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TOROMONT INDUSTRIES LTD (TIH.CA) Stock Fundamental Analysis

TSX:TIH - Toronto Stock Exchange - CA8911021050 - Common Stock - Currency: CAD

117.35  -0.96 (-0.81%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to TIH. TIH was compared to 13 industry peers in the Trading Companies & Distributors industry. TIH scores excellent on profitability, but there are some minor concerns on its financial health. TIH is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

TIH had positive earnings in the past year.
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.
TIH.CA Yearly Net Income VS EBIT VS OCF VS FCFTIH.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M 600M

1.2 Ratios

The Return On Assets of TIH (10.70%) is better than 100.00% of its industry peers.
The Return On Equity of TIH (17.39%) is better than 92.31% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.56%, TIH belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
TIH had an Average Return On Invested Capital over the past 3 years of 13.99%. This is significantly above the industry average of 8.14%.
Industry RankSector Rank
ROA 10.7%
ROE 17.39%
ROIC 13.56%
ROA(3y)10.61%
ROA(5y)9.59%
ROE(3y)18.83%
ROE(5y)18.04%
ROIC(3y)13.99%
ROIC(5y)13.08%
TIH.CA Yearly ROA, ROE, ROICTIH.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15

1.3 Margins

TIH has a better Profit Margin (10.21%) than 92.31% of its industry peers.
In the last couple of years the Profit Margin of TIH has grown nicely.
The Operating Margin of TIH (13.43%) is better than 92.31% of its industry peers.
In the last couple of years the Operating Margin of TIH has grown nicely.
TIH's Gross Margin of 25.01% 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 grown nicely.
Industry RankSector Rank
OM 13.43%
PM (TTM) 10.21%
GM 25.01%
OM growth 3Y12.49%
OM growth 5Y7.63%
PM growth 3Y16.44%
PM growth 5Y9.97%
GM growth 3Y3.89%
GM growth 5Y1.8%
TIH.CA Yearly Profit, Operating, Gross MarginsTIH.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20 25

6

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.
Compared to 1 year ago, TIH has about the same amount of shares outstanding.
TIH has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TIH has an improved debt to assets ratio.
TIH.CA Yearly Shares OutstandingTIH.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M
TIH.CA Yearly Total Debt VS Total AssetsTIH.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

2.2 Solvency

An Altman-Z score of 5.78 indicates that TIH is not in any danger for bankruptcy at the moment.
TIH has a Altman-Z score of 5.78. This is amongst the best in the industry. TIH outperforms 100.00% of its industry peers.
The Debt to FCF ratio of TIH is 4.26, which is a neutral value as it means it would take TIH, 4.26 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.26, TIH is in line with its industry, outperforming 53.85% of the companies in the same industry.
A Debt/Equity ratio of 0.18 indicates that TIH is not too dependend on debt financing.
TIH's Debt to Equity ratio of 0.18 is amongst the best of the industry. TIH outperforms 92.31% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.18
Debt/FCF 4.26
Altman-Z 5.78
ROIC/WACC1.43
WACC9.47%
TIH.CA Yearly LT Debt VS Equity VS FCFTIH.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

TIH has a Current Ratio of 2.44. This indicates that TIH is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.44, TIH perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
TIH has a Quick Ratio of 1.25. This is a normal value and indicates that TIH is financially healthy and should not expect problems in meeting its short term obligations.
TIH has a better Quick ratio (1.25) than 69.23% of its industry peers.
Industry RankSector Rank
Current Ratio 2.44
Quick Ratio 1.25
TIH.CA Yearly Current Assets VS Current LiabilitesTIH.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B 2.5B

4

3. Growth

3.1 Past

TIH shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.26%.
TIH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.68% yearly.
Looking at the last year, TIH shows a quite strong growth in Revenue. The Revenue has grown by 8.35% in the last year.
Measured over the past years, TIH shows a small growth in Revenue. The Revenue has been growing by 5.69% on average per year.
EPS 1Y (TTM)-5.26%
EPS 3Y27.61%
EPS 5Y15.68%
EPS Q2Q%-9.09%
Revenue 1Y (TTM)8.35%
Revenue growth 3Y9.94%
Revenue growth 5Y5.69%
Sales Q2Q%13.96%

3.2 Future

The Earnings Per Share is expected to grow by 2.81% on average over the next years.
TIH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.11% yearly.
EPS Next Y-5.66%
EPS Next 2Y-0.37%
EPS Next 3Y2.81%
EPS Next 5YN/A
Revenue Next Year8.91%
Revenue Next 2Y5.48%
Revenue Next 3Y5.11%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
TIH.CA Yearly Revenue VS EstimatesTIH.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B 4B 5B
TIH.CA Yearly EPS VS EstimatesTIH.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6

3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 19.17, which indicates a rather expensive current valuation of TIH.
Compared to the rest of the industry, the Price/Earnings ratio of TIH is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 29.39, TIH is valued a bit cheaper.
With a Price/Forward Earnings ratio of 18.47, TIH is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TIH is on the same level as its industry peers.
TIH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 94.38.
Industry RankSector Rank
PE 19.17
Fwd PE 18.47
TIH.CA Price Earnings VS Forward Price EarningsTIH.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

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.
TIH's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 60.43
EV/EBITDA 11.14
TIH.CA Per share dataTIH.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

TIH has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.22
EPS Next 2Y-0.37%
EPS Next 3Y2.81%

5

5. Dividend

5.1 Amount

TIH has a Yearly Dividend Yield of 1.64%.
Compared to an average industry Dividend Yield of 3.96, TIH has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.30, TIH is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.64%

