Tree Island Steel (TSE:TSL)
TSX:TSL
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Tree Island Steel
(TSX:TSL)
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Rating:49Neutral
Price Target:
C$2.50
▼(-19.09% Downside)
Action:Reiterated
Date:05/17/26
The score is primarily constrained by weak financial performance: sustained losses, very thin margins, and inconsistent/free cash flow in TTM. Technicals are mixed with the stock below key longer-term moving averages and neutral momentum signals. Valuation is supported by the dividend yield, but the negative P/E (losses) caps the overall attractiveness.
Positive Factors
Balance Sheet Cushion
The balance sheet shows moderate leverage (debt-to-equity ~0.26) and sizable equity (~$107M of $163M assets), providing a capital cushion. That solidity reduces refinancing risk and preserves financial optionality to fund operations or weather cyclical downturns over the medium term.
Negative Factors
Sustained Profitability Pressure
Profitability has deteriorated into sustained losses since 2024 with very thin gross margin (~5.1%) and negative operating and net margins (EBIT ~-2.7%, net ~-4.2%). Ongoing margin compression limits retained earnings and reduces the firm's ability to fund growth or absorb future cost shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Cushion
The balance sheet shows moderate leverage (debt-to-equity ~0.26) and sizable equity (~$107M of $163M assets), providing a capital cushion. That solidity reduces refinancing risk and preserves financial optionality to fund operations or weather cyclical downturns over the medium term.
Read all positive factors
Tree Island Steel (TSL) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$61.81M
Dividend Yield2.63%
Average Volume (3M)3.23K
Price to Earnings (P/E)―
Beta (1Y)0.23
Revenue Growth-24.14%
EPS Growth-44.07%
CountryCA
Employees420
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)-0.25
Shares Outstanding25,861,448
10 Day Avg. Volume2,529
30 Day Avg. Volume3,226
Financial Highlights & Ratios
PEG Ratio-0.35
Price to Book (P/B)0.71
Price to Sales (P/S)0.45
P/FCF Ratio-27.30
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
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Tree Island Steel Business Overview & Revenue Model
Company Description
Tree Island Steel Ltd., founded in 1964 and headquartered in Richmond, Canada, is a leading manufacturer and supplier of steel wire and various fabricated steel wire products. The company serves a broad spectrum of applications, including industri...
How the Company Makes Money
TSL makes money primarily by manufacturing steel wire products and selling them to customers through a mix of direct sales and distribution channels. Key revenue streams include: (1) sales of concrete reinforcing products (e.g., welded wire reinfo...
Tree Island Steel Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
63
Positive
Cash Flow
41
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 156.22M | 170.83M | 206.99M | 239.57M | 359.56M | 301.85M |
| Gross Profit | 7.99M | 9.45M | 11.79M | 30.29M | 65.33M | 68.63M |
| EBITDA | 1.33M | 2.83M | 4.81M | 18.34M | 51.98M | 121.85M |
| Net Income | -6.55M | -5.33M | -3.91M | 7.55M | 33.11M | 87.97M |
Balance Sheet | ||||||
| Total Assets | 162.55M | 154.88M | 168.82M | 171.98M | 176.33M | 225.81M |
| Cash, Cash Equivalents and Short-Term Investments | 1.55M | 1.43M | 8.70M | 20.34M | 14.98M | 33.25M |
| Total Debt | 27.54M | 25.57M | 26.95M | 23.80M | 25.91M | 41.02M |
| Total Liabilities | 55.11M | 46.51M | 49.95M | 45.10M | 48.23M | 93.19M |
| Stockholders Equity | 107.44M | 108.37M | 118.86M | 126.88M | 128.10M | 132.62M |
Cash Flow | ||||||
| Free Cash Flow | -147.00K | -2.81M | -3.24M | 18.20M | 41.92M | -258.00K |
| Operating Cash Flow | 1.40M | -914.00K | -1.43M | 23.73M | 43.38M | 11.87M |
| Investing Cash Flow | -1.53M | -1.89M | -1.39M | -4.77M | -1.32M | 57.11M |
| Financing Cash Flow | -1.87M | -3.90M | -10.15M | -13.32M | -60.25M | -36.99M |
Tree Island Steel Technical Analysis
Neutral
3.09
Price Trends
2.42
Negative
2.52
Negative
2.63
Negative
Market Momentum
-0.01
Negative
52.01
Neutral
43.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TSL, the sentiment is Neutral. The current price of 3.09 is above the 20-day moving average (MA) of 2.33, above the 50-day MA of 2.42, and above the 200-day MA of 2.63, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 52.01 is Neutral, neither overbought nor oversold. The STOCH value of 43.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:TSL.
Tree Island Steel Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | C$1.82B | 19.48 | 14.38% | 6.37% | -11.36% | -32.65% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
50 Neutral | C$99.15M | -69.82 | -5.33% | ― | ― | 47.87% | |
49 Neutral | C$61.81M | -9.39 | -4.54% | 2.63% | -24.14% | -44.07% | |
49 Neutral | C$626.01M | -0.57 | -125.09% | 4.87% | -20.89% | -483.46% | |
43 Neutral | C$59.55M | -0.80 | -12.25% | ― | 2.67% | 62.83% |
* Basic Materials Sector Average
TSE:TSL
Tree Island Steel
2.39
-0.05
-2.05%
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Tree Island Steel Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Tree Island Steel Hit by Tariffs as 2025 Revenue Falls and Dividend Suspended
Negative
Mar 13, 2026
Tree Island Steel reported a sharp revenue decline for 2025, with full-year sales falling to $161.8 million from $207.0 million and adjusted EBITDA slipping to $3.0 million from $4.3 million, leading to a net loss of $5.3 million. The downturn was...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.