TSX:DII.B

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 79.5% below its fair value

Earnings are forecast to grow 173.89% per year

Risk Analysis

Highly volatile share price over past 3 months



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


Market Performance


7 Day Return

-10.5%

DII.B

1.3%

CA Consumer Durables

-0.08%

CA Market


1 Year Return

-69.6%

DII.B

36.8%

CA Consumer Durables

10.8%

CA Market

Return vs Industry: DII.B underperformed the Canadian Consumer Durables industry which returned 36.8% over the past year.

Return vs Market: DII.B underperformed the Canadian Market which returned 10.8% over the past year.


Shareholder returns

DII.BIndustryMarket
7 Day-10.5%1.3%-0.08%
30 Day-1.6%1.6%0.01%
90 Day-43.8%9.0%1.2%
1 Year-67.8%-69.6%38.9%36.8%14.4%10.8%
3 Year-85.0%-87.4%28.2%22.3%15.0%4.6%
5 Year-83.0%-87.0%41.8%32.3%40.1%19.4%

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$5.05) is trading below our estimate of fair value (CA$24.63)

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 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 (0.2x) compared to the XN Consumer Durables industry average (1.4x).


Next Steps

Future Growth

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

173.9%

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 (1.4%).

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 (2% per year) is forecast to grow slower than the Canadian market (4.9% per year).

High Growth Revenue: DII.B's revenue (2% 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


Next Steps

Past Performance

How has Dorel Industries performed over the past 5 years?

-72.1%

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 -72.1% 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 (1.2%).


Return on Equity

High ROE: DII.B has a negative Return on Equity (-86.45%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Dorel Industries's financial position?


Financial Position Analysis

Short Term Liabilities: DII.B's short term assets ($1.2B) exceed its short term liabilities ($800.9M).

Long Term Liabilities: DII.B's short term assets ($1.2B) exceed its long term liabilities ($601.6M).


Debt to Equity History and Analysis

Debt Level: DII.B's debt to equity ratio (93.9%) is considered high.

Reducing Debt: DII.B's debt to equity ratio has increased from 32.9% to 93.9% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: DII.B's debt is covered by short term assets (assets are 2.4x debt).


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, even with free cash flow being positive and shrinking by -54.3% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.0%markettop25%5.6%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

What is the CEO of Dorel Industries's salary, the management and board of directors tenure and is there insider trading?

16.9yrs

Average management tenure


CEO

Martin Schwartz (70yo)

27.9yrs

Tenure

US$2,404,767

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 ($USD1.82M) is above average for companies of similar size in the Canadian market ($USD136.07K).

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


Management Age and Tenure

16.9yrs

Average Tenure

67.5yo

Average Age

Experienced Management: DII.B's management team is seasoned and experienced (16.9 years average tenure).


