TOROMONT INDUSTRIES LTD (TIH.CA) Stock Fundamental Analysis
TSX:TIH - Toronto Stock Exchange - CA8911021050 - Common Stock - Currency: CAD
Overall TIH gets a fundamental rating of 6 out of 10. We evaluated TIH against 13 industry peers in the Trading Companies & Distributors industry. TIH has an excellent profitability rating, but there are some minor concerns on its financial health. TIH has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year TIH was profitable.
TIH had a positive operating cash flow in the past year.
TIH had positive earnings in each of the past 5 years.
TIH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 9.60%, TIH belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Equity of TIH (16.72%) is better than 92.31% of its industry peers.
TIH has a better Return On Invested Capital (11.97%) than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TIH is significantly above the industry average of 6.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.6% | ||
| ROE | 16.72% | ||
| ROIC | 11.97% |
ROA(3y)10.99%
ROA(5y)9.97%
ROE(3y)18.86%
ROE(5y)17.73%
ROIC(3y)14.23%
ROIC(5y)13.18%
1.3 Margins
TIH has a Profit Margin of 9.76%. This is amongst the best in the industry. TIH outperforms 92.31% of its industry peers.
TIH's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 13.00%, TIH belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
In the last couple of years the Operating Margin of TIH has grown nicely.
Looking at the Gross Margin, with a value of 24.66%, TIH is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
In the last couple of years the Gross Margin of TIH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13% | ||
| PM (TTM) | 9.76% | ||
| GM | 24.66% |
OM growth 3Y2.91%
OM growth 5Y3.55%
PM growth 3Y5.62%
PM growth 5Y5.29%
GM growth 3Y0.26%
GM growth 5Y0.41%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TIH is creating some value.
The number of shares outstanding for TIH has been reduced compared to 1 year ago.
TIH has less shares outstanding than it did 5 years ago.
TIH has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.23 indicates that TIH is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.23, TIH belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
The Debt to FCF ratio of TIH is 7.97, which is on the high side as it means it would take TIH, 7.97 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.97, TIH is doing worse than 61.54% of the companies in the same industry.
A Debt/Equity ratio of 0.28 indicates that TIH is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.28, TIH is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 7.97 | ||
| Altman-Z | 5.23 |
ROIC/WACC1.35
WACC8.9%
2.3 Liquidity
A Current Ratio of 2.68 indicates that TIH has no problem at all paying its short term obligations.
TIH's Current ratio of 2.68 is fine compared to the rest of the industry. TIH outperforms 61.54% of its industry peers.
A Quick Ratio of 1.45 indicates that TIH should not have too much problems paying its short term obligations.
The Quick ratio of TIH (1.45) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
TIH shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.20%.
The Earnings Per Share has been growing by 12.26% on average over the past years. This is quite good.
The Revenue has grown by 10.93% in the past year. This is quite good.
Measured over the past years, TIH shows a small growth in Revenue. The Revenue has been growing by 6.42% on average per year.
EPS 1Y (TTM)-3.2%
EPS 3Y15.42%
EPS 5Y12.26%
EPS Q2Q%-9.9%
Revenue 1Y (TTM)10.93%
Revenue growth 3Y8.91%
Revenue growth 5Y6.42%
Sales Q2Q%7.21%
3.2 Future
Based on estimates for the next years, TIH will show a small growth in Earnings Per Share. The EPS will grow by 6.23% on average per year.
TIH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.19% yearly.
EPS Next Y4.45%
EPS Next 2Y6.26%
EPS Next 3Y6.23%
EPS Next 5YN/A
Revenue Next Year2.1%
Revenue Next 2Y3.02%
Revenue Next 3Y3.19%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.56 indicates a rather expensive valuation of TIH.
TIH's Price/Earnings ratio is in line with the industry average.
TIH is valuated rather cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 17.91, TIH is valued on the expensive side.
TIH's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.90. TIH is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.56 | ||
| Fwd PE | 17.91 |
4.2 Price Multiples
61.54% of the companies in the same industry are cheaper than TIH, based on the Enterprise Value to EBITDA ratio.
69.23% of the companies in the same industry are cheaper than TIH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 81.16 | ||
| EV/EBITDA | 11.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TIH has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.62
PEG (5Y)1.68
EPS Next 2Y6.26%
EPS Next 3Y6.23%
5. Dividend
5.1 Amount
TIH has a Yearly Dividend Yield of 1.70%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.79, TIH is paying slightly less dividend.
TIH's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
5.2 History
On average, the dividend of TIH grows each year by 12.56%, which is quite nice.
TIH has been paying a dividend for at least 10 years, so it has a reliable track record.
TIH has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)12.56%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
31.65% of the earnings are spent on dividend by TIH. This is a low number and sustainable payout ratio.
