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Tree Island Steel (TSE:TSL)
TSX:TSL
Canadian Market
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Tree Island Steel (TSL) AI Stock Analysis

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TSE:TSL

Tree Island Steel

(TSX:TSL)

Rating:48Neutral
Price Target:
C$2.50
▲(0.00% Upside)
Tree Island Steel's overall stock score is primarily impacted by its challenging financial performance, characterized by declining revenues and profitability. The technical analysis suggests a neutral market position, while the valuation is weakened by a negative P/E ratio. Corporate events provide some positive sentiment, but are overshadowed by financial difficulties.

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

Tree Island Steel Business Overview & Revenue Model

Company DescriptionTree Island Steel (TSL) is a leading manufacturer and supplier in the steel industry, specializing in a wide range of wire products and related services. The company operates in sectors such as construction, agriculture, industrial, and residential, offering core products including wire, nails, and fencing. With a strong presence in North America, Tree Island Steel is recognized for its high-quality products and its commitment to innovation and sustainability.
How the Company Makes MoneyTree Island Steel generates revenue through the manufacturing and sale of its steel wire products. Key revenue streams include sales of wire products to construction companies, agricultural businesses, industrial clients, and residential customers. The company also engages in strategic partnerships and long-term contracts with distributors and retailers to ensure steady demand for its products. Additionally, Tree Island Steel focuses on optimizing its production processes and supply chain management to maintain cost efficiency and enhance profitability. Factors such as market demand for construction and agriculture, as well as the price of raw materials like steel, significantly influence the company's earnings.

Tree Island Steel Financial Statement Overview

Summary
Tree Island Steel is experiencing financial difficulties, with declining revenue and profitability. The company has a negative net profit margin and faces cash flow challenges, although its balance sheet shows manageable debt levels.
Income Statement
45
Neutral
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
60
Neutral
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
40
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue213.82M221.11M239.57M359.56M301.85M215.89M
Gross Profit10.91M11.79M30.29M65.33M68.63M25.85M
EBITDA3.37M4.81M18.34M51.98M121.85M17.55M
Net Income-4.53M-3.91M7.55M33.11M87.97M5.13M
Balance Sheet
Total Assets167.67M168.82M171.98M176.33M225.81M146.55M
Cash, Cash Equivalents and Short-Term Investments4.05M8.70M20.34M14.98M33.25M1.25M
Total Debt26.77M26.95M23.80M25.91M41.02M71.59M
Total Liabilities49.23M49.95M45.10M48.23M93.19M95.48M
Stockholders Equity118.43M118.86M126.88M128.10M132.62M51.07M
Cash Flow
Free Cash Flow-7.45M-3.24M18.20M41.92M-258.00K21.95M
Operating Cash Flow-5.87M-1.43M23.73M43.38M11.87M24.68M
Investing Cash Flow-1.33M-1.39M-4.77M-1.32M57.11M-1.92M
Financing Cash Flow-10.06M-10.15M-13.32M-60.25M-36.99M-22.40M

Tree Island Steel Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.50
Price Trends
50DMA
2.50
Positive
100DMA
2.52
Negative
200DMA
2.70
Negative
Market Momentum
MACD
<0.01
Negative
RSI
49.10
Neutral
STOCH
53.97
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 2.5 is below the 20-day moving average (MA) of 2.51, above the 50-day MA of 2.50, and below the 200-day MA of 2.70, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 49.10 is Neutral, neither overbought nor oversold. The STOCH value of 53.97 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 (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
C$1.72B15.2017.32%8.27%-14.24%-46.06%
48
Neutral
C$64.89M-4.19%3.60%-10.54%-517.42%
48
Neutral
$677.87M-21.46%4.43%
44
Neutral
C$925.84M-8.85-0.23%2.68%24.44%-41.96%
43
Neutral
C$80.03M-6.14%-31.34%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:TSL
Tree Island Steel
2.50
-0.18
-6.72%
TSE:WVM
West Kirkland Mining
1.40
0.48
52.17%
TSE:LIF
Labrador Iron Ore
27.21
-0.27
-0.98%
TSE:ASTL
Algoma Steel Group
6.30
-6.53
-50.91%

Tree Island Steel Corporate Events

Business Operations and StrategyFinancial Disclosures
Tree Island Steel Faces Revenue Decline Amid Tariff Challenges
Negative
Aug 7, 2025

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.

Financial Disclosures
Tree Island Steel to Announce Q2 2025 Financial Results
Neutral
Jul 17, 2025

Tree Island Steel Ltd. announced it will release its second quarter 2025 financial results on August 7, 2025. This announcement is part of the company’s ongoing commitment to transparency and provides stakeholders with insights into its financial performance, potentially impacting its market positioning and investor relations.

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.

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: Aug 15, 2025