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Dorel Class B
(TSX:DII.B)
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Rating:44Neutral
Price Target:
C$1.50
▲(0.00% Upside)
Action:Reiterated
Date:08/10/26
The score is held down primarily by weak financial performance (persistent losses, cash burn, negative equity, and high debt). Technicals add a modest headwind with the stock trading below key moving averages, while valuation support is limited due to negative earnings and no dividend yield data. The earnings call provides some offset via restructuring progress and guidance for improving profitability and cash generation, but near-term revenue pressure and financing costs remain material risks.
Positive Factors
International brand strength
Growth across Australia, Brazil, and Canada, together with Maxi-Cosi’s leading Australian car-seat position, indicates meaningful brand acceptance beyond one market. This geographic reach and retailer recognition can support recurring demand and reduce reliance on weaker U.S. category conditions over the next several quarters.
Negative Factors
Balance-sheet and cash stress
Negative equity, substantial debt, and ongoing cash consumption leave Dorel with a thin financial cushion while profitability is being rebuilt. This constrains investment flexibility and increases refinancing and solvency pressure, making execution on the turnaround especially important over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
International brand strength
Growth across Australia, Brazil, and Canada, together with Maxi-Cosi’s leading Australian car-seat position, indicates meaningful brand acceptance beyond one market. This geographic reach and retailer recognition can support recurring demand and reduce reliance on weaker U.S. category conditions over the next several quarters.
Read all positive factors
Dorel Class B (DII.B) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$44.87M
Dividend Yield123.02%
Average Volume (3M)8.07K
Price to Earnings (P/E)―
Beta (1Y)2.29
Revenue Growth-16.18%
EPS Growth18.53%
CountryCA
Employees3,000
SectorConsumer Defensive
Sector Strength42
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)-4.13
Shares Outstanding30,295,773
10 Day Avg. Volume4,446
30 Day Avg. Volume8,075
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)-0.39
Price to Sales (P/S)0.03
P/FCF Ratio-0.59
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$1.50Price Target Upside0.00%
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)-1.54
Revenue Forecast (FY)C$1.06B
Dorel Class B Business Overview & Revenue Model
Company Description
Dorel Industries Inc. is a global entity involved in the design, manufacturing, sourcing, marketing, and distribution of a diverse portfolio of home furnishings and juvenile products. Its Dorel Home division focuses on developing and supplying a b...
How the Company Makes Money
Dorel makes money primarily by selling consumer products through its operating segments. (1) Juvenile products revenue is generated from wholesale and online sales of items such as infant/child car seats, strollers, travel systems, and other juven...
Dorel Class B Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 15, 2027
Earnings Call Sentiment Neutral
The call presents a mixed picture. There are clear operational positives: strong international growth in Juvenile, product innovation and brand recognition, improvement in underlying gross margin excluding restructuring, and a profitable Costco-led Home model. At the same time, the company reported sizable year-over-year revenue declines (consolidated -14.7%; Home -46.4%), continued reported operating losses, meaningful FX headwinds, higher finance expenses, and ongoing legacy costs from the Home restructuring. Management described actionable restructuring steps and expects improvement in the back half of the year, but near-term results were materially impacted by exits, FX, and U.S. softness. Overall, the positives and negatives are balanced.Positive Updates
Strong international growth and premium brand momentum
Dorel Juvenile showed resilience with double-digit revenue and organic growth in several export markets (Australia, Brazil, Canada). Maxi-Cosi achieved #1 market position in car seats in Australia with leading retailers.
Negative Updates
Significant consolidated revenue decline
Total consolidated revenue decreased by $42.9M (14.7% YoY); organic revenue decline was 16.9% for the quarter.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong international growth and premium brand momentum
Dorel Juvenile showed resilience with double-digit revenue and organic growth in several export markets (Australia, Brazil, Canada). Maxi-Cosi achieved #1 market position in car seats in Australia with leading retailers.
