Education
About Us
Working with TipRanks
Follow Us
Thermal Energy International (TSE:TMG)
:TMG
Top Page
Thermal Energy International
(TMG)
62Neutral
Thermal Energy International (TMG) vs. S&P 500 (SPY)
Market Cap
C$20.77M
Dividend YieldN/A
Average Volume (3M)140.43K
Price to Earnings (P/E)34.3
Beta (1Y)-0.05
Revenue Growth17.76%
EPS Growth-72.66%
CountryCA
EmployeesN/A
SectorEnergy
Sector Strength74
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)<0.01
Shares Outstanding173,114,300
10 Day Avg. Volume109,034
30 Day Avg. Volume140,426
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.70
Price to Cash Flow (P/CF)-2.90
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Thermal Energy International Business Overview & Revenue Model
Company DescriptionThermal Energy International (TMG) specializes in providing innovative energy efficiency and carbon emission reduction solutions for industrial and institutional clients. The company operates within the clean technology sector, focusing on the design, development, and implementation of energy-saving systems and products such as heat recovery, steam traps, and condensate return solutions. Their core offerings aim to help clients reduce energy consumption, lower operating costs, and meet sustainability goals.
How the Company Makes MoneyThermal Energy International makes money through the sale and implementation of its energy efficiency products and services. Key revenue streams include project-based sales of customized energy solutions, recurring service contracts, and long-term energy savings agreements with clients. The company also benefits from strategic partnerships with manufacturers and distributors to enhance the reach and deployment of its technologies. Revenue is further supported by government incentives and subsidies aimed at promoting green technologies and reducing carbon footprints, which can positively impact the company's financial performance.
Thermal Energy International Financial Statement Overview
Summary
Thermal Energy International demonstrates robust revenue growth and improving profitability metrics, underscoring effective operational strategies in the industrial goods sector. While the balance sheet is relatively stable, attention to debt levels and cash flow management is essential to sustain long-term growth and mitigate financial risks.Income Statement
The company shows a strong revenue growth trajectory with a substantial increase in total revenue from previous years. Gross profit margin is healthy at about 40%, and net profit margin is improving, reflecting better operational efficiency. EBIT and EBITDA margins indicate positive earnings performance. However, the company experienced a dip in EBIT margin in the TTM period, suggesting some operational challenges.78
Positive
Balance Sheet
The balance sheet displays moderate leverage with a debt-to-equity ratio of approximately 0.85 in the TTM period, which is manageable but worth monitoring. Return on equity has improved significantly due to rising net income, indicating efficient use of equity capital. The equity ratio is also healthy, providing a solid foundation for further growth. However, total debt levels require careful management to avoid financial strain.72
Positive
Cash Flow
The company exhibits strong free cash flow generation, with a positive growth rate in recent periods, supporting liquidity and investment capacity. The operating cash flow to net income ratio above 1 indicates strong cash generation relative to net income. Yet, the free cash flow to net income ratio suggests potential fluctuations in cash availability, highlighting the need for prudent cash management.65
Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 30.73M | 25.88M | 21.09M | 15.91M | 15.35M | 21.42M |
| Gross Profit | |||||
| 12.40M | 12.45M | 9.57M | 6.73M | 6.75M | 8.95M |
| EBIT | |||||
| 1.03M | 1.37M | 1.14M | -1.41M | 335.47K | -1.79M |
| EBITDA | |||||
| 1.90M | 2.14M | 1.76M | -772.74K | 894.88K | -1.44M |
| Net Income Common Stockholders | |||||
| 598.75K | 929.50K | 717.96K | -1.92M | 198.13K | -1.90M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.82M | 6.97M | 2.81M | 2.46M | 4.24M | 4.77M |
| Total Assets | |||||
| 13.61M | 16.79M | 13.51M | 9.60M | 11.55M | 10.44M |
| Total Debt | |||||
| 3.34M | 3.89M | 4.73M | 5.31M | 4.81M | 3.30M |
| Net Debt | |||||
| 521.68K | -3.07M | 1.92M | 2.84M | 572.63K | -1.48M |
| Total Liabilities | |||||
| 9.72M | 13.37M | 11.59M | 8.55M | 8.58M | 8.44M |
| Stockholders Equity | |||||
| 3.93M | 3.46M | 1.97M | 1.08M | 3.04M | 2.10M |
| Cash Flow | Free Cash Flow | ||||
| 753.69K | 5.02M | 1.33M | -1.99M | -1.31M | 1.03M |
| Operating Cash Flow | |||||
| 867.51K | 5.40M | 1.41M | -1.64M | -1.19M | 1.31M |
| Investing Cash Flow | |||||
| -113.83K | -376.89K | -77.70K | -351.93K | -125.39K | -280.55K |
| Financing Cash Flow | |||||
| -1.29M | -1.06M | -1.04M | 357.56K | 892.79K | -451.09K |
Thermal Energy International Technical Analysis
Negative
0.12
Price Trends
0.14
Negative
0.17
Negative
0.20
Negative
Market Momentum
>-0.01
Negative
41.04
Neutral
<0.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TMG, the sentiment is Negative. The current price of 0.12 is below the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.14, and below the 200-day MA of 0.20, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 41.04 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TMG.
