Dorel Industries (TSX:DII.B) - Share price, News & Analysis

DII.B fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	0/6
Financial Health	2/6
Dividends	0/6

DII.B Stock Overview

Dorel Industries Inc. designs, manufactures, sources, markets, and distributes home products and juvenile products worldwide.

Risk Analysis

Earnings have declined by 7.4% per year over past 5 years

Has less than 1 year of cash runway

Dorel Industries Competitors

Walmart

NYSE:WMT

US$353.7b

Target

NYSE:TGT

US$77.5b

Williams-Sonoma

NYSE:WSM

US$9.1b

Mattel

NasdaqGS:MAT

US$8.7b

Price History & Performance

Summary of all time highs, changes and price drops for Dorel Industries
Historical stock prices
Current Share Price	CA$7.13
52 Week High	CA$28.43
52 Week Low	CA$6.28
Beta	3.3
1 Month Change	-16.90%
3 Month Change	-39.42%
1 Year Change	-40.98%
3 Year Change	-33.74%
5 Year Change	-79.68%
Change since IPO	185.20%

Shareholder Returns

	DII.B	CA Consumer Durables	CA Market
7D	5.0%	5.1%	2.8%
1Y	-41.0%	-25.9%	5.7%

Return vs Industry: DII.B underperformed the Canadian Consumer Durables industry which returned -23.7% over the past year.

Return vs Market: DII.B underperformed the Canadian Market which returned 4.7% over the past year.

Price Volatility

Is DII.B's price volatile compared to industry and market?
DII.B volatility
DII.B Average Weekly Movement	7.2%
Consumer Durables Industry Average Movement	7.8%
Market Average Movement	9.9%
10% most volatile stocks in CA Market	16.9%
10% least volatile stocks in CA Market	4.3%

Stable Share Price: DII.B is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: DII.B's weekly volatility has decreased from 17% to 7% over the past year.

About the Company

Founded	Employees	CEO	Website
1962	n/a	Martin Schwartz	https://www.dorel.com

Dorel Industries Inc. designs, manufactures, sources, markets, and distributes home products and juvenile products worldwide. The company’s Dorel Home segment engages in the design, manufacture, sourcing, and distribution of ready-to assemble furniture and home furnishings products, folding chair and tables, outdoor and juvenile furniture, futons, bunk beds, mattresses, bedroom, dining, home entertainment, and office furniture, upholstery, step stools and ladders, and hand trucks. This segment markets its products under the Ameriwood, Altra, System Build, Ridgewood, DHP, Dorel Fine Furniture, Dorel Living, Signature Sleep, Cosmo Living, Novagratz, Little Seeds, Queer Eye, Cosco, and Alphason brands.

Dorel Industries Fundamentals Summary

How do Dorel Industries's earnings and revenue compare to its market cap?
DII.B fundamental statistics
Market Cap	US$179.91m
Earnings (TTM)	-US$126.21m
Revenue (TTM)	US$1.75b

0.1x

P/S Ratio

-1.4x

P/E Ratio

Is DII.B overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
DII.B income statement (TTM)
Revenue	US$1.75b
Cost of Revenue	US$1.45b
Gross Profit	US$295.07m
Other Expenses	US$421.27m
Earnings	-US$126.21m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-3.88
Gross Margin	16.88%
Net Profit Margin	-7.22%
Debt/Equity Ratio	55.4%

How did DII.B perform over the long term?

See historical performance and comparison

Valuation

Is Dorel Industries undervalued compared to its fair value and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

0.48x

Price to Book (PB) ratio

Share Price vs. Fair Value

Below Fair Value: DII.B (CA$7.13) is trading above our estimate of fair value (CA$6.89)

Significantly Below Fair Value: DII.B is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: DII.B is unprofitable, so we can't compare its Price-To-Earnings Ratio to the North American Consumer Durables industry average.

PE vs Market: DII.B is unprofitable, so we can't compare its Price-To-Earnings Ratio to the Canadian market.

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: DII.B is good value based on its Price-To-Book Ratio (0.5x) compared to the CA Consumer Durables industry average (1x).

Future Growth

How is Dorel Industries forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

4.7%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if DII.B's forecast earnings growth is above the savings rate (1.6%).

Earnings vs Market: Insufficient data to determine if DII.B's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DII.B's revenue (4.7% per year) is forecast to grow slower than the Canadian market (6.4% per year).

High Growth Revenue: DII.B's revenue (4.7% 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 DII.B's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Dorel Industries performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-7.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DII.B is currently unprofitable.

Growing Profit Margin: DII.B is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: DII.B is unprofitable, and losses have increased over the past 5 years at a rate of 7.4% per year.

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

Earnings vs Industry: DII.B is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Durables industry (42.2%).

Return on Equity

High ROE: DII.B has a negative Return on Equity (-33.33%), as it is currently unprofitable.

Financial Health

How is Dorel Industries's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: DII.B's short term assets ($774.9M) exceed its short term liabilities ($404.9M).

Long Term Liabilities: DII.B's short term assets ($774.9M) exceed its long term liabilities ($338.6M).

Debt to Equity History and Analysis

Debt Level: DII.B's net debt to equity ratio (46.9%) is considered high.

Reducing Debt: DII.B's debt to equity ratio has increased from 46.6% to 55.4% over the past 5 years.

Balance Sheet

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: DII.B has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if DII.B has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.

Dividend

What is Dorel Industries's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate DII.B'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 DII.B's dividends per share have been stable in the past.

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

Earnings Payout to Shareholders

Earnings Coverage: DII.B is not paying a notable dividend for the Canadian market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as DII.B has not reported any payouts.

Discover strong dividend paying companies

Management

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

19.3yrs

Average management tenure

CEO

Martin Schwartz (72 yo)

30.33yrs

Tenure

US$1,806,424

Compensation

Mr. Martin Schwartz has been the Chief Executive Officer and President of Dorel Industries Inc. since 1992 and served as its Executive Vice President. Mr. Schwartz is the Co-founder of Ridgewood Industries...

CEO Compensation Analysis

Compensation vs Market: Martin's total compensation ($USD1.81M) is above average for companies of similar size in the Canadian market ($USD684.31K).

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

Leadership Team

Experienced Management: DII.B's management team is seasoned and experienced (19.3 years average tenure).

Board Members

Experienced Board: DII.B's board of directors are seasoned and experienced ( 27.3 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: DII.B 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/27 00:00
End of Day Share Price	2022/05/27 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/30