Read all positive updates
Company Guidance
The company guided to improving profitability and cash generation over time, saying Dorel Juvenile expects improved earnings in the U.S. and Europe (driven by significant new product launches in Q3–Q4 and additional launches in Q1–Q2 next year) after a July uptick in U.S. sales, while Dorel Home has been reshaped around a Costco-led model (roughly 70% of current Home), with Costco profitable in Q2 and expected to remain profitable for the rest of the year and Notio forecast to contribute positively to H2; management said the go‑forward Home revenue base is just under $200 million and that legacy costs will continue to weigh on Home through the second half but should decline over time. For context, Q2 consolidated revenue fell $42.9M (14.7%) with organic revenue down 16.9%, consolidated operating loss was $24.3M (reduced to a $5.3M loss excluding restructuring and to a $1.5M positive result when FX is adjusted), Juvenile Q2 revenue was $209M (down 3.9%, organic -6.8%) with a 27.9% gross margin (down 110 bps), Home sales fell 46.4% with a Q2 loss of $11.3M (adjusted operating loss $6.5M), finance expenses rose to $17.0M (cash interest $11.1M, noncash $5.9M).Dorel Class B Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
9
Very Negative
Cash Flow
20
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.09B | 1.21B | 1.38B | 1.39B | 1.57B | 1.76B |
| Gross Profit | 180.78M | 189.46M | 246.04M | 243.78M | 205.01M | 294.37M |
| EBITDA | -9.46M | -3.94M | -23.40M | 17.31M | -34.14M | 68.92M |
| Net Income | -138.26M | -144.71M | -171.96M | -62.35M | 135.96M | -31.62M |
Balance Sheet | ||||||
| Total Assets | 671.01M | 718.81M | 802.79M | 1.00B | 1.06B | 1.85B |
| Cash, Cash Equivalents and Short-Term Investments | 39.17M | 60.50M | 41.27M | 24.09M | 32.41M | 52.17M |
| Total Debt | 485.33M | 392.60M | 366.79M | 392.95M | 431.57M | 544.38M |
| Total Liabilities | 822.03M | 809.40M | 760.65M | 776.23M | 779.30M | 1.38B |
| Stockholders Equity | -151.02M | -90.59M | 42.14M | 224.70M | 281.14M | 469.00M |
Cash Flow | ||||||
| Free Cash Flow | -92.85M | -60.20M | 38.77M | 53.38M | -160.66M | -16.45M |
| Operating Cash Flow | -81.55M | -46.18M | 62.37M | 76.93M | -133.01M | 19.82M |
| Investing Cash Flow | -17.83M | -24.88M | -17.60M | -20.54M | 734.89M | 14.14M |
| Financing Cash Flow | 95.36M | 88.08M | -24.39M | -65.95M | -608.38M | -23.69M |
Dorel Class B Technical Analysis
Negative
1.50
Price Trends
1.44
Negative
1.51
Negative
1.63
Negative
Market Momentum
-0.03
Negative
40.27
Neutral
36.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DII.B, the sentiment is Negative. The current price of 1.5 is above the 20-day moving average (MA) of 1.34, above the 50-day MA of 1.44, and below the 200-day MA of 1.63, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 40.27 is Neutral, neither overbought nor oversold. The STOCH value of 36.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:DII.B.
Dorel Class B Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | C$1.80B | 11.39 | 12.76% | 5.57% | -0.15% | -2.29% | |
63 Neutral | C$10.48B | 15.66 | 11.53% | 3.27% | 1.05% | -6.66% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | C$2.05B | -13.30 | -9.16% | 2.35% | -1.59% | -291.62% | |
56 Neutral | C$10.26B | 73.52 | 2.13% | 2.43% | 40.42% | -83.20% | |
53 Neutral | C$6.08B | 56.18 | 20.51% | 1.13% | 19.87% | ― | |
44 Neutral | C$44.87M | -0.24 | 133.25% | 123.02% | -16.18% | 18.53% |
* Consumer Defensive Sector Average
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Dorel Class B
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Dorel Class B Corporate Events
Business Operations and StrategyM&A Transactions
Dorel Industries Sells Non-Strategic Ohio Facility to Cut Debt
Positive
Aug 13, 2026
Dorel Industries has sold its Tiffin, Ohio facility for net proceeds of about US$12.5 million, advancing the restructuring of its Dorel Home segment and streamlining its manufacturing and distribution footprint. The site had been designated a non-...
Business Operations and StrategyFinancial Disclosures
Dorel Industries Narrows Losses as Juvenile Unit Holds Firm and Home Segment Restructures
Negative
Aug 5, 2026
Dorel Industries reported second-quarter 2026 revenue of US$249.5 million, down 14.7% year over year, with a net loss of US$42.5 million that slightly improved from the prior-year period, and a higher adjusted net loss of US$23.5 million. For the ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.