TerraVest (TVK) AI Stock Analysis

• Market Cap: C$2.88B
• Dividend Yield: 0.43%
• Average Volume (3M): 65.00K
• Price to Earnings (P/E): 26.9
• Beta (1Y): 1.68
• Revenue Growth: 50.38%
• EPS Growth: 25.63%
• Country: CA
• Employees: 1,939
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 1.50
• Shares Outstanding: 21,685,696
• 10 Day Avg. Volume: 58,810
• 30 Day Avg. Volume: 64,996
• PEG Ratio: 1.29
• Price to Book (P/B): 3.91
• Price to Sales (P/S): 2.06
• P/FCF Ratio: 63.69
• 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$184.00
• Price Target Upside: 38.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 3.24
• Revenue Forecast (FY): C$1.82B

• Rating: 54 Neutral
• Price Target: C$136.00 ▲(2.32% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by solid operating performance and growth, tempered by higher leverage and weak cash conversion. Technical indicators are neutral-to-soft, and valuation is a headwind due to a high P/E with minimal dividend support.

Positive Factors

Sustained Revenue Growth

Consistent multi-year top-line expansion demonstrates durable demand across TerraVest’s end markets and successful scaling of manufacturing and engineered solutions. A growing revenue base supports better fixed-cost absorption, a larger installed base for aftermarket revenues, and long-term organic growth optionality.

Solid Operating Margins

Margins remain solid for industrial manufacturing, indicating pricing power and operational efficiency across product and project businesses. Sustained mid-single-digit to double-digit margins provide the ability to fund R&D, maintenance capex and aftermarket services while absorbing cyclical pressure.

Healthy Return on Equity

ROE near the mid-teens signals efficient use of shareholder capital and that underlying operations generate attractive earnings relative to equity. Persistently healthy returns help justify reinvestment in production capacity and support long-term shareholder value even with cyclical end-markets.

Negative Factors

Elevated Leverage

Materially higher leverage increases financial risk and reduces balance-sheet flexibility. In a downturn or if order volumes slow, interest and principal obligations could constrain capital allocation, limit strategic investments, and force higher external financing costs or asset sales to de-lever.

Weak Cash Conversion

Earnings are not translating fully into cash, with FCF only ~40% of net income and volatile historical cash flow. This constrains the company’s ability to pay down debt, fund capital projects, or increase dividends without relying on external funding, heightening execution risk.

Margin Compression Trend

Falling gross and net margins suggest cost or pricing pressures as the company grows. Continued margin erosion would reduce cash generation and returns, making the business less resilient to cyclical headwinds and limiting reinvestment capacity over the medium term.

TerraVest Business Overview & Revenue Model

Company Description

TerraVest Industries Inc., together with its subsidiaries, manufactures and sells goods and services to energy, agriculture, mining, and transportation markets in Canada and the United States. It operates through three segments: Fuel Containment, Processing Equipment, and Service. The Fuel Containment segment manufactures bulk liquefied petroleum gas (LPG) transport trailers, LPG delivery and service trucks, LPG storage tanks, residential and commercial LPG tanks and dispensers, custom pressure vessels, commercial and residential refined fuel tanks, and furnaces and boilers. This segment sells its products directly to end user, as well as through various distribution networks to fuel distributors, transportation companies, industrial and commercial consumers, and residential consumers. The Processing Equipment segment manufactures and sells a range of equipment, such as wellhead processing equipment and tanks, wellhead desanding units, central facilities processing equipment, natural gas liquids (NGL) and LPG storage tanks, anhydrous ammonia storage tanks, NGL and LPG transport trailers, ammonia transport trailers and wagons, compressed gas transport trailers, and various customized processing equipment. This segment offers its products to oil and gas producers, midstream and engineering companies, propane and fertilizer distributors, and transportation companies. The Service segment provides well servicing to the oil and gas sector in Southwest and Central Saskatchewan. This segment operates 21 service rigs. The company was formerly known as TerraVest Capital Inc. and changed its name to TerraVest Industries Inc. in February 2018. TerraVest Industries Inc. was founded in 2004 and is headquartered in Vegreville, Canada.

How the Company Makes Money

TerraVest makes money primarily by manufacturing and selling (or delivering under contract) specialized equipment and systems used for fuel and liquid storage, transportation, and dispensing, as well as components and products for the LPG/propane market and certain agricultural/industrial applications. Key revenue streams typically include: (1) Product sales of tanks, pressure vessels, and fuel-handling equipment—revenue is recognized when units are delivered (or as contract terms require) to dealers, distributors, or end customers; (2) Project/contract manufacturing and engineered-to-order systems—revenue generated from custom builds (e.g., integrated fuel or liquid handling systems) where pricing reflects materials, fabrication, and engineering value-add; (3) Aftermarket/parts and service (to the extent offered by subsidiaries)—recurring revenue from replacement parts, repairs, inspections, or refurbishment tied to the installed base of equipment. Earnings are influenced by demand and capital spending cycles in energy and industrial markets, agricultural activity, and regulatory requirements affecting fuel storage/transport and pressurized equipment. Specific material partnerships, customer concentration details, or segment-level revenue splits are null.

TerraVest Financial Statement Overview

Summary

Strong revenue growth and solid profitability, but the balance sheet shows materially higher leverage (debt-to-equity ~1.37) and cash conversion is weak (free cash flow ~40% of net income), reducing financial flexibility.

