Education
About Us
Working with TipRanks
Follow Us
Tidewater Renewables Ltd. (TSE:LCFS)
TSX:LCFS
RESEARCH TOOLSreports
Top Page
Tidewater Renewables Ltd.
(TSX:LCFS)
52Neutral
Tidewater Renewables Ltd. (LCFS) vs. S&P 500 (SPY)
Market Cap
C$111.73M
Dividend YieldN/A
Average Volume (3M)22.60K
Price to Earnings (P/E)―
Beta (1Y)-0.86
Revenue Growth336.68%
EPS Growth-762.55%
CountryCA
Employees83
SectorUtilities
Sector Strength88
IndustryRenewable Utilities
Share Statistics
EPS (TTM)-10.19
Shares Outstanding36,393,000
10 Day Avg. Volume4,622
30 Day Avg. Volume22,600
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$4.06Price Target Upside34.44% Upside
Rating ConsensusHold
Number of Analyst Covering4
Tidewater Renewables Ltd. Business Overview & Revenue Model
Company DescriptionTidewater Renewables Ltd. engages in production of renewable fuel in North America. It intends to focus on the production of low carbon fuels, including renewable diesel, renewable hydrogen, and renewable natural gas, as well as carbon capture. The company intends to supply low carbon fuels to investment grade offtakers, existing customers, government entities, first nations groups, and others in the transportation, utilities, refining, marketing, power, and other industries. Tidewater Renewables Ltd. was incorporated in 2021 and is headquartered in Calgary, Canada.
How the Company Makes MoneyTidewater Renewables Ltd. generates revenue through the production and sale of renewable fuels, including renewable diesel and renewable natural gas. The company capitalizes on government incentives and credits related to low-carbon fuel standards (LCFS) and carbon offset programs, which enhance the profitability of its renewable products. Key revenue streams include long-term supply contracts with various industries, leveraging partnerships with governmental and non-governmental organizations, and investing in infrastructure that supports the efficient production and distribution of renewable fuels. Additionally, Tidewater Renewables may engage in joint ventures and strategic alliances to expand its market reach and optimize its operations, further contributing to its earnings.
Tidewater Renewables Ltd. Financial Statement Overview
Summary
Tidewater Renewables Ltd. is experiencing strong revenue growth but is grappling with profitability challenges and financial leverage risks. The company needs to manage expenses and debt levels to improve financial health. Cash flow management shows improvement, but more focus on generating positive free cash flow is necessary for sustainable growth.Income Statement
Tidewater Renewables Ltd. has shown significant revenue growth over the years, with 2024 revenue increasing notably from previous years. However, the company is still facing challenges in profitability, as indicated by the negative net income and EBITDA in recent years. The gross profit margin has improved, but the net profit margin remains negative, indicating that the company needs to manage its expenses more effectively to achieve profitability.―
Balance Sheet
The balance sheet shows a high level of debt with a debt-to-equity ratio of approximately 1.28 in 2024, which indicates financial leverage and potential risk. The equity ratio has decreased over time, reflecting a shrinking equity base relative to total assets. Return on equity is negative due to net losses, suggesting profitability challenges. The company needs to focus on improving its financial leverage and equity position.40
Cash Flow
Cash flow analysis reveals a positive operating cash flow, but free cash flow remains constrained due to capital expenditures. The free cash flow growth rate has improved from previous periods, reflecting better cash management. The operating cash flow to net income ratio is positive, indicating that the company is generating cash from operations despite net losses.―
| Breakdown | ||||
| Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 97.68M | 76.10M | 23.05M | 4.17M | 4.46M | Gross Profit |
| 44.05M | 46.13M | 8.93M | -1.78M | 950.00K | EBIT |
| 4.02M | 17.63M | 7.40M | -10.33M | -3.28M | EBITDA |
| -17.12M | 62.30M | 12.11M | -4.01M | 891.00K | Net Income Common Stockholders |
| -41.02M | 25.94M | 2.76M | -12.70M | -7.38M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 105.00K | 11.38M | 1.02M | -25.35M | -29.35M | Total Assets |
| 1.09B | 993.32M | 730.99M | 73.30M | 74.99M | Total Debt |
| 345.60M | 219.37M | 81.86M | 25.35M | 29.35M | Net Debt |
| 345.49M | 207.99M | 80.84M | 50.70M | 58.70M | Total Liabilities |
| 573.57M | 443.20M | 215.40M | 33.38M | 35.92M | Stockholders Equity |
| 506.63M | 543.63M | 515.60M | 39.92M | 39.07M |
| Cash Flow | Free Cash Flow | |||
| -180.02M | -177.13M | -24.62M | -8.01M | -29.41M | Operating Cash Flow |
| 22.78M | 67.44M | 6.36M | -4.43M | 559.00K | Investing Cash Flow |
| -136.04M | -194.50M | -213.15M | -3.02M | -30.14M | Financing Cash Flow |
| 101.98M | 137.41M | 207.81M | 7.45M | 29.59M |
Tidewater Renewables Ltd. Technical Analysis
Positive
3.02
Price Trends
2.59
Positive
1.68
Positive
2.43
Positive
Market Momentum
0.13
Positive
54.36
Neutral
41.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LCFS, the sentiment is Positive. The current price of 3.02 is below the 20-day moving average (MA) of 3.03, above the 50-day MA of 2.59, and above the 200-day MA of 2.43, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 54.36 is Neutral, neither overbought nor oversold. The STOCH value of 41.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:LCFS.
