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TREE ISLAND STEEL LTD (TSL.CA) Stock Fundamental Analysis

TSX:TSL - Toronto Stock Exchange - CA89467Q2009 - Common Stock - Currency: CAD

2.9  -0.04 (-1.36%)

Fundamental Rating

5

Overall TSL gets a fundamental rating of 5 out of 10. We evaluated TSL against 818 industry peers in the Metals & Mining industry. TSL scores excellent on profitability, but there are some minor concerns on its financial health. TSL has a expensive valuation and it also scores bad on growth. Finally TSL also has an excellent dividend rating. This makes TSL very considerable for dividend investing!


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

TSL had negative earnings in the past year.
TSL had a negative operating cash flow in the past year.
TSL had positive earnings in 4 of the past 5 years.
Each year in the past 5 years TSL had a positive operating cash flow.
TSL.CA Yearly Net Income VS EBIT VS OCF VS FCFTSL.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20M 40M 60M 80M

1.2 Ratios

With an excellent Return On Assets value of -1.47%, TSL belongs to the best of the industry, outperforming 81.62% of the companies in the same industry.
Looking at the Return On Equity, with a value of -2.07%, TSL belongs to the top of the industry, outperforming 81.35% of the companies in the same industry.
TSL's Return On Invested Capital of 0.61% is amongst the best of the industry. TSL outperforms 88.11% of its industry peers.
TSL had an Average Return On Invested Capital over the past 3 years of 17.26%. This is significantly above the industry average of 11.82%.
The 3 year average ROIC (17.26%) for TSL is well above the current ROIC(0.61%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA -1.47%
ROE -2.07%
ROIC 0.61%
ROA(3y)20.71%
ROA(5y)12.47%
ROE(3y)32.72%
ROE(5y)19.49%
ROIC(3y)17.26%
ROIC(5y)11.93%
TSL.CA Yearly ROA, ROE, ROICTSL.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60

1.3 Margins

TSL's Profit Margin has improved in the last couple of years.
TSL has a better Operating Margin (0.63%) than 88.24% of its industry peers.
TSL's Operating Margin has improved in the last couple of years.
TSL's Gross Margin of 7.10% is amongst the best of the industry. TSL outperforms 84.32% of its industry peers.
TSL's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 0.63%
PM (TTM) N/A
GM 7.1%
OM growth 3Y8.15%
OM growth 5Y12.26%
PM growth 3Y10.08%
PM growth 5Y23.31%
GM growth 3Y1.77%
GM growth 5Y2.89%
TSL.CA Yearly Profit, Operating, Gross MarginsTSL.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20

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5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TSL is creating value.
Compared to 1 year ago, TSL has less shares outstanding
Compared to 5 years ago, TSL has less shares outstanding
The debt/assets ratio for TSL has been reduced compared to a year ago.
TSL.CA Yearly Shares OutstandingTSL.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M
TSL.CA Yearly Total Debt VS Total AssetsTSL.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M

2.2 Solvency

TSL has an Altman-Z score of 1.97. This is not the best score and indicates that TSL is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.97, TSL perfoms like the industry average, outperforming 53.11% of the companies in the same industry.
A Debt/Equity ratio of 0.20 indicates that TSL is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.20, TSL is not doing good in the industry: 72.97% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF N/A
Altman-Z 1.97
ROIC/WACC0.07
WACC8.65%
TSL.CA Yearly LT Debt VS Equity VS FCFTSL.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50M 100M

2.3 Liquidity

TSL has a Current Ratio of 5.14. This indicates that TSL is financially healthy and has no problem in meeting its short term obligations.
TSL's Current ratio of 5.14 is fine compared to the rest of the industry. TSL outperforms 75.54% of its industry peers.
TSL has a Quick Ratio of 2.35. This indicates that TSL is financially healthy and has no problem in meeting its short term obligations.
TSL's Quick ratio of 2.35 is in line compared to the rest of the industry. TSL outperforms 57.97% of its industry peers.
Industry RankSector Rank
Current Ratio 5.14
Quick Ratio 2.35
TSL.CA Yearly Current Assets VS Current LiabilitesTSL.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M

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1

3. Growth

3.1 Past

TSL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -130.36%.
TSL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.71% yearly.
Looking at the last year, TSL shows a very negative growth in Revenue. The Revenue has decreased by -19.24% in the last year.
TSL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.36% yearly.
EPS 1Y (TTM)-130.36%
EPS 3Y14.69%
EPS 5Y24.71%
EPS Q2Q%-200.99%
Revenue 1Y (TTM)-19.24%
Revenue growth 3Y3.53%
Revenue growth 5Y0.36%
Sales Q2Q%-3.34%