Income Statement

TTM (Trailing-Twelve-Months) revenue grew 12.7% to ~$1.54B, continuing a multi-year expansion from ~$307M (2021) to ~$1.37B (2025 annual). Profitability is solid for the industry with TTM gross margin ~25.5% and operating margin ~11.2%, while net margin is steady around ~6.3%. The key weakness is margin pressure versus 2024 (gross margin ~28.9% and net margin ~7.0%), suggesting growth is coming with some cost/price headwinds.

Balance Sheet

The balance sheet shows elevated leverage: TTM debt-to-equity is ~1.37, and total debt is high at ~$927M versus equity of ~$744M. Leverage has increased materially versus 2024 (debt-to-equity ~0.82) alongside a much larger asset base, which raises financial risk if end-markets soften. Offsetting this, returns remain healthy (TTM return on equity ~15.5%), indicating the company is still generating reasonable earnings on its capital base.

Cash Flow

Cash generation is positive but weaker in quality: TTM operating cash flow is ~$171M and free cash flow is ~$97.8M, with strong TTM free-cash-flow growth (120.5%). However, cash conversion is a concern—TTM free cash flow is only ~40% of net income, and operating cash flow coverage is low (~0.27), implying earnings are not translating into cash as consistently as desired. Cash flow has also been volatile historically (negative free cash flow in 2022; strong rebound in 2024).

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	1.54B	1.37B	911.82M	678.35M	576.70M	307.46M
Gross Profit	382.05M	318.72M	263.37M	165.96M	124.39M	80.63M
EBITDA	319.63M	293.32M	179.15M	115.57M	80.76M	60.94M
Net Income	91.13M	86.65M	63.57M	42.07M	45.25M	36.62M
Balance Sheet
Total Assets	2.03B	2.16B	867.83M	652.91M	614.52M	406.34M
Cash, Cash Equivalents and Short-Term Investments	15.86M	13.95M	28.38M	24.76M	9.39M	8.36M
Total Debt	926.96M	990.95M	302.86M	269.05M	275.86M	190.61M
Total Liabilities	1.24B	1.40B	468.21M	415.17M	418.61M	274.28M
Stockholders Equity	744.33M	722.04M	367.65M	217.08M	183.57M	132.06M
Cash Flow
Free Cash Flow	97.83M	44.36M	100.71M	46.09M	-5.61M	4.66M
Operating Cash Flow	171.01M	111.07M	156.48M	79.24M	29.95M	23.06M
Investing Cash Flow	-954.84M	-954.73M	-175.38M	-40.18M	-73.95M	-52.54M
Financing Cash Flow	787.90M	829.69M	22.66M	-23.38M	45.16M	9.99M

TerraVest Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 132.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TVK, the sentiment is Negative. The current price of 132.91 is below the 20-day moving average (MA) of 147.38, below the 50-day MA of 150.89, and below the 200-day MA of 148.95, indicating a bearish trend. The MACD of -3.57 indicates Positive momentum. The RSI at 41.76 is Neutral, neither overbought nor oversold. The STOCH value of 12.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TVK.

TerraVest Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TOT	79 Outperform	C$740.05M	7.49	12.57%	2.57%	15.58%	47.55%
CEU	75 Outperform	C$3.83B	13.15	22.00%	1.29%	5.79%	-5.08%
EFX	75 Outperform	C$3.50B	-8.18	6.74%	0.74%	5.92%	―
TCW	75 Outperform	C$1.45B	10.23	18.06%	3.57%	9.24%	6.35%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
CFW	65 Neutral	C$493.23M	15.42	3.06%	―	-8.13%	-28.00%
TVK	54 Neutral	C$2.88B	26.86	14.09%	0.43%	50.38%	25.63%

TerraVest Corporate Events

TerraVest’s Acquisitions Drive 74% Revenue Surge and Strong Cash Flows in Q1 2026

TerraVest reported a strong first quarter for fiscal 2026, with sales rising 74% to $408.4 million and net income up 16% to $35.2 million, driven by organic growth and a series of acquisitions completed in 2025. Adjusted EBITDA increased 39% to $67.8 million, while cash flow from operating activities surged 164% to $96.5 million, supporting a low dividend payout ratio of 11% and signaling improved financial capacity for continued expansion.

The company’s base portfolio saw 9% organic sales growth, particularly in its Service, Processing Equipment and Compressed Gas Equipment segments, as demand strengthened for service trucks, domestic tanks and storage tanks. Recent acquisitions, including EnTrans, Tankcon, Simplex, LBT and assets from Wave and Aureus, materially boosted revenue and scale, albeit with higher depreciation, financing costs and some unfavorable fair value and foreign exchange impacts that partially tempered earnings growth.

The most recent analyst rating on (TSE:TVK) stock is a Buy with a C$184.50 price target. To see the full list of analyst forecasts on TerraVest stock, see the TSE:TVK Stock Forecast page.

TerraVest Shareholders Back Board Slate, Auditor and DSU Plan Changes at 2026 AGM

TerraVest Industries Inc. reported the results of its 2026 annual meeting of shareholders held in Toronto, with 79.57% of outstanding voting shares represented in person or by proxy. Shareholders elected all management-nominated directors, including Charles Pellerin, Blair Cook, Dustin Haw, Dale H. Laniuk, Rocco Rossi, and Mick MacBean, to serve on the board.

KPMG LLP was re-appointed as the Corporation’s auditor with 99.76% of votes cast in favour, underscoring strong shareholder support for the company’s external oversight. Investors also approved an amendment to TerraVest’s deferred share unit plan with 99.86% support, reinforcing the company’s approach to director and executive compensation alignment with shareholder interests.

The most recent analyst rating on (TSE:TVK) stock is a Buy with a C$184.50 price target. To see the full list of analyst forecasts on TerraVest stock, see the TSE:TVK Stock Forecast page.