TOROMONT INDUSTRIES LTD (TIH.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TIH - CA8911021050 - Common Stock
179.65 CAD
+0.36 (+0.2%)
Overall TIH gets a fundamental rating of 6 out of 10. We evaluated TIH against 12 industry peers in the Trading Companies & Distributors industry. TIH gets an excellent profitability rating and is at the same time showing great financial health properties. TIH is valued expensive and it does not seem to be growing.
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 9.55%. 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 15.65%, TIH belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
- TIH's Return On Invested Capital of 11.59% is amongst the best of the industry. TIH outperforms 91.67% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for TIH is significantly above the industry average of 8.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.55% | ||
| ROE | 15.65% | ||
| ROIC | 11.59% |
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 (9.74%) than 91.67% of its industry peers.
- TIH's Profit Margin has improved in the last couple of years.
- The Operating Margin of TIH (13.17%) is better than 91.67% of its industry peers.
- In the last couple of years the Operating Margin of TIH has grown nicely.
- The Gross Margin of TIH (25.35%) is better than 83.33% 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 | 13.17% | ||
| PM (TTM) | 9.74% | ||
| GM | 25.35% |
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.
- The number of shares outstanding for TIH has been reduced compared to 1 year ago.
- The number of shares outstanding for TIH has been reduced compared to 5 years ago.
- TIH has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 6.88 indicates that TIH is not in any danger for bankruptcy at the moment.
- TIH has a Altman-Z score of 6.88. This is amongst the best in the industry. TIH outperforms 91.67% of its industry peers.
- The Debt to FCF ratio of TIH is 1.53, which is an excellent value as it means it would take TIH, only 1.53 years of fcf income to pay off all of its debts.
- TIH has a better Debt to FCF ratio (1.53) than 91.67% of its industry peers.
- A Debt/Equity ratio of 0.27 indicates that TIH is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.27, TIH belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.53 | ||
| Altman-Z | 6.88 |
ROIC/WACC1.31
WACC8.84%
2.3 Liquidity
- TIH has a Current Ratio of 3.09. This indicates that TIH is financially healthy and has no problem in meeting its short term obligations.
- TIH has a better Current ratio (3.09) than 83.33% of its industry peers.
- TIH has a Quick Ratio of 1.92. This is a normal value and indicates that TIH is financially healthy and should not expect problems in meeting its short term obligations.
- TIH's Quick ratio of 1.92 is amongst the best of the industry. TIH outperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.09 | ||
| Quick Ratio | 1.92 |
3. Growth
3.1 Past
- The earnings per share for TIH have decreased by -1.14% in the last year.
- TIH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.26% yearly.
- The Revenue has been growing slightly by 2.97% in the past year.
- 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)-1.14%
EPS 3Y15.42%
EPS 5Y12.26%
EPS Q2Q%7.5%
Revenue 1Y (TTM)2.97%
Revenue growth 3Y8.91%
Revenue growth 5Y6.42%
Sales Q2Q%-1.73%
3.2 Future
- TIH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.97% yearly.
- The Revenue is expected to grow by 4.85% on average over the next years.
EPS Next Y-0.42%
EPS Next 2Y6.07%
EPS Next 3Y7.97%
EPS Next 5YN/A
Revenue Next Year3.18%
Revenue Next 2Y4.68%
Revenue Next 3Y4.85%
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
- Based on the Price/Earnings ratio of 29.69, the valuation of TIH can be described as expensive.
- Based on the Price/Earnings ratio, TIH is valued a bit more expensive than 66.67% of the companies in the same industry.
- TIH's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.25.
- TIH is valuated quite expensively with a Price/Forward Earnings ratio of 25.96.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TIH is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of TIH to the average of the S&P500 Index (25.98), we can say TIH is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.69 | ||
| Fwd PE | 25.96 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TIH is valued more expensive than 83.33% of the companies in the same industry.
- TIH's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. TIH is more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.55 | ||
| EV/EBITDA | 15.13 |
4.3 Compensation for Growth
- TIH has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.42
EPS Next 2Y6.07%
EPS Next 3Y7.97%
5. Dividend
5.1 Amount
- TIH has a Yearly Dividend Yield of 1.15%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 5.97, TIH is paying slightly less dividend.
- Compared to the average S&P500 Dividend Yield of 1.82, TIH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
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
- TIH pays out 32.86% of its income as dividend. This is a sustainable payout ratio.
- TIH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP32.86%
EPS Next 2Y6.07%
EPS Next 3Y7.97%
TOROMONT INDUSTRIES LTD / TIH.CA FAQ
What is the ChartMill fundamental rating of TOROMONT INDUSTRIES LTD (TIH.CA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to TIH.CA.
What is the valuation status of TOROMONT INDUSTRIES LTD (TIH.CA) stock?
ChartMill assigns a valuation rating of 2 / 10 to TOROMONT INDUSTRIES LTD (TIH.CA). This can be considered as Overvalued.
How profitable is TOROMONT INDUSTRIES LTD (TIH.CA) stock?
TOROMONT INDUSTRIES LTD (TIH.CA) has a profitability rating of 9 / 10.
What is the financial health of TOROMONT INDUSTRIES LTD (TIH.CA) stock?
The financial health rating of TOROMONT INDUSTRIES LTD (TIH.CA) is 9 / 10.
What is the earnings growth outlook for TOROMONT INDUSTRIES LTD?
The Earnings per Share (EPS) of TOROMONT INDUSTRIES LTD (TIH.CA) is expected to decline by -0.42% in the next year.