TOROMONT INDUSTRIES LTD (TIH.CA) Stock Fundamental Analysis
TSX:TIH - Toronto Stock Exchange - CA8911021050 - Common Stock - Currency: CAD
Taking everything into account, TIH scores 6 out of 10 in our fundamental rating. TIH was compared to 13 industry peers in the Trading Companies & Distributors industry. TIH scores excellent points on both the profitability and health parts. This is a solid base for a good stock. TIH does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
TIH had positive earnings in the past year.
In the past year TIH had a positive cash flow from operations.
In the past 5 years TIH has always been profitable.
TIH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TIH has a Return On Assets of 9.60%. This is amongst the best in the industry. TIH outperforms 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 16.72%, TIH belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
With an excellent Return On Invested Capital value of 11.97%, TIH belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TIH is significantly above the industry average of 7.31%.
| 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 better Profit Margin (9.76%) than 92.31% of its industry peers.
In the last couple of years the Profit Margin of TIH has grown nicely.
With an excellent Operating Margin value of 13.00%, TIH belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
TIH's Operating Margin has improved in the last couple of years.
TIH's Gross Margin of 24.66% is fine compared to the rest of the industry. TIH outperforms 76.92% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TIH is still creating some value.
TIH has less shares outstanding than it did 1 year ago.
The number of shares outstanding for TIH has been reduced compared to 5 years ago.
Compared to 1 year ago, TIH has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.07 indicates that TIH is not in any danger for bankruptcy at the moment.
TIH has a better Altman-Z score (5.07) than 92.31% of its industry peers.
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.
TIH has a Debt to FCF ratio of 7.97. This is in the lower half of the industry: TIH underperforms 61.54% of its industry peers.
TIH has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
TIH's Debt to Equity ratio of 0.28 is amongst the best of the industry. TIH outperforms 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 7.97 | ||
| Altman-Z | 5.07 |
ROIC/WACC1.41
WACC8.49%
2.3 Liquidity
TIH has a Current Ratio of 2.68. This indicates that TIH is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.68, TIH is doing good in the industry, outperforming 61.54% of the companies in the same industry.
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 better than 69.23% of its industry peers.
| 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 -3.91%.
TIH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.26% yearly.
Looking at the last year, TIH shows a quite strong growth in Revenue. The Revenue has grown by 10.93% in the last year.
TIH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.42% yearly.
EPS 1Y (TTM)-3.91%
EPS 3Y15.42%
EPS 5Y12.26%
EPS Q2Q%-10.09%
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.
The Revenue is expected to grow by 3.19% on average over the next years.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
TIH is valuated rather expensively with a Price/Earnings ratio of 19.02.
Based on the Price/Earnings ratio, TIH is valued a bit more expensive than the industry average as 61.54% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of TIH to the average of the S&P500 Index (25.82), we can say TIH is valued slightly cheaper.
The Price/Forward Earnings ratio is 16.84, which indicates a correct valuation of TIH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TIH is on the same level as its industry peers.
TIH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.02 | ||
| Fwd PE | 16.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TIH is valued a bit more expensive than 69.23% of the companies in the same industry.
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 | 76.32 | ||
| EV/EBITDA | 10.81 |
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)4.27
PEG (5Y)1.55
EPS Next 2Y6.26%
EPS Next 3Y6.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.77%, TIH has a reasonable but not impressive dividend return.
TIH's Dividend Yield is comparable with the industry average which is at 3.63.
TIH's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
5.2 History
The dividend of TIH is nicely growing with an annual growth rate of 12.56%!
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 (5/23/2025, 7:00:00 PM)
116.95
-0.25 (-0.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners49.81%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap9.50B
Analysts74.29
Price Target131.47 (12.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
Yearly Dividend1.88
Dividend Growth(5Y)12.56%
DP31.65%
Div Incr Years33
Div Non Decr Years33
Ex-Date
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)1
Avg Revenue beat(2)-0.08%
Min Revenue beat(2)-0.31%
Max Revenue beat(2)0.15%
Revenue beat(4)3
Avg Revenue beat(4)3.99%
Min Revenue beat(4)-0.31%
Max Revenue beat(4)11.1%
Revenue beat(8)4
Avg Revenue beat(8)0.77%
Revenue beat(12)7
Avg Revenue beat(12)1.15%
Revenue beat(16)9
Avg Revenue beat(16)0.23%
PT rev (1m)-6.03%
PT rev (3m)-4.29%
EPS NQ rev (1m)-36.1%
EPS NQ rev (3m)-35.99%
EPS NY rev (1m)0%
EPS NY rev (3m)1.11%
Revenue NQ rev (1m)-21.72%
Revenue NQ rev (3m)-21.89%
Revenue NY rev (1m)-1.34%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.02 | ||
| Fwd PE | 16.84 | ||
| P/S | 1.87 | ||
| P/FCF | 76.32 | ||
| P/OCF | 38.73 | ||
| P/B | 3.2 | ||
| P/tB | 3.99 | ||
| EV/EBITDA | 10.81 |
EPS(TTM)6.15
EY5.26%
EPS(NY)6.94
Fwd EY5.94%
FCF(TTM)1.53
FCFY1.31%
OCF(TTM)3.02
OCFY2.58%
SpS62.69
BVpS36.58
TBVpS29.3
PEG (NY)4.27
PEG (5Y)1.55
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 | 5.07 |
F-Score4
WACC8.49%
ROIC/WACC1.41
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)-3.91%
EPS 3Y15.42%
EPS 5Y12.26%
EPS Q2Q%-10.09%
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 Year38.63%
EBIT Next 3Y15.82%
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%