Dorel Class B (DII.B) AI Stock Analysis

• Market Cap: $64.15M
• Dividend Yield: N/A
• Average Volume (3M): 29.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.39
• Revenue Growth: -5.50%
• EPS Growth: -85.31%
• Country: CA
• Employees: 3,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.91
• Shares Outstanding: 28,530,352
• 10 Day Avg. Volume: 24,096
• 30 Day Avg. Volume: 29,739
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 7.36
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 2.13
• Enterprise Value/Ebitda: -22.09
• 1Y Price Target: $2.24
• Price Target Upside: 24.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 46 Neutral
• Price Target: C$1.50 ▼(-16.67% Downside)

Dorel Class B faces substantial financial and operational challenges, with declining revenues and high leverage being the most significant concerns. While there are some positive signs in cash flow improvement and international growth in the Juvenile segment, the immediate outlook is cautious. The technical analysis provides mixed signals, and the valuation is unattractive due to negative earnings. The company's restructuring efforts and focus on profitability by 2026 offer a potential path to recovery, but risks remain high.

Positive Factors

International Growth in Juvenile Segment

Strong international growth in the Juvenile segment, particularly in Europe and other markets, indicates robust demand and potential for sustained revenue expansion.

Successful Product Launches

New product launches, such as the Maxi-Cosi Fame stroller, demonstrate innovation and market responsiveness, driving sales growth and enhancing brand strength.

Restructuring Benefits Expected

The restructuring plan aims to streamline operations and focus on profitability, potentially leading to cost savings and improved financial health.

Negative Factors

Significant Revenue Decline in Dorel Home

A steep revenue decline in the Dorel Home segment highlights operational challenges and market pressures, impacting overall financial performance.

Challenges Due to U.S. Tariffs

High U.S. tariffs create significant cost pressures and market uncertainty, potentially hindering sales and profitability in affected segments.

Uncertain Financing and Liquidity Issues

Ongoing liquidity challenges and delayed refinancing efforts pose risks to financial stability and operational flexibility, affecting long-term viability.

Dorel Class B Business Overview & Revenue Model

Company Description

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. Its Dorel Juvenile segment manufactures and distributes infant car seats, strollers, travel systems high chairs, play yards, safety aids, swings/toys, early learning/infant health, mobiles, baby toys, playpens, and developmental toys under the Maxi-Cosi, Quinny, Tiny Love, Safety 1st, BebeConfort, Cosco, Mother's Choice, Disney, and Infanti brands. The company sells its products to mass merchant discount chains, department stores, club format outlets, and hardware/home centers; Internet retailers; independent boutiques and juvenile specialty stores; and sporting goods stores. It also owns and operates approximately 88 retail stores in Chile and Peru, as well as various factory outlet retail locations in Europe. The company was formerly known as Dorel Co. Ltd. and changed its name to Dorel Industries Inc. in May 1987. Dorel Industries Inc. was incorporated in 1962 and is headquartered in Westmount, Canada.

How the Company Makes Money

Dorel Class B generates revenue through the sale of its core products across its three main sectors: juvenile products, bicycles, and home products. Each sector contributes significantly to the company's overall earnings. The juvenile products division, which includes car seats and strollers, benefits from strong consumer demand driven by safety regulations and parental preferences for high-quality products. The bicycle segment capitalizes on the growing trend towards cycling for recreation and transportation, particularly in urban areas. Revenue is further bolstered by strategic partnerships with major retailers and e-commerce platforms, enhancing distribution and market reach. Additionally, the company invests in product innovation and marketing to strengthen brand loyalty and drive sales.

Dorel Class B Financial Statement Overview

Summary

Dorel Class B is experiencing significant financial challenges, with declining revenues, negative profitability, and high financial leverage. Despite these issues, there is some improvement in cash flow generation, which could support recovery efforts. However, the overall financial health remains weak, necessitating focus on revenue growth, cost management, and reducing leverage.

