Education
About Us
Working with TipRanks
Follow Us
Timbercreek Fin Corp (TSE:TF)
TSX:TF
Top Page
Timbercreek Financial
(TSX:TF)
69Neutral
Timbercreek Financial (TF) vs. S&P 500 (SPY)
Market Cap
C$531.26M
Dividend Yield10.78%
Average Volume (3M)287.86K
Price to Earnings (P/E)11.5
Beta (1Y)0.87
Revenue Growth-10.87%
EPS Growth-30.08%
CountryCA
EmployeesN/A
SectorFinancial
Sector Strength84
IndustryFinancial - Mortgages
Share Statistics
EPS (TTM)0.56
Shares Outstanding83,009,514
10 Day Avg. Volume167,981
30 Day Avg. Volume287,861
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.39
Price to Cash Flow (P/CF)-1.10
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$7.50Price Target Upside17.19% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Timbercreek Financial Business Overview & Revenue Model
Company DescriptionTimbercreek Financial Corp., a mortgage investment company, provides shorter-duration structured financing solutions to commercial real estate investors in Canada. It focuses on lending against income-producing commercial real estate properties, such as multi-residential, office, and retail buildings located in urban markets. The company was founded in 2016 and is headquartered in Toronto, Canada.
How the Company Makes MoneyTimbercreek Financial generates revenue through interest income from its portfolio of mortgage loans. The company primarily issues short-term, structured mortgages to commercial real estate investors, earning interest on the principal amount lent. Timbercreek Financial's loans are typically secured by real estate assets, which helps mitigate risks and maintain asset quality. The company also benefits from fee income associated with originating and servicing these loans. Additionally, Timbercreek Financial leverages its expertise in real estate markets to effectively manage its loan portfolio, ensuring a steady stream of interest income while maintaining low credit risk. Strategic partnerships with real estate developers and investors further enhance its ability to generate consistent earnings.
Timbercreek Financial Financial Statement Overview
Summary
Timbercreek Financial's financial performance is mixed. The income statement reflects strong operational margins but challenges in revenue growth and declining net income. The balance sheet shows moderate leverage but declining returns on equity. Negative free cash flow highlights cash management concerns.Income Statement
Timbercreek Financial's income statement shows a solid gross profit margin and a decent net profit margin in the TTM (Trailing-Twelve-Months). However, there is a noticeable drop in total revenue compared to the previous year, indicating a revenue growth challenge. Despite this, the company maintains a healthy EBIT margin, reflecting operational efficiency. Net income has decreased compared to the previous year, impacting the overall profitability.75
Positive
Balance Sheet
The balance sheet highlights a moderate debt-to-equity ratio, indicating a balanced approach to leverage. The equity ratio is stable, suggesting moderate reliance on debt financing. Return on equity has decreased, reflecting a reduction in profitability from equity investments. The overall financial stability is moderate, with room for improving equity returns.68
Positive
Cash Flow
The cash flow statement reveals significant negative free cash flow in the TTM, contrasting with positive cash flow in previous years. The operating cash flow to net income ratio indicates challenges in converting net income into cash. The company needs to focus on improving cash flow generation to support future growth and stability.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 161.40M | 180.97M | 148.31M | 116.57M | 125.70M | Gross Profit |
| 73.12M | 80.64M | 65.52M | 56.92M | 59.25M | EBIT |
| 77.85M | 105.81M | 88.15M | 60.85M | 62.59M | EBITDA |
| 56.19M | 75.42M | 64.92M | 48.05M | 54.45M | Net Income Common Stockholders |
| 46.16M | 66.42M | 25.10M | 32.49M | 22.13M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 13.30M | 4.80M | 2.83M | 6.34M | 428.00K | Total Assets |
| 1.73B | 1.79B | 1.92B | 1.73B | 1.71B | Total Debt |
| 537.27M | 402.58M | 591.11M | 587.86M | 580.09M | Net Debt |
| 523.97M | 397.78M | 588.28M | 581.52M | 579.67M | Total Liabilities |
| 1.05B | 1.08B | 1.22B | 1.05B | 1.03B | Stockholders Equity |
| 686.60M | 701.14M | 698.54M | 684.58M | 685.05M |
| Cash Flow | Free Cash Flow | |||
| -69.08M | 90.19M | 83.17M | 81.61M | 79.39M | Operating Cash Flow |
| -69.08M | 90.19M | 83.17M | 81.61M | 79.39M | Investing Cash Flow |
| 1.66M | 203.24M | -44.18M | -21.38M | 60.18M | Financing Cash Flow |
| 75.95M | -291.39M | -42.45M | -54.18M | -148.04M |
Timbercreek Financial Technical Analysis
Negative
6.40
Price Trends
6.62
Negative
6.85
Negative
7.09
Negative
Market Momentum
-0.02
Negative
48.04
Neutral
69.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TF, the sentiment is Negative. The current price of 6.4 is below the 20-day moving average (MA) of 6.51, below the 50-day MA of 6.62, and below the 200-day MA of 7.09, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 48.04 is Neutral, neither overbought nor oversold. The STOCH value of 69.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TF.