3.2 Future

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
TSL.CA Yearly Revenue VS EstimatesTSL.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M
TSL.CA Yearly EPS VS EstimatesTSL.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 0.1 0.2 0.3 0.4

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2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for TSL. In the last year negative earnings were reported.
Industry RankSector Rank
PE N/A
Fwd PE N/A
TSL.CA Price Earnings VS Forward Price EarningsTSL.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 0 0 0 0 0 0 0 0 0 0

4.2 Price Multiples

89.73% of the companies in the same industry are more expensive than TSL, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 13.97
TSL.CA Per share dataTSL.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8

4.3 Compensation for Growth

The excellent profitability rating of TSL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A

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7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.05%, TSL is a good candidate for dividend investing.
TSL's Dividend Yield is rather good when compared to the industry average which is at 7.55. TSL pays more dividend than 98.38% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, TSL pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.05%

5.2 History

On average, the dividend of TSL grows each year by 17.74%, which is quite nice.
TSL has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)17.74%
Div Incr Years0
Div Non Decr Years0
TSL.CA Yearly Dividends per shareTSL.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6 0.8 1

5.3 Sustainability

The earnings of TSL are negative and hence is the payout ratio. TSL will probably not be able to sustain this dividend level.
TSL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-129.13%
EPS Next 2YN/A
EPS Next 3YN/A
TSL.CA Yearly Income VS Free CF VS DividendTSL.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20M 40M 60M 80M

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TREE ISLAND STEEL LTD

TSX:TSL (2/21/2025, 7:00:00 PM)

2.9

-0.04 (-1.36%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)11-05 2024-11-05
Earnings (Next)03-13 2025-03-13
Inst Owners0.54%
Inst Owner ChangeN/A
Ins Owners0.97%
Ins Owner ChangeN/A
Market Cap75.46M
Analysts45.71
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 4.05%
Yearly Dividend0.18
Dividend Growth(5Y)17.74%
DP-129.13%
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)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.36
P/FCF N/A
P/OCF N/A
P/B 0.62
P/tB 0.62
EV/EBITDA 13.97
EPS(TTM)-0.09
EYN/A
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)-0.16
FCFYN/A
OCF(TTM)-0.02
OCFYN/A
SpS8.05
BVpS4.65
TBVpS4.65
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -1.47%
ROE -2.07%
ROCE 0.87%
ROIC 0.61%
ROICexc 0.65%
ROICexgc 0.65%
OM 0.63%
PM (TTM) N/A
GM 7.1%
FCFM N/A
ROA(3y)20.71%
ROA(5y)12.47%
ROE(3y)32.72%
ROE(5y)19.49%
ROIC(3y)17.26%
ROIC(5y)11.93%
ROICexc(3y)20.17%
ROICexc(5y)13.69%
ROICexgc(3y)20.17%
ROICexgc(5y)13.69%
ROCE(3y)24.57%
ROCE(5y)16.98%
ROICexcg growth 3Y7.99%
ROICexcg growth 5Y11.65%
ROICexc growth 3Y7.99%
ROICexc growth 5Y11.65%
OM growth 3Y8.15%
OM growth 5Y12.26%
PM growth 3Y10.08%
PM growth 5Y23.31%
GM growth 3Y1.77%
GM growth 5Y2.89%
F-Score2
Asset Turnover1.23
Health
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF N/A
Debt/EBITDA 3.67
Cap/Depr 71.28%
Cap/Sales 1.82%
Interest Coverage 1.15
Cash Conversion N/A
Profit Quality N/A
Current Ratio 5.14
Quick Ratio 2.35
Altman-Z 1.97
F-Score2
WACC8.65%
ROIC/WACC0.07
Cap/Depr(3y)114.84%
Cap/Depr(5y)84.14%
Cap/Sales(3y)2.25%
Cap/Sales(5y)1.8%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-130.36%
EPS 3Y14.69%
EPS 5Y24.71%
EPS Q2Q%-200.99%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-19.24%
Revenue growth 3Y3.53%
Revenue growth 5Y0.36%
Sales Q2Q%-3.34%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-93.73%
EBIT growth 3Y11.97%
EBIT growth 5Y12.67%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-952.5%
FCF growth 3Y-6.07%
FCF growth 5YN/A
OCF growth 1Y-103.39%
OCF growth 3Y-1.3%
OCF growth 5YN/A