

1.3yrs

Average Tenure

50yo

Average Age

Experienced Management: DRT's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Kevin O'Meara
President1.58yrsUS$586.46k0.089% $106.5k
Wayne Boulais
Independent Director4.92yrsUS$95.19k0.071% $85.2k
Steven Parry
Independent Chairman of the Board1.5yrsUS$134.27k0.038% $45.9k
John Elliott
Independent Director2yrsUS$98.46k0.054% $64.5k
Todd Lillibridge
Independent Director2.67yrsUS$92.98k0.28% $333.3k
Christine McGinley
Independent Director6.42yrsUS$107.42k0.047% $56.9k
Denise Karkkainen
Independent Director4.67yrsUS$109.65k0.057% $68.6k

2.7yrs

Average Tenure

60yo

Average Age

Experienced Board: DRT's board of directors are not considered experienced ( 2.7 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$120.248m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DRTTSX (The Toronto Stock Exchange)YesCommon SharesCACADNov 2013
D13DB (Deutsche Boerse AG)YesCommon SharesDEEURNov 2013
DRTTNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDNov 2013

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, Canada, internationally. Its ICE software interior construction technology provides integration and management, from design through engineering, manufacturing, and installation. 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 founded in 2003 and is headquartered in Calgary, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 06:12
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.