Tree Island Steel (TSL) AI Stock Analysis

• Market Cap: C$80.56M
• Dividend Yield: 2.48%
• Average Volume (3M): 3.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.43
• Revenue Growth: -16.85%
• EPS Growth: -117.65%
• Country: CA
• Employees: 420
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): -0.08
• Shares Outstanding: 25,904,919
• 10 Day Avg. Volume: 2,529
• 30 Day Avg. Volume: 3,226
• PEG Ratio: 0.14
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.40
• P/FCF Ratio: -25.79
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: C$3.00 ▼(-2.91% Downside)

Tree Island Steel's overall stock score is primarily impacted by its financial challenges, including declining revenue and profitability. While technical analysis shows bullish momentum, the overbought indicators suggest caution. Valuation concerns due to negative earnings further weigh down the score. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Long-term Contracts

Long-term contracts with major clients ensure a steady revenue stream, enhancing financial stability and predictability in cash flows.

Operational Efficiency

Emphasis on operational efficiency helps in maintaining competitive margins and managing costs, crucial for long-term profitability.

Product Innovation

Innovation in product offerings allows the company to meet diverse customer needs, maintaining its competitive edge in the market.

Negative Factors

Declining Revenue

Declining revenue growth suggests challenges in market demand or competitive positioning, impacting long-term financial health.

Negative Profitability

Sustained negative profitability metrics indicate operational inefficiencies and potential issues in cost management.

Cash Flow Issues

Negative cash flows limit the company's ability to invest in growth opportunities and may strain financial flexibility.

Tree Island Steel Business Overview & Revenue Model

Company Description

Tree Island Steel Ltd. is a leading manufacturer of steel products in North America, specializing in the production of wire and wire products for various sectors, including construction, agriculture, and industrial applications. The company operates multiple manufacturing facilities and is known for its high-quality products, including reinforcing steel, concrete accessories, and various types of wire. Tree Island Steel is committed to innovation and sustainability, ensuring that its manufacturing processes meet industry standards while minimizing environmental impact.

How the Company Makes Money

Tree Island Steel generates revenue primarily through the sale of its steel products, which include a diverse range of wire products and accessories tailored for different industries. The company's revenue model is supported by key revenue streams such as direct sales to construction companies, distributors, and agricultural suppliers. Additionally, Tree Island Steel benefits from long-term contracts with major clients, which provide a stable income source. The company's partnerships with suppliers of raw materials, along with its focus on operational efficiency and cost management, also contribute to its profitability. Market demand for construction and infrastructure projects plays a significant role in driving sales, as well as the company’s ability to innovate and offer customized solutions to meet customer needs.

Tree Island Steel Financial Statement Overview

Summary

Tree Island Steel faces significant financial challenges, with declining revenue and profitability, negative cash flows, and a negative return on equity. While the balance sheet shows moderate leverage, the overall financial health is weakened by poor income and cash flow performance.

Income Statement

Tree Island Steel's income statement shows declining revenue and profitability. The TTM data indicates a negative revenue growth rate of -6.19%, with a gross profit margin of 5.10% and a net profit margin of -2.12%. The company has struggled with profitability, as evidenced by negative EBIT and net income margins. Historical data shows a significant decline from 2021, where the company had a net profit margin of 29.14%.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.23 in the TTM period, which is stable compared to previous years. However, the return on equity has turned negative at -3.76%, indicating challenges in generating returns for shareholders. The equity ratio remains healthy, suggesting a stable capital structure.

Cash Flow

Cash flow analysis reveals significant challenges, with negative operating and free cash flows in the TTM period. The free cash flow growth rate is -72.80%, indicating a substantial decline. The operating cash flow to net income ratio is negative, reflecting cash flow issues. Historical data shows better performance in 2022, but recent trends are concerning.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	182.49M	206.99M	239.57M	359.56M	301.85M	215.89M
Gross Profit	9.94M	11.79M	30.29M	65.33M	68.63M	25.85M
EBITDA	2.16M	4.81M	18.34M	51.98M	121.85M	17.55M
Net Income	-5.35M	-3.91M	7.55M	33.11M	87.97M	5.13M
Balance Sheet
Total Assets	165.20M	168.82M	171.98M	176.33M	225.81M	146.55M
Cash, Cash Equivalents and Short-Term Investments	2.81M	8.70M	20.34M	14.98M	33.25M	1.25M
Total Debt	30.92M	26.95M	23.80M	25.91M	41.02M	71.59M
Total Liabilities	50.56M	49.95M	45.10M	48.23M	93.19M	95.48M
Stockholders Equity	114.64M	118.86M	126.88M	128.10M	132.62M	51.07M
Cash Flow
Free Cash Flow	-5.49M	-3.24M	18.20M	41.92M	-258.00K	21.95M
Operating Cash Flow	-3.52M	-1.43M	23.73M	43.38M	11.87M	24.68M
Investing Cash Flow	-1.90M	-1.39M	-4.77M	-1.32M	57.11M	-1.92M
Financing Cash Flow	-338.00K	-10.15M	-13.32M	-60.25M	-36.99M	-22.40M

Tree Island Steel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.09
• 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:TSL, the sentiment is Positive. The current price of 3.09 is above the 20-day moving average (MA) of 2.89, above the 50-day MA of 2.79, and above the 200-day MA of 2.60, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 68.08 is Neutral, neither overbought nor oversold. The STOCH value of 87.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$1.93B	17.53	16.92%	6.36%	-10.99%	-43.30%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
TSL	54 Neutral	C$80.56M	-14.67	-4.54%	2.48%	-16.85%	-117.65%
ASTL	51 Neutral	C$630.65M	-0.93	-59.32%	4.74%	―	―
WVM	43 Neutral	C$140.93M	-54.42	-6.60%	―	―	-35.33%

Tree Island Steel Corporate Events

Tree Island Steel Faces Revenue Decline Amid U.S. Tariffs

Tree Island Steel reported a decline in revenues for the third quarter of 2025, primarily due to U.S. tariffs affecting sales of wire products to the U.S. market. Despite higher average selling prices in some categories and cost reductions, the company’s gross profit and adjusted EBITDA were impacted by lower production volumes. The company continues to face challenges from U.S. tariffs but has managed to maintain consistent gross margins through strategic withdrawals from unprofitable products and cost management.

Tree Island Steel Renews Share Buyback Program

Tree Island Steel has received approval from the Toronto Stock Exchange to renew its normal course issuer bid, allowing the company to purchase up to 1,290,000 common shares, approximately 5% of its outstanding shares, over the next year. This strategic move is seen as a desirable use of funds, reflecting confidence in the company’s market position and is intended to benefit shareholders by potentially enhancing share value.

Tree Island Steel to Announce Q3 2025 Financial Results

Tree Island Steel announced it will release its third quarter 2025 financial results on November 13, 2025. This announcement is significant as it provides stakeholders with insights into the company’s financial health and operational performance, potentially impacting its market positioning and investor confidence.

Tree Island Steel Declares Quarterly Dividend

Tree Island Steel has announced a quarterly dividend of $0.015 per share, payable on October 15, 2025, to shareholders of record as of September 29, 2025. This decision reflects the company’s ongoing commitment to delivering value to its shareholders and may enhance its attractiveness to investors, potentially impacting its market position positively.