TIMBERCREEK FINANCIAL CORP (TF.CA) Stock Fundamental Analysis
TSX:TF - Toronto Stock Exchange - CA88709B1040 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to TF. TF was compared to 29 industry peers in the Financial Services industry. While TF is still in line with the averages on profitability rating, there are concerns on its financial health. TF is not valued too expensively and it also shows a decent growth rate. Finally TF also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
TF had positive earnings in the past year.
TF had a negative operating cash flow in the past year.
TF had positive earnings in each of the past 5 years.
Of the past 5 years TF 4 years had a positive operating cash flow.
1.2 Ratios
TF's Return On Assets of 2.60% is in line compared to the rest of the industry. TF outperforms 58.62% of its industry peers.
TF has a Return On Equity of 6.79%. This is comparable to the rest of the industry: TF outperforms 44.83% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.17%, TF is doing worse than 65.52% of the companies in the same industry.
TF had an Average Return On Invested Capital over the past 3 years of 3.56%. This is below the industry average of 5.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.6% | ||
| ROE | 6.79% | ||
| ROIC | 3.17% |
ROA(3y)3.1%
ROA(5y)2.71%
ROE(3y)8.07%
ROE(5y)6.98%
ROIC(3y)3.56%
ROIC(5y)3.44%
1.3 Margins
TF has a Profit Margin (28.87%) which is in line with its industry peers.
TF's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 48.34%, TF is in the better half of the industry, outperforming 62.07% of the companies in the same industry.
In the last couple of years the Operating Margin of TF has declined.
The Gross Margin of TF (77.25%) is better than 96.55% of its industry peers.
TF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 48.34% | ||
| PM (TTM) | 28.87% | ||
| GM | 77.25% |
OM growth 3Y-10.36%
OM growth 5Y-6.93%
PM growth 3Y-6.9%
PM growth 5Y-7.84%
GM growth 3Y-1.7%
GM growth 5Y-1.17%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TF is destroying value.
TF has about the same amout of shares outstanding than it did 1 year ago.
TF has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TF has an improved debt to assets ratio.
2.2 Solvency
TF has an Altman-Z score of 0.31. This is a bad value and indicates that TF is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of TF (0.31) is worse than 79.31% of its industry peers.
TF has a Debt/Equity ratio of 1.59. This is a high value indicating a heavy dependency on external financing.
TF has a Debt to Equity ratio (1.59) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.31 |
ROIC/WACC0.56
WACC5.66%
2.3 Liquidity
A Current Ratio of 0.02 indicates that TF may have some problems paying its short term obligations.
TF's Current ratio of 0.02 is on the low side compared to the rest of the industry. TF is outperformed by 68.97% of its industry peers.
TF has a Quick Ratio of 0.02. This is a bad value and indicates that TF is not financially healthy enough and could expect problems in meeting its short term obligations.
TF has a Quick ratio of 0.02. This is in the lower half of the industry: TF underperforms 68.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.02 | ||
| Quick Ratio | 0.02 |
3. Growth
3.1 Past
The earnings per share for TF have decreased strongly by -27.40% in the last year.
TF shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.23% yearly.
Looking at the last year, TF shows a very negative growth in Revenue. The Revenue has decreased by -10.81% in the last year.
Measured over the past years, TF shows a small growth in Revenue. The Revenue has been growing by 4.88% on average per year.
EPS 1Y (TTM)-27.4%
EPS 3Y-6.27%
EPS 5Y-3.23%
EPS Q2Q%-21.05%
Revenue 1Y (TTM)-10.81%
Revenue growth 3Y11.46%
Revenue growth 5Y4.88%
Sales Q2Q%N/A
3.2 Future
The Earnings Per Share is expected to grow by 12.38% on average over the next years. This is quite good.
Based on estimates for the next years, TF will show a small growth in Revenue. The Revenue will grow by 6.89% on average per year.
EPS Next Y22.62%
EPS Next 2Y12.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.36%
Revenue Next 2Y6.89%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
TF is valuated correctly with a Price/Earnings ratio of 14.40.
Compared to the rest of the industry, the Price/Earnings ratio of TF indicates a somewhat cheap valuation: TF is cheaper than 72.41% of the companies listed in the same industry.
TF's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.82.
A Price/Forward Earnings ratio of 10.79 indicates a reasonable valuation of TF.
79.31% of the companies in the same industry are more expensive than TF, based on the Price/Forward Earnings ratio.
