📊 DRTTF Key Takeaways
Is DRTTF a Good Investment? Thesis Analysis
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.
Why Buy 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
DRTTF Investment Risks to Consider
- 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
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
DRTTF Financial Metrics
💡 AI Analyst Insight
DIRTT ENVIRONMENTAL SOLUTIONS LTD presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
DRTTF Profitability Ratios
DRTTF vs Technology Sector
How DIRTT ENVIRONMENTAL SOLUTIONS LTD compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is DRTTF Overvalued or Undervalued?
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.
DRTTF Balance Sheet & Liquidity
DRTTF 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
DRTTF Quarterly 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.
DRTTF Capital Allocation
DRTTF SEC 10-K & 10-Q Filing 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 an AI rating of STRONG SELL with 92% 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.
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%).
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 March 2026, DIRTT ENVIRONMENTAL SOLUTIONS LTD has a STRONG SELL rating with 92% 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 STRONG 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).