Tree Island Steel (TSL) AI Stock Analysis

• Market Cap: C$64.47M
• Dividend Yield: 3.63%
• Average Volume (3M): 16.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.46
• Revenue Growth: -9.16%
• EPS Growth: -311.26%
• Country: CA
• Employees: 420
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Steel
• EPS (TTM): 0.00
• Shares Outstanding: 25,996,100
• 10 Day Avg. Volume: 8,864
• 30 Day Avg. Volume: 16,462
• PEG Ratio: 0.72
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.73
• 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: C$2.50
• Price Target Upside: 0.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: C$2.50 ▲(0.81%Upside)

Tree Island Steel's overall stock score reflects significant financial challenges, including declining revenues and profitability, which are the most impactful factors. Technical indicators are neutral to slightly negative, and valuation concerns exist due to a negative P/E ratio. Corporate events provide some positive sentiments but are overshadowed by revenue declines and operational challenges.

Tree Island Steel Business Overview & Revenue Model

Company Description

Tree Island Steel Ltd. manufactures and sells steel wire and fabricated steel wire products for industrial, construction, agricultural, and specialty applications in Canada, the United States, and internationally. It offers industrial products, such as pulp and unitizing, recycling wire, chain link, upholstery, low carbon, and shaped wires, as well as straight and cut bars and wirelines for use in the oil industry. The company also provides residential products, including bulk and collated nails, packaged nails and fasteners, and packaged and bulk screws; nail head identification systems; and woven and welded wires, and corners and accessories. In addition, it offers commercial products comprising reinforcing mesh, pipe mesh and flexicage, Rebar tie wire, and engineered structural mesh, concrete reinforcing wires, as well as mine mesh products. Further, the company provides agricultural products consisting of agricultural wire, rolled fencing, fence panels, and fence staples and stay. Tree Island Steel Ltd. markets its products under the Tree Island, Halsteel, True Spec, K-Lath, Stucco-Rite, TI Wire, Tough Strand, and ToughPanel brand names. The company was formerly known as Tree Island Wire Income Fund and changed its name to Tree Island Steel Ltd. in October 2012. Tree Island Steel Ltd. was founded in 1964 and is headquartered in Richmond, Canada.

How the Company Makes Money

Tree Island Steel makes money through the production and sale of various wire products and wire-related merchandise. The company's key revenue streams include sales of galvanized wire, bright wire, and other specialty wire products used in construction, industrial applications, and agricultural fencing. Tree Island Steel leverages its extensive manufacturing capabilities and distribution network to supply a wide range of customers, from large-scale industrial clients to smaller agricultural operations. The company also benefits from strategic partnerships with suppliers and distributors, allowing it to optimize its supply chain and expand its market reach.

Tree Island Steel Financial Statement Overview

Summary

Tree Island Steel is experiencing financial difficulties, with declining revenue and profitability. The company has a negative net profit margin and faces cash flow challenges, although its balance sheet shows manageable debt levels.

Income Statement

Tree Island Steel has faced declining revenue and profitability over recent periods, evidenced by a negative net profit margin of -2.12% in the TTM. The gross profit margin has also deteriorated to 5.10% from previous years. These factors indicate challenges in maintaining profitability amidst decreasing revenue figures.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.23, indicating manageable leverage. However, the declining stockholders' equity from previous years suggests a weakening financial position. The equity ratio of 70.63% reflects a strong capital structure, although declining financial metrics could pose risks.

