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TERRAVEST INDUSTRIES INC (TVK.CA) Stock Fundamental Analysis

TSX:TVK - Toronto Stock Exchange - CA88105G1037 - Common Stock - Currency: CAD

118.83  -2.07 (-1.71%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to TVK. TVK was compared to 28 industry peers in the Energy Equipment & Services industry. TVK has an excellent profitability rating, but there are some minor concerns on its financial health. TVK shows excellent growth, but is valued quite expensive already. These ratings could make TVK a good candidate for growth investing.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

In the past year TVK was profitable.
TVK had a positive operating cash flow in the past year.
Each year in the past 5 years TVK has been profitable.
Each year in the past 5 years TVK had a positive operating cash flow.
TVK.CA Yearly Net Income VS EBIT VS OCF VS FCFTVK.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 2024 0 50M 100M 150M

1.2 Ratios

With a decent Return On Assets value of 7.33%, TVK is doing good in the industry, outperforming 60.71% of the companies in the same industry.
With a decent Return On Equity value of 17.29%, TVK is doing good in the industry, outperforming 71.43% of the companies in the same industry.
The Return On Invested Capital of TVK (12.58%) is better than 75.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TVK is in line with the industry average of 12.35%.
The last Return On Invested Capital (12.58%) for TVK is above the 3 year average (11.02%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 7.33%
ROE 17.29%
ROIC 12.58%
ROA(3y)7.05%
ROA(5y)7.71%
ROE(3y)20.45%
ROE(5y)22.07%
ROIC(3y)11.02%
ROIC(5y)10.81%
TVK.CA Yearly ROA, ROE, ROICTVK.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

TVK has a Profit Margin of 6.97%. This is in the better half of the industry: TVK outperforms 60.71% of its industry peers.
TVK's Profit Margin has been stable in the last couple of years.
TVK has a Operating Margin of 13.07%. This is in the better half of the industry: TVK outperforms 75.00% of its industry peers.
In the last couple of years the Operating Margin of TVK has grown nicely.
With a decent Gross Margin value of 28.88%, TVK is doing good in the industry, outperforming 67.86% of the companies in the same industry.
TVK's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 13.07%
PM (TTM) 6.97%
GM 28.88%
OM growth 3Y-4.18%
OM growth 5Y2.11%
PM growth 3Y-16.33%
PM growth 5Y-1.04%
GM growth 3Y3.29%
GM growth 5Y4.59%
TVK.CA Yearly Profit, Operating, Gross MarginsTVK.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

6

2. Health

2.1 Basic Checks

TVK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, TVK has more shares outstanding
Compared to 5 years ago, TVK has more shares outstanding
TVK has a better debt/assets ratio than last year.
TVK.CA Yearly Shares OutstandingTVK.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M
TVK.CA Yearly Total Debt VS Total AssetsTVK.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

2.2 Solvency

An Altman-Z score of 4.81 indicates that TVK is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.81, TVK belongs to the best of the industry, outperforming 89.29% of the companies in the same industry.
TVK has a debt to FCF ratio of 3.02. This is a good value and a sign of high solvency as TVK would need 3.02 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.02, TVK is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
TVK has a Debt/Equity ratio of 0.76. This is a neutral value indicating TVK is somewhat dependend on debt financing.
TVK has a Debt to Equity ratio of 0.76. This is in the lower half of the industry: TVK underperforms 67.86% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.76
Debt/FCF 3.02
Altman-Z 4.81
ROIC/WACC1.53
WACC8.21%
TVK.CA Yearly LT Debt VS Equity VS FCFTVK.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M

2.3 Liquidity

A Current Ratio of 2.44 indicates that TVK has no problem at all paying its short term obligations.
The Current ratio of TVK (2.44) is better than 78.57% of its industry peers.
TVK has a Quick Ratio of 1.12. This is a normal value and indicates that TVK is financially healthy and should not expect problems in meeting its short term obligations.
TVK has a Quick ratio (1.12) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 2.44
Quick Ratio 1.12
TVK.CA Yearly Current Assets VS Current LiabilitesTVK.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

9

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 43.79% over the past year.
Measured over the past years, TVK shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.76% on average per year.
Looking at the last year, TVK shows a very strong growth in Revenue. The Revenue has grown by 34.41%.
The Revenue has been growing by 24.38% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)43.79%
EPS 3Y18.04%
EPS 5Y22.76%
EPS Q2Q%-19.44%
Revenue 1Y (TTM)34.41%
Revenue growth 3Y43.67%
Revenue growth 5Y24.38%
Sales Q2Q%32.64%

3.2 Future

Based on estimates for the next years, TVK will show a very strong growth in Earnings Per Share. The EPS will grow by 25.01% on average per year.
The Revenue is expected to grow by 10.65% on average over the next years. This is quite good.
EPS Next Y25.62%
EPS Next 2Y25.01%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year14.28%
Revenue Next 2Y10.65%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
TVK.CA Yearly Revenue VS EstimatesTVK.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 200M 400M 600M 800M 1B
TVK.CA Yearly EPS VS EstimatesTVK.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1 2 3 4 5

3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 35.58, the valuation of TVK can be described as expensive.
TVK's Price/Earnings ratio is a bit more expensive when compared to the industry. TVK is more expensive than 71.43% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.27. TVK is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 28.51, TVK can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, TVK is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
TVK is valuated cheaply when we compare the Price/Forward Earnings ratio to 96.48, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 35.58
Fwd PE 28.51
TVK.CA Price Earnings VS Forward Price EarningsTVK.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

85.71% of the companies in the same industry are cheaper than TVK, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as TVK.
Industry RankSector Rank
P/FCF 23.14
EV/EBITDA 13.96
TVK.CA Per share dataTVK.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
TVK has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as TVK's earnings are expected to grow with 25.01% in the coming years.
PEG (NY)1.39
PEG (5Y)1.56
EPS Next 2Y25.01%
EPS Next 3YN/A

5

5. Dividend

5.1 Amount

TVK has a yearly dividend return of 0.54%, which is pretty low.
TVK's Dividend Yield is comparable with the industry average which is at 12.65.
With a Dividend Yield of 0.54, TVK pays less dividend than the S&P500 average, which is at 2.31.
Industry RankSector Rank
Dividend Yield 0.54%

5.2 History

On average, the dividend of TVK grows each year by 7.57%, which is quite nice.
TVK has paid a dividend for at least 10 years, which is a reliable track record.
As TVK did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)7.57%
Div Incr Years3
Div Non Decr Years9
TVK.CA Yearly Dividends per shareTVK.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6

5.3 Sustainability

TVK pays out 16.68% of its income as dividend. This is a sustainable payout ratio.
TVK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP16.68%
EPS Next 2Y25.01%
EPS Next 3YN/A
TVK.CA Yearly Income VS Free CF VS DividendTVK.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M 40M 60M 80M 100M
TVK.CA Dividend Payout.TVK.CA Dividend Payout, showing the Payout Ratio.TVK.CA Dividend Payout.PayoutRetained Earnings

TERRAVEST INDUSTRIES INC

TSX:TVK (2/13/2025, 7:00:00 PM)

118.83

-2.07 (-1.71%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)02-06 2025-02-06
Earnings (Next)N/A N/A
Inst Owners20.29%
Inst Owner ChangeN/A
Ins Owners30.11%
Ins Owner ChangeN/A
Market Cap2.32B
Analysts77.5
Price Target123.68 (4.08%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.54%
Yearly Dividend0.57
Dividend Growth(5Y)7.57%
DP16.68%
Div Incr Years3
Div Non Decr Years9
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.2%
Min EPS beat(2)-18.87%
Max EPS beat(2)-1.53%
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)1
Avg Revenue beat(2)0.39%
Min Revenue beat(2)-7.99%
Max Revenue beat(2)8.77%
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)-5.52%
PT rev (3m)19.26%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.04%
EPS NY rev (3m)-1.04%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)1.72%
Valuation
Industry RankSector Rank
PE 35.58
Fwd PE 28.51
P/S 2.54
P/FCF 23.14
P/OCF 14.81
P/B 6.3
P/tB 9.99
EV/EBITDA 13.96
EPS(TTM)3.34
EY2.81%
EPS(NY)4.17
Fwd EY3.51%
FCF(TTM)5.14
FCFY4.32%
OCF(TTM)8.02
OCFY6.75%
SpS46.76
BVpS18.85
TBVpS11.9
PEG (NY)1.39
PEG (5Y)1.56
Profitability
Industry RankSector Rank
ROA 7.33%
ROE 17.29%
ROCE 16.82%
ROIC 12.58%
ROICexc 13.1%
ROICexgc 16.37%
OM 13.07%
PM (TTM) 6.97%
GM 28.88%
FCFM 10.98%
ROA(3y)7.05%
ROA(5y)7.71%
ROE(3y)20.45%
ROE(5y)22.07%
ROIC(3y)11.02%
ROIC(5y)10.81%
ROICexc(3y)11.46%
ROICexc(5y)11.38%
ROICexgc(3y)13.53%
ROICexgc(5y)13.38%
ROCE(3y)15.1%
ROCE(5y)14.71%
ROICexcg growth 3Y9.18%
ROICexcg growth 5Y1.78%
ROICexc growth 3Y6.92%
ROICexc growth 5Y1.11%
OM growth 3Y-4.18%
OM growth 5Y2.11%
PM growth 3Y-16.33%
PM growth 5Y-1.04%
GM growth 3Y3.29%
GM growth 5Y4.59%
F-Score7
Asset Turnover1.05
Health
Industry RankSector Rank
Debt/Equity 0.76
Debt/FCF 3.02
Debt/EBITDA 1.47
Cap/Depr 81.24%
Cap/Sales 6.18%
Interest Coverage 4.93
Cash Conversion 83%
Profit Quality 157.53%
Current Ratio 2.44
Quick Ratio 1.12
Altman-Z 4.81
F-Score7
WACC8.21%
ROIC/WACC1.53
Cap/Depr(3y)88.83%
Cap/Depr(5y)84.51%
Cap/Sales(3y)5.77%
Cap/Sales(5y)5.41%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)43.79%
EPS 3Y18.04%
EPS 5Y22.76%
EPS Q2Q%-19.44%
EPS Next Y25.62%
EPS Next 2Y25.01%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)34.41%
Revenue growth 3Y43.67%
Revenue growth 5Y24.38%
Sales Q2Q%32.64%
Revenue Next Year14.28%
Revenue Next 2Y10.65%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y52.02%
EBIT growth 3Y37.66%
EBIT growth 5Y27%
EBIT Next Year65.95%
EBIT Next 3Y31.84%
EBIT Next 5Y23.09%
FCF growth 1Y118.98%
FCF growth 3Y193.03%
FCF growth 5Y49.63%
OCF growth 1Y97.47%
OCF growth 3Y89.32%
OCF growth 5Y38.25%