TSX:TF

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Timbercreek Financial

Executive Summary

Timbercreek Financial Corp., a mortgage investment company, provides shorter-duration structured financing solutions to commercial real estate investors in Canada.


Snowflake Analysis

Limited growth with questionable track record.

Share Price & News

How has Timbercreek Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TF has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.6%

TF

-0.008%

CA Mortgage

2.4%

CA Market


1 Year Return

-8.9%

TF

-17.0%

CA Mortgage

-12.4%

CA Market

Return vs Industry: TF exceeded the Canadian Mortgage industry which returned -17% over the past year.

Return vs Market: TF exceeded the Canadian Market which returned -12.4% over the past year.


Shareholder returns

TFIndustryMarket
7 Day-0.6%-0.008%2.4%
30 Day-1.0%-5.9%-0.9%
90 Day24.1%26.4%17.3%
1 Year-1.7%-8.9%-7.2%-17.0%-9.4%-12.4%
3 Year15.6%-7.6%19.9%-2.2%4.2%-5.7%
5 Yearn/a5.6%-16.6%22.1%3.8%

Price Volatility Vs. Market

How volatile is Timbercreek Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Timbercreek Financial undervalued compared to its fair value and its price relative to the market?

14.63x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TF (CA$8.64) is trading above our estimate of fair value (CA$6.51)

Significantly Below Fair Value: TF is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TF is poor value based on its PE Ratio (14.6x) compared to the Mortgage industry average (9.5x).

PE vs Market: TF is poor value based on its PE Ratio (14.6x) compared to the Canadian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: TF is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: TF is overvalued based on its PB Ratio (1x) compared to the CA Mortgage industry average (0.9x).


Next Steps

Future Growth

How is Timbercreek Financial forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TF's forecast earnings growth (8.5% per year) is above the savings rate (1.7%).

Earnings vs Market: TF's earnings (8.5% per year) are forecast to grow slower than the Canadian market (23.6% per year).

High Growth Earnings: TF's earnings are forecast to grow, but not significantly.

Revenue vs Market: TF's revenue (12.4% per year) is forecast to grow faster than the Canadian market (5.5% per year).

High Growth Revenue: TF's revenue (12.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TF's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Timbercreek Financial performed over the past 5 years?

14.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TF has high quality earnings.

Growing Profit Margin: TF's current net profit margins (75.3%) are lower than last year (79.2%).


Past Earnings Growth Analysis

Earnings Trend: TF's earnings have grown by 14.2% per year over the past 5 years.

Accelerating Growth: TF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TF had negative earnings growth (-10.1%) over the past year, making it difficult to compare to the Mortgage industry average (6.7%).


Return on Equity

High ROE: TF's Return on Equity (6.8%) is considered low.


Next Steps

Financial Health

How is Timbercreek Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: TF's Assets to Equity ratio (2.5x) is low.

Allowance for Bad Loans: Insufficient data to determine if TF has a sufficient allowance for bad loans.

Low Risk Liabilities: TF reports no customer deposits, 100% of its liabilities are made up of higher risk sources of funding.

Loan Level: Insufficient data to determine if TF has an appropriate level of Loans to Assets ratio.

Low Risk Deposits: TF reports no customer deposits, loans are made up entirely of externally borrowed funds.

Level of Bad Loans: Insufficient data to determine if TF has an appropriate level of bad loans.


Next Steps

Dividend

What is Timbercreek Financial current dividend yield, its reliability and sustainability?

7.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TF's dividend (7.99%) is higher than the bottom 25% of dividend payers in the Canadian market (1.91%).

High Dividend: TF's dividend (7.99%) is in the top 25% of dividend payers in the Canadian market (6.02%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, TF has been paying a dividend for less than 10 years.

Growing Dividend: TF's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (116.8%), TF's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Cam Goodnough

2.5yrs

Tenure

CA$330,000

Compensation

Mr. Cameron Goodnough, also known as Cam, is the Chief Executive Officer of Timbercreek Financial Corporation since January 1, 2018 and has been its Director since November 7, 2018. Mr. Goodnough has been  ...


CEO Compensation Analysis

Compensation vs Market: Cam's total compensation ($USD243.13K) is below average for companies of similar size in the Canadian market ($USD1.10M).

Compensation vs Earnings: Cam's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Cameron Goodnough
CEO, President & Non-Independent Director2.5yrsCA$330.00k0.0079% CA$56.6k
Gigi Wong
Chief Financial Officer2.67yrsCA$130.11k0.0025% CA$18.1k
Scott Rowland
Managing Director of Global Debt Investments1.5yrsCA$273.65k0.0036% CA$25.9k
Geoff McTait
Executive Director & Head of Origination - Canada1.5yrsno datano data
Julie Neault
Managing Director of Global Creditno datano datano data
Peter Hawkings
VP & Corporate Secretaryno datano datano data
Andrew Jones
Consultant2.5yrsCA$453.00kno data

2.5yrs

Average Tenure

Experienced Management: TF's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Cameron Goodnough
CEO, President & Non-Independent Director2.5yrsCA$330.00k0.0079% CA$56.6k
Derek Watchorn
Independent Director4.08yrsCA$66.38k0.056% CA$396.9k
Zelick Altman
Independent Director4.08yrsCA$49.39kno data
Ugo Bizzarri
Non-Independent Director4.08yrsCA$139.50k1.15% CA$8.2m
W. Shyba
Lead Independent Directorno dataCA$73.64k0.017% CA$119.0k
Robert Tamblyn
Non-Independent Chairman4.08yrsCA$120.00k0.13% CA$933.9k
Pamela Spackman
Independent Director1.5yrsCA$58.08k0.0069% CA$49.3k
Steven Scott
Independent Director4.08yrsCA$63.27k0.057% CA$406.5k

4.1yrs

Average Tenure

68yo

Average Age

Experienced Board: TF's board of directors are considered experienced (4.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Timbercreek Financial Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Timbercreek Financial Corp.
  • Ticker: TF
  • Exchange: TSX
  • Founded: 2016
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: CA$714.023m
  • Shares outstanding: 82.64m
  • Website: https://www.timbercreekfinancial.com

Location

  • Timbercreek Financial Corp.
  • 25 Price Street
  • Toronto
  • Ontario
  • M4W 1Z1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TFTSX (The Toronto Stock Exchange)YesCommon SharesCACADJul 2016

Biography

Timbercreek Financial Corp., a mortgage investment company, provides shorter-duration structured financing solutions to commercial real estate investors in Canada. It focuses on lending against income-producing commercial real estate properties, such as multi-residential, office, and retail buildings located in urban markets. The company was founded in 2016 and is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/04 23:58
End of Day Share Price2020/07/03 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.