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TREE ISLAND STEEL LTD (TSL.CA) Stock Fundamental Analysis

TSX:TSL - Toronto Stock Exchange - CA89467Q2009 - Common Stock - Currency: CAD

2.93  -0.07 (-2.33%)

Fundamental Rating

5

TSL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 818 industry peers in the Metals & Mining industry. TSL scores excellent on profitability, but there are some minor concerns on its financial health. TSL is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

TSL had negative earnings in the past year.
TSL had a negative operating cash flow in the past year.
TSL had positive earnings in 4 of the past 5 years.
TSL had a positive operating cash flow in each of the past 5 years.
TSL.CA Yearly Net Income VS EBIT VS OCF VS FCFTSL.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 20M 40M 60M 80M

1.2 Ratios

Looking at the Return On Assets, with a value of -1.47%, TSL belongs to the top of the industry, outperforming 81.39% of the companies in the same industry.
The Return On Equity of TSL (-2.07%) is better than 81.25% of its industry peers.
TSL's Return On Invested Capital of 0.61% is amongst the best of the industry. TSL outperforms 87.77% of its industry peers.
TSL had an Average Return On Invested Capital over the past 3 years of 17.26%. This is significantly above the industry average of 11.89%.
The 3 year average ROIC (17.26%) for TSL is well above the current ROIC(0.61%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA -1.47%
ROE -2.07%
ROIC 0.61%
ROA(3y)20.71%
ROA(5y)12.47%
ROE(3y)32.72%
ROE(5y)19.49%
ROIC(3y)17.26%
ROIC(5y)11.93%
TSL.CA Yearly ROA, ROE, ROICTSL.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60

1.3 Margins

TSL's Profit Margin has improved in the last couple of years.
TSL's Operating Margin of 0.63% is amongst the best of the industry. TSL outperforms 88.18% of its industry peers.
TSL's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 7.10%, TSL belongs to the top of the industry, outperforming 84.10% of the companies in the same industry.
TSL's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 0.63%
PM (TTM) N/A
GM 7.1%
OM growth 3Y8.15%
OM growth 5Y12.26%
PM growth 3Y10.08%
PM growth 5Y23.31%
GM growth 3Y1.77%
GM growth 5Y2.89%
TSL.CA Yearly Profit, Operating, Gross MarginsTSL.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20

5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TSL is creating value.
The number of shares outstanding for TSL has been reduced compared to 1 year ago.
The number of shares outstanding for TSL has been reduced compared to 5 years ago.
Compared to 1 year ago, TSL has an improved debt to assets ratio.
TSL.CA Yearly Shares OutstandingTSL.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M
TSL.CA Yearly Total Debt VS Total AssetsTSL.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M

2.2 Solvency

TSL has an Altman-Z score of 1.98. This is not the best score and indicates that TSL is in the grey zone with still only limited risk for bankruptcy at the moment.
TSL's Altman-Z score of 1.98 is in line compared to the rest of the industry. TSL outperforms 53.53% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that TSL is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.20, TSL is not doing good in the industry: 72.83% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF N/A
Altman-Z 1.98
ROIC/WACC0.07
WACC8.49%
TSL.CA Yearly LT Debt VS Equity VS FCFTSL.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50M 100M

2.3 Liquidity

A Current Ratio of 5.14 indicates that TSL has no problem at all paying its short term obligations.
With a decent Current ratio value of 5.14, TSL is doing good in the industry, outperforming 75.82% of the companies in the same industry.
TSL has a Quick Ratio of 2.35. This indicates that TSL is financially healthy and has no problem in meeting its short term obligations.
TSL's Quick ratio of 2.35 is in line compared to the rest of the industry. TSL outperforms 58.29% of its industry peers.
Industry RankSector Rank
Current Ratio 5.14
Quick Ratio 2.35
TSL.CA Yearly Current Assets VS Current LiabilitesTSL.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M

1

3. Growth

3.1 Past

The earnings per share for TSL have decreased strongly by -130.36% in the last year.
Measured over the past years, TSL shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.71% on average per year.
Looking at the last year, TSL shows a very negative growth in Revenue. The Revenue has decreased by -19.24% in the last year.
TSL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.36% yearly.
EPS 1Y (TTM)-130.36%
EPS 3Y14.69%
EPS 5Y24.71%
EPS Q2Q%-200.99%
Revenue 1Y (TTM)-19.24%
Revenue growth 3Y3.53%
Revenue growth 5Y0.36%
Sales Q2Q%-3.34%