Cash Flow

The cash flow analysis reveals a concerning trend with negative free cash flow of -7.45 million in the TTM, and an operating cash flow to net income ratio of -1.30, highlighting inefficiencies in cash generation relative to earnings. This indicates cash flow challenges despite attempts to manage capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	213.82M	221.11M	239.57M	359.56M	301.85M	215.89M
Gross Profit	10.91M	11.79M	30.29M	65.33M	68.63M	25.85M
EBITDA	3.37M	4.81M	18.34M	51.98M	121.85M	17.55M
Net Income	-4.53M	-3.91M	7.55M	33.11M	87.97M	5.13M
Balance Sheet
Total Assets	167.67M	168.82M	171.98M	176.33M	225.81M	146.55M
Cash, Cash Equivalents and Short-Term Investments	4.05M	8.70M	20.34M	14.98M	33.25M	1.25M
Total Debt	26.77M	26.95M	23.80M	25.91M	41.02M	71.59M
Total Liabilities	49.23M	49.95M	45.10M	48.23M	93.19M	95.48M
Stockholders Equity	118.43M	118.86M	126.88M	128.10M	132.62M	51.07M
Cash Flow
Free Cash Flow	-7.45M	-3.24M	18.20M	41.92M	-258.00K	21.95M
Operating Cash Flow	-5.87M	-1.43M	23.73M	43.38M	11.87M	24.68M
Investing Cash Flow	-1.33M	-1.39M	-4.77M	-1.32M	57.11M	-1.92M
Financing Cash Flow	-10.06M	-10.15M	-13.32M	-60.25M	-36.99M	-22.40M

Tree Island Steel Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TSL, the sentiment is Negative. The current price of 2.48 is below the 20-day moving average (MA) of 2.50, below the 50-day MA of 2.49, and below the 200-day MA of 2.72, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 47.18 is Neutral, neither overbought nor oversold. The STOCH value of 58.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TSL.

Tree Island Steel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LIF	78 Outperform	C$1.75B	12.79	20.74%	8.21%	3.67%	-6.05%
Sector *	59 Neutral	HK$16.60B	4.48	-5.52%	6.29%	-3.57%	-61.41%
TSL	51 Neutral	C$64.47M	―	-3.69%	3.63%	-9.16%	-311.26%
CAF	―	C$17.55M	7.13	22.01%	―	―	―
WVM	43 Neutral	C$76.55M	―	-6.14%	―	―	-54.14%
CRSXQ	―	$16.63M	―	-43.36%	―	―	―
ASTL	―	$735.26M	―	-12.92%	2.83%	―	―

Tree Island Steel Corporate Events

Tree Island Steel to Announce Q2 2025 Financial Results

Tree Island Steel Ltd. announced it will release its second quarter 2025 financial results on August 7, 2025. This announcement is part of the company’s ongoing commitment to transparency and provides stakeholders with insights into its financial performance, potentially impacting its market positioning and investor relations.

Tree Island Steel Secures Shareholder Approval for Director Elections

Tree Island Steel Ltd. announced that all matters proposed at its 2025 Annual General Meeting received shareholder approval, including the election of all director nominees. The meeting saw participation from 65.85% of outstanding shares, with directors elected by a significant majority, reinforcing the company’s governance and strategic direction.

Tree Island Steel Declares Quarterly Dividend

Tree Island Steel has announced a quarterly dividend of $0.015 per share, payable on July 15, 2025, to shareholders of record as of June 30, 2025. This dividend declaration reflects the company’s ongoing commitment to providing shareholder value and may positively influence investor confidence in Tree Island Steel’s financial health and market positioning.

Tree Island Steel Reports Q1 2025 Revenue Decline Amid U.S. Tariffs

Tree Island Steel reported a decrease in revenue for the first quarter of 2025, primarily due to reduced sales volumes in the U.S. residential segment and the impact of U.S. tariffs on Canadian steel products. Despite higher average selling prices, the company’s gross profit and adjusted EBITDA declined, leading to a 9% reduction in workforce to manage operational costs. The company is focusing on rebalancing production and exploring new market opportunities to leverage its capabilities across North America.

Tree Island Steel to Announce Q1 2025 Financial Results

Tree Island Steel announced it will release its first quarter 2025 financial results on May 9, 2025. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and market positioning, potentially impacting investor decisions and market perceptions.