📊 DRTTF Key Takeaways
Is Dirtt Environmental Solutions Ltd. (DRTTF) a Good Investment?
DIRTT is experiencing severe operational distress with negative operating income, negative free cash flow, and deteriorating profitability despite maintaining 32.8% gross margins. The company is burning cash operationally while carrying $23.4M in long-term debt against only $20.3M in cash reserves, creating an unsustainable financial position. Declining revenue (-3.1% YoY), negative ROE (-50.6%), and negative interest coverage (-5.7x) indicate fundamental business deterioration requiring immediate operational turnaround.
DIRTT’s fundamentals show a business with decent gross profitability but an inability to convert that into operating earnings or durable free cash flow. Revenue is declining, margins remain negative, and balance sheet flexibility is limited by weak liquidity and leverage, which makes the turnaround dependent on meaningful operating improvement rather than current financial strength.
Why Buy Dirtt Environmental Solutions Ltd. Stock? DRTTF Key Strengths
- Reasonable gross margin of 32.8% suggests underlying product economics remain viable
- Positive stockholders' equity of $28.5M provides some cushion against insolvency
- Cash position of $20.3M provides short-term runway for operations
- Gross margin of 32.8% suggests the core product offering retains underlying economic value
- Cash balance of $20.33M provides some near-term liquidity support
- Operating cash flow was close to breakeven, which is better than the level of accounting losses implies
DRTTF Stock Risks: Dirtt Environmental Solutions Ltd. Investment Risks
- Operating cash flow is negative (-$192K) indicating inability to fund operations organically
- Free cash flow is negative (-$1.8M) with operating losses expanding (negative operating margin of -6.7%)
- Debt-to-equity ratio of 0.82x is manageable but concerning given negative earnings and near-zero interest coverage ratio of -5.7x
- Revenue declining year-over-year (-3.1%) signals loss of market share or demand contraction
- Current ratio of 1.10x and quick ratio of 0.82x indicate tight short-term liquidity
- Significant insider activity (6 Form 4 filings) may indicate loss of confidence or distress selling
- Negative operating margin, net margin, and returns on equity/assets indicate the business is still structurally unprofitable
- Revenue declined 3.1% year over year, raising concern about growth quality and fixed-cost absorption
- Current ratio of 1.10x, quick ratio of 0.82x, and negative interest coverage point to constrained financial health
Key Metrics to Watch
- Quarterly operating cash flow trajectory toward positive territory
- Gross margin sustainability and operating expense rationalization path to profitability
- Revenue stabilization and return to growth to validate market demand
- Cash burn rate relative to current reserves (runway analysis)
- Debt refinancing capability and covenant compliance
- Operating margin and free cash flow trend
- Revenue growth versus liquidity and debt servicing capacity
Dirtt Environmental Solutions Ltd. (DRTTF) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Dirtt Environmental Solutions Ltd. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
DRTTF Profit Margin, ROE & Profitability Analysis
DRTTF vs Technology Sector: How Dirtt Environmental Solutions Ltd. Compares
How Dirtt Environmental Solutions Ltd. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Dirtt Environmental Solutions Ltd. Stock Overvalued? DRTTF Valuation Analysis 2026
Based on fundamental analysis, Dirtt Environmental Solutions Ltd. shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Dirtt Environmental Solutions Ltd. Balance Sheet: DRTTF Debt, Cash & Liquidity
DRTTF Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Dirtt Environmental Solutions Ltd.'s revenue has declined by 27% over the 5-year period, indicating business contraction. The most recent EPS of $-0.13 indicates the company is currently unprofitable.
DRTTF Revenue Growth, EPS Growth & YoY Performance
DRTTF Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $37.7M | $596.0K | $-0.02 |
| Q2 2025 | $38.9M | $596.0K | $0.00 |
| Q1 2025 | $40.8M | -$661.0K | $0.00 |
| Q3 2024 | $43.4M | $596.0K | $0.03 |
| Q2 2024 | $41.2M | $596.0K | $0.00 |
| Q1 2024 | $36.7M | $3.0M | $0.01 |
| Q3 2023 | $46.7M | $2.2M | $-0.06 |
| Q2 2023 | $44.7M | $2.2M | $0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Dirtt Environmental Solutions Ltd. Dividends, Buybacks & Capital Allocation
DRTTF SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Dirtt Environmental Solutions Ltd. (CIK: 0001340476)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DRTTF
What is the AI rating for DRTTF?
Dirtt Environmental Solutions Ltd. (DRTTF) has a Combined AI Rating of SELL from Claude (STRONG SELL) and ChatGPT (SELL) with 88% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DRTTF's key strengths?
Claude: Reasonable gross margin of 32.8% suggests underlying product economics remain viable. Positive stockholders' equity of $28.5M provides some cushion against insolvency. ChatGPT: Gross margin of 32.8% suggests the core product offering retains underlying economic value. Cash balance of $20.33M provides some near-term liquidity support.
What are the risks of investing in DRTTF?
Claude: Operating cash flow is negative (-$192K) indicating inability to fund operations organically. Free cash flow is negative (-$1.8M) with operating losses expanding (negative operating margin of -6.7%). ChatGPT: Negative operating margin, net margin, and returns on equity/assets indicate the business is still structurally unprofitable. Revenue declined 3.1% year over year, raising concern about growth quality and fixed-cost absorption.
What is DRTTF's revenue and growth?
Dirtt Environmental Solutions Ltd. reported revenue of $168.9M.
Does DRTTF pay dividends?
Dirtt Environmental Solutions Ltd. does not currently pay dividends.
Where can I find DRTTF SEC filings?
Official SEC filings for Dirtt Environmental Solutions Ltd. (CIK: 0001340476) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DRTTF's EPS?
Dirtt Environmental Solutions Ltd. has a diluted EPS of $-0.08.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is DRTTF a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Dirtt Environmental Solutions Ltd. has a SELL rating with 88% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is DRTTF stock overvalued or undervalued?
Valuation metrics for DRTTF: ROE of -50.6% (sector avg: 22%), net margin of -8.6% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy DRTTF stock in 2026?
Our dual AI analysis gives Dirtt Environmental Solutions Ltd. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is DRTTF's free cash flow?
Dirtt Environmental Solutions Ltd.'s operating cash flow is $-192.0K, with capital expenditures of $1.6M. FCF margin is -1.1%.
How does DRTTF compare to other Technology stocks?
Vs Technology sector averages: Net margin -8.6% (avg: 18%), ROE -50.6% (avg: 22%), current ratio 1.10 (avg: 2.5).