Income Statement

Dorel Class B has experienced declining revenue over the TTM period, with a negative revenue growth rate of -4.13%. The company is also facing profitability challenges, as indicated by negative net profit and EBIT margins. The gross profit margin has slightly decreased compared to the previous year, reflecting pressure on cost management. Overall, the income statement shows a need for improvement in revenue generation and cost control.

Balance Sheet

The balance sheet reveals significant financial leverage, with a high debt-to-equity ratio of 16.09 in the TTM period, indicating potential financial risk. The negative stockholders' equity suggests that liabilities exceed assets, which is a concerning sign of financial instability. Return on equity is also negative, reflecting ongoing losses. The company needs to address its leverage and improve its equity position to enhance financial stability.

Cash Flow

Despite the challenges in profitability, Dorel Class B has shown a significant improvement in free cash flow growth, with a rate of 319.57% in the TTM period. The operating cash flow to net income ratio is positive, indicating that the company is generating cash from operations, albeit at a low coverage ratio. The free cash flow to net income ratio is also positive, suggesting some ability to cover net losses with cash flow. However, the company needs to sustain and improve cash flow generation to support its financial recovery.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.29B	1.38B	1.39B	1.57B	1.76B	2.76B
Gross Profit	221.30M	246.04M	243.78M	205.01M	294.37M	568.62M
EBITDA	-21.39M	-23.40M	17.31M	-34.14M	68.92M	87.49M
Net Income	-165.09M	-171.96M	-62.35M	135.96M	-31.62M	-43.40M
Balance Sheet
Total Assets	730.39M	802.79M	1.00B	1.06B	1.85B	1.72B
Cash, Cash Equivalents and Short-Term Investments	24.71M	41.27M	24.09M	32.41M	52.17M	38.23M
Total Debt	335.06M	366.79M	392.95M	431.57M	544.38M	613.35M
Total Liabilities	751.20M	760.65M	776.23M	779.30M	1.38B	1.22B
Stockholders Equity	-20.81M	42.14M	224.70M	281.14M	469.00M	496.21M
Cash Flow
Free Cash Flow	75.68M	38.77M	53.38M	-160.66M	-16.45M	100.82M
Operating Cash Flow	101.50M	62.37M	76.93M	-133.01M	19.82M	134.53M
Investing Cash Flow	-25.43M	-17.60M	-20.54M	734.89M	14.14M	-27.26M
Financing Cash Flow	-75.12M	-24.39M	-65.95M	-608.38M	-23.69M	-109.80M

Dorel Class B Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DII.B, the sentiment is Neutral. The current price of 1.8 is below the 20-day moving average (MA) of 1.96, above the 50-day MA of 1.62, and below the 200-day MA of 2.17, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 49.45 is Neutral, neither overbought nor oversold. The STOCH value of 35.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:DII.B.

Dorel Class B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ICE	―	C$59.48M	15.81	8.22%	25.96%	8.43%	―
KDOZ	―	C$40.70M	77.50	5.76%	―	17.05%	―
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SXP	―	C$90.38M	―	-12.57%	17.66%	-3.54%	-244.21%
DII.B	―	$64.15M	-0.26	-274.08%	―	-5.50%	-85.31%

Dorel Class B Corporate Events

Dorel Industries Secures New Credit Facilities and Preferred Shares to Boost Growth

Dorel Industries Inc. has successfully closed new credit facilities totaling US$310 million and issued US$75 million in preferred shares. These financial moves are aimed at recapitalizing the company’s balance sheet, allowing Dorel to repay existing debt and invest in the growth of its Juvenile segment and the restructuring of its Home segment. This strategic financial restructuring positions Dorel to advance its strategic agenda and improve its market positioning.

The most recent analyst rating on ($TSE:DII.B) stock is a Hold with a C$1.50 price target. To see the full list of analyst forecasts on Dorel Class B stock, see the TSE:DII.B Stock Forecast page.

Dorel Industries Extends Forbearance Period Amid Debt Restructuring Efforts

Dorel Industries Inc. has announced an extension of the forbearance period for its asset-backed loan and term loan facilities to September 30, 2025, as part of its ongoing efforts to restructure its debt. The company is working with capital market advisors to recapitalize its balance sheet, aiming to support growth in its Juvenile segment and reorganize its Home segment. This strategic move is intended to replace the current debt structure, aligning it better with the company’s needs and potentially enhancing its market position.

