TerraVest (TVK) AI Stock Analysis

• Market Cap: C$3.09B
• Dividend Yield: 0.52%
• Average Volume (3M): 65.00K
• Price to Earnings (P/E): 34.9
• Beta (1Y): 1.96
• Revenue Growth: 38.28%
• EPS Growth: 14.24%
• Country: CA
• Employees: 1,939
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.53
• Shares Outstanding: 21,685,696
• 10 Day Avg. Volume: 58,810
• 30 Day Avg. Volume: 64,996
• PEG Ratio: 0.62
• Price to Book (P/B): 4.87
• Price to Sales (P/S): 1.96
• P/FCF Ratio: 17.88
• 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$176.67
• Price Target Upside: 30.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 59 Neutral
• Price Target: C$146.00 ▲(7.53% Upside)

The overall stock score of 59 reflects TerraVest's strong financial performance, tempered by high debt levels and declining cash flow. Technical indicators suggest a bearish trend, and the valuation appears high with a low dividend yield. These factors collectively indicate potential risks, requiring careful consideration by investors.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand and effective market positioning, contributing to long-term business sustainability.

Profit Margins

Healthy profit margins reflect efficient operational management and pricing power, supporting sustained profitability.

Return on Equity

High return on equity indicates efficient capital use and management's ability to generate returns for shareholders.

Negative Factors

High Debt Levels

High leverage can increase financial risk and limit flexibility, potentially impacting long-term financial stability.

Declining Cash Flow

Declining cash flow may hinder future investments and operational flexibility, affecting growth prospects.

Net Profit Margin Decrease

A decrease in net profit margin suggests potential cost pressures, which could impact future profitability.

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 generates revenue through the manufacturing and sale of its specialized equipment and products across different sectors. Key revenue streams include the production of pressure vessels, storage tanks, and trailers, which are often sold to businesses in the energy and transportation industries. Additionally, the company benefits from aftermarket services, including maintenance and repair, which provide ongoing revenue opportunities. TerraVest also engages in strategic partnerships with other companies in its sectors, enhancing its product offerings and broadening its market reach, further contributing to its overall earnings.

TerraVest Financial Statement Overview

Summary

TerraVest demonstrates strong revenue growth and profitability with healthy margins. However, high debt levels and declining free cash flow growth present potential risks. The company needs to manage its leverage carefully while improving cash flow generation.

Income Statement

TerraVest shows strong revenue growth with a 16.51% increase in the TTM period, reflecting robust demand in the oil & gas equipment sector. The company maintains healthy margins, with a gross profit margin of 29.20% and a net profit margin of 7.96%. EBIT and EBITDA margins are also solid at 14.09% and 21.98%, respectively, indicating efficient operational management. However, the net profit margin slightly decreased compared to previous years, suggesting potential cost pressures.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.65, indicating significant leverage which could pose risks if not managed carefully. Return on equity is strong at 20.88%, showcasing effective use of equity to generate profits. The equity ratio stands at 33.32%, suggesting a moderate level of equity financing relative to total assets. While the company is leveraging debt for growth, the high debt levels warrant caution.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 24.98% in the TTM period, raising concerns about cash generation. The operating cash flow to net income ratio is 0.33, indicating that operating cash flow is lower than net income, which could impact liquidity. The free cash flow to net income ratio is 0.57, suggesting that a significant portion of net income is not translating into free cash flow, potentially affecting future investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.18B	911.82M	678.35M	576.70M	307.46M	304.25M
Gross Profit	332.68M	263.37M	165.96M	124.39M	80.63M	72.26M
EBITDA	213.49M	179.15M	115.57M	80.76M	60.94M	50.41M
Net Income	80.08M	63.57M	42.07M	45.25M	36.62M	26.84M
Balance Sheet
Total Assets	2.10B	867.83M	652.91M	614.52M	406.34M	319.63M
Cash, Cash Equivalents and Short-Term Investments	27.10M	28.38M	24.76M	9.39M	8.36M	27.45M
Total Debt	962.64M	302.86M	269.05M	275.86M	190.61M	140.15M
Total Liabilities	1.36B	468.21M	415.17M	418.61M	274.28M	193.48M
Stockholders Equity	698.02M	367.65M	217.08M	183.57M	132.06M	125.93M
Cash Flow
Free Cash Flow	64.26M	100.71M	46.09M	-5.61M	4.66M	54.20M
Operating Cash Flow	128.24M	156.48M	79.24M	29.95M	23.06M	64.88M
Investing Cash Flow	-942.02M	-175.38M	-40.18M	-73.95M	-52.54M	-22.64M
Financing Cash Flow	815.01M	22.66M	-23.38M	45.16M	9.99M	-24.56M

TerraVest Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 135.78
• 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 135.78 is below the 20-day moving average (MA) of 138.73, below the 50-day MA of 139.88, and below the 200-day MA of 145.31, indicating a bearish trend. The MACD of -1.50 indicates Positive momentum. The RSI at 45.02 is Neutral, neither overbought nor oversold. The STOCH value of 8.94 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
CEU	―	C$2.07B	11.80	23.31%	1.64%	8.36%	2.09%
PSI	―	C$932.37M	12.85	15.38%	4.35%	9.33%	-36.51%
EFX	―	C$2.13B	12.02	12.21%	0.85%	-0.41%	―
TCW	―	$1.24B	10.71	18.06%	3.81%	9.24%	6.35%
NOA	―	$639.98M	17.22	8.24%	2.20%	14.58%	-37.71%
Sector *	―	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
TVK	―	C$3.09B	34.94	15.17%	0.52%	38.28%	14.24%

TerraVest Corporate Events

TerraVest Initiates Share Buyback Program

TerraVest Industries Inc. has announced a normal course issuer bid approved by the Toronto Stock Exchange, allowing the company to repurchase up to 1,558,516 of its common shares, which represents approximately 10% of its public float. This move is seen as a strategic use of financial resources by the Board of Directors, aiming to purchase shares when their market price does not fully reflect their underlying value, potentially impacting the company’s stock valuation and shareholder returns.

The most recent analyst rating on (TSE:TVK) stock is a Hold with a C$141.00 price target. To see the full list of analyst forecasts on TerraVest stock, see the TSE:TVK Stock Forecast page.

TerraVest Reports Strong Sales Growth in Q3 2025 Amid Strategic Acquisitions

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.