TerraVest (TVK) AI Stock Analysis

• Market Cap: C$2.64B
• Dividend Yield: 0.48%
• Average Volume (3M): 114.95K
• Price to Earnings (P/E): 34.3
• Beta (1Y): 1.69
• Revenue Growth: 25.93%
• EPS Growth: 49.11%
• Country: CA
• Employees: 1,939
• Sector: Energy
• Sector Strength: 53
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 3.95
• Shares Outstanding: 19,501,432
• 10 Day Avg. Volume: 98,705
• 30 Day Avg. Volume: 114,955
• PEG Ratio: 0.70
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.15
• Price to Cash Flow (P/CF): 19.70
• P/FCF Ratio: 30.10
• 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: C$148.75
• Price Target Upside: 9.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

TerraVest's solid financial performance and strategic acquisitions position it well in the market, reflected in the strong financial and corporate events scores. However, the high P/E ratio and low dividend yield suggest potential overvaluation. Technical analysis shows short-term momentum, albeit limited by the lack of comprehensive indicators.

TerraVest Business Overview & Revenue Model

Company Description

TerraVest Industries Inc. (TVK) is a diversified industrial company headquartered in Canada. It operates through multiple segments, including manufacturing and distributing pressure vessels, processing equipment, and related services for various industries. The company serves sectors such as energy, agriculture, transportation, and industrial, offering a broad range of products including storage tanks, energy processing equipment, and transportation solutions.

How the Company Makes Money

TerraVest generates revenue primarily from the manufacture and sale of its industrial products and services. Its key revenue streams include sales from its pressure vessel manufacturing operations, which cater to the energy and agricultural sectors, and sales from its fabrication and service offerings for transportation and industrial markets. The company also benefits from long-term contracts and partnerships with key players in these industries, which help ensure a steady flow of business. Additionally, TerraVest's strategic acquisitions enhance its product offerings and expand its market reach, contributing to its overall earnings.

TerraVest Financial Statement Overview

Summary

TerraVest's financial performance is strong, with significant revenue growth and healthy profitability margins. The balance sheet reflects a solid equity position and reasonable leverage, while cash flow operations show robust cash management. Areas for improvement include cost optimization and liability management.

Income Statement

TerraVest demonstrated a robust financial performance with a significant revenue growth rate of 35% from 2023 to 2024, indicating strong market performance. The gross profit margin for TTM stood at approximately 29.1%, while the net profit margin was around 8.2%. The EBITDA margin was strong at 22.1%, reflecting efficient operational management. However, the EBIT margin was slightly lower, suggesting potential areas for cost optimization.

Balance Sheet

TerraVest's balance sheet reflects a sound equity position with an equity ratio of 44.2% for TTM. The debt-to-equity ratio of 0.74 indicates a balanced use of leverage, which is reasonable for the industry. ROE improved to 18.8% in TTM, showcasing enhanced shareholder returns. While the company has a solid asset base, managing liabilities effectively will be crucial to maintain financial stability.

Cash Flow

The cash flow statement reveals strong operational cash flows with a 94% increase in free cash flow from 2023 to 2024, indicating effective cash management. The operating cash flow to net income ratio of 2.06 in TTM suggests healthy cash generation relative to net income. However, careful monitoring of capital expenditures is advised to sustain free cash flow levels.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
918.31M	911.82M	678.35M	576.70M	307.46M	304.25M
	Gross Profit
267.08M	263.37M	165.96M	124.39M	80.63M	72.26M
	EBIT
55.52M	0.00	81.23M	50.62M	45.75M	35.13M
	EBITDA
203.32M	190.58M	123.03M	103.35M	69.88M	59.63M
	Net Income Common Stockholders
74.93M	63.57M	42.07M	45.25M	36.62M	26.84M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
16.41M	28.38M	24.76M	9.39M	8.36M	27.45M
	Total Assets
902.73M	867.83M	652.91M	614.52M	406.34M	319.63M
	Total Debt
293.65M	302.86M	269.05M	275.86M	190.61M	140.15M
	Net Debt
277.24M	274.48M	244.29M	266.47M	182.25M	112.69M
	Total Liabilities
470.27M	468.21M	415.17M	418.61M	274.28M	193.48M
	Stockholders Equity
398.77M	367.65M	217.08M	183.57M	132.06M	125.93M
Cash Flow		Free Cash Flow
95.77M	100.14M	45.73M	-5.79M	3.99M	54.20M
	Operating Cash Flow
154.53M	156.48M	79.24M	29.95M	23.06M	64.88M
	Investing Cash Flow
-76.71M	-175.38M	-40.18M	-73.95M	-52.54M	-22.64M
	Financing Cash Flow
-82.26M	22.66M	-23.38M	45.16M	9.99M	-24.56M

