MeritValue

DIRTT ENVIRONMENTAL SOLUTIONS LTD

DRTTFdata completeness 100%9 fiscal years on file
The thesis, from the filings

DIRTT ENVIRONMENTAL SOLUTIONS LTD earns about -15% on invested capital, below its ~9% cost of capital, but has diluted owners by 197138% over 5 years — no moat visible in the numbers. The estimate methods put fair value between $0.54 and $0.58 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$147.6M1$172.2M2$181.9M3$174.3M3$168.9M3
Net income−$53.7M4−$55M5−$14.6M6$14.8M6−$14.4M6
Operating cash flow−$31.2M7−$44.3M8$14.8M8$7.34M9−$192,0009
Capital expenditure$11.8M10$2.39M11$1.24M11$1.4M12$1.58M12
Free cash flow (derived)−$43M7−$46.7M8$13.6M8$5.94M9−$1.77M9
Total debt$141.3M13$127.6M14$111.4M15$44.3M16$23.6M16
Cash & equivalents$60.3M17$10.8M18$24.7M18$29.3M19$20.3M19
Diluted shares96,82699,826116.1M240.2M191.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$1.49
your share of equity
Profit it earned you last year
−$0.76
Free cash flow it threw off
−$0.09
Debt you’d be carrying
$1.24

10 shares is a claim on $1.49 of net worth that earned you −$0.76 and generated −$0.09 of cash last year, against $1.24 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-15% avg · 5y
FY21 -27%FY22 -29%FY23 -8%FY24 26%FY25 -35%

It earned about -15% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
+197138% shares · 5y

Share count is up 197138% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 83% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 2 estimate methods that apply put fair value between $0.54 and $0.58 a share. They rest on different assumptions, so where they diverge is the story.

DCF · Growth Exit 10Y
$0.58
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth5.0%
  • fcfBase$5.94M
DCF · Growth Exit 5Y
$0.54
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth5.0%
  • fcfBase$5.94M
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years5.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $0.54
The three cases
Bear0.0%$0.43
Base5.0%$0.54
Bull10.0%$0.66

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 5.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0000950170-24-018049 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0000950170-25-027896 (Revenues)
  3. 10-K · period ending 2023-12-31 · accession 0001193125-26-072003 (Revenues)
  4. 10-K · period ending 2021-12-31 · accession 0000950170-24-018049 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0000950170-25-027896 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001193125-26-072003 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0000950170-24-018049 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0000950170-25-027896 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2024-12-31 · accession 0001193125-26-072003 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0000950170-24-018049 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0000950170-25-027896 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2024-12-31 · accession 0001193125-26-072003 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0000950170-23-003814 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2022-12-31 · accession 0000950170-24-018049 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2023-12-31 · accession 0000950170-25-027896 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2024-12-31 · accession 0001193125-26-072003 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2021-12-31 · accession 0000950170-24-018049 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0000950170-25-027896 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2024-12-31 · accession 0001193125-26-072003 (CashAndCashEquivalentsAtCarryingValue)