The most recent analyst rating on ($TSE:DII.B) stock is a Hold with a C$1.50 price target. To see the full list of analyst forecasts on Dorel Class B stock, see the TSE:DII.B Stock Forecast page.

Dorel Industries Extends Forbearance Period and Plans Debt Restructuring

Dorel Industries Inc. announced an extension of the forbearance period under its asset-backed loan and term loan facilities to September 30, 2025. This extension is part of the company’s efforts to re-capitalize its balance sheet, aiming to support growth in its Juvenile segment and re-organize its Home segment. The company has engaged capital market advisors to assist in implementing a new debt structure, which is expected to be in place by the end of the extended forbearance period.

The most recent analyst rating on ($TSE:DII.B) stock is a Hold with a C$1.00 price target. To see the full list of analyst forecasts on Dorel Class B stock, see the TSE:DII.B Stock Forecast page.

Dorel Industries’ Earnings Call: Mixed Sentiments and Strategic Shifts

Dorel Industries’ recent earnings call presented a mixed sentiment, highlighting both achievements and challenges. The company celebrated strong performance in its Dorel Juvenile segment, particularly with new product launches, while grappling with significant revenue declines and restructuring in its Dorel Home segment. Liquidity issues and U.S. tariffs posed additional hurdles, though plans for improvement and restructuring were discussed.

Dorel Industries Faces Revenue Challenges Amid Economic Uncertainty

Dorel Industries Inc. is a diversified global company operating in the juvenile products and home furnishings sectors, known for its commitment to innovation and quality in its offerings. In its latest earnings report for the second quarter of 2025, Dorel Industries highlighted a challenging financial period marked by significant revenue declines, particularly in its Dorel Home segment, amidst ongoing macroeconomic uncertainties and tariff impacts. Key financial metrics revealed a 16.0% decrease in overall revenue compared to the previous year, with Dorel Home experiencing a 43.5% drop due to reduced e-commerce sales and brick-and-mortar challenges. Despite these setbacks, Dorel Juvenile showed resilience with stable revenue and improved gross margins, driven by positive foreign exchange impacts and strategic pricing adjustments. Looking ahead, Dorel Industries remains focused on restructuring efforts to streamline operations and improve profitability, while navigating the complex economic landscape with cautious optimism.

Dorel Industries Faces Revenue Decline Amidst Restructuring Efforts

Dorel Industries Inc. reported a challenging second quarter of 2025, with a 16% decrease in revenue compared to the previous year, totaling US$292.4 million. Despite a net loss of US$44.9 million, the Dorel Juvenile segment showed strong performance in international markets, driven by growth in Europe and favorable foreign exchange rates. Meanwhile, Dorel Home faced difficulties due to tariff uncertainties and liquidity issues, prompting a restructuring strategy aimed at cost reduction and operational streamlining, with expected benefits to emerge by the fourth quarter of 2025 and full impact anticipated in 2026.

The most recent analyst rating on ($TSE:DII.B) stock is a Hold with a C$7.00 price target. To see the full list of analyst forecasts on Dorel Class B stock, see the TSE:DII.B Stock Forecast page.

Dorel Industries Secures Loan Amendments Amid Financial Restructuring

Dorel Industries Inc. has announced amendments to its asset-backed loan and term loan facilities, extending the forbearance period until September 16, 2025, due to a default on certain financial covenants. This amendment provides Dorel with an additional US$20 million in liquidity to finance new inventory, although the maximum availability under the ABL facility has been reduced to US$150 million. The company is also working with capital market advisors to restructure its debt to better align with its growth needs in the Juvenile segment and reorganization plans for the Home segment.

The most recent analyst rating on ($TSE:DII.B) stock is a Hold with a C$7.00 price target. To see the full list of analyst forecasts on Dorel Class B stock, see the TSE:DII.B Stock Forecast page.