TOROMONT INDUSTRIES LTD (TIH.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:TIH • CA8911021050
173.45 CAD
-2.69 (-1.53%)
Last: Jan 30, 2026, 07:00 PM
TIH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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 has a expensive valuation and it also scores bad on growth.
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.
- In the past 5 years TIH always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 9.55%, TIH belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- With an excellent Return On Equity value of 15.65%, TIH belongs to the best 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.
- TIH had an Average Return On Invested Capital over the past 3 years of 14.23%. This 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
- Looking at the Profit Margin, with a value of 9.74%, TIH belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
- 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.
- TIH's Operating Margin has improved in the last couple of years.
- TIH's Gross Margin of 25.35% is amongst the best of the industry. TIH outperforms 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TIH is 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.
- The debt/assets ratio for TIH has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 6.74 indicates that TIH is not in any danger for bankruptcy at the moment.
- The Altman-Z score of TIH (6.74) is better than 91.67% of its industry peers.
- TIH has a debt to FCF ratio of 1.53. This is a very positive value and a sign of high solvency as it would only need 1.53 years to pay back of all of its debts.
- TIH has a better Debt to FCF ratio (1.53) than 91.67% of its industry peers.
- TIH has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
- 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 | 6.74 |
ROIC/WACC1.3
WACC8.94%
2.3 Liquidity
- A Current Ratio of 3.09 indicates that TIH has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 3.09, TIH belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- A Quick Ratio of 1.92 indicates that TIH should not have too much problems paying its short term obligations.
- TIH has a Quick ratio of 1.92. This is amongst the best in 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.
- 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.
- The Revenue has been growing slightly by 2.97% in the past year.
- The Revenue has been growing slightly by 6.42% on average over the past years.
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
- Based on estimates for the next years, TIH will show a small growth in Earnings Per Share. The EPS will grow by 7.97% on average per year.
- Based on estimates for the next years, TIH will show a small growth in Revenue. The Revenue will grow by 4.85% on average per year.
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
- TIH is valuated quite expensively with a Price/Earnings ratio of 28.67.
- Based on the Price/Earnings ratio, TIH is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
- When comparing the Price/Earnings ratio of TIH to the average of the S&P500 Index (28.32), we can say TIH is valued inline with the index average.
- The Price/Forward Earnings ratio is 25.07, which means the current valuation is very expensive for TIH.
- TIH's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. TIH is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.67 | ||
| Fwd PE | 25.07 |
4.2 Price Multiples
- 83.33% 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 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.63 | ||
| EV/EBITDA | 14.63 |
4.3 Compensation for Growth
- TIH has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.34
EPS Next 2Y6.07%
EPS Next 3Y7.97%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.18%, TIH has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 6.07, TIH is paying slightly less dividend.
- TIH's Dividend Yield is slightly below the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
5.2 History
- On average, the dividend of TIH grows each year by 12.56%, which is quite nice.
- 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)12.56%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
- 32.86% of the earnings are spent on dividend by TIH. This is a low number and sustainable payout ratio.
- The dividend of TIH is growing, but the earnings are growing slower. 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.