Tree Island Steel (TSL) AI Stock Analysis

• Market Cap: C$65.77M
• Dividend Yield: 4.15%
• Average Volume (3M): 7.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.44
• Revenue Growth: -9.16%
• EPS Growth: -311.26%
• Country: CA
• Employees: 420
• Sector: Basic Materials
• Sector Strength: 69
• Industry: Steel
• EPS (TTM): 0.00
• Shares Outstanding: 25,996,100
• 10 Day Avg. Volume: 3,239
• 30 Day Avg. Volume: 7,199
• PEG Ratio: 0.10
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -15.85
• 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

• Rating: 52 Neutral
• Price Target: C$2.50 ▲(0.40%Upside)

Tree Island Steel exhibits significant operational challenges, particularly in profitability and cash flow. While the balance sheet remains stable, financial performance is hampered by negative earnings and increased leverage. Technical indicators provide mixed signals with some potential for recovery. Valuation concerns are evident due to negative profitability and recent dividend cuts. Corporate events highlight ongoing financial pressures, suggesting cautious investor sentiment.

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 declining revenue and profitability, with a worrying negative cash flow trend. While the balance sheet remains stable with low leverage, the negative net income and cash flow could impact future financial flexibility.

Income Statement

Tree Island Steel's income statement shows a declining revenue trend with a significant drop from 2022 to 2023. Gross and net profit margins have fallen sharply, with net income turning negative in the latest TTM. This indicates pressure on profitability, though past EBIT margins were reasonable.

Balance Sheet

The balance sheet reflects a strong equity position with a moderate debt-to-equity ratio of 0.21 in the latest TTM. The equity ratio is high at 71%, indicating financial stability. However, a decrease in stockholders' equity over recent periods is a concern.

Cash Flow

Cash flow analysis shows a negative free cash flow in the latest TTM, reversing from positive growth previously. The operating cash flow to net income ratio is unfavorable, indicating poor cash conversion, which could pose liquidity challenges.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
209.50M	239.57M	338.43M	301.85M	215.89M	200.41M
	Gross Profit
14.87M	30.29M	65.33M	68.63M	25.85M	17.77M
	EBIT
1.32M	16.70M	50.48M	52.26M	11.90M	2.01M
	EBITDA
6.18M	18.34M	51.98M	121.85M	17.55M	5.67M
	Net Income Common Stockholders
-2.51M	7.55M	33.11M	87.97M	5.13M	-5.19M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.28M	20.34M	14.98M	33.25M	1.25M	907.00K
	Total Assets
158.45M	171.98M	176.33M	225.81M	146.55M	159.12M
	Total Debt
71.05M	23.80M	25.91M	41.02M	71.59M	87.55M
	Net Debt
69.77M	3.46M	10.94M	7.77M	70.34M	86.64M
	Total Liabilities
99.82M	45.10M	48.23M	93.19M	95.48M	110.47M
	Stockholders Equity
58.63M	126.88M	128.10M	132.62M	51.07M	48.65M
Cash Flow		Free Cash Flow
-4.68M	18.20M	41.92M	-258.00K	21.95M	24.27M
	Operating Cash Flow
-875.00K	23.73M	43.38M	11.87M	24.68M	26.21M
	Investing Cash Flow
-3.80M	-4.77M	-1.46M	57.11M	-1.92M	-1.94M
	Financing Cash Flow
-10.13M	-13.32M	-60.25M	-36.99M	-22.40M	-24.59M

Tree Island Steel Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 2.49 is below the 20-day moving average (MA) of 2.51, below the 50-day MA of 2.55, and below the 200-day MA of 2.75, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 46.08 is Neutral, neither overbought nor oversold. The STOCH value of 82.35 is Negative, 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
TSL	52 Neutral	C$65.77M	―	-3.69%	4.15%	-9.16%	-311.26%
Sector *	51 Neutral	$2.01B	-1.11	-21.16%	3.67%	2.69%	-30.65%
CAF		C$14.46M	6.14	22.10%	―	―	―
LIF	78 Outperform	C$1.88B	13.72	20.74%	10.37%	3.67%	-6.05%
WVM	43 Neutral	C$78.29M	―	-6.14%	―	―	-54.14%
CRSXQ		$16.70M	―	-43.36%	―	―	―
ASTL		$537.76M	―	-12.92%	3.86%	―	―

Tree Island Steel Corporate Events

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.

Tree Island Steel Reports Decline in 2024 Financial Results Amidst Market Pressures

Tree Island Steel reported a decline in its financial performance for the year 2024, with revenues decreasing by $32.6 million to $207.0 million and gross profit dropping to $11.8 million. The company attributes this downturn to competitive pricing pressures and the impact of tariffs affecting U.S. exports. As a result, the Board of Directors has decided to reduce the quarterly dividend by 50% to $0.015 per share, reflecting the economic uncertainty and the company’s efforts to manage costs and navigate the challenging trade environment.