Tree Island Steel Ltd. (TSL) 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

Richelieu Hardware Ltd.

ADF Group, Inc.

Neo Performance Materials, Inc.

Omni-Lite Industries Canada, Inc.

Algoma Steel Group, Inc.

Tree Island Steel Ltd.

Oceanic Iron Ore Corp.

Defense Metals Corp.

Silver Viper Minerals Corp.

South Star Battery Metals Corp.

Rockex Mining Corp.

Why is Tree Island Steel Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -1.45% over the last 5 years

The company has declared Negative results for the last 10 consecutive quarters

NET PROFIT(HY) At CAD 0.09 MM has Grown at -92.99%
OPERATING CASH FLOW(Y) Lowest at CAD -0.95 MM
ROCE(HY) Lowest at -4.19%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -1.52%, its profits have fallen by -437.6%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -1.52% 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 sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Tree Island Steel Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tree Island Steel Ltd.

-7.47%

-0.41

34.16%

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)

-1.45%

EBIT Growth (5y)

-187.72%

EBIT to Interest (avg)

10.60

Debt to EBITDA (avg)

0.37

Net Debt to Equity (avg)

-0.02

Sales to Capital Employed (avg)

1.85

Tax Ratio

3.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.05%

ROCE (avg)

23.81%

ROE (avg)

25.94%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.60

EV to EBIT

-22.54

EV to EBITDA

27.64

EV to Capital Employed

0.60

EV to Sales

0.36

PEG Ratio

Dividend Yield

ROCE (Latest)

-2.64%

ROE (Latest)

-4.30%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

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

8What is working for the Company

PRE-TAX PROFIT(Q)

At CAD 0.09 MM has Grown at 107.8%

NET PROFIT(Q)

At CAD 0.09 MM has Grown at 107.57%

DIVIDEND PAYOUT RATIO(Y)

Highest at 454.55%

RAW MATERIAL COST(Y)

Fallen by -7.96% (YoY

-19What is not working for the Company

NET PROFIT(HY)

At CAD 0.09 MM has Grown at -92.99%

OPERATING CASH FLOW(Y)

Lowest at CAD -0.95 MM

ROCE(HY)

Lowest at -4.19%

DEBT-EQUITY RATIO (HY)

Highest at 19.37 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.4%

DIVIDEND PER SHARE(HY)

Lowest at CAD 6.19

NET SALES(Q)

Lowest at CAD 42.34 MM

Here's what is working for Tree Island Steel Ltd.

Pre-Tax Profit

At CAD 0.09 MM has Grown at 107.8%

over average net sales of the previous four periods of CAD -1.09 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 0.09 MM has Grown at 107.57%

over average net sales of the previous four periods of CAD -1.12 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Dividend Payout Ratio

Highest at 454.55%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -7.96% (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 Tree Island Steel Ltd.

Operating Cash Flow

Lowest at CAD -0.95 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)

Debt-Equity Ratio

Highest at 19.37 % and Grown

In each half year 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

Net Sales

Lowest at CAD 42.34 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Net Sales

At CAD 42.34 MM has Fallen at -15.59%

over average net sales of the previous four periods of CAD 50.16 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Inventory Turnover Ratio

Lowest at 3.4%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Dividend per share

Lowest at CAD 6.19

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (CAD)