Tidewater Renewables Ltd. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | C$8.26B | 11.54 | 15.24% | 4.89% | -27.55% | -12.05% | |
67 Neutral | C$2.75B | 267.06 | 1.44% | 2.66% | 2.60% | ― | |
63 Neutral | $8.46B | 11.05 | 5.34% | 4.35% | 3.09% | -12.05% | |
61 Neutral | C$3.13B | 86.95 | 2.23% | 2.17% | -16.54% | -53.85% | |
52 Neutral | C$111.73M | ― | -108.78% | ― | 336.68% | -762.55% |
* Utilities Sector Average
Performance Comparison
TSE:LCFS
Tidewater Renewables Ltd.
3.02
-4.50
-59.84%
TSE:BLX
Boralex Inc Cl A
30.62
1.63
5.62%
TSE:CPX
Capital Power
52.59
18.13
52.61%
TSE:INE
Innergex Renewable Energy
13.56
5.31
64.36%
AQN
Algonquin Power & Utilities
5.38
-0.87
-13.92%
NPIFF
Northland Power
13.48
-1.43
-9.59%
Tidewater Renewables Ltd. Earnings Call Summary
Earnings Call Date:Mar 27, 2025
(Q3-2024)
| % Change Since: 25.31%|
Next Earnings Date:May 08, 2025
Earnings Call Sentiment Negative
The earnings call highlighted significant asset sales and debt reduction, strong operational performance at the HDRD Complex, and progress on a sustainable aviation fuel project. However, these positives were overshadowed by a significant decline in adjusted EBITDA, weak emission credit markets, and challenges related to trade remedies against U.S. imports.Q3-2024 Updates
Positive Updates
Asset Sale and Debt Reduction
Completed a significant transaction with Tidewater Midstream, selling key assets for $122 million, which was used to reduce outstanding debt on the senior credit facility.
HDRD Complex Performance
The HDRD Complex achieved a 95% utilization rate in Q3 2024, producing and selling over 140 million liters of renewable diesel since November 2023.
Sustainable Aviation Fuel Project Progress
Continued progress on the front-end engineering design for a 6,500-barrel per day sustainable aviation fuel project, fully funded through BC LCFS credits.
Negative Updates
Decline in Adjusted EBITDA
Adjusted EBITDA fell to $13.6 million in Q3 2024, down from $29.6 million in Q2 2024, due to the sale of EBITDA-generating assets and termination of take-or-pay contracts.
Weak Emission Credit Market
The demand and price for emission credits remain weak, impacting the company’s ability to compete with subsidized U.S. producers.
Trade Remedy Challenges
Engaged in trade remedy complaints against U.S. renewable diesel imports, which are unfairly priced and affect competitiveness. The outcome and timeline of this complaint are uncertain.
Company Guidance
During the Q3 2024 earnings call for Tidewater Renewables, the company provided significant guidance on its operations and financial performance. The company completed the sale of key assets to Tidewater Midstream, generating $122 million in cash proceeds, which were used to reduce debt. Tidewater Renewables also secured $7.7 million in BC LCFS credits from this transaction. The HDRD Complex achieved a 95% utilization rate, producing over 140 million liters of renewable diesel. The company reported adjusted EBITDA of $13.6 million for Q3, down from $29.6 million in Q2, primarily due to the asset sale. The first lien credit facility was reduced to $30 million and extended to February 2026. In addition, Tidewater Renewables is pursuing a trade remedy complaint against U.S. imports, anticipating potential duty relief by late Q2 2025. The company remains optimistic about policy support to create a level playing field with U.S. producers and continues to advance its sustainable aviation fuel project, funded by BC LCFS credits.Tidewater Renewables Ltd. Corporate Events
Business Operations and Strategy
Tidewater Renewables Reports Minor Fire at Diesel Refinery
Neutral
Apr 2, 2025
Tidewater Renewables Ltd. reported a minor fire incident at its renewable diesel refinery in Prince George, British Columbia. The fire has been extinguished with no injuries reported, and the company is investigating the incident. The damage appears minimal, and Tidewater Renewables expects no significant impact on its operations or financial results due to sufficient spare parts and inventory levels.
Executive/Board ChangesPrivate Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Tidewater Renewables Reports Improved Q4 2024 Results and Strategic Developments
Neutral
Mar 27, 2025
Tidewater Renewables Ltd. reported a net loss of $3.4 million for Q4 2024, a significant improvement from the previous year’s loss, due to gains on derivative contracts and joint venture income. Despite a decrease in Adjusted EBITDA, the company saw high utilization rates at its renewable diesel complex and continued progress on its sustainable aviation fuel project. The company also announced a refinancing of its credit facilities and a board change, with Thomas P. Dea joining as a director.
Business Operations and StrategyRegulatory Filings and Compliance
Tidewater Renewables Supports BC’s Low Carbon Fuels Act Amendments
Positive
Feb 28, 2025
Tidewater Renewables Ltd. welcomes the Government of British Columbia’s amendments to the Low Carbon Fuels Act, which aim to strengthen the Canadian biofuels sector. The changes, including an increase in the renewable fuel requirement for diesel and a mandate for Canadian production, are intended to create a fairer trade environment for Canadian producers against U.S. competition. This move is seen as a positive step for the economic viability of Tidewater Renewables and the broader Canadian biofuels industry, as it seeks to address unfair trade practices and support the industry’s growth.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.