Thermal Energy International Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $5.10B | 18.92 | 6.48% | 6.61% | 5.08% | ― | |
66 Neutral | C$15.68M | ― | -5.60% | ― | -10.37% | 95.22% | |
65 Neutral | C$534.80M | ― | -14.10% | ― | 31.68% | 67.90% | |
62 Neutral | C$20.77M | 34.29 | 17.34% | ― | 17.76% | -72.66% | |
58 Neutral | $9.12B | 5.24 | -7.59% | 7.51% | 0.53% | -65.25% |
* Energy Sector Average
Performance Comparison
TSE:TMG
Thermal Energy International
0.12
-0.18
-60.00%
TSE:NPI
Northland Power
18.56
-2.47
-11.72%
TSE:GRN
Greenlane Renewables Inc
0.10
0.00
0.00%
TSE:BLN
Blackline Safety
6.36
2.13
50.35%
Thermal Energy International Earnings Call Summary
Earnings Call Date: Jan 28, 2025 | % Change Since: -50.00% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted record-breaking revenue and strong cash flow, supported by strategic investments for future growth. However, the decline in profitability metrics and lower margins due to a product mix shift are significant challenges. The increase in order backlog provides a positive outlook, but current order intake remains below last year's levels.Highlights
Record-Breaking Revenue
Revenue for the quarter was a record $8.7 million, up from $7.1 million a year ago, and more than double from two years ago. Trailing 12-month revenue reached an all-time high of $30.7 million, representing a $4.6 million increase from the previous year.
Strong Performance in Heat Recovery Business
The turnkey heat recovery business achieved its highest quarterly revenues in five years and set a record for trailing 12-month revenue, reflecting strong demand for energy efficiency solutions.
Positive Operating Cash Flow and Strong Balance Sheet
Despite significant investments, the company continues to generate positive operating cash flow and has a strong balance sheet with $2.8 million in cash and cash equivalents, $3.7 million in working capital, and $1.9 million in debt.
Significant Investments for Future Growth
Investments include a larger UK facility, increased headcount by 18 positions, and new technology initiatives like the CREST app. These are expected to drive long-term growth.
Increase in Order Backlog
Order backlog increased to about $18 million by January 27, 2025, boosted by an additional $5 million in orders received since the end of the second quarter.
Lowlights
Decline in Profitability Metrics
EBITDA for the quarter decreased to $270,000 from $830,000 a year ago, and net income dropped to $28,000 from $486,000. Trailing 12-month EBITDA was $1.6 million, down from $3.2 million the previous year.
Lower Margins Due to Product Mix
The shift towards lower-margin turnkey heat recovery projects negatively impacted gross profit, EBITDA, and net income for the quarter.
Order Intake Lower Than Previous Year
Order intake for the first six months of fiscal 2025 was $10.1 million, with both order intake and backlog figures still lower than they were a year ago.
Company Guidance
In their second-quarter earnings call for fiscal year 2025, Thermal Energy International reported record revenue of $8.7 million, up from $7.1 million the previous year, with trailing 12-month revenue hitting an all-time high of $30.7 million. Despite remaining profitable, the company experienced a decrease in EBITDA to $270,000 from $830,000 a year ago, largely due to a shift towards lower-margin turnkey heat recovery projects and substantial investments in future growth, such as their larger UK plant and a new mobile app, CREST. Net income for the quarter was $28,000, down from $486,000 the previous year. The company maintained positive operating cash flow, with cash and cash equivalents at $2.8 million and $3.7 million in working capital against $1.9 million in debt. Order intake reached $10.1 million for the first half of fiscal 2025, with an order backlog of $13 million, later increasing to $18 million by January 27, 2025. Despite profitability challenges, the company is optimistic about future benefits from its recent investments, expecting growth in fiscal 2026 and beyond.Thermal Energy International Corporate Events
Business Operations and Strategy
Thermal Energy Secures Landmark Engineering Contract with Major Pharmaceutical Firm
Positive
Feb 11, 2025
Thermal Energy International has secured its largest engineering contract to date, valued at $500,000, with a major multinational pharmaceutical company for a potential heat recovery project. This deal marks the second significant engagement with a leading pharmaceutical company and reflects the firm’s strategic positioning in the industry. The project aligns with the pharmaceutical sector’s commitment to reducing carbon emissions, contributing to the United Nation’s Race to Zero campaign. This contract showcases Thermal Energy’s capacity to deliver extensive engineering solutions and highlights the untapped potential for large-scale heat recovery projects within the pharmaceutical industry.
Business Operations and StrategyFinancial Disclosures
Thermal Energy Achieves Record Revenue Amid Strategic Expansion
Positive
Jan 28, 2025
Thermal Energy International Inc. reported record revenue for the second quarter ending November 30, 2024, with a 22% increase to $8.7 million. Despite lower profitability due to product mix changes and increased investments in infrastructure and staff, the company achieved significant progress in its growth strategy. Thermal Energy’s recent investments, including a larger UK production facility and new technologies, have yet to yield their full benefits, but have set the stage for future expansion. The company noted a strong order backlog and maintained positive cash flow from operations, reinforcing its financial stability and strategic growth plans.
Thermal Energy International to Release Q2 2025 Results
Jan 15, 2025
Thermal Energy International announced that it will release its second quarter financial results for fiscal 2025 on January 28, 2025. The release will be followed by an earnings conference call and webcast, providing an opportunity for qualified equity analysts to engage in a question-and-answer session. This announcement highlights the company’s ongoing commitment to transparency and engagement with stakeholders, potentially impacting investor perceptions and market positioning.
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.