TerraVest Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 135.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TVK, the sentiment is Neutral. The current price of 135.58 is below the 20-day moving average (MA) of 137.81, above the 50-day MA of 127.01, and above the 200-day MA of 109.10, indicating a neutral trend. The MACD of 1.61 indicates Positive momentum. The RSI at 49.66 is Neutral, neither overbought nor oversold. The STOCH value of 71.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:TVK.

TerraVest Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WSP	78 Outperform	C$32.35B	45.87	9.33%	0.60%	11.98%	22.53%
FTT	77 Outperform	C$5.14B	10.54	19.79%	2.88%	6.45%	2.60%
TVK	74 Outperform	C$2.64B	34.32	23.55%	0.48%	25.93%	49.11%
BDI	64 Neutral	C$503.49M	19.27	8.37%	1.60%	2.41%	-16.76%
Sector *	55 Neutral	$7.05B	3.47	-6.10%	6.00%	-0.44%	-51.04%
NFI	50 Neutral	C$1.35B	―	-0.38%	―	18.07%	98.61%

TerraVest Corporate Events

TerraVest Expands with Strategic Acquisition of L.B.T. Inc.

TerraVest Industries Inc. has acquired L.B.T. Inc., a prominent North American manufacturer of tank trailers, for approximately US$16 million. This acquisition is expected to enhance TerraVest’s position in the bulk tank trailer industry, providing increased capacity, innovation, and efficiency to meet the evolving needs of the North American tanker market. The integration of LBT with TerraVest’s existing businesses, such as EnTrans and Advance Engineered Products, is anticipated to deliver immediate benefits and drive long-term growth.

TerraVest Acquires EnTrans International in Transformative Deal

TerraVest Industries Inc. has acquired EnTrans International, a leading manufacturer of tank trailers and transportation solutions, for $546 million, marking its largest acquisition to date. This strategic move is expected to enhance TerraVest’s market position by leveraging EnTrans’ established brand, diverse product lines, and world-class manufacturing facilities. The acquisition is anticipated to provide multiple growth opportunities, including cross-selling and geographical diversification, while also being immediately accretive to earnings per share. Additionally, TerraVest has amended its credit facility to fund the acquisition, demonstrating strong support from its financial partners.

TerraVest Reports Q1 Fiscal 2025 Results with Strong Income Growth Amid Sales Decline

TerraVest Industries Inc. reported its first-quarter results for fiscal 2025, showing a 3% increase in sales compared to the previous year, largely due to its recent acquisitions of Advance Engineered Products Ltd. and Highland Tank Holdings LLC. However, excluding these acquisitions, there was a 13% sales decline in its base portfolio due to decreased revenues in key segments. The company saw a significant 58% increase in net income, driven by foreign exchange gains and reduced financing costs, despite increased depreciation and lower sales in some areas of its base business.

TerraVest Industries Reports on 2025 Shareholder Meeting Decisions

TerraVest Industries Inc. conducted its 2025 Annual Meeting of Shareholders with 71.14% of voting shares represented. Key outcomes included the election of directors, the reappointment of KPMG LLP as auditors, and the approval of resolutions related to the stock option plan and deferred share unit plan. These decisions underscore the company’s commitment to strong governance and strategic planning, potentially enhancing its market position and shareholder confidence.