TSX

Tree Island Steel Ltd.

TSL.TO•Basic Materials•Steel
Current Price
$2.35
Today's Change
-0.42%
Market Cap
$61.00M
Volume
300.00
💎

Commodity Exposure

Diversified Commodities

💡

Industry Context

Commodity-dependent companies face cyclical cash flows. Strong balance sheets are critical for downturn protection.

💡 Quick Take

Tree Island Steel Ltd. manufactures and sells steel wire products for various industrial applications across North America. While the company has a solid liquidity position with a current ratio of 2.95 and low debt-to-equity ratio of 0.29, its profitability metrics are concerning, reflected by a negative net margin of -0.4% and low gross margin of 7.3%. Additionally, the market cap of $61 million suggests limited investor confidence, especially given the negative return on equity and assets. Overall, while liquidity is strong, profitability remains a significant challenge.

Based on 27 data points⚠️Not financial advice

📊 Key Metrics

52 Week High$3.11
52 Week Low$0.01
Avg Volume12.28K
Beta0.47
Shares Outstanding25.85M

🔥 Valuation

Market Cap$61.00M
Enterprise Value$90.37M
P/E Ratio-9.28
EV/EBITDA ⚠️39.77x
Dividend Yield2.69%

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🚩 Red Flags

🔴

Cash Runway Critical

Company has $872K in cash but burned $543K last quarter. At this burn rate, only 1.6 quarters of runway remain without additional financing.

🟠

Revenue Declining

Revenue fell 20.1% year-over-year from $200.6M to $160.3M. The decline has persisted for multiple quarters.

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High Debt Load

Debt of $30.8M is 35.3x the company's cash position of $872K.

🌟 Opportunities

🚀

Excellent liquidity with current ratio of 3.0x ensures operational stability.

✨

Low debt-to-revenue ratio of 19.2% indicates conservative financial management.

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