DIRTT Environmental Solutions (DRT) AI Stock Analysis

• Market Cap: $148.46M
• Dividend Yield: N/A
• Average Volume (3M): 31.89K
• Price to Earnings (P/E): 50.6
• Beta (1Y): 0.29
• 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: 55,390
• 30 Day Avg. Volume: 31,892
• 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: 1.32
• Enterprise Value/Revenue: 1.13
• Enterprise Value/Gross Profit: 3.27
• Enterprise Value/Ebitda: 14.36
• 1Y Price Target: $1.00
• Price Target Upside: 28.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: C$1.00 ▲(28.21% Upside)

DIRTT Environmental Solutions is currently facing financial and operational challenges, with declining revenue and profitability, high leverage, and cash flow issues. While there is some optimism regarding future growth due to an expanded sales pipeline and strategic initiatives, the current financial instability and valuation concerns weigh heavily on the stock's attractiveness.

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 Environmental Solutions generates revenue primarily through the sale of its modular interior construction products and services. The company designs and manufactures custom interior components that are sold to clients across various industries. Its revenue streams are bolstered by strategic partnerships with architectural and design firms, construction companies, and end clients who seek sustainable and flexible building solutions. Additionally, DIRTT's revenue model includes consulting services, where they provide expertise in the planning and implementation of their modular systems, ensuring a tailored solution for each project. This combination of product sales and consulting services forms the core of DIRTT's financial model.

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: Neutral
• Last Price: 0.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DRT, the sentiment is Neutral. The current price of 0.78 is above the 20-day moving average (MA) of 0.74, below the 50-day MA of 0.79, and below the 200-day MA of 0.94, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 53.20 is Neutral, neither overbought nor oversold. The STOCH value of 61.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	71 Outperform	1.58B	15.83	22.50%	2.79%	8.49%	14.10%
BDGI	67 Neutral	2.01B	26.25	20.92%	1.24%	11.48%	38.41%
ARE	66 Neutral	1.48B	59.05	2.81%	3.25%	20.53%	74.96%
AEP	65 Neutral	56.63M	-38.12	-0.44%	―	6.65%	-185.11%
DRT	46 Neutral	$148.46M	50.65	11.65%	―	-2.68%	―
MSP	21 Underperform	7.30M	6.67	0.00%	―	0.00%	0.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

DIRTT Environmental Solutions Corporate Events

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 Appoints Adrian Zarate to Board of Directors

DIRTT Environmental Solutions has appointed Adrian Zarate to its Board of Directors, representing its largest shareholder, 22NW Fund, LP. This move is part of DIRTT’s ongoing efforts to strengthen its leadership and capture more market share, following a successful turnaround led by 22NW since 2022.

The most recent analyst rating on (TSE:DRT) stock is a Hold with a C$2.00 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 Faces Tariff Challenges but Remains Optimistic for Future Growth

DIRTT Environmental Solutions reported a decline in revenue and gross profit margin for the second quarter of 2025, largely due to increased tariffs on Canadian aluminum exports to the United States. The company experienced a net loss and decreased liquidity, but remains optimistic about future growth through product innovation and market expansion. Despite macroeconomic challenges, DIRTT is focused on revenue growth and expects to return to positive Adjusted EBITDA by the fourth quarter of 2025.

The most recent analyst rating on (TSE:DRT) stock is a Hold with a C$2.00 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 Release Q2 2025 Financial Results

DIRTT Environmental Solutions announced it will release its second quarter 2025 financial results on July 30, 2025, after market close. The company will host a live webcast on July 31, 2025, to discuss the results, featuring CEO Benjamin Urban and CFO Fareeha Khan. This announcement is part of DIRTT’s ongoing efforts to maintain transparency with stakeholders and could impact its market positioning by providing insights into its financial health and operational performance.

The most recent analyst rating on (TSE:DRT) stock is a Hold with a C$2.00 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 Reports Positive Shareholder Meeting Outcomes

DIRTT Environmental Solutions announced the results of its annual general and special meeting of shareholders, where all nominated directors were elected with strong support. The approval of all other matters voted on at the meeting reflects shareholder confidence in the company’s strategic direction and leadership, potentially strengthening its position in the industrialized construction industry.

The most recent analyst rating on (TSE:DRT) stock is a Hold with a C$2.00 price target. To see the full list of analyst forecasts on DIRTT Environmental Solutions stock, see the TSE:DRT Stock Forecast page.