|Shares Out. (in M):||90||P/E||0||0|
|Market Cap (in $M):||630||P/FCF||0||0|
|Net Debt (in $M):||-75||EBIT||0||0|
DIRTT has a long runway to increase sales and margins. Mason wrote up DIRTT 18 months ago and his writeup includes a great background on the company and product. I wholeheartedly agree that their product is unique, superior, and has no real competitors right now. So I won’t spend time on the actual product but will rather focus on the changes that have occurred since then. In the short/medium term, both sales and EBITDA should accelerate as the effect of an energy collapse rolls off and investments over the last few years begin to bear fruit.
Before 2015, DIRTT drove huge YoY revenue growth by selling their modular products to energy companies. Energy-related revenue was ~20% of sales in 2014 and peaked at >25% of sales in early 2015, but by the end of the year that same revenue stream was falling apart, rapidly.
Fast forward to Q3 2016 and energy hit rock bottom at ~1% of sales. During the period between energy sales peak and energy sales trough, total sales growth was buoyed by CAD weakness and strength in sales from other industries but that was not enough to prevent DIRTT sales from going negative YoY in Q1 2016.