TORNADO INFRASTRUCTURE EQUIP (TGH.CA) Stock Fundamental Analysis
TSX-V:TGH - TSX Venture Exchange - CA89108T1003 - Common Stock - Currency: CAD
We assign a fundamental rating of 6 out of 10 to TGH. TGH was compared to 21 industry peers in the Machinery industry. TGH has an excellent financial health rating, but there are some minor concerns on its profitability. TGH is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make TGH a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year TGH was profitable.
TGH had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: TGH reported negative net income in multiple years.
Of the past 5 years TGH 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 19.44%, TGH belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
Looking at the Return On Equity, with a value of 35.46%, TGH belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 28.68%, TGH belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.44% | ||
| ROE | 35.46% | ||
| ROIC | 28.68% |
ROA(3y)2.97%
ROA(5y)-0.07%
ROE(3y)6.32%
ROE(5y)0.71%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
TGH has a Profit Margin of 8.69%. This is amongst the best in the industry. TGH outperforms 95.24% of its industry peers.
TGH's Operating Margin of 10.63% is fine compared to the rest of the industry. TGH outperforms 76.19% of its industry peers.
TGH has a Gross Margin (19.17%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of TGH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.63% | ||
| PM (TTM) | 8.69% | ||
| GM | 19.17% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y12.25%
GM growth 5Y4.55%
2. Health
2.1 Basic Checks
TGH has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for TGH remains at a similar level compared to 1 year ago.
TGH has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TGH has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.35 indicates that TGH is not in any danger for bankruptcy at the moment.
TGH's Altman-Z score of 7.35 is amongst the best of the industry. TGH outperforms 95.24% of its industry peers.
The Debt to FCF ratio of TGH is 0.87, which is an excellent value as it means it would take TGH, only 0.87 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.87, TGH belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
TGH has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
TGH has a Debt to Equity ratio of 0.16. This is amongst the best in the industry. TGH outperforms 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.87 | ||
| Altman-Z | 7.35 |
ROIC/WACC3.08
WACC9.3%
2.3 Liquidity
TGH has a Current Ratio of 2.20. This indicates that TGH is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.20, TGH is doing good in the industry, outperforming 76.19% of the companies in the same industry.
A Quick Ratio of 0.64 indicates that TGH may have some problems paying its short term obligations.
TGH has a worse Quick ratio (0.64) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.2 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 243.39% over the past year.
Looking at the last year, TGH shows a very strong growth in Revenue. The Revenue has grown by 43.04%.
The Revenue has been growing by 22.00% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)243.39%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%110.33%
Revenue 1Y (TTM)43.04%
Revenue growth 3Y50.46%
Revenue growth 5Y22%
Sales Q2Q%12.32%
3.2 Future
TGH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.56% yearly.
Based on estimates for the next years, TGH will show a very strong growth in Revenue. The Revenue will grow by 22.77% on average per year.
EPS Next Y16.67%
EPS Next 2Y15.47%
EPS Next 3Y18.56%
EPS Next 5YN/A
Revenue Next Year42.05%
Revenue Next 2Y31.15%
Revenue Next 3Y22.77%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.75, TGH is valued correctly.
Based on the Price/Earnings ratio, TGH is valued cheaper than 85.71% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. TGH is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 14.32, which indicates a correct valuation of TGH.
Based on the Price/Forward Earnings ratio, TGH is valued cheaper than 85.71% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TGH to the average of the S&P500 Index (22.68), we can say TGH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.75 | ||
| Fwd PE | 14.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TGH is valued a bit cheaper than 71.43% of the companies in the same industry.
TGH's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.72 | ||
| EV/EBITDA | 10.85 |
4.3 Compensation for Growth
TGH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TGH has a very decent profitability rating, which may justify a higher PE ratio.
TGH's earnings are expected to grow with 18.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.88
PEG (5Y)N/A
EPS Next 2Y15.47%
EPS Next 3Y18.56%
5. Dividend
5.1 Amount
TGH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX-V:TGH (2/21/2025, 7:00:00 PM)
1.18
0 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner ChangeN/A
Ins Owners6.42%
Ins Owner ChangeN/A
Market Cap162.32M
Analysts84.44
Price Target1.61 (36.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)5%
PT rev (3m)5%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-30%
EPS NY rev (3m)-30%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)14.37%
Revenue NY rev (3m)14.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.75 | ||
| Fwd PE | 14.32 | ||
| P/S | 1.23 | ||
| P/FCF | 25.72 | ||
| P/OCF | 20.37 | ||
| P/B | 5.01 | ||
| P/tB | 5.32 | ||
| EV/EBITDA | 10.85 |
EPS(TTM)0.08
EY6.78%
EPS(NY)0.08
Fwd EY6.98%
FCF(TTM)0.05
FCFY3.89%
OCF(TTM)0.06
OCFY4.91%
SpS0.96
BVpS0.24
TBVpS0.22
PEG (NY)0.88
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.44% | ||
| ROE | 35.46% | ||
| ROCE | 37.49% | ||
| ROIC | 28.68% | ||
| ROICexc | 31.14% | ||
| ROICexgc | 32.96% | ||
| OM | 10.63% | ||
| PM (TTM) | 8.69% | ||
| GM | 19.17% | ||
| FCFM | 4.78% |
ROA(3y)2.97%
ROA(5y)-0.07%
ROE(3y)6.32%
ROE(5y)0.71%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y12.25%
GM growth 5Y4.55%
F-Score7
Asset Turnover2.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.87 | ||
| Debt/EBITDA | 0.33 | ||
| Cap/Depr | 145.06% | ||
| Cap/Sales | 1.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 52.48% | ||
| Profit Quality | 54.95% | ||
| Current Ratio | 2.2 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 7.35 |
F-Score7
WACC9.3%
ROIC/WACC3.08
Cap/Depr(3y)77.61%
Cap/Depr(5y)92.95%
Cap/Sales(3y)2.3%
Cap/Sales(5y)3.39%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)243.39%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%110.33%
EPS Next Y16.67%
EPS Next 2Y15.47%
EPS Next 3Y18.56%
EPS Next 5YN/A
Revenue 1Y (TTM)43.04%
Revenue growth 3Y50.46%
Revenue growth 5Y22%
Sales Q2Q%12.32%
Revenue Next Year42.05%
Revenue Next 2Y31.15%
Revenue Next 3Y22.77%
Revenue Next 5YN/A
EBIT growth 1Y170.75%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year56.25%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y186.43%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y244.28%
OCF growth 3Y43.38%
OCF growth 5Y132.44%