3.2 Future

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
TSL.CA Yearly Revenue VS EstimatesTSL.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M
TSL.CA Yearly EPS VS EstimatesTSL.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 0.1 0.2 0.3 0.4

2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for TSL. In the last year negative earnings were reported.
Industry RankSector Rank
PE N/A
Fwd PE N/A
TSL.CA Price Earnings VS Forward Price EarningsTSL.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 0 0 0 0 0 0 0 0 0 0

4.2 Price Multiples

TSL's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TSL is cheaper than 89.54% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 14.1
TSL.CA Per share dataTSL.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8

4.3 Compensation for Growth

The excellent profitability rating of TSL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.00%, TSL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 7.63, TSL pays a better dividend. On top of this TSL pays more dividend than 98.37% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, TSL pays a better dividend.
Industry RankSector Rank
Dividend Yield 4%

5.2 History

On average, the dividend of TSL grows each year by 17.74%, which is quite nice.
TSL has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)17.74%
Div Incr Years0
Div Non Decr Years0
TSL.CA Yearly Dividends per shareTSL.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6 0.8 1

5.3 Sustainability

TSL has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of TSL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-129.13%
EPS Next 2YN/A
EPS Next 3YN/A
TSL.CA Yearly Income VS Free CF VS DividendTSL.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20M 40M 60M 80M

TREE ISLAND STEEL LTD

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

2.93

-0.07 (-2.33%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)11-05 2024-11-05
Earnings (Next)02-27 2025-02-27
Inst Owners0.54%
Inst Owner ChangeN/A
Ins Owners1.1%
Ins Owner ChangeN/A
Market Cap76.27M
Analysts45.71
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 4%
Yearly Dividend0.18
Dividend Growth(5Y)17.74%
DP-129.13%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.36
P/FCF N/A
P/OCF N/A
P/B 0.63
P/tB 0.63
EV/EBITDA 14.1
EPS(TTM)-0.09
EYN/A
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)-0.16
FCFYN/A
OCF(TTM)-0.02
OCFYN/A
SpS8.05
BVpS4.65
TBVpS4.65
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -1.47%
ROE -2.07%
ROCE 0.87%
ROIC 0.61%
ROICexc 0.65%
ROICexgc 0.65%
OM 0.63%
PM (TTM) N/A
GM 7.1%
FCFM N/A
ROA(3y)20.71%
ROA(5y)12.47%
ROE(3y)32.72%
ROE(5y)19.49%
ROIC(3y)17.26%
ROIC(5y)11.93%
ROICexc(3y)20.17%
ROICexc(5y)13.69%
ROICexgc(3y)20.17%
ROICexgc(5y)13.69%
ROCE(3y)24.57%
ROCE(5y)16.98%
ROICexcg growth 3Y7.99%
ROICexcg growth 5Y11.65%
ROICexc growth 3Y7.99%
ROICexc growth 5Y11.65%
OM growth 3Y8.15%
OM growth 5Y12.26%
PM growth 3Y10.08%
PM growth 5Y23.31%
GM growth 3Y1.77%
GM growth 5Y2.89%
F-Score2
Asset Turnover1.23
Health
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF N/A
Debt/EBITDA 3.67
Cap/Depr 71.28%
Cap/Sales 1.82%
Interest Coverage 1.15
Cash Conversion N/A
Profit Quality N/A
Current Ratio 5.14
Quick Ratio 2.35
Altman-Z 1.98
F-Score2
WACC8.49%
ROIC/WACC0.07
Cap/Depr(3y)114.84%
Cap/Depr(5y)84.14%
Cap/Sales(3y)2.25%
Cap/Sales(5y)1.8%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-130.36%
EPS 3Y14.69%
EPS 5Y24.71%
EPS Q2Q%-200.99%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-19.24%
Revenue growth 3Y3.53%
Revenue growth 5Y0.36%
Sales Q2Q%-3.34%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-93.73%
EBIT growth 3Y11.97%
EBIT growth 5Y12.67%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-952.5%
FCF growth 3Y-6.07%
FCF growth 5YN/A
OCF growth 1Y-103.39%
OCF growth 3Y-1.3%
OCF growth 5YN/A