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Tree Island Steel (TSE:TSL)
TSX:TSL
Canadian Market

Tree Island Steel (TSL) AI Stock Analysis

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Tree Island Steel

(TSX:TSL)

Rating:49Neutral
Price Target:
C$2.50
▲(1.21%Upside)
Tree Island Steel's overall score is impacted primarily by financial and operational challenges. The company's financial performance and technical indicators suggest headwinds, while corporate events provide some offsetting positive sentiment. The lack of earnings and resulting valuation concerns also weigh on the score.

Tree Island Steel (TSL) vs. iShares MSCI Canada ETF (EWC)

Tree Island Steel Business Overview & Revenue Model

Company DescriptionTree 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 MoneyTree 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 faces operational and cash flow challenges with declining profitability and increasing leverage. The income statement shows volatility with negative EBIT and net income, while the balance sheet remains stable but with rising leverage. Cash flow issues are prominent, with negative operating and free cash flow, indicating cash management problems.
Income Statement
45
Neutral
Tree Island Steel's income statement shows significant volatility. The gross profit margin decreased from previous highs, with the latest report showing a negative EBIT and net income, indicating current operational challenges. Revenue has fluctuated, with a notable decline in 2024. Although the EBITDA margin is positive, it has decreased compared to prior years, suggesting reduced operational efficiency.
Balance Sheet
65
Positive
The company's balance sheet is relatively stable with a favorable equity ratio. However, the debt-to-equity ratio has increased, indicating rising leverage, which could pose a risk if earnings do not recover. Despite this, stockholders' equity remains strong, providing some buffer against liabilities.
Cash Flow
50
Neutral
The cash flow statement reflects challenges, with negative operating cash flow in the latest period. Free cash flow has also turned negative, contrasting with positive figures in previous years. This downturn indicates cash management issues, which could impact future investments and financial stability.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue221.11M239.57M338.43M301.85M215.89M
Gross Profit11.79M30.29M65.33M68.63M25.85M
EBITDA4.86M18.34M51.98M121.85M17.55M
Net Income-3.91M7.55M33.11M87.97M5.13M
Balance Sheet
Total Assets168.82M171.98M176.33M225.81M146.55M
Cash, Cash Equivalents and Short-Term Investments8.70M20.34M14.98M33.25M1.25M
Total Debt26.95M23.80M25.91M41.02M71.59M
Total Liabilities49.95M45.10M48.23M93.19M95.48M
Stockholders Equity118.86M126.88M128.10M132.62M51.07M
Cash Flow
Free Cash Flow-3.24M18.20M41.92M-258.00K21.95M
Operating Cash Flow-1.43M23.73M43.38M11.87M24.68M
Investing Cash Flow-1.39M-4.77M-1.46M57.11M-1.92M
Financing Cash Flow-10.15M-13.32M-60.25M-36.99M-22.40M

Tree Island Steel Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.47
Price Trends
50DMA
2.54
Negative
100DMA
2.63
Negative
200DMA
2.74
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
45.29
Neutral
STOCH
21.21
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 2.47 is below the 20-day moving average (MA) of 2.50, below the 50-day MA of 2.54, and below the 200-day MA of 2.74, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.29 is Neutral, neither overbought nor oversold. The STOCH value of 21.21 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

Overall Rating
UnderperformOutperform
Sector (43)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSTSL
49
Neutral
C$64.21M-3.69%2.43%-9.16%-311.26%
43
Neutral
AU$1.38B-6.10-40.62%4.17%-4.78%-43.21%
TSCAF
C$17.07M6.9422.01%
TSLIF
78
Outperform
C$1.82B13.3020.74%9.64%3.67%-6.05%
TSWVM
43
Neutral
C$76.55M-6.14%-54.14%
$16.66M-43.36%
$698.82M-12.92%3.00%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:TSL
Tree Island Steel
2.47
-0.46
-15.70%
TSE:CAF
CanAf Group Inc
0.36
0.14
63.64%
TSE:LIF
Labrador Iron Ore
28.49
1.38
5.09%
TSE:WVM
West Kirkland Mining
1.32
0.37
38.95%
CRSXQ
Corsa Coal
0.15
-0.04
-21.05%
ASTL
Algoma Steel Group
6.67
-0.03
-0.45%

Tree Island Steel Corporate Events

Executive/Board ChangesShareholder Meetings
Tree Island Steel Secures Shareholder Approval for Director Elections
Positive
Jun 26, 2025

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.

Dividends
Tree Island Steel Declares Quarterly Dividend
Positive
Jun 13, 2025

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.

Business Operations and StrategyFinancial Disclosures
Tree Island Steel Reports Q1 2025 Revenue Decline Amid U.S. Tariffs
Negative
May 9, 2025

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.

Financial Disclosures
Tree Island Steel to Announce Q1 2025 Financial Results
Neutral
May 1, 2025

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.

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.Date of analysis: Jun 27, 2025