Tornado Global Hydrovacs (TGH) AI Stock Analysis

• Market Cap: C$263.00M
• Dividend Yield: N/A
• Average Volume (3M): 167.67K
• Price to Earnings (P/E): 24.0
• Beta (1Y): 1.10
• Revenue Growth: 21.95%
• EPS Growth: 11.63%
• Country: CA
• Employees: N/A
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 0.03
• Shares Outstanding: 138,423,080
• 10 Day Avg. Volume: 382,608
• 30 Day Avg. Volume: 167,669
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: C$2.00 ▲(4.17% Upside)

Tornado Global Hydrovacs is well-positioned with strong financial performance and positive technical indicators. The company's robust revenue growth and improved profitability are significant strengths. However, the valuation is moderate, and the absence of a dividend yield may deter income-focused investors. The technical indicators suggest a bullish trend, but caution is advised due to potential overbought conditions.

Positive Factors

Revenue Growth

Strong revenue growth suggests increasing market demand and effective sales strategies, positioning the company well for future expansion.

Margin Improvement

Improved margins reflect efficient cost management and pricing power, enhancing profitability and competitive positioning.

Cash Flow Improvement

Positive cash flow from operations indicates strong cash generation ability, supporting reinvestment and financial stability.

Negative Factors

Free Cash Flow

Limited free cash flow suggests potential constraints on funding growth initiatives without external financing, impacting long-term expansion.

Dividend Policy

Lack of dividends may deter income-focused investors, potentially limiting the investor base and affecting stock attractiveness.

Balance Sheet Attention

While leverage is reduced, maintaining a stable balance sheet is essential to support growth without compromising financial health.

Tornado Global Hydrovacs Business Overview & Revenue Model

Company Description

Tornado Infrastructure Equipment Ltd., through its subsidiaries, designs, fabricates, manufactures, and sells hydrovac trucks in North America. The company also operates parts and services center, as well as involved in rental business. It serves excavation service providers in the municipal, and oil and gas market. The company was formerly known as Tornado Global Hydrovacs Ltd. and changed its name to Tornado Infrastructure Equipment Ltd. in December 2024. Tornado Infrastructure Equipment Ltd. was incorporated in 2016 and is headquartered in Calgary, Canada.

How the Company Makes Money

Tornado Global Hydrovacs generates revenue through multiple streams, including the sale of hydrovac trucks and related equipment, aftermarket parts, and maintenance services. The primary revenue model is based on direct sales of custom-built hydrovac units tailored to client specifications. Additionally, TGH earns income from service contracts, providing ongoing maintenance, repair, and parts supply for customers' fleets. The company has established partnerships with key players in the construction and utility sectors, enhancing its market presence and facilitating access to a broader customer base. Furthermore, TGH may benefit from industry trends favoring non-destructive excavation methods, which could lead to increased demand for their products and services.

Tornado Global Hydrovacs Financial Statement Overview

Summary

Tornado Global Hydrovacs demonstrates strong financial health with impressive revenue and profit growth, improved margins, and a stable balance sheet. While cash flow metrics are improving, continued focus on cash generation will be essential to support ongoing expansion and operational efficiency.

Income Statement

Tornado Global Hydrovacs has demonstrated strong revenue growth, with a significant increase from $32.9M in 2021 to $136.9M in 2024, indicating a robust expansion trajectory. The gross profit margin has improved, reflecting efficient cost management. Net profit margin has also increased, showcasing enhanced profitability. The EBIT and EBITDA margins have strengthened, indicating solid operational performance.

Balance Sheet

The company's debt-to-equity ratio has improved, suggesting a more stable financial structure with reduced leverage. Return on equity has increased, reflecting better utilization of shareholder funds. The equity ratio indicates a healthy proportion of equity financing, enhancing financial stability. However, attention to maintaining this balance is crucial as the company grows.

Cash Flow

Operating cash flow has turned positive and is growing, which is a positive sign of cash generation from core operations. Free cash flow has also improved, although it remains relatively modest compared to net income, suggesting room for further enhancement in cash flow efficiency. The operating cash flow to net income ratio indicates a solid conversion of income to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	161.07M	136.89M	105.01M	59.52M	32.90M
Gross Profit	35.21M	25.63M	19.60M	10.86M	6.00M
EBITDA	20.01M	15.32M	11.39M	4.22M	-1.58M
Net Income	12.98M	10.30M	7.34M	2.46M	-3.21M
Balance Sheet
Total Assets	111.42M	65.27M	47.20M	40.51M	25.32M
Cash, Cash Equivalents and Short-Term Investments	13.48M	4.68M	4.40M	3.42M	834.00K
Total Debt	32.87M	5.55M	7.91M	10.04M	5.91M
Total Liabilities	64.04M	28.95M	22.86M	24.47M	13.19M
Stockholders Equity	47.38M	36.31M	24.34M	16.04M	12.13M
Cash Flow
Free Cash Flow	13.87M	3.02M	3.48M	-4.25M	815.00K
Operating Cash Flow	17.78M	5.13M	4.35M	-3.53M	2.42M
Investing Cash Flow	-30.84M	-2.09M	-866.00K	997.00K	-1.06M
Financing Cash Flow	23.27M	-2.94M	-2.43M	5.05M	-2.65M

Tornado Global Hydrovacs Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TGH, the sentiment is Positive. The current price of 1.92 is above the 20-day moving average (MA) of 1.91, above the 50-day MA of 1.90, and above the 200-day MA of 1.66, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 64.59 is Neutral, neither overbought nor oversold. The STOCH value of 88.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TGH.

Tornado Global Hydrovacs Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TGH	75 Outperform	C$263.00M	23.99	32.54%	―	21.95%	11.63%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DRX	63 Neutral	C$197.00M	5.85	16.89%	0.49%	-26.61%	-45.62%
ACT	56 Neutral	C$613.58M	-36.08	-114.59%	―	-33.91%	-40.26%
ANRG	54 Neutral	C$388.80M	-10.92	―	―	28.43%	80.34%