Though the name of this technology company has a bizarre connotation, it is a great technological company with a bright future.
The company is called DIRTT Environmental Solutions. DIRTT is an abbreviation and stands for “Doing it Right This Time”. It uses its proprietary 3D software to design, manufacture and install fully customized prefabricated interiors. The company’s customers in the corporate, government, education and healthcare sectors benefit from DIRTT’s precise design and costing; rapid lead times with the highest levels of customization and flexibility; and faster, cleaner construction.
Its stock trades on the Toronto Exchange.
The Q3 results were great, with a record 3d quarter revenue. Per the company’s press release, for the nine months ended September 30, 2016 the company reported:
- Revenue of $188.7 million for the nine months year-to-date (“YTD”) representing an increase of $17.1 million, or 9.9% over YTD 2015;
- Trailing 12-month revenue of $253.7 million versus $229.6 million in the prior 12-month period, an increase of 10.5%;
- Adjusted EBITDA of $20.0 million and Adjusted EBITDA % of 10.6%;
- Gross profit % of 43.6% and adjusted gross profit % of 44.9%;
It is no coincidence that the share price of DIRTT jumped after its quarterly results from support to resistance in its long term chart pattern, as seen on the chart. Right now, the stock is attempting to break out. Given strong and steady growth, based on a solid 3D software application, we believe the stock will be challenging previous all-time highs in 2017.