Tree Island Steel (TSL) AI Stock Analysis

• Market Cap: C$71.00M
• Dividend Yield: 2.63%
• Average Volume (3M): 3.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.32
• 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: 25,910,646
• 10 Day Avg. Volume: 2,529
• 30 Day Avg. Volume: 3,226
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: C$3.00 ▲(5.26% Upside)

Tree Island Steel's overall stock score is primarily impacted by its financial performance challenges, including declining revenue and profitability, and negative cash flows. The technical analysis provides some positive momentum, but the valuation indicates potential overvaluation concerns. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Market Position

As a leading manufacturer in the steel industry, Tree Island Steel benefits from strong brand recognition and established market presence, which can enhance customer loyalty and provide a competitive edge in securing long-term contracts.

Product Diversification

The company's diverse product offerings across construction, agriculture, industrial, and residential sectors help mitigate risks associated with reliance on a single market, ensuring more stable revenue streams.

Strategic Partnerships

Strategic partnerships and long-term contracts help secure steady demand and provide revenue visibility, supporting Tree Island Steel's ability to plan and invest in growth initiatives with greater confidence.

Negative Factors

Revenue Decline

Declining revenue growth suggests weakening demand or competitive pressures, which could impact Tree Island Steel's ability to invest in new opportunities and maintain market share over the long term.

Profitability Challenges

Negative profitability metrics indicate operational challenges and inefficiencies, which may hinder Tree Island Steel's capacity to generate sustainable earnings and reinvest in business development.

Cash Flow Issues

Negative cash flow trends highlight liquidity constraints, limiting Tree Island Steel's ability to fund operations, service debt, and invest in growth, potentially affecting long-term financial stability.

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 is experiencing declining revenues and profitability, with negative net profit and free cash flow margins. The balance sheet is stable with manageable debt, but cash flow issues are significant, indicating a need for strategic improvements.

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	200.60M	206.99M	239.57M	359.56M	301.85M	215.89M
Gross Profit	10.17M	11.79M	30.29M	65.33M	68.63M	25.85M
EBITDA	2.36M	4.81M	18.34M	51.98M	121.85M	17.55M
Net Income	-5.06M	-3.91M	7.55M	33.11M	87.97M	5.13M
Balance Sheet
Total Assets	165.28M	168.82M	171.98M	176.33M	225.81M	146.55M
Cash, Cash Equivalents and Short-Term Investments	3.19M	8.70M	20.34M	14.98M	33.25M	1.25M
Total Debt	25.83M	26.95M	23.80M	25.91M	41.02M	71.59M
Total Liabilities	48.40M	49.95M	45.10M	48.23M	93.19M	95.48M
Stockholders Equity	116.88M	118.86M	126.88M	128.10M	132.62M	51.07M
Cash Flow
Free Cash Flow	-2.03M	-3.24M	18.20M	41.92M	-258.00K	21.95M
Operating Cash Flow	-131.00K	-1.43M	23.73M	43.38M	11.87M	24.68M
Investing Cash Flow	-1.51M	-1.39M	-4.77M	-1.32M	57.11M	-1.92M
Financing Cash Flow	-6.14M	-10.15M	-13.32M	-60.25M	-36.99M	-22.40M

Tree Island Steel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.85
• 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 2.85 is above the 20-day moving average (MA) of 2.74, above the 50-day MA of 2.71, and above the 200-day MA of 2.59, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 59.52 is Neutral, neither overbought nor oversold. The STOCH value of 90.48 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$1.85B	16.27	16.92%	6.55%	-10.99%	-43.30%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
TSL	54 Neutral	C$71.00M	-14.12	-4.54%	2.63%	-16.85%	-117.65%
ASTL	49 Neutral	$611.76M	-0.92	-59.32%	5.09%	―	―
WVM	43 Neutral	C$98.59M	-48.16	-6.60%	―	―	-35.33%

Tree Island Steel Corporate Events

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.

The most recent analyst rating on (TSE:TSL) stock is a Hold with a C$2.50 price target. To see the full list of analyst forecasts on Tree Island Steel stock, see the TSE:TSL Stock Forecast page.

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.

The most recent analyst rating on (TSE:TSL) stock is a Hold with a C$2.50 price target. To see the full list of analyst forecasts on Tree Island Steel stock, see the TSE:TSL Stock Forecast page.

Tree Island Steel Faces Revenue Decline Amid Tariff Challenges

Tree Island Steel reported a decrease in revenue and profit for the second quarter of 2025, primarily due to reduced U.S. sales volumes following the implementation of tariffs on wire products and a strategic withdrawal from unprofitable products. Despite an increase in average selling prices, the company’s gross profit and adjusted EBITDA declined, prompting a focus on improving profitability through cost control and strategic adjustments in sales and sourcing.