TREE ISLAND STEEL LTD (TSL.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TSL - CA89467Q2009 - Common Stock
2.65 CAD
0 (0%)
TSL gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 820 industry peers in the Metals & Mining industry. While TSL seems to be doing ok healthwise, there are quite some concerns on its profitability. TSL is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year TSL has reported negative net income.
- 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 4 of the past 5 years.
1.2 Ratios
- TSL's Return On Assets of -3.24% is fine compared to the rest of the industry. TSL outperforms 77.68% of its industry peers.
- TSL has a better Return On Equity (-4.67%) than 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.24% | ||
| ROE | -4.67% | ||
| ROIC | N/A |
ROA(3y)6.94%
ROA(5y)12.66%
ROE(3y)9.49%
ROE(5y)20.96%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- TSL has a better Gross Margin (5.70%) than 85.61% of its industry peers.
- TSL's Gross Margin has declined in the last couple of years.
- TSL does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 5.7% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-36.96%
GM growth 5Y-8.51%
2. Health
2.1 Basic Checks
- TSL does not have a ROIC to compare to the WACC, probably because it is not profitable.
- The number of shares outstanding for TSL has been reduced compared to 1 year ago.
- Compared to 5 years ago, TSL has less shares outstanding
- TSL has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.46, we must say that TSL is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.46, TSL is in line with its industry, outperforming 42.68% of the companies in the same industry.
- A Debt/Equity ratio of 0.26 indicates that TSL is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.26, TSL is not doing good in the industry: 68.05% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.46 |
ROIC/WACCN/A
WACC9.81%
2.3 Liquidity
- TSL has a Current Ratio of 4.28. This indicates that TSL is financially healthy and has no problem in meeting its short term obligations.
- TSL has a better Current ratio (4.28) than 69.88% of its industry peers.
- TSL has a Quick Ratio of 1.59. This is a normal value and indicates that TSL is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.59, TSL is in line with its industry, outperforming 50.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.28 | ||
| Quick Ratio | 1.59 |
3. Growth
3.1 Past
- TSL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -113.71%.
- TSL shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.85%.
- Measured over the past years, TSL shows a small growth in Revenue. The Revenue has been growing by 0.65% on average per year.
EPS 1Y (TTM)-113.71%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-17.86%
Revenue 1Y (TTM)-16.85%
Revenue growth 3Y-11.81%
Revenue growth 5Y0.65%
Sales Q2Q%-28.63%
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.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings Ratio is negative for TSL. In the last year negative earnings were reported.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TSL indicates a rather cheap valuation: TSL is cheaper than 90.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 34.25 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
- TSL has a Yearly Dividend Yield of 2.23%.
- TSL's Dividend Yield is rather good when compared to the industry average which is at 0.56. TSL pays more dividend than 98.41% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, TSL pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
5.2 History
- On average, the dividend of TSL grows each year by 8.48%, 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)8.48%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- TSL has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-43.77%
EPS Next 2YN/A
EPS Next 3YN/A
TREE ISLAND STEEL LTD / TSL.CA FAQ
Can you provide the ChartMill fundamental rating for TREE ISLAND STEEL LTD?
ChartMill assigns a fundamental rating of 3 / 10 to TSL.CA.
What is the valuation status for TSL stock?
ChartMill assigns a valuation rating of 1 / 10 to TREE ISLAND STEEL LTD (TSL.CA). This can be considered as Overvalued.
Can you provide the profitability details for TREE ISLAND STEEL LTD?
TREE ISLAND STEEL LTD (TSL.CA) has a profitability rating of 3 / 10.
How sustainable is the dividend of TREE ISLAND STEEL LTD (TSL.CA) stock?
The dividend rating of TREE ISLAND STEEL LTD (TSL.CA) is 5 / 10 and the dividend payout ratio is -43.77%.