TSX:DII.B

Stock Analysis Report

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Executive Summary

Dorel Industries Inc. designs, manufactures, sources, markets, and distributes juvenile products, bicycles, and furniture worldwide. More Details

Rewards

Trading at 60.2% below our estimate of its fair value

Earnings are forecast to grow 187.27% per year

Risk Analysis

No risks detected for DII.B from our risk checks.


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has Dorel Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DII.B is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: DII.B's weekly volatility has decreased from 17% to 9% over the past year.


Market Performance


7 Day Return

0.6%

DII.B

-2.9%

CA Consumer Durables

-0.002%

CA Market


1 Year Return

166.7%

DII.B

20.4%

CA Consumer Durables

0.7%

CA Market

Return vs Industry: DII.B exceeded the Canadian Consumer Durables industry which returned 22.7% over the past year.

Return vs Market: DII.B exceeded the Canadian Market which returned 0.5% over the past year.


Shareholder returns

DII.BIndustryMarket
7 Day0.6%-2.9%-0.002%
30 Day1.4%8.3%11.9%
90 Day22.8%3.0%5.7%
1 Year166.7%166.7%21.9%20.4%4.4%0.7%
3 Year-45.5%-51.8%14.1%9.8%12.7%1.7%
5 Year-36.7%-49.2%48.5%38.6%53.8%30.2%

Long-Term Price Volatility Vs. Market

How volatile is Dorel Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Dorel Industries 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: DII.B (CA$14.53) is trading below our estimate of fair value (CA$36.52)

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


Price To Earnings Ratio

PE vs Industry: DII.B is unprofitable, so we can't compare its PE Ratio to the XN Consumer Durables industry average.

PE vs Market: DII.B 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 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 PB Ratio (0.7x) compared to the XN Consumer Durables industry average (1.6x).


Next Steps

Future Growth

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

187.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DII.B is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

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

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

Revenue vs Market: DII.B's revenue is expected to decline over the next 3 years (-0.7% per year).

High Growth Revenue: DII.B's revenue is forecast to decline over the next 3 years (-0.7% 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


Next Steps

Past Performance

How has Dorel Industries performed over the past 5 years?

-44.3%

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 44.3% 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 (26%).


Return on Equity

High ROE: DII.B has a negative Return on Equity (-4.2%), as it is currently unprofitable.


Next Steps

Financial Health

How is Dorel Industries's financial position?


Financial Position Analysis

Short Term Liabilities: DII.B's short term assets ($1.1B) exceed its short term liabilities ($879.8M).

Long Term Liabilities: DII.B's short term assets ($1.1B) exceed its long term liabilities ($307.0M).


Debt to Equity History and Analysis

Debt Level: DII.B's debt to equity ratio (79.2%) is considered high.

Reducing Debt: DII.B's debt to equity ratio has increased from 48.3% to 79.2% 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: Whilst unprofitable DII.B has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: DII.B is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 13.3% per year.


Next Steps

Dividend

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


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DII.B'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?

17.8yrs

Average management tenure


CEO

Martin Schwartz (71 yo)

28.83yrs

Tenure

US$1,661,233

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 ($USD979.38K) is about average for companies of similar size in the Canadian market ($USD854.31K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Martin Schwartz
President28.83yrsUS$1.66m5.07%
$ 24.0m
Jeffrey Schwartz
Executive VP33.83yrsUS$1.66m5.19%
$ 24.5m
Alan Schwartz
Executive VP of Operations & Director33.83yrsUS$1.66m4.48%
$ 21.2m
Jeff Segel
Executive VP of Sales & Marketing and Director33.83yrsUS$1.66m4.44%
$ 21.0m
Frank Rana
Senior VP of Finance & Assistant Secretary4.42yrsUS$960.75k0.046%
$ 216.2k
Leo Schwartz
58.83yrsno datano data
Edward Wyse
Senior Vice-President of Global Procurement4.42yrsno data0.0019%
$ 8.8k
Ian Farthing
Chief Financial Officer of Juvenile Segmentno datano datano data
Norman Braunstein
Group President & CEO of Dorel Home12.17yrsno data0.0032%
$ 15.2k
Rafael Camarano
President of Dorel Juvenile Brazilno datano datano data
Troy Franks
President of Cosco Home & Officeno datano datano data
Ira Goldstein
President of Dorel Home Productsno datano datano data

17.8yrs

Average Tenure

68.5yo

Average Age

Experienced Management: DII.B's management team is seasoned and experienced (17.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Martin Schwartz
President28.83yrsUS$1.66m5.07%
$ 24.0m
Jeffrey Schwartz
Executive VP33.83yrsUS$1.66m5.19%
$ 24.5m
Alan Schwartz
Executive VP of Operations & Director33.83yrsUS$1.66m4.48%
$ 21.2m
Jeff Segel
Executive VP of Sales & Marketing and Director33.83yrsUS$1.66m4.44%
$ 21.0m
Maurice Tousson
Lead Independent Directorno dataUS$210.00k0.0040%
$ 18.9k
Dian Cohen
Independent Director16.83yrsUS$165.00k0.0015%
$ 7.3k
Brad Johnson
Independent Director1.42yrsUS$80.00kno data
Alain Benedetti
Independent Director16.5yrsUS$185.00kno data
Norman Steinberg
Independent Director2.33yrsUS$165.00k0.0068%
$ 32.0k
Sharon Ranson
Independent Director1.42yrsUS$80.00kno data

16.8yrs

Average Tenure

69yo

Average Age

Experienced Board: DII.B's board of directors are seasoned and experienced ( 16.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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

Dorel Industries Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dorel Industries Inc.
  • Ticker: DII.B
  • Exchange: TSX
  • Founded: 1962
  • Industry: Home Furnishings
  • Sector: Consumer Durables
  • Market Cap: CA$473.224m
  • Shares outstanding: 32.51m
  • Website: https://www.dorel.com

Number of Employees


Location

  • Dorel Industries Inc.
  • 1255 Greene Avenue
  • Suite 300
  • Westmount
  • Quebec
  • H3Z 2A4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DII.BTSX (The Toronto Stock Exchange)YesClass B Subordinated SharesCACADOct 1991
DII.ATSX (The Toronto Stock Exchange)Class A Multiple Voting SharesCACADOct 1991
DIIB.FOTCPK (Pink Sheets LLC)YesClass B Subordinated SharesUSUSDOct 1991
DO4BDB (Deutsche Boerse AG)YesClass B Subordinated SharesDEEUROct 1991
DO4CDB (Deutsche Boerse AG)Class A Multiple Voting SharesDEEUROct 1991

Biography

Dorel Industries Inc. designs, manufactures, sources, markets, and distributes juvenile products, bicycles, and furniture worldwide. The company’s Dorel Home segment engages in the design, manufacture, sou...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/01 23:04
End of Day Share Price2020/12/01 00:00
Earnings2020/09/30
Annual Earnings2019/12/30


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.