Timbercreek Financial Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | C$719.67M | 8.97 | 13.72% | 8.54% | 26.81% | -6.49% | |
75 Outperform | C$431.63M | 11.80 | 8.57% | 8.02% | -0.70% | 1.11% | |
69 Neutral | C$531.26M | 11.51 | 6.65% | 10.78% | -10.87% | -30.08% | |
69 Neutral | C$502.51M | 9.95 | 9.58% | 8.58% | -1.56% | -9.70% | |
63 Neutral | $14.39B | 9.81 | 8.95% | 4.37% | 16.38% | -11.64% |
* Financial Sector Average
Performance Comparison
TSE:TF
Timbercreek Financial
6.40
-0.55
-7.91%
CBWBF
Canadian Western Bank
39.71
19.87
100.15%
TSE:AI
Atrium Mortgage Invest
10.60
0.02
0.19%
TSE:FC
Firm Cap Mortgage Invest
11.67
1.31
12.64%
TSE:MKP
MCAN Mortgage
18.50
4.22
29.55%
TMXXF
TMX Group
37.68
11.46
43.71%
Timbercreek Financial Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -3.90% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a cautious optimism with stable financial performance and a positive outlook for market recovery and portfolio growth. However, challenges such as reduced transaction volume and lower portfolio balances were noted. Management expressed confidence in leveraging future market conditions for continued growth.Highlights
Stable Cash Flows and Dividends
Timbercreek Financial reported stable cash flows and dividends despite reduced transaction volume in the commercial real estate market. Net investment income was $25.4 million, and Q3 net income was $14.1 million with distributable income of $0.18 per share.
Portfolio Growth
The overall portfolio of loan investments increased in each of the first three quarters of 2024, growing by more than $70 million year-to-date.
Positive Market Outlook
Anticipation of further rate cuts by the Bank of Canada is expected to strengthen market conditions, driving increased financing opportunities.
Successful Capital Deployment
In Q3, $106 million was advanced in new mortgage investments, resulting in a net portfolio growth of about $14 million over Q2.
Decreased Interest Expenses
Interest expenses decreased by 22% compared to the previous year due to lower credit utilization.
Lowlights
Reduced Transaction Volume
There was a reduction in transaction volume due to volatility in the commercial real estate markets.
Lower Portfolio Balances
Average net mortgage investment portfolio balance was 11% lower than the previous year, impacting year-over-year income comparisons.
Decreasing Weighted Average Interest Rate
The portfolio's weighted average interest rate decreased from 9.8% in Q2 to 9.3% in Q3, reflecting the repayment of higher interest rate loans.
Stage 3 Loan Challenges
Movements within Stage 3 loans included loans related to industrial development sites and a residential development site in Downtown Toronto, indicating ongoing challenges.
Company Guidance
During Timbercreek Financial's Q3 2024 earnings call, management provided guidance highlighting several key financial metrics. The company reported a net investment income of $25.4 million and net income of $14.1 million for the quarter. Distributable income was stated at $0.18 per share, with a payout ratio of 95%. The current book value per share was reported as $8.42, surpassing the weighted average trading price during Q3. Portfolio metrics were largely stable, with 83.2% of investments in cash flow-generating properties and first mortgages accounting for 87.1% of the portfolio. The weighted average loan-to-value (LTV) increased slightly to 63.8%, while the portfolio's weighted average interest rate decreased to 9.3% from 9.8% in Q2, reflecting the Bank of Canada's 75-basis point policy rate cut. Timbercreek's loan portfolio grew by $14 million over Q2, with $106 million in new mortgage investments and $82.7 million in repayments, reflecting a turnover ratio of 8.4%. Management expressed optimism for continued growth in transaction volumes in 2025, with expectations for further rate cuts to enhance market conditions and financing opportunities.Timbercreek Financial Corporate Events
DividendsFinancial Disclosures
Timbercreek Financial Reports Strong Q4 2024 Results Amid Market Recovery
Positive
Feb 26, 2025
Timbercreek Financial reported significant growth in its net mortgage investment portfolio, increasing by $143.6 million to $1,089.8 million by the end of Q4 2024, driven by a favorable market environment and reduced interest rates. The company maintained strong distributable income and declared dividends, with a healthy payout ratio and a yield premium over Canadian bonds. Despite challenges in the Calgary office market, Timbercreek Financial continues to stabilize assets and expects robust transaction volumes and income growth in 2025.
DividendsBusiness Operations and Strategy
Timbercreek Financial Declares February 2025 Dividend and Enhances Shareholder Options
Positive
Feb 20, 2025
Timbercreek Financial has announced a monthly cash dividend of $0.0575 per common share to be paid on March 14, 2025, to shareholders on record as of February 28, 2025. The company also offers a Dividend Reinvestment Plan allowing shareholders to reinvest dividends into additional shares at potentially discounted rates without incurring extra fees. This announcement reflects Timbercreek Financial’s commitment to providing value to its shareholders and enhancing its market positioning by offering flexible investment options.
Financial Disclosures
Timbercreek Financial Schedules Q4 Results Conference Call
Neutral
Feb 18, 2025
Timbercreek Financial announced a conference call scheduled for February 26, 2025, to discuss its fourth-quarter financial results for the period ending December 31, 2024. The results will be released on February 25, 2025, after market close, and the call will include a Q&A session with analysts. This announcement highlights the company’s commitment to transparency and engagement with stakeholders, potentially impacting investor confidence and market perception.
Legal ProceedingsBusiness Operations and Strategy
Timbercreek Financial Resolves Key Loans with Successful Asset Management and Redeployment Plans
Positive
Feb 5, 2025
Timbercreek Financial announced progress in resolving loans made to Groupe Sélection Inc., following its restructuring under the Companies’ Creditors Arrangement Act. The company, along with partners, has successfully facilitated the sale of a retirement residence and advanced the completion of a residential building, expecting full loan repayment soon, which enables capital redeployment into new core asset loans.
Dividends
Timbercreek Financial Announces January 2025 Dividend and Reinvestment Plan
Positive
Jan 23, 2025
Timbercreek Financial has declared a monthly cash dividend of $0.0575 per common share for January 2025, with payment scheduled for February 14, 2025. The company also offers a Dividend Reinvestment Plan, allowing shareholders to reinvest dividends to purchase additional shares either in the open market or from treasury at a discount, enhancing shareholder value and potentially improving market liquidity.
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.