TerraVest (TVK) AI Stock Analysis

• Market Cap: C$3.67B
• Dividend Yield: 0.41%
• Average Volume (3M): 62.81K
• Price to Earnings (P/E): 40.0
• Beta (1Y): 1.82
• Revenue Growth: 32.25%
• EPS Growth: 22.98%
• Country: CA
• Employees: 1,939
• Sector: Energy
• Sector Strength: 55
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 1.39
• Shares Outstanding: 21,685,696
• 10 Day Avg. Volume: 57,799
• 30 Day Avg. Volume: 62,808
• PEG Ratio: 7.24
• Price to Book (P/B): 7.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 43.19
• 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$186.60
• Price Target Upside: 12.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 75 Outperform
• Price Target: C$187.00 ▲(12.42%Upside)

TerraVest's strong financial performance and positive corporate events, including strategic acquisitions and a successful share offering, are key drivers of its stock score. Despite technical indicators suggesting neutral momentum and a high P/E ratio indicating potential overvaluation, the company's robust cash flow and market confidence support a favorable outlook.

Positive Factors

Analyst Recommendation

Analyst's recommendation reiterates a BUY-rating and increasing the one-year target price on TerraVest to $200.00 from $170.00 following stronger-than-expected results.

Earnings

TerraVest delivered an impressive set of results with a 45% increase in revenue, surpassing both analyst and consensus estimates.

Mergers and Acquisitions

Continued execution of TerraVest's M&A strategy is key to the story moving forward, with significant ramp-up in acquisition activity.

Negative Factors

Valuation

Valuation remains an obstacle with the company trading at approximately 11 times 2027 EBITDA estimates, which supports a Market Perform rating.

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 shows a strong financial performance with significant revenue growth of 35% and robust profitability metrics. The balance sheet is healthy, with a reasonable debt-to-equity ratio and improved ROE. Cash flows are strong, demonstrating effective cash management. However, there is room for 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	1.01B	911.82M	678.35M	576.70M	307.46M	304.25M
Gross Profit	296.37M	263.37M	165.96M	124.39M	80.63M	72.26M
EBITDA	223.06M	191.24M	123.03M	103.35M	69.88M	59.63M
Net Income	80.75M	63.57M	42.07M	45.25M	36.62M	26.84M
Balance Sheet
Total Assets	1.98B	867.83M	652.91M	614.52M	406.34M	319.63M
Cash, Cash Equivalents and Short-Term Investments	17.17M	28.38M	24.76M	9.39M	8.36M	27.45M
Total Debt	1.12B	302.86M	269.05M	275.86M	190.61M	140.15M
Total Liabilities	1.52B	468.21M	415.17M	418.61M	274.28M	193.48M
Stockholders Equity	422.75M	367.65M	217.08M	183.57M	132.06M	125.93M
Cash Flow
Free Cash Flow	83.42M	100.14M	45.73M	-5.79M	3.99M	54.20M
Operating Cash Flow	145.59M	156.48M	79.24M	29.95M	23.06M	64.88M
Investing Cash Flow	-861.61M	-175.38M	-40.18M	-73.95M	-52.54M	-22.64M
Financing Cash Flow	712.88M	22.66M	-23.38M	45.16M	9.99M	-24.56M

TerraVest Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 166.34
• 50DMA: Negative
• 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 166.34 is below the 20-day moving average (MA) of 168.69, below the 50-day MA of 166.54, and above the 200-day MA of 131.00, indicating a neutral trend. The MACD of 0.52 indicates Positive momentum. The RSI at 48.50 is Neutral, neither overbought nor oversold. The STOCH value of 51.71 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
PSI	77 Outperform	C$1.02B	14.26	14.68%	3.99%	12.43%	-44.90%
CEU	76 Outperform	$1.56B	9.00	23.66%	2.37%	8.79%	31.76%
TCW	76 Outperform	$1.03B	11.33	19.44%	3.46%	2.15%	-5.97%
TVK	75 Outperform	C$3.67B	39.96	23.78%	0.41%	32.25%	22.98%
EFX	71 Outperform	C$1.32B	12.91	7.03%	1.40%	1.22%	―
NOA	64 Neutral	C$672.79M	15.83	9.52%	2.10%	19.57%	-26.98%
Sector *	52 Neutral	C$2.90B	-1.06	-3.46%	5.87%	3.01%	-47.13%

