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Dorel Class B (TSE:DII.B)
TSX:DII.B
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Dorel Class B
(TSX:DII.B)
42Neutral
Dorel Class B (DII.B) vs. S&P 500 (SPY)
Market Cap
$122.56M
Dividend YieldN/A
Average Volume (3M)7.57K
Price to Earnings (P/E)―
Beta (1Y)0.40
Revenue Growth2.79%
EPS Growth-4.00%
CountryCA
Employees3,900
SectorConsumer Cyclical
Sector Strength49
IndustryHome and Homeware
Share Statistics
EPS (TTM)-4.30
Shares Outstanding28,489,807
10 Day Avg. Volume10,603
30 Day Avg. Volume7,570
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.06
Price to Cash Flow (P/CF)1.30
P/FCF Ratio1.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$3.25Price Target Upside10.85% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering2
Dorel Class B Business Overview & Revenue Model
Company DescriptionDorel Class B (DII.B) is part of Dorel Industries Inc., a global consumer products company that designs and manufactures a diverse range of products across multiple sectors including juvenile products, bicycles, and home products. The company operates through three main segments: Dorel Juvenile, Dorel Sports, and Dorel Home, offering products such as car seats, strollers, bicycles, and furniture to consumers worldwide.
How the Company Makes MoneyDorel Industries Inc. generates revenue through the manufacturing and sale of its diverse product lines across its three main business segments. The Dorel Juvenile segment produces and sells juvenile products including car seats, strollers, and infant health-related products, predominantly through retail partners and direct-to-consumer channels. The Dorel Sports segment primarily earns revenue through the sale of bicycles and related sporting equipment under various brand names, distributing its products through independent bicycle dealers, mass merchants, and sporting goods chains. Lastly, the Dorel Home segment focuses on home products such as ready-to-assemble furniture, which are sold through e-commerce platforms and traditional brick-and-mortar retailers. The company's earnings are bolstered by strategic partnerships, global distribution networks, and ongoing product innovation.
Dorel Class B Financial Statement Overview
Summary
Dorel Class B is facing financial challenges, with declining revenues and profitability issues. The high leverage and decreasing equity ratio indicate financial instability, while cash flow metrics show mixed results with some positive signs in free cash flow. Overall, the company needs to address its operational inefficiencies and financial leverage to improve its financial health.Income Statement
The company has experienced declining revenue over recent years, with a negative revenue growth rate from 2019 to the TTM period. Gross profit margin and net profit margin are both negative in the TTM, indicating profitability issues. EBIT and EBITDA margins are also negative, highlighting operational challenges.45
Neutral
Balance Sheet
The balance sheet shows a high debt-to-equity ratio, indicating significant leverage, which poses financial risk. The return on equity is negative due to net losses. The equity ratio has declined over the years, reflecting reduced financial stability.50
Neutral
Cash Flow
Operating cash flow has decreased significantly compared to previous years, impacting the company's ability to generate cash from operations. Free cash flow is positive in the TTM but has shown volatility. The operating cash flow to net income ratio is low, suggesting inefficiencies in translating income into cash.55
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.40B | 1.39B | 1.57B | 1.76B | 2.76B | 2.63B |
| Gross Profit | |||||
| 270.82M | 243.78M | 205.01M | 294.37M | 568.62M | 535.54M |
| EBIT | |||||
| -75.45M | -52.20M | -90.30M | 66.00K | 116.52M | 86.89M |
| EBITDA | |||||
| -5.85M | 17.31M | -34.14M | 68.92M | 87.49M | 146.09M |
| Net Income Common Stockholders | |||||
| -102.71M | -62.35M | -118.91M | -111.83M | -43.40M | -10.45M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 146.34M | 24.09M | 32.41M | 52.17M | 38.23M | 39.14M |
| Total Assets | |||||
| 1.83B | 1.00B | 1.06B | 1.85B | 1.72B | 1.86B |
| Total Debt | |||||
| 795.03M | 392.95M | 431.57M | 544.38M | 613.35M | 690.18M |
| Net Debt | |||||
| 648.69M | 368.87M | 399.16M | 492.21M | 575.12M | 651.04M |
| Total Liabilities | |||||
| 1.37B | 776.23M | 779.30M | 1.38B | 1.22B | 1.33B |
| Stockholders Equity | |||||
| 452.45M | 224.70M | 281.14M | 469.00M | 496.21M | 534.17M |
| Cash Flow | Free Cash Flow | ||||
| 8.23M | 53.38M | -160.66M | -16.45M | 100.82M | 47.77M |
| Operating Cash Flow | |||||
| 35.41M | 76.93M | -133.01M | 19.82M | 134.53M | 85.79M |
| Investing Cash Flow | |||||
| -21.34M | -20.54M | 734.89M | 14.14M | -27.26M | -32.38M |
| Financing Cash Flow | |||||
| -12.93M | -65.95M | -608.38M | -23.69M | -109.80M | -54.72M |
Dorel Class B Technical Analysis
Negative
2.93
Price Trends
4.50
Negative
4.52
Negative
5.54
Negative
Market Momentum
-0.28
Positive
25.24
Positive
29.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DII.B, the sentiment is Negative. The current price of 2.93 is below the 20-day moving average (MA) of 4.00, below the 50-day MA of 4.50, and below the 200-day MA of 5.54, indicating a bearish trend. The MACD of -0.28 indicates Positive momentum. The RSI at 25.24 is Positive, neither overbought nor oversold. The STOCH value of 29.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:DII.B.
