Dorel Industries logo

Dorel Industries

DII-B.TO
14
Furnishings, Fixtures & Appliances · Consumer Cyclical
Price
C$1.51
-0.02 (-1.31%)
Market Cap
C$52.3M
Exchange
Toronto Stock Exchange
Winston Score
14
Winston looking worried
Winston is worried
Weak fundamentals across most pillars.

Winston Score below 40. The stock fails on most of our quality checks.

Dorel Industries is a Canadian consumer products company that makes and sells juvenile products, bicycles, and home furnishings. Its juvenile segment includes car seats, strollers, and baby gear sold under brands like Safety 1st, Maxi-Cosi, and Quinny. Its cycling segment sells bikes under brands like Cannondale, Schwinn, and GT to retailers and consumers worldwide.

Dorel earns money by selling physical products through mass-market retailers, specialty stores, and e-commerce channels. It operates globally, with significant sales in North America and Europe, and generates roughly $1 billion in annual revenue. The company's brand portfolio gives it some shelf-space leverage with large retailers, but thin gross margins and persistent operating losses highlight a serious cost and competitive pressure problem. The main risk is that Dorel has struggled to return to consistent profitability, and with a small market cap and negative returns on capital, the business faces ongoing pressure to restructure or divest underperforming segments.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-17.8% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+7.8% YoY

YoY Growth Rate

Slow EPS growth

R&D Spend

$15M/ year

Declining (-35% vs prior year)

1.3% of revenue

Below sector average (4%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

13.6%ownership

Insiders own a meaningful stake in the company

Cash Runway

~13 months

$42M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Adequate runway but may need to raise capital within 2 years

Winston looking concerned
Revenue declining

Dorel Industries's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
19.2%
Thin — 19.2% gross margin
Operating Margin
-1.5%
Losing money on operations — -1.5%
ROCE
-1.8%
Weak — -1.8% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY
-15.7%
Shrinking sales (-15.7% YoY)
EPS YoY
N/A
Data not available
EPS Consistency
0/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
N/A
Data not available
FCF Margin
-3.4%
Burning cash (-3.4%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity
N/A
Data not available
Interest Cover
N/A
Data not available

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Valuation

P/E Ratio
N/M
Negative earnings — P/E not meaningful
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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