5.2 History

The dividend of TIH is nicely growing with an annual growth rate of 13.83%!
TIH has paid a dividend for at least 10 years, which is 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)13.83%
Div Incr Years33
Div Non Decr Years33
TIH.CA Yearly Dividends per shareTIH.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.5 1 1.5

5.3 Sustainability

TIH pays out 29.67% 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.
DP29.67%
EPS Next 2Y-0.37%
EPS Next 3Y2.81%
TIH.CA Yearly Income VS Free CF VS DividendTIH.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M 200M 300M 400M 500M
TIH.CA Dividend Payout.TIH.CA Dividend Payout, showing the Payout Ratio.TIH.CA Dividend Payout.PayoutRetained Earnings

TOROMONT INDUSTRIES LTD

TSX:TIH (2/11/2025, 7:00:00 PM)

117.35

-0.96 (-0.81%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)11-04 2024-11-04/amc
Earnings (Next)02-11 2025-02-11/amc
Inst Owners51.23%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap9.62B
Analysts75.38
Price Target137.36 (17.05%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.64%
Yearly Dividend1.68
Dividend Growth(5Y)13.83%
DP29.67%
Div Incr Years33
Div Non Decr Years33
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.3%
Min EPS beat(2)-5.84%
Max EPS beat(2)3.24%
EPS beat(4)2
Avg EPS beat(4)-1.59%
Min EPS beat(4)-11.17%
Max EPS beat(4)7.41%
EPS beat(8)6
Avg EPS beat(8)10.48%
EPS beat(12)10
Avg EPS beat(12)9.95%
EPS beat(16)13
Avg EPS beat(16)8.75%
Revenue beat(2)2
Avg Revenue beat(2)8.06%
Min Revenue beat(2)5.02%
Max Revenue beat(2)11.1%
Revenue beat(4)3
Avg Revenue beat(4)2.8%
Min Revenue beat(4)-7.01%
Max Revenue beat(4)11.1%
Revenue beat(8)5
Avg Revenue beat(8)2.85%
Revenue beat(12)7
Avg Revenue beat(12)0.26%
Revenue beat(16)9
Avg Revenue beat(16)0.67%
PT rev (1m)0%
PT rev (3m)-3.04%
EPS NQ rev (1m)-0.29%
EPS NQ rev (3m)-7.25%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-4.17%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)1.79%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.85%
Valuation
Industry RankSector Rank
PE 19.17
Fwd PE 18.47
P/S 1.95
P/FCF 60.43
P/OCF 33.22
P/B 3.32
P/tB 3.96
EV/EBITDA 11.14
EPS(TTM)6.12
EY5.22%
EPS(NY)6.35
Fwd EY5.41%
FCF(TTM)1.94
FCFY1.65%
OCF(TTM)3.53
OCFY3.01%
SpS60.3
BVpS35.39
TBVpS29.65
PEG (NY)N/A
PEG (5Y)1.22
Profitability
Industry RankSector Rank
ROA 10.7%
ROE 17.39%
ROCE 18.49%
ROIC 13.56%
ROICexc 16.68%
ROICexgc 19.88%
OM 13.43%
PM (TTM) 10.21%
GM 25.01%
FCFM 3.22%
ROA(3y)10.61%
ROA(5y)9.59%
ROE(3y)18.83%
ROE(5y)18.04%
ROIC(3y)13.99%
ROIC(5y)13.08%
ROICexc(3y)20.2%
ROICexc(5y)17.91%
ROICexgc(3y)25.91%
ROICexgc(5y)23.19%
ROCE(3y)19.08%
ROCE(5y)17.84%
ROICexcg growth 3Y12.03%
ROICexcg growth 5Y4.06%
ROICexc growth 3Y14.59%
ROICexc growth 5Y6.4%
OM growth 3Y12.49%
OM growth 5Y7.63%
PM growth 3Y16.44%
PM growth 5Y9.97%
GM growth 3Y3.89%
GM growth 5Y1.8%
F-Score5
Asset Turnover1.05
Health
Industry RankSector Rank
Debt/Equity 0.18
Debt/FCF 4.26
Debt/EBITDA 0.61
Cap/Depr 65.12%
Cap/Sales 2.64%
Interest Coverage 26.8
Cash Conversion 33.51%
Profit Quality 31.56%
Current Ratio 2.44
Quick Ratio 1.25
Altman-Z 5.78
F-Score5
WACC9.47%
ROIC/WACC1.43
Cap/Depr(3y)50.09%
Cap/Depr(5y)42.28%
Cap/Sales(3y)1.98%
Cap/Sales(5y)1.75%
Profit Quality(3y)73.12%
Profit Quality(5y)74.05%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.26%
EPS 3Y27.61%
EPS 5Y15.68%
EPS Q2Q%-9.09%
EPS Next Y-5.66%
EPS Next 2Y-0.37%
EPS Next 3Y2.81%
EPS Next 5YN/A
Revenue 1Y (TTM)8.35%
Revenue growth 3Y9.94%
Revenue growth 5Y5.69%
Sales Q2Q%13.96%
Revenue Next Year8.91%
Revenue Next 2Y5.48%
Revenue Next 3Y5.11%
Revenue Next 5YN/A
EBIT growth 1Y-6.79%
EBIT growth 3Y23.66%
EBIT growth 5Y13.76%
EBIT Next Year25.02%
EBIT Next 3Y12.25%
EBIT Next 5YN/A
FCF growth 1Y-27.87%
FCF growth 3Y-7.58%
FCF growth 5Y-11.98%
OCF growth 1Y2.25%
OCF growth 3Y0.64%
OCF growth 5Y-6.81%