Executive Summary
Terra Firma Capital Corporation provides real estate financings secured by investment properties and real estate developments in Canada and the United States. More Details
Rewards
Risk Analysis
Snowflake Analysis
Slightly overvalued with limited growth.
Share Price & News
How has Terra Firma Capital's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: TII is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: TII's weekly volatility (7%) has been stable over the past year.
Market Performance
7 Day Return
-5.2%
TII
-0.07%
CA Mortgage
0.2%
CA Market
1 Year Return
-0.4%
TII
-16.6%
CA Mortgage
2.0%
CA Market
Return vs Industry: TII exceeded the Canadian Mortgage industry which returned -16.6% over the past year.
Return vs Market: TII underperformed the Canadian Market which returned 2% over the past year.
Shareholder returns
| TII | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.2% | -0.07% | 0.2% |
| 30 Day | 3.0% | 4.2% | 3.8% |
| 90 Day | 20.9% | 25.0% | 13.4% |
| 1 Year | 4.1%-0.4% | -9.4%-16.6% | 5.7%2.0% |
| 3 Year | -13.9%-19.1% | 42.5%15.9% | 13.5%2.7% |
| 5 Year | -15.2%-20.3% | 101.0%58.1% | 67.8%42.1% |
Long-Term Price Volatility Vs. Market
How volatile is Terra Firma Capital's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
Key Things To Consider Before Buying Terra Firma Capital Corporation (CVE:TII) For Its Dividend2 months ago | Simply Wall St
How Is Terra Firma Capital's (CVE:TII) CEO Compensated?3 months ago | Simply Wall St
Have Insiders Been Selling Terra Firma Capital Corporation (CVE:TII) Shares?Valuation
Is Terra Firma Capital undervalued compared to its fair value and its price relative to the market?
10.87x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: TII (CA$5.5) is trading above our estimate of fair value (CA$3.21)
Significantly Below Fair Value: TII is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: TII's PE Ratio (10.9x) is in line with the CA Mortgage industry average.
PE vs Market: TII is good value based on its PE Ratio (10.9x) compared to the Canadian market (16.8x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate TII's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: TII is good value based on its PB Ratio (0.6x) compared to the CA Mortgage industry average (1x).
Next Steps
Future Growth
How is Terra Firma Capital forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
52.0%
Forecasted annual revenue growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: Insufficient data to determine if TII's forecast earnings growth is above the savings rate (1.5%).
Earnings vs Market: Insufficient data to determine if TII's earnings are forecast to grow faster than the Canadian market
High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: TII's revenue (52% per year) is forecast to grow faster than the Canadian market (7.9% per year).
High Growth Revenue: TII's revenue (52% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if TII's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Terra Firma Capital performed over the past 5 years?
-5.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TII has high quality earnings.
Growing Profit Margin: TII's current net profit margins (34.3%) are lower than last year (63%).
Past Earnings Growth Analysis
Earnings Trend: TII's earnings have declined by 5.8% per year over the past 5 years.
Accelerating Growth: TII's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: TII had negative earnings growth (-46.2%) over the past year, making it difficult to compare to the Mortgage industry average (4%).
Return on Equity
High ROE: TII's Return on Equity (5.4%) is considered low.
Next Steps
Financial Health
How is Terra Firma Capital'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: TII's Assets to Equity ratio (3.4x) is low.
Allowance for Bad Loans: Insufficient data to determine if TII has a sufficient allowance for bad loans.
Low Risk Liabilities: TII reports no customer deposits, 100% of its liabilities are made up of higher risk sources of funding.
Loan Level: Insufficient data to determine if TII has an appropriate level of Loans to Assets ratio.
Low Risk Deposits: TII reports no customer deposits, loans are made up entirely of externally borrowed funds.
Level of Bad Loans: Insufficient data to determine if TII has an appropriate level of bad loans.
Next Steps
Dividend
What is Terra Firma Capital current dividend yield, its reliability and sustainability?
3.46%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TII's dividend (3.46%) is higher than the bottom 25% of dividend payers in the Canadian market (1.54%).
High Dividend: TII's dividend (3.46%) is low compared to the top 25% of dividend payers in the Canadian market (5%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, TII has been paying a dividend for less than 10 years.
Growing Dividend: TII's dividend payments have increased, but the company has only paid a dividend for 2 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (38.2%), TII's dividend payments are 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?
4.6yrs
Average management tenure
CEO
Glenn Watchorn
4.58yrs
Tenure
US$486,176
Compensation
Mr. Glenn Watchorn has been the Chief Executive Officer of Terra Firma Capital Corporation since June 2, 2016 and as its President since November 10, 2014. Mr. Watchorn served as the Chief Operating Office...
CEO Compensation Analysis
Compensation vs Market: Glenn's total compensation ($USD486.18K) is above average for companies of similar size in the Canadian market ($USD153.63K).
Compensation vs Earnings: Glenn's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 0.92yr | US$385.49k | 5.8% $ 1.8m | |
| CEO & President | 4.58yrs | US$486.18k | 2.47% $ 756.5k | |
| CFO & Corporate Secretary | 7.92yrs | US$246.72k | 0.94% $ 288.9k | |
| MD & Principal Broker | 8.67yrs | US$210.85k | 0.088% $ 26.9k | |
| Managing Director | 1yr | no data | 1.81% $ 555.0k |
4.6yrs
Average Tenure
Experienced Management: TII's management team is considered experienced (4.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 0.92yr | US$385.49k | 5.8% $ 1.8m | |
| Independent Director | 9.17yrs | US$48.19k | no data | |
| Independent Lead Director | no data | US$33.73k | 1.03% $ 314.3k | |
| Independent Director | 13.42yrs | US$43.37k | 0.60% $ 182.6k | |
| Independent Director | 3.42yrs | US$33.73k | 0.18% $ 55.0k |
6.3yrs
Average Tenure
65.5yo
Average Age
Experienced Board: TII's board of directors are considered experienced (6.3 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
Terra Firma Capital Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Terra Firma Capital Corporation
- Ticker: TII
- Exchange: TSXV
- Founded: 2007
- Industry: Thrifts and Mortgage Finance
- Sector: Banks
- Market Cap: CA$30.607m
- Shares outstanding: 5.56m
- Website: https://tfcc.ca
Number of Employees
Location
- Terra Firma Capital Corporation
- 22 St. Clair Avenue East
- Suite 200
- Toronto
- Ontario
- M4T 2S3
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| TII | TSXV (TSX Venture Exchange) | Yes | Common Shares | CA | CAD | Jan 2008 |
| TFCC.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Jan 2008 |
Biography
Terra Firma Capital Corporation provides real estate financings secured by investment properties and real estate developments in Canada and the United States. It arranges financings for residential buildin...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/20 00:54 |
| End of Day Share Price | 2021/01/18 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.