Tree Island Steel (TSE:TSL)
TSX:TSL
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Tree Island Steel
(TSX:TSL)
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Rating:49Neutral
Price Target:
C$2.50
▼(-19.09% Downside)
Action:Reiterated
Date:05/17/26
The score is primarily constrained by weak financial performance: sustained losses, very thin margins, and inconsistent/free cash flow in TTM. Technicals are mixed with the stock below key longer-term moving averages and neutral momentum signals. Valuation is supported by the dividend yield, but the negative P/E (losses) caps the overall attractiveness.
Positive Factors
Solid balance sheet and low leverage
Modest debt-to-equity (~0.26) and a meaningful equity base (~$107M vs $163M assets) provide a durable financial cushion. Low leverage supports liquidity through cycles, allows modest capex or working-capital needs without urgent refinancing, and preserves strategic optionality over months.
Negative Factors
Sustained losses and thin margins
Very thin gross margins (~5.1%) and negative EBIT/net margins show the business struggles to convert sales into sustainable profits. Margin compression reduces capacity to absorb raw-material cost swings and limits the firm's ability to generate returns on capital, threatening long-term profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Solid balance sheet and low leverage
Modest debt-to-equity (~0.26) and a meaningful equity base (~$107M vs $163M assets) provide a durable financial cushion. Low leverage supports liquidity through cycles, allows modest capex or working-capital needs without urgent refinancing, and preserves strategic optionality over months.
Read all positive factors
Tree Island Steel (TSL) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$63.91M
Dividend Yield2.63%
Average Volume (3M)3.23K
Price to Earnings (P/E)―
Beta (1Y)0.28
Revenue Growth-24.14%
EPS Growth-44.07%
CountryCA
Employees420
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)-0.26
Shares Outstanding25,875,679
10 Day Avg. Volume2,529
30 Day Avg. Volume3,226
Financial Highlights & Ratios
PEG Ratio-0.36
Price to Book (P/B)0.71
Price to Sales (P/S)0.45
P/FCF Ratio-27.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 operat...
How the Company Makes Money
TSL makes money primarily by manufacturing steel wire products and selling them to customers through a mix of direct sales and distribution channels. Key revenue streams include: (1) sales of concrete reinforcing products (e.g., welded wire reinfo...
Tree Island Steel Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
63
Positive
Cash Flow
41
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 156.22M | 170.83M | 206.99M | 239.57M | 359.56M | 301.85M |
| Gross Profit | 7.99M | 9.45M | 11.79M | 30.29M | 65.33M | 68.63M |
| EBITDA | 1.33M | 2.83M | 4.81M | 18.34M | 51.98M | 121.85M |
| Net Income | -6.55M | -5.33M | -3.91M | 7.55M | 33.11M | 87.97M |
Balance Sheet | ||||||
| Total Assets | 162.55M | 154.88M | 168.82M | 171.98M | 176.33M | 225.81M |
| Cash, Cash Equivalents and Short-Term Investments | 1.55M | 1.43M | 8.70M | 20.34M | 14.98M | 33.25M |
| Total Debt | 27.54M | 25.57M | 26.95M | 23.80M | 25.91M | 41.02M |
| Total Liabilities | 55.11M | 46.51M | 49.95M | 45.10M | 48.23M | 93.19M |
| Stockholders Equity | 107.44M | 108.37M | 118.86M | 126.88M | 128.10M | 132.62M |
Cash Flow | ||||||
| Free Cash Flow | -147.00K | -2.81M | -3.24M | 18.20M | 41.92M | -258.00K |
| Operating Cash Flow | 1.40M | -914.00K | -1.43M | 23.73M | 43.38M | 11.87M |
| Investing Cash Flow | -1.53M | -1.89M | -1.39M | -4.77M | -1.32M | 57.11M |
| Financing Cash Flow | -1.87M | -3.90M | -10.15M | -13.32M | -60.25M | -36.99M |
Tree Island Steel Technical Analysis
Negative
3.09
Price Trends
2.55
Negative
2.62
Negative
2.65
Negative
Market Momentum
-0.02
Positive
37.62
Neutral
28.41
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 3.09 is above the 20-day moving average (MA) of 2.50, above the 50-day MA of 2.55, and above the 200-day MA of 2.65, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 37.62 is Neutral, neither overbought nor oversold. The STOCH value of 28.41 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | C$1.77B | 35.55 | 14.38% | 6.37% | -11.36% | -32.65% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
51 Neutral | C$104.23M | 17.52 | -5.33% | ― | ― | 16.24% | |
49 Neutral | C$63.91M | -14.37 | -4.54% | 2.63% | -24.14% | -44.07% | |
49 Neutral | C$712.50M | -6.27 | -136.54% | 4.87% | -20.89% | -483.46% | |
45 Neutral | C$59.55M | -1.69 | -12.25% | ― | 11.65% | 17.14% |
* Basic Materials Sector Average
TSE:TSL
Tree Island Steel
2.42
-0.03
-1.22%
TSE:FEO
Oceanic Iron Ore
0.77
0.57
285.00%
TSE:LIF
Labrador Iron Ore
27.73
0.65
2.39%
TSE:S
Sherritt International
0.12
-0.02
-17.24%
TSE:NKL
Nickel 28 Capital Corp
1.21
0.53
77.94%
TSE:ASTL
Algoma Steel Group
6.51
-0.93
-12.50%
Tree Island Steel Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Tree Island Steel Hit by Tariffs as 2025 Revenue Falls and Dividend Suspended
Negative
Mar 13, 2026
Tree Island Steel reported a sharp revenue decline for 2025, with full-year sales falling to $161.8 million from $207.0 million and adjusted EBITDA slipping to $3.0 million from $4.3 million, leading to a net loss of $5.3 million. The downturn was...
Financial Disclosures
Tree Island Steel Sets March 12, 2026 Date for Q4 and Full-Year 2025 Results
Neutral
Feb 19, 2026
Tree Island Steel Ltd. announced it will release its fourth quarter and full year 2025 financial results for the period ended Dec. 31, 2025, after market close on March 12, 2026. The timing signals an upcoming update on the company’s operati...
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.