TerraVest Corporate Events

TerraVest Industries Closes Upsized Share Offering, Strengthening Financial Position

TerraVest Industries Inc. has successfully closed its upsized bought deal offering of common shares, raising gross proceeds of $320,760,300. The funds will be used to repay existing debt and support general corporate activities, with potential allocation for future acquisitions or growth opportunities, thereby strengthening TerraVest’s operational and financial positioning.

The most recent analyst rating on (TSE:TVK) stock is a Buy with a C$132.00 price target. To see the full list of analyst forecasts on TerraVest stock, see the TSE:TVK Stock Forecast page.

TerraVest Expands Bought Deal Offering to $279 Million Amid Strong Demand

TerraVest Industries Inc. has announced an increase in its previously announced bought deal offering of common shares from $240 million to $279 million due to strong investor demand. This move is expected to generate gross proceeds of approximately $278,922,000, with an option for underwriters to purchase additional shares, potentially raising the total to over $320 million. The offering, subject to regulatory approvals, will be conducted through a prospectus supplement and is expected to close by May 23, 2025. This expansion of the offering reflects TerraVest’s strong market positioning and investor confidence, potentially enhancing its operational capabilities and market influence.

The most recent analyst rating on (TSE:TVK) stock is a Buy with a C$95.00 price target. To see the full list of analyst forecasts on TerraVest stock, see the TSE:TVK Stock Forecast page.

TerraVest Industries Announces $240 Million Bought Deal Offering

TerraVest Industries Inc. has announced a $240 million bought deal offering of common shares, with the potential to increase to $276.5 million if the over-allotment option is fully exercised. The proceeds will be used to repay existing debt and support corporate activities, positioning the company favorably for future acquisitions and growth opportunities, thereby strengthening its balance sheet and enhancing its ability to invest in its current portfolio.

The most recent analyst rating on (TSE:TVK) stock is a Buy with a C$95.00 price target. To see the full list of analyst forecasts on TerraVest stock, see the TSE:TVK Stock Forecast page.

TerraVest Reports Robust Q2 2025 Growth and Declares Dividend

TerraVest Industries Inc. reported significant financial growth in the second quarter of fiscal 2025, with sales increasing by 45% and net income rising by 30% compared to the previous year. This growth is attributed to recent acquisitions, including EnTrans Holding, Inc. and Advance Engineered Products Ltd., and increased sales in their base portfolio, particularly in the HVAC and containment equipment segments. The company also declared a quarterly dividend, indicating strong financial health and a positive outlook for stakeholders.

The most recent analyst rating on (TSE:TVK) stock is a Buy with a C$95.00 price target. To see the full list of analyst forecasts on TerraVest stock, see the TSE:TVK Stock Forecast page.

TerraVest Expands with Acquisition of Tankcon FRP Inc.

TerraVest Industries Inc. has acquired Tankcon FRP Inc., a leading North American manufacturer of fiber-reinforced polymer tank trailers, for approximately CAD$27.8 million. This acquisition is expected to enhance TerraVest’s position in the FRP tank trailer market, offering strategic growth opportunities and immediate benefits for its group of tank trailer businesses.

TerraVest Expands Portfolio with Acquisition of Simplex Inc.

TerraVest Industries Inc. has acquired Simplex Inc., a prominent manufacturer of electrical test systems and fuel supply systems, for approximately US$28 million. This strategic acquisition is expected to enhance TerraVest’s portfolio by integrating Simplex’s innovative products, which are highly complementary to its existing businesses, thereby strengthening its position in the standby power generation industry.