Dorel Class B Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $10.55B | 20.62 | 23.48% | 1.69% | 4.03% | -16.63% | |
71 Outperform | C$1.53B | 13.06 | 6.37% | 4.81% | -4.34% | 42.86% | |
65 Neutral | $4.15B | 22.03 | 35.85% | 1.54% | -20.75% | -78.02% | |
61 Neutral | C$2.64B | 23.79 | 5.82% | 1.63% | 20.89% | -43.13% | |
59 Neutral | $12.50B | 10.40 | 2.26% | 3.63% | 1.65% | -18.81% | |
58 Neutral | C$4.51B | ― | -55.59% | 2.69% | 3.21% | -9107.07% | |
42 Neutral | $122.56M | ― | -59.34% | ― | 2.79% | -4.00% |
* Consumer Cyclical Sector Average
Performance Comparison
TSE:DII.B
Dorel Class B
2.93
-2.88
-49.57%
TSE:DOO
BRP
55.17
-27.03
-32.88%
TSE:GIL
Gildan Activewear
66.33
20.89
45.98%
TSE:CIX
CI Financial
31.15
15.00
92.87%
TSE:TCL.A
Transcontinental
18.61
4.53
32.17%
TSE:TOY
Spin Master
25.52
-7.24
-22.10%
Dorel Class B Earnings Call Summary
Earnings Call Date: Mar 11, 2025 | % Change Since: -24.87% | Next Earnings Date: May 9, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there were notable achievements in market share growth and restructuring efforts, significant challenges remain, including foreign exchange impacts, losses in certain regions, and potential tariff challenges. The company's liquidity position is also a concern, though steps are being taken to mitigate these issues.Highlights
Dorel Juvenile Revenue Growth
Dorel Juvenile achieved a 2.2% organic revenue increase year-over-year, with significant market share gains in North America and Europe, including a 18% revenue increase in Europe in local currency.
Restructuring Initiatives
The company executed a substantial restructuring plan in the Home segment, including a sale-leaseback transaction of the Columbus factory, reducing fixed costs and improving efficiency.
Market Share Gains in Europe
Dorel Juvenile regained the number one position in car seats in the U.K. and grew market share in Germany, Netherlands, and France.
Growth in Direct-to-Consumer (DTC) Channels
Dorel's DTC sites continued to grow in importance, driving sales increases in the Juvenile segment.
Lowlights
Significant Foreign Exchange Impact
Currency fluctuations, particularly the strengthening U.S. dollar, negatively impacted revenue growth and earnings by $7.5 million.
Loss in Chile and Peru
Dorel lost money in Chile and Peru during a typically strong quarter, leading to management changes and a shift in focus to e-commerce.
Operating Loss in Dorel Home
Dorel Home recorded an operating loss of $11.7 million due to production inefficiencies and inventory liquidation impacting margins.
Potential Tariff Challenges
Concerns were raised about potential tariffs affecting U.S. and Canadian operations, particularly impacting the Home segment's imports from China.
Liquidity Concerns
Liquidity is tight, and while a sale-leaseback transaction provided some relief, the company is actively seeking additional opportunities to enhance its financial position.
Company Guidance
During the Dorel Industries Fourth Quarter 2024 Results Conference Call, significant guidance and metrics were shared. Dorel Juvenile recorded a 2.2% organic revenue increase, with Europe showing a notable 18% revenue growth in local currency, driven by new product introductions and strong performance in Omni-channel and e-commerce. However, foreign exchange fluctuations negatively impacted earnings, with a $7.5 million impact attributed to currency volatility. In the Home segment, a restructuring plan was announced to address inefficiencies, with a focus on leveraging domestic manufacturing capacities and reducing fixed costs. Despite a $171 million total loss for the year, only $28.3 million was attributed to operating losses, with the remainder largely due to restructuring and non-cash write-offs. The company aims for profitability in the Home segment by the fourth quarter of 2025, supported by a streamlined product line, enhanced efficiency, and strategic market expansions. The potential impact of tariffs was highlighted, particularly concerning imports from China, although steps have been taken to mitigate risks through diversification and domestic production. Overall, the company remains optimistic about achieving sustainable growth and profitability through strategic initiatives and cost reductions.Dorel Class B Corporate Events
Business Operations and StrategyFinancial Disclosures
Dorel Industries Reports Q4 Loss Amid Restructuring Efforts
Negative
Mar 11, 2025
Dorel Industries Inc. reported a decrease in fourth-quarter revenue to US$326.8 million, with a significant net loss attributed to restructuring costs and tax asset write-downs. Despite these challenges, the company saw market share gains in the Juvenile segment, while the Home segment is undergoing a restructuring program to realign its business operations.
Private Placements and FinancingBusiness Operations and Strategy
Dorel Industries Secures $30 Million Through Strategic Sale-Leaseback
Neutral
Feb 21, 2025
Dorel Industries Inc. has announced a sale-leaseback transaction of its factory in Columbus, Indiana, aiming to raise US$30 million. This transaction is designed to support the growth of its Juvenile segment and the turnaround of its Home segment. The transaction, involving key company executives with an ownership interest in the purchaser, was approved by the independent board members under the MI 61-101 exemption due to Dorel’s financial difficulties. The funds will be used to reduce existing debt and support ongoing operations.
Business Operations and Strategy
Dorel Industries Announces Strategic Restructuring of Home Segment
Negative
Jan 31, 2025
Dorel Industries Inc. has announced a significant restructuring of its Home segment to realign with current industry dynamics and future expectations. This move reflects the company’s strategy to navigate challenges in the post-pandemic furniture industry, including supply chain uncertainties and changing consumer spending priorities. Initiatives include workforce downsizing, manufacturing operations closure in Montreal, and SKU reductions, aiming to achieve profitability by focusing on core competencies and leveraging retailer relationships.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.