TerraVest (TVK) AI Stock Analysis

• Market Cap: C$3.69B
• Dividend Yield: 0.4%
• Average Volume (3M): 47.60K
• Price to Earnings (P/E): 40.9
• Beta (1Y): 1.79
• Revenue Growth: 32.25%
• EPS Growth: 22.98%
• Country: CA
• Employees: 1,939
• Sector: Energy
• Sector Strength: 67
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 1.39
• Shares Outstanding: 21,685,696
• 10 Day Avg. Volume: 35,670
• 30 Day Avg. Volume: 47,596
• PEG Ratio: 6.96
• Price to Book (P/B): 7.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 41.52
• 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$185.00
• Price Target Upside: 8.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 75 Outperform
• Price Target: C$187.00 ▲(9.80%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

Earnings

TerraVest delivered an impressive set of results for its Q2/F2025 with revenue increasing 45% year over year to $311 million, exceeding both the analyst's and FactSet consensus estimates.

Financial Performance

EBITDA of $66 million increased 50% year over year and exceeded both the analyst's estimate and the consensus.

Free Cash Flow

TerraVest continues to generate strong free cash flow given its healthy margins and minimal maintenance capital expenditure and working capital requirements.

Negative Factors

Leverage

TVK has historically used its balance sheet to acquire companies, although leverage currently sits ~2.5-3.0x debt to EBITDA (pro forma its recent equity raise).

Market Rating

Valuation remains the obstacle, with the company now trading ~11x 2027 EBITDA estimates, which underpins the Market Perform rating.

Valuation

Valuation remains the obstacle, with the company now trading ~11x 2027 EBITDA estimates, which underpins a Market Perform rating.

TerraVest Business Overview & Revenue Model

Company Description

TerraVest (TVK) is a diversified industrial company operating primarily in the manufacturing sector. It specializes in the production of equipment for various industries, with a focus on energy, agriculture, and transportation. The company is known for its high-quality pressure vessels, fuel containment solutions, and wellhead processing equipment, serving a wide range of customers across North America.

How the Company Makes Money

TerraVest makes money through the sale of its manufactured products, which include pressure vessels and fuel containment solutions, primarily to the energy, agriculture, and transportation sectors. The company's revenue streams are driven by its ability to design, produce, and deliver specialized industrial equipment that meets the regulatory and operational needs of its clients. Key revenue sources include direct sales to businesses in need of customized solutions for storing and transporting liquids and gases, as well as through contracts and partnerships with major players in the energy and agricultural industries. Additionally, TerraVest may earn revenue from maintenance and service agreements for the equipment it supplies, although this is a smaller portion of its overall income.

TerraVest Financial Statement Overview

Summary

TerraVest is in a robust financial position, marked by strong revenue growth and profitability margins. The high leverage level on the balance sheet poses potential risks, but effective cash flow generation supports financial health.

Income Statement

TerraVest has demonstrated impressive growth with a strong revenue increase from previous years, indicating a solid market position. The TTM gross profit and net profit margins are robust, showcasing effective cost management and profitability. The company has also maintained a healthy EBIT and EBITDA margin, reflecting efficient operations.

Balance Sheet

The debt-to-equity ratio suggests a significant leverage level, which could pose risks if not managed properly. However, the company has a reasonable return on equity and a stable equity ratio, indicating a balanced approach to asset and liability management.

Cash Flow

TerraVest's cash flow position is strong, with a positive free cash flow growth rate. The operating cash flow to net income ratio is healthy, suggesting effective conversion of income into cash. The free cash flow to net income ratio further supports the company's ability to generate cash from its operations.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	911.82M	678.35M	576.70M	307.46M	304.25M
Gross Profit	263.37M	165.96M	124.39M	80.63M	72.26M
EBITDA	191.24M	123.03M	103.35M	69.88M	59.63M
Net Income	63.57M	42.07M	45.25M	36.62M	26.84M
Balance Sheet
Total Assets	867.83M	652.91M	614.52M	406.34M	319.63M
Cash, Cash Equivalents and Short-Term Investments	28.38M	24.76M	9.39M	8.36M	27.45M
Total Debt	302.86M	269.05M	275.86M	190.61M	140.15M
Total Liabilities	468.21M	415.17M	418.61M	274.28M	193.48M
Stockholders Equity	367.65M	217.08M	183.57M	132.06M	125.93M
Cash Flow
Free Cash Flow	100.14M	45.73M	-5.79M	3.99M	54.20M
Operating Cash Flow	156.48M	79.24M	29.95M	23.06M	64.88M
Investing Cash Flow	-175.38M	-40.18M	-73.95M	-52.54M	-22.64M
Financing Cash Flow	22.66M	-23.38M	45.16M	9.99M	-24.56M

TerraVest Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 170.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TVK, the sentiment is Positive. The current price of 170.31 is above the 20-day moving average (MA) of 166.59, above the 50-day MA of 167.35, and above the 200-day MA of 135.80, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 56.94 is Neutral, neither overbought nor oversold. The STOCH value of 87.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TVK.

TerraVest Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TCW	80 Outperform	$996.01M	10.23	20.50%	3.41%	-2.14%	-6.88%
CEU	76 Outperform	$1.66B	9.63	23.66%	1.94%	8.79%	31.76%
TVK	75 Outperform	C$3.69B	40.92	23.78%	0.40%	32.25%	22.98%
PSI	74 Outperform	C$940.85M	13.28	14.68%	4.34%	12.43%	-44.90%
Sector *	67 Neutral	$15.42B	10.72	7.30%	5.43%	4.83%	-68.39%
NOA	64 Neutral	$634.83M	14.95	9.52%	2.18%	19.57%	-26.98%
EFX	64 Neutral	C$1.43B	13.89	7.03%	1.20%	1.22%	―

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.