Board Age and Tenure

15.9yrs

Average Tenure

69yo

Average Age

Experienced Board: DII.B's board of directors are seasoned and experienced ( 15.9 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$124,77514 Nov 19
Jeff Segel
EntityIndividual
Role
Member of the Board of Directors
Executive VP of Sales & Marketing and Director
Shares25,000
Max PriceUS$4.99
BuyUS$178,77513 Nov 19
Jeffrey Schwartz
EntityIndividual
Role
Member of the Board of Directors
Executive VP
Shares35,000
Max PriceUS$5.11
BuyUS$127,30013 Nov 19
Martin Schwartz
EntityIndividual
Role
Chief Executive Officer
President
Shares25,000
Max PriceUS$5.09
BuyUS$127,62513 Nov 19
Jeff Segel
EntityIndividual
Role
Member of the Board of Directors
Executive VP of Sales & Marketing and Director
Shares25,000
Max PriceUS$5.11
BuyUS$53,70014 May 19
Frank Rana
EntityIndividual
Role
Senior Key Executive
Senior VP of Finance & Assistant Secretary
Shares5,000
Max PriceUS$10.74
BuyUS$60,02426 Mar 19
Martin Schwartz
EntityIndividual
Role
Chief Executive Officer
President
Shares5,000
Max PriceUS$12.00
BuyUS$59,84026 Mar 19
Jeffrey Schwartz
EntityIndividual
Role
Member of the Board of Directors
Executive VP
Shares5,000
Max PriceUS$11.97
BuyUS$51,15720 Mar 19
Frank Rana
EntityIndividual
Role
Senior Key Executive
Senior VP of Finance & Assistant Secretary
Shares4,109
Max PriceUS$12.45
BuyUS$11,16019 Mar 19
Frank Rana
EntityIndividual
Role
Senior Key Executive
Senior VP of Finance & Assistant Secretary
Shares900
Max PriceUS$12.40
BuyUS$186,89719 Mar 19
Jeffrey Schwartz
EntityIndividual
Role
Member of the Board of Directors
Executive VP
Shares15,000
Max PriceUS$12.46
BuyUS$125,66619 Mar 19
Jeff Segel
EntityIndividual
Role
Member of the Board of Directors
Executive VP of Sales & Marketing and Director
Shares10,000
Max PriceUS$12.57
BuyUS$186,78619 Mar 19
Martin Schwartz
EntityIndividual
Role
Chief Executive Officer
President
Shares15,000
Max PriceUS$12.45
BuyUS$152,50021 Dec 18
Jeffrey Schwartz
EntityIndividual
Role
Member of the Board of Directors
Executive VP
Shares10,000
Max PriceUS$15.25
BuyUS$151,00021 Dec 18
Jeff Segel
EntityIndividual
Role
Member of the Board of Directors
Executive VP of Sales & Marketing and Director
Shares10,000
Max PriceUS$15.10

Ownership Breakdown

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


Management Team

  • Martin Schwartz (70yo)

    President

    • Tenure: 27.9yrs
    • Compensation: US$2.40m
  • Jeff Segel (68yo)

    Executive VP of Sales & Marketing and Director

    • Tenure: 32.9yrs
    • Compensation: US$2.40m
  • Alan Schwartz (67yo)

    Executive VP of Operations & Director

    • Tenure: 32.9yrs
    • Compensation: US$2.40m
  • Jeffrey Schwartz (56yo)

    Executive VP

    • Tenure: 32.9yrs
    • Compensation: US$2.40m
  • Frank Rana

    Senior VP of Finance & Assistant Secretary

    • Tenure: 3.5yrs
    • Compensation: US$1.01m
  • Ed Wyse

    Senior Vice-President of Global Procurement

    • Tenure: 3.5yrs
  • Leo Schwartz

    • Tenure: 57.9yrs
  • Norman Braunstein

    Group President & CEO of Dorel Home

    • Tenure: 11.9yrs
  • Rafael Camarano

    President of Dorel Juvenile Brazil

    • Tenure: 0yrs
  • Ian Farthing

    Chief Financial Officer of Juvenile Segment

    • Tenure: 0yrs

Board Members

  • Martin Schwartz (70yo)

    President

    • Tenure: 27.9yrs
    • Compensation: US$2.40m
  • Jeff Segel (68yo)

    Executive VP of Sales & Marketing and Director

    • Tenure: 32.9yrs
    • Compensation: US$2.40m
  • Alan Schwartz (67yo)

    Executive VP of Operations & Director

    • Tenure: 32.9yrs
    • Compensation: US$2.40m
  • Jeffrey Schwartz (56yo)

    Executive VP

    • Tenure: 32.9yrs
    • Compensation: US$2.40m
  • Maurice Tousson (70yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$210.00k
  • Dian Cohen (86yo)

    Independent Director

    • Tenure: 15.9yrs
    • Compensation: US$170.00k
  • Brad Johnson

    Independent Director

    • Tenure: 0.5yrs
  • Alain Benedetti (70yo)

    Independent Director

    • Tenure: 15.6yrs
    • Compensation: US$185.00k
  • Norman Steinberg (68yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$80.00k
  • Sharon Ranson

    Independent Director

    • Tenure: 0.5yrs

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$168.299m
  • Shares outstanding: 32.46m
  • 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

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 Analysis2019/12/09 23:33
End of Day Share Price2019/12/09 00:00
Earnings2019/09/30
Annual Earnings2018/12/30


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.