Timbercreek Financial Corp. (TF) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

First National Financial Corp. (Ontario)

Firm Capital Mortgage Investment Corp.

MCAN Mortgage Corp.

Atrium Mortgage Investment Corp.

ECN Capital Corp.

Timbercreek Financial Corp.

Element Fleet Management Corp.

goeasy Ltd.

Altus Group Ltd.

Chesswood Group Ltd.

Real Matters, Inc.

Why is Timbercreek Financial Corp. ?

Poor long term growth as Operating profit has grown by an annual rate of 5.92%

Negative results in Jun 25

OPERATING CASH FLOW(Y) Lowest at CAD 28.76 MM
NET PROFIT(9M) At CAD 28.02 MM has Grown at -37.33%
ROCE(HY) Lowest at 6.3%

With ROE of 6.16%, it has a very attractive valuation with a 0.93 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -6.63%, its profits have fallen by -31.2%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -6.63% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Timbercreek Financial Corp. should be less than 10%
Overall Portfolio exposure to Finance should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Finance)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Timbercreek Financial Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Timbercreek Financial Corp.

-10.59%

0.22

18.19%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.74%

EBIT Growth (5y)

5.92%

EBIT to Interest (avg)

2.82

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

124.10%

Pledged Shares

Institutional Holding

ROCE (avg)

12.75%

ROE (avg)

7.27%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.89

EV to EBIT

6.56

EV to EBITDA

6.56

EV to Capital Employed

0.89

EV to Sales

3.85

PEG Ratio

Dividend Yield

ROCE (Latest)

13.55%

ROE (Latest)

6.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 295.03

DIVIDEND PAYOUT RATIO(Y)

Highest at 115.38%

RAW MATERIAL COST(Y)

Fallen by -5.46% (YoY

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 28.76 MM

NET PROFIT(9M)

At CAD 28.02 MM has Grown at -37.33%

ROCE(HY)

Lowest at 6.3%

DEBT-EQUITY RATIO (HY)

Highest at 165.39 %

NET SALES(Q)

Lowest at CAD 36.44 MM

Here's what is working for Timbercreek Financial Corp.

Interest Coverage Ratio

Highest at 295.03

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Dividend Payout Ratio

Highest at 115.38%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -5.46% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Timbercreek Financial Corp.

Net Profit

At CAD 28.02 MM has Grown at -37.33%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Operating Cash Flow

Lowest at CAD 28.76 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Net Sales

Lowest at CAD 36.44 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Debt-Equity Ratio

Highest at 165.39 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio