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TerraVest (TSE:TVK)
TSX:TVK
Canadian Market
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TerraVest (TVK) AI Stock Analysis

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TSE:TVK

TerraVest

(TSX:TVK)

Rating:56Neutral
Price Target:
C$145.00
▼(-0.36% Downside)
TerraVest's overall stock score is primarily influenced by its strong financial performance, despite high leverage and declining cash flow. The technical analysis indicates bearish momentum, and the valuation suggests potential overvaluation. These factors collectively result in a moderate stock score.
Positive Factors
Earnings
TerraVest delivered an impressive set of results 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.
Management Strategy
Management has shown to be extremely diligent stewards of capital, using internal steel supply and vendor advantages to immediately lower cost of goods sold for acquired companies.
Negative Factors
Leverage
Leverage currently sits ~2.5-3.0x debt to EBITDA (pro forma its recent equity raise), which may be a concern for some investors.
Market Performance
Despite the 52% year-to-date appreciation in TerraVest's share price, there is still seen good upside.
Valuation
Valuation remains the obstacle, with the company now trading ~11x 2027 EBITDA estimates, which underpins the Market Perform rating.

TerraVest (TVK) vs. iShares MSCI Canada ETF (EWC)

TerraVest Business Overview & Revenue Model

Company DescriptionTerraVest (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 MoneyTerraVest 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 shows strong financial performance with impressive revenue growth and profitability margins. The balance sheet indicates high leverage, which poses some risk, but cash flow metrics are robust, highlighting strong cash generation capabilities.
Income Statement
85
Very Positive
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
78
Positive
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
80
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.18B911.82M678.35M576.70M307.46M304.25M
Gross Profit332.68M263.37M165.96M124.39M80.63M72.26M
EBITDA243.86M191.24M123.03M103.35M69.88M59.63M
Net Income80.08M63.57M42.07M45.25M36.62M26.84M
Balance Sheet
Total Assets2.10B867.83M652.91M614.52M406.34M319.63M
Cash, Cash Equivalents and Short-Term Investments27.10M28.38M24.76M9.39M8.36M27.45M
Total Debt962.64M302.86M269.05M275.86M190.61M140.15M
Total Liabilities1.36B468.21M415.17M418.61M274.28M193.48M
Stockholders Equity698.02M367.65M217.08M183.57M132.06M125.93M
Cash Flow
Free Cash Flow62.58M100.14M45.73M-5.79M3.99M54.20M
Operating Cash Flow128.24M156.48M79.24M29.95M23.06M64.88M
Investing Cash Flow-942.02M-175.38M-40.18M-73.95M-52.54M-22.64M
Financing Cash Flow815.01M22.66M-23.38M45.16M9.99M-24.56M

TerraVest Technical Analysis

Technical Analysis Sentiment
Negative
Last Price145.53
Price Trends
50DMA
162.75
Negative
100DMA
158.38
Negative
200DMA
139.89
Positive
Market Momentum
MACD
-6.31
Positive
RSI
37.22
Neutral
STOCH
27.29
Neutral
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 145.53 is below the 20-day moving average (MA) of 155.70, below the 50-day MA of 162.75, and above the 200-day MA of 139.89, indicating a neutral trend. The MACD of -6.31 indicates Positive momentum. The RSI at 37.22 is Neutral, neither overbought nor oversold. The STOCH value of 27.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TVK.

TerraVest Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$1.03B10.6220.50%3.24%-2.14%-6.88%
76
Outperform
$1.72B9.6123.31%1.73%8.36%2.09%
76
Outperform
C$875.06M12.0615.38%4.51%9.33%-36.51%
74
Outperform
C$1.61B8.9712.21%1.10%-0.41%
61
Neutral
$503.86M13.508.24%2.45%14.58%-37.71%
56
Neutral
C$3.06B34.5715.17%0.47%38.28%14.24%
54
Neutral
C$4.22B1.1916.40%5.06%10.17%-54.09%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:TVK
TerraVest
144.32
50.20
53.34%
TSE:CEU
CES Energy Solutions
8.37
0.39
4.83%
TSE:NOA
North American Construction Group
18.76
-6.79
-26.58%
TSE:TCW
Trican Well Service
5.87
0.93
18.78%
TSE:PSI
Pason Systems
12.02
-2.00
-14.27%
TSE:EFX
Enerflex
13.64
6.08
80.42%

TerraVest Corporate Events

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
TerraVest Reports Strong Sales Growth in Q3 2025 Amid Strategic Acquisitions
Positive
Aug 14, 2025

TerraVest Industries Inc. reported a significant increase in sales for the third quarter and nine months of fiscal 2025, largely driven by recent acquisitions, including Tankcon FRP Inc., Simplex, Inc., and others. Despite a decrease in net income for the quarter due to increased expenses and foreign exchange losses, the company saw a 30% increase in net income over nine months, highlighting the positive impact of acquisitions and favorable changes in investment values.

The most recent analyst rating on (TSE:TVK) stock is a Buy with a C$100.00 price target. To see the full list of analyst forecasts on TerraVest stock, see the TSE:TVK Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
TerraVest Industries Closes Upsized Share Offering, Strengthening Financial Position
Positive
May 23, 2025

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.

Private Placements and Financing
TerraVest Expands Bought Deal Offering to $279 Million Amid Strong Demand
Positive
May 16, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
TerraVest Industries Announces $240 Million Bought Deal Offering
Positive
May 15, 2025

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.

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.Date of analysis: Aug 20, 2025