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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Richelieu Hardware Ltd.

Omni-Lite Industries Canada, Inc.

ADF Group, Inc.

Tree Island Steel Ltd.

Neo Performance Materials, Inc.

Algoma Steel Group, Inc.

Oceanic Iron Ore Corp.

Silver Viper Minerals Corp.

Defense Metals 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 -7.50% over the last 5 years

The company has declared Negative results for the last 15 consecutive quarters

NET SALES(HY) At CAD 73.02 MM has Grown at -23.16%
NET PROFIT(HY) At CAD -4.46 MM has Grown at -29.91%
ROCE(HY) Lowest at -5.77%

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 -7.06%, its profits have fallen by -40.8%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -7.06% 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.

-7.06%

-0.79

27.41%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-7.50%

EBIT Growth (5y)

-172.13%

EBIT to Interest (avg)

10.60

Debt to EBITDA (avg)

0.37

Net Debt to Equity (avg)

-0.02

Sales to Capital Employed (avg)

1.62

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

0.54

EV to EBIT

-17.07

EV to EBITDA

32.89

EV to Capital Employed

0.56

EV to Sales

0.40

PEG Ratio

Dividend Yield

ROCE (Latest)

-3.26%

ROE (Latest)

-6.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Bearish

OBV

No Trend

Mildly Bearish

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

2What is working for the Company

NET PROFIT(HY)

Higher at CAD -4.46 MM

-16What is not working for the Company

NET SALES(HY)

At CAD 73.02 MM has Grown at -23.16%

NET PROFIT(HY)

At CAD -4.46 MM has Grown at -29.91%

ROCE(HY)

Lowest at -5.77%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

RAW MATERIAL COST(Y)

Grown by 25.55% (YoY

CASH AND EQV(HY)

Lowest at CAD 2.98 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.78 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.26 times

DIVIDEND PER SHARE(HY)

Lowest at CAD 5.26

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

Net Profit

Higher at CAD -4.46 MM

than preceding 12 month period ended Mar 2026

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CAD MM)

Here's what is not working for Tree Island Steel Ltd.

Net Sales

At CAD 73.02 MM has Grown at -23.16%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Net Profit

At CAD -4.46 MM has Grown at -29.91%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Cash and Eqv

Lowest at CAD 2.98 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 2.78 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 5.26 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend per share

Lowest at CAD 5.26

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (CAD)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 25.55% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales