DIRTT Environmental Solutions (DRT) AI Stock Analysis

• Market Cap: $184.62M
• Dividend Yield: N/A
• Average Volume (3M): 48.78K
• Price to Earnings (P/E): 63.0
• Beta (1Y): 0.50
• Revenue Growth: -2.68%
• EPS Growth: N/A
• Country: CA
• Employees: 842
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.02
• Shares Outstanding: 190,329,210
• 10 Day Avg. Volume: 64,196
• 30 Day Avg. Volume: 48,776
• PEG Ratio: -0.06
• Price to Book (P/B): 3.27
• Price to Sales (P/S): 0.80
• P/FCF Ratio: 33.56
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 1.13
• Enterprise Value/Gross Profit: 3.27
• Enterprise Value/Ebitda: 14.36
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: C$1.00 ▲(3.09% Upside)

DIRTT Environmental Solutions is facing financial difficulties with declining revenue and profitability, which significantly impacts its overall score. While there is some technical strength in the short term, the high P/E ratio suggests overvaluation. The earnings call provided a mixed outlook, with challenges from tariffs and costs but optimism about future growth. These factors combined result in a moderate overall stock score.

DIRTT Environmental Solutions Business Overview & Revenue Model

Company Description

DIRTT Environmental Solutions Ltd. designs, manufactures, and installs prefabricated interior solutions for use in commercial spaces across various industries and businesses in the United States, Canada, internationally. Its ICE software interior construction software provides end-to-end integration, design, order engineering, manufacturing, and installation services. The company's interior construction solutions include prefabricated, customized interior modular walls, ceilings, and floors; decorative and functional millwork; power infrastructure; network infrastructure; and pre-installed medical gas piping systems. It offers interior construction solutions through a network of independent distribution partners. It serves commercial, healthcare, education, hospitality, and other industries, as well as medical gas piping systems for healthcare. DIRTT Environmental Solutions Ltd. was incorporated in 2003 and is headquartered in Calgary, Canada.

How the Company Makes Money

DIRTT generates revenue primarily through the sale of its modular construction products and systems to commercial clients. The company operates a business-to-business model where it partners with architects, designers, and contractors to integrate its products into larger construction projects. Key revenue streams include direct sales of modular wall systems, as well as recurring revenue from services related to installation, maintenance, and upgrades of its products. Additionally, DIRTT has established strategic partnerships with various construction firms and technology providers, enhancing its market reach and enabling collaborative projects that can lead to increased sales. The company's focus on sustainability and efficiency also positions it well to capitalize on the growing demand for environmentally friendly building solutions.

DIRTT Environmental Solutions Financial Statement Overview

Summary

DIRTT Environmental Solutions shows moderate financial performance with notable strengths in operational efficiency, indicated by improved EBIT and EBITDA margins. However, inconsistent revenue growth and high leverage are concerns, despite robust cash flow performance supporting operations.

Income Statement

DIRTT Environmental Solutions showed moderate improvement in financial performance. The gross profit margin for TTM stands at 36.76%, indicating efficient cost management relative to production costs. However, the net profit margin is modest at 6.33% for TTM, reflecting challenges in achieving higher profitability. Revenue growth has been inconsistent, with a recent decrease of 4.19% from 2023 to 2024 and a slight increase of 0.26% from 2024 to TTM, suggesting fluctuating demand or market conditions. EBIT and EBITDA margins have improved to 2.35% and 12.27% respectively for TTM, showing operational improvements.

Balance Sheet

The balance sheet reveals a mixed financial stability picture. The debt-to-equity ratio is high at 1.31 for TTM, signaling potential leverage risks and reliance on debt financing. However, equity has improved, with a positive return on equity (ROE) of 28.22% for TTM, indicating effective utilization of shareholder funds. The equity ratio stands at 35.03%, reflecting a moderate level of equity financing relative to total assets, which could be strengthened further to enhance financial stability.

Cash Flow

Cash flow analysis shows positive trends, with a strong free cash flow growth rate of 138.12% from 2023 to 2024, and an operating cash flow to net income ratio of 1.18 for TTM, indicating effective cash generation relative to earnings. The free cash flow to net income ratio is 0.89 for TTM, highlighting solid conversion of profit into cash, which supports operational and strategic initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	172.48M	174.31M	181.93M	172.16M	147.59M	171.51M
Gross Profit	59.71M	64.38M	59.54M	28.16M	23.46M	53.28M
EBITDA	13.60M	25.79M	-391.00K	-37.77M	-45.42M	3.78M
Net Income	3.87M	14.77M	-14.58M	-54.96M	-53.67M	-11.30M
Balance Sheet
Total Assets	109.50M	118.22M	124.32M	143.65M	199.44M	183.14M
Cash, Cash Equivalents and Short-Term Investments	23.10M	29.29M	24.74M	10.82M	60.31M	45.85M
Total Debt	52.17M	52.32M	89.75M	98.86M	104.12M	47.22M
Total Liabilities	75.01M	75.63M	117.22M	125.66M	131.67M	66.61M
Stockholders Equity	34.49M	42.59M	7.10M	17.99M	67.77M	116.53M
Cash Flow
Free Cash Flow	4.09M	4.16M	11.79M	-48.33M	-45.33M	-7.63M
Operating Cash Flow	7.51M	7.34M	14.82M	-44.26M	-31.21M	12.48M
Investing Cash Flow	-3.04M	-1.90M	7.66M	-4.02M	-14.14M	-19.39M
Financing Cash Flow	-20.64M	-415.00K	-11.61M	-874.00K	62.45M	5.72M

DIRTT Environmental Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DRT, the sentiment is Positive. The current price of 0.97 is above the 20-day moving average (MA) of 0.91, above the 50-day MA of 0.82, and above the 200-day MA of 0.92, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 58.37 is Neutral, neither overbought nor oversold. The STOCH value of 80.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DRT.

DIRTT Environmental Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BDT	74 Outperform	C$1.62B	16.39	25.25%	2.88%	8.49%	14.10%
BDGI	67 Neutral	$2.44B	31.99	21.65%	1.03%	11.48%	38.41%
ARE	64 Neutral	C$1.83B	222.05	0.92%	2.62%	25.68%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DRT	51 Neutral	$184.62M	62.99	11.65%	―	-2.68%	―
AEP	48 Neutral	C$47.97M	-32.29	-3.10%	―	6.65%	-185.11%
MSP	21 Underperform	C$4.86M	4.44	―	―	―	―

DIRTT Environmental Solutions Corporate Events

DIRTT to Release Q3 2025 Financial Results

DIRTT Environmental Solutions announced it will release its third quarter 2025 financial results on November 5, 2025, after market close. The company will host a conference call and webcast on November 6, 2025, to discuss the results, led by CEO Benjamin Urban and CFO Fareeha Khan. This announcement is part of DIRTT’s ongoing efforts to engage with stakeholders and provide transparency about its financial performance.

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

DIRTT Secures $7 Million in New Projects Amid Market Growth

DIRTT Environmental Solutions has secured over $7 million in new projects, indicating a strong commercial pipeline with contracts across healthcare, workplace, and aviation sectors. Notable projects include The Hospitals of Providence in El Paso and The Ohio State University Wexner Medical Center, showcasing DIRTT’s success in scalable healthcare programs. The company’s forward pipeline has grown, reflecting sustained demand for its adaptable construction solutions, while favorable market trends suggest continued expansion in construction planning.

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

DIRTT Environmental Solutions to Engage Investors at Upcoming Conferences

DIRTT Environmental Solutions announced its participation in two upcoming investor conferences: the Smallcap Discoveries Conference in Vancouver and the Planet MicroCap Showcase in Toronto. This participation reflects DIRTT’s ongoing efforts to engage with investors and stakeholders, potentially enhancing its visibility and positioning in the industrialized construction industry.

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

DIRTT Environmental Solutions Announces Major Project Wins and Pipeline Growth

DIRTT Environmental Solutions has announced significant project wins and an increased forward pipeline, highlighting continued commercial momentum across various sectors. The company secured a $3.5 million contract with Google for its Caribbean campus in Sunnyvale, California, and expanded its relationship with Allina Health for a $16 million project in Minneapolis, MN. These developments, along with a 5.7% increase in their 12-month forward pipeline, underscore DIRTT’s growth trajectory and market expansion in its core sectors.

The most recent analyst rating on (TSE:DRT) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on DIRTT Environmental Solutions stock, see the TSE:DRT Stock Forecast page.

DIRTT Environmental Solutions Renews NCIB for Debentures

On August 26, 2025, DIRTT Environmental Solutions announced that the Toronto Stock Exchange accepted its notice to renew its normal course issuer bid (NCIB) for its convertible unsecured subordinated debentures. The renewed NCIB allows DIRTT to purchase a specified principal amount of its debentures, representing 10% of the total public float, with the purchases commencing on August 28, 2025. The company plans to make these purchases based on market conditions and other factors, with all acquired debentures being immediately canceled. This move is expected to provide DIRTT with flexibility in managing its capital and responding to market conditions.

The most recent analyst rating on (TSE:DRT) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on DIRTT Environmental Solutions stock, see the TSE:DRT Stock Forecast page.