TerraVest (TVK) AI Stock Analysis

• Market Cap: C$3.10B
• Dividend Yield: 0.5%
• Average Volume (3M): 59.57K
• Price to Earnings (P/E): 35.0
• 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: 45,243
• 30 Day Avg. Volume: 59,571
• 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$178.50
• Price Target Upside: 26.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 63 Neutral
• Price Target: C$150.00 ▲(6.10% Upside)

TerraVest's overall stock score is primarily influenced by its strong financial performance, despite high debt levels and declining cash flow growth. Technical analysis indicates potential bearish momentum, and valuation metrics suggest the stock may be overvalued. The lack of earnings call and corporate events data limits additional insights.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand in the oil & gas equipment sector, supporting TerraVest's market position and future expansion.

Profitability

Healthy profit margins demonstrate TerraVest's efficient operational management, contributing to sustainable profitability and competitive advantage.

Return on Equity

A strong return on equity indicates effective management and the ability to generate profits from shareholders' investments, enhancing shareholder value.

Negative Factors

High Debt Levels

High debt levels can pose financial risks and limit flexibility, potentially impacting TerraVest's ability to invest in growth and weather economic downturns.

Declining Cash Flow

Declining cash flow growth raises concerns about TerraVest's cash generation ability, affecting liquidity and future investment capacity.

Net Profit Margin Pressure

A decrease in net profit margin suggests potential cost pressures, which could impact TerraVest's profitability and operational efficiency over time.

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 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: Neutral
• Last Price: 141.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 141.37 is above the 20-day moving average (MA) of 139.42, below the 50-day MA of 144.98, and below the 200-day MA of 143.53, indicating a neutral trend. The MACD of -0.43 indicates Negative momentum. The RSI at 48.92 is Neutral, neither overbought nor oversold. The STOCH value of 54.07 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
TCW	79 Outperform	$1.31B	11.33	20.50%	3.24%	-2.14%	-6.88%
CEU	76 Outperform	$2.05B	11.54	23.31%	1.68%	8.36%	2.09%
PSI	76 Outperform	C$928.69M	12.80	15.38%	4.37%	9.33%	-36.51%
EFX	74 Outperform	C$1.97B	11.10	12.21%	0.93%	-0.41%	―
NOA	66 Neutral	$592.21M	15.94	8.24%	2.39%	14.58%	-37.71%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
TVK	63 Neutral	C$3.10B	35.03	15.17%	0.50%	38.28%	14.24%

TerraVest Corporate Events

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.

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.