TIH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31.65%
EPS Next 2Y6.26%
EPS Next 3Y6.23%
TSX:TIH (7/3/2025, 7:00:00 PM)
124.37
-0.08 (-0.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners49.71%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap10.11B
Analysts74.29
Price Target131.47 (5.71%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
Yearly Dividend1.88
Dividend Growth(5Y)12.56%
DP31.65%
Div Incr Years33
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.52%
Min EPS beat(2)-14.09%
Max EPS beat(2)9.05%
EPS beat(4)2
Avg EPS beat(4)-1.91%
Min EPS beat(4)-14.09%
Max EPS beat(4)9.05%
EPS beat(8)5
Avg EPS beat(8)1.33%
EPS beat(12)9
Avg EPS beat(12)8.53%
EPS beat(16)12
Avg EPS beat(16)7.2%
Revenue beat(2)2
Avg Revenue beat(2)0.47%
Min Revenue beat(2)0.15%
Max Revenue beat(2)0.8%
Revenue beat(4)4
Avg Revenue beat(4)4.27%
Min Revenue beat(4)0.15%
Max Revenue beat(4)11.1%
Revenue beat(8)5
Avg Revenue beat(8)0.91%
Revenue beat(12)8
Avg Revenue beat(12)1.24%
Revenue beat(16)10
Avg Revenue beat(16)0.3%
PT rev (1m)0%
PT rev (3m)-6.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.92%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.74%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.56 | ||
| Fwd PE | 17.91 | ||
| P/S | 1.98 | ||
| P/FCF | 81.16 | ||
| P/OCF | 41.19 | ||
| P/B | 3.4 | ||
| P/tB | 4.24 | ||
| EV/EBITDA | 11.48 |
EPS(TTM)6.05
EY4.86%
EPS(NY)6.94
Fwd EY5.58%
FCF(TTM)1.53
FCFY1.23%
OCF(TTM)3.02
OCFY2.43%
SpS62.69
BVpS36.58
TBVpS29.3
PEG (NY)4.62
PEG (5Y)1.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.6% | ||
| ROE | 16.72% | ||
| ROCE | 16.39% | ||
| ROIC | 11.97% | ||
| ROICexc | 15.8% | ||
| ROICexgc | 19.58% | ||
| OM | 13% | ||
| PM (TTM) | 9.76% | ||
| GM | 24.66% | ||
| FCFM | 2.44% |
ROA(3y)10.99%
ROA(5y)9.97%
ROE(3y)18.86%
ROE(5y)17.73%
ROIC(3y)14.23%
ROIC(5y)13.18%
ROICexc(3y)19.79%
ROICexc(5y)18.4%
ROICexgc(3y)24.54%
ROICexgc(5y)23.44%
ROCE(3y)19.48%
ROCE(5y)18.04%
ROICexcg growth 3Y-5.35%
ROICexcg growth 5Y1.63%
ROICexc growth 3Y-1.82%
ROICexc growth 5Y3.44%
OM growth 3Y2.91%
OM growth 5Y3.55%
PM growth 3Y5.62%
PM growth 5Y5.29%
GM growth 3Y0.26%
GM growth 5Y0.41%
F-Score4
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 7.97 | ||
| Debt/EBITDA | 0.95 | ||
| Cap/Depr | 54.81% | ||
| Cap/Sales | 2.37% | ||
| Interest Coverage | 24.02 | ||
| Cash Conversion | 27.8% | ||
| Profit Quality | 25.05% | ||
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 5.23 |
F-Score4
WACC8.9%
ROIC/WACC1.35
Cap/Depr(3y)57.3%
Cap/Depr(5y)48.58%
Cap/Sales(3y)2.28%
Cap/Sales(5y)1.98%
Profit Quality(3y)40.54%
Profit Quality(5y)76.65%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.2%
EPS 3Y15.42%
EPS 5Y12.26%
EPS Q2Q%-9.9%
EPS Next Y4.45%
EPS Next 2Y6.26%
EPS Next 3Y6.23%
EPS Next 5YN/A
Revenue 1Y (TTM)10.93%
Revenue growth 3Y8.91%
Revenue growth 5Y6.42%
Sales Q2Q%7.21%
Revenue Next Year2.1%
Revenue Next 2Y3.02%
Revenue Next 3Y3.19%
Revenue Next 5YN/A
EBIT growth 1Y-3.07%
EBIT growth 3Y12.09%
EBIT growth 5Y10.19%
EBIT Next Year34.96%
EBIT Next 3Y13.66%
EBIT Next 5YN/A
FCF growth 1Y880.49%
FCF growth 3Y-22.12%
FCF growth 5Y20.19%
OCF growth 1Y150.36%
OCF growth 3Y-12.85%
OCF growth 5Y19.73%