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. While TIH has a great profitability rating, there are some minor concerns on its financial health. TIH is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year TIH was profitable.
In the past year TIH had a positive cash flow from operations.
In the past 5 years TIH has always been profitable.
In the past 5 years TIH always reported a positive cash flow from operatings.
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.
TIH's Return On Equity of 16.72% is amongst the best of the industry. TIH outperforms 92.31% of its industry peers.
TIH has a Return On Invested Capital of 11.97%. This is amongst the best in the industry. TIH outperforms 100.00% of its industry peers.
TIH had an Average Return On Invested Capital over the past 3 years of 14.23%. This is significantly above the industry average of 7.25%.
| 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
Looking at the Profit Margin, with a value of 9.76%, TIH belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
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.
The Gross Margin of TIH (24.66%) is better than 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TIH is creating some value.
Compared to 1 year ago, TIH has less shares outstanding
Compared to 5 years ago, TIH has less shares outstanding
The debt/assets ratio for TIH has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.65 indicates that TIH is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.65, TIH belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
TIH has a debt to FCF ratio of 7.97. This is a slightly negative value and a sign of low solvency as TIH would need 7.97 years to pay back of 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.
TIH has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of TIH (0.28) is better than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 7.97 | ||
| Altman-Z | 5.65 |
ROIC/WACC1.38
WACC8.67%
2.3 Liquidity
A Current Ratio of 2.68 indicates that TIH has no problem at all paying its short term obligations.
The Current ratio of TIH (2.68) is better than 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
The earnings per share for TIH have decreased by -5.57% in the last year.
Measured over the past years, TIH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.26% on average per year.
TIH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.63%.
TIH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.42% yearly.
EPS 1Y (TTM)-5.57%
EPS 3Y15.42%
EPS 5Y12.26%
EPS Q2Q%-7.32%
Revenue 1Y (TTM)8.63%
Revenue growth 3Y8.91%
Revenue growth 5Y6.42%
Sales Q2Q%1.22%
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 Year2.25%
Revenue Next 2Y3.02%
Revenue Next 3Y3.19%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 24.22, which indicates a rather expensive current valuation of TIH.
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.
The average S&P500 Price/Earnings ratio is at 26.99. TIH is around the same levels.
TIH is valuated rather expensively with a Price/Forward Earnings ratio of 20.69.
TIH's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.36, TIH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.22 | ||
| Fwd PE | 20.69 |
4.2 Price Multiples
69.23% of the companies in the same industry are cheaper than TIH, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TIH is valued a bit more expensive than the industry average as 69.23% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 93.63 | ||
| EV/EBITDA | 13.23 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TIH does not grow enough to justify the current Price/Earnings ratio.
TIH has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.44
PEG (5Y)1.98
EPS Next 2Y6.26%
EPS Next 3Y6.23%
5. Dividend
5.1 Amount
TIH has a Yearly Dividend Yield of 1.48%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 8.96, TIH is paying slightly less dividend.
Compared to the average S&P500 Dividend Yield of 2.40, TIH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)12.56%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
TIH pays out 31.65% of its income as dividend. This is a sustainable payout ratio.
The dividend of TIH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP31.65%
EPS Next 2Y6.26%
EPS Next 3Y6.23%
TSX:TIH (8/6/2025, 7:00:00 PM)
143.64
+1.24 (+0.87%)
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 Cap11.66B
Analysts74.29
Price Target131.92 (-8.16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
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)0.34%
PT rev (3m)-5.63%
EPS NQ rev (1m)0.33%
EPS NQ rev (3m)-7.62%
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)0.15%
Revenue NY rev (3m)-1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.22 | ||
| Fwd PE | 20.69 | ||
| P/S | 2.29 | ||
| P/FCF | 93.63 | ||
| P/OCF | 47.52 | ||
| P/B | 3.92 | ||
| P/tB | 4.9 | ||
| EV/EBITDA | 13.23 |
EPS(TTM)5.93
EY4.13%
EPS(NY)6.94
Fwd EY4.83%
FCF(TTM)1.53
FCFY1.07%
OCF(TTM)3.02
OCFY2.1%
SpS62.76
BVpS36.62
TBVpS29.33
PEG (NY)5.44
PEG (5Y)1.98
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 | 5.65 |
F-Score4
WACC8.67%
ROIC/WACC1.38
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)-5.57%
EPS 3Y15.42%
EPS 5Y12.26%
EPS Q2Q%-7.32%
EPS Next Y4.45%
EPS Next 2Y6.26%
EPS Next 3Y6.23%
EPS Next 5YN/A
Revenue 1Y (TTM)8.63%
Revenue growth 3Y8.91%
Revenue growth 5Y6.42%
Sales Q2Q%1.22%
Revenue Next Year2.25%
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%