TF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.4 | ||
| Fwd PE | 10.79 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
TF's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TF's earnings are expected to grow with 12.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.64
PEG (5Y)N/A
EPS Next 2Y12.38%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.93%, TF is a good candidate for dividend investing.
TF's Dividend Yield is rather good when compared to the industry average which is at 6.20. TF pays more dividend than 89.66% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, TF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.93% |
5.2 History
The dividend of TF has a limited annual growth rate of 1.26%.
TF has been paying a dividend for at least 10 years, so it has a reliable track record.
As TF did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)1.26%
Div Incr Years1
Div Non Decr Years8
5.3 Sustainability
110.50% of the earnings are spent on dividend by TF. This is not a sustainable payout ratio.
The dividend of TF is growing, but earnings are growing more, so the dividend growth is sustainable.
DP110.5%
EPS Next 2Y12.38%
EPS Next 3YN/A
TSX:TF (8/1/2025, 7:00:00 PM)
7.63
-0.1 (-1.29%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners3.94%
Inst Owner ChangeN/A
Ins Owners0.97%
Ins Owner ChangeN/A
Market Cap631.38M
Analysts80
Price Target8.03 (5.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.93% |
Yearly Dividend0.68
Dividend Growth(5Y)1.26%
DP110.5%
Div Incr Years1
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-38.92%
Min EPS beat(2)-82.17%
Max EPS beat(2)4.33%
EPS beat(4)2
Avg EPS beat(4)-20.91%
Min EPS beat(4)-82.17%
Max EPS beat(4)4.33%
EPS beat(8)2
Avg EPS beat(8)-12.9%
EPS beat(12)3
Avg EPS beat(12)-10.44%
EPS beat(16)3
Avg EPS beat(16)-9.19%
Revenue beat(2)2
Avg Revenue beat(2)3.72%
Min Revenue beat(2)2.85%
Max Revenue beat(2)4.6%
Revenue beat(4)2
Avg Revenue beat(4)-2.78%
Min Revenue beat(4)-11.82%
Max Revenue beat(4)4.6%
Revenue beat(8)2
Avg Revenue beat(8)-3.53%
Revenue beat(12)6
Avg Revenue beat(12)8.97%
Revenue beat(16)10
Avg Revenue beat(16)11.08%
PT rev (1m)0%
PT rev (3m)1.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.08%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.4 | ||
| Fwd PE | 10.79 | ||
| P/S | 3.91 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.92 | ||
| P/tB | 0.92 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.53
EY6.95%
EPS(NY)0.71
Fwd EY9.27%
FCF(TTM)-0.94
FCFYN/A
OCF(TTM)-0.93
OCFYN/A
SpS1.95
BVpS8.29
TBVpS8.29
PEG (NY)0.64
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.6% | ||
| ROE | 6.79% | ||
| ROCE | 5.42% | ||
| ROIC | 3.17% | ||
| ROICexc | 3.18% | ||
| ROICexgc | 3.19% | ||
| OM | 48.34% | ||
| PM (TTM) | 28.87% | ||
| GM | 77.25% | ||
| FCFM | N/A |
ROA(3y)3.1%
ROA(5y)2.71%
ROE(3y)8.07%
ROE(5y)6.98%
ROIC(3y)3.56%
ROIC(5y)3.44%
ROICexc(3y)3.58%
ROICexc(5y)3.46%
ROICexgc(3y)3.6%
ROICexgc(5y)3.48%
ROCE(3y)4.95%
ROCE(5y)4.79%
ROICexcg growth 3Y0.03%
ROICexcg growth 5Y-1.67%
ROICexc growth 3Y0.02%
ROICexc growth 5Y-1.62%
OM growth 3Y-10.36%
OM growth 5Y-6.93%
PM growth 3Y-6.9%
PM growth 5Y-7.84%
GM growth 3Y-1.7%
GM growth 5Y-1.17%
F-Score4
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.32 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.02 | ||
| Quick Ratio | 0.02 | ||
| Altman-Z | 0.31 |
F-Score4
WACC5.66%
ROIC/WACC0.56
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-27.4%
EPS 3Y-6.27%
EPS 5Y-3.23%
EPS Q2Q%-21.05%
EPS Next Y22.62%
EPS Next 2Y12.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-10.81%
Revenue growth 3Y11.46%
Revenue growth 5Y4.88%
Sales Q2Q%N/A
Revenue Next Year10.36%
Revenue Next 2Y6.89%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-19.73%
EBIT growth 3Y-0.09%
EBIT growth 5Y-2.39%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-185.55%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-184.97%
OCF growth 3YN/A
OCF growth 5YN/A