TSXV:TMG

Stock Analysis Report

Thermal Energy International

Executive Summary

Thermal Energy International Inc. engages in the development, engineering, and supply of pollution control products, heat recovery systems, and condensate return solutions in North America, Europe, China, and internationally.

Rewards

Trading at 96.6% below its fair value

Risk Analysis

Does not have a meaningful market cap (CA$12M)

Currently unprofitable and not forecast to become profitable over the next 3 years



Snowflake Analysis

Adequate balance sheet and slightly overvalued.

Share Price & News

How has Thermal Energy International's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-6.7%

TMG

-1.9%

CA Machinery

-0.4%

CA Market


1 Year Return

-6.7%

TMG

-0.4%

CA Machinery

10.5%

CA Market

Return vs Industry: TMG underperformed the Canadian Machinery industry which returned -0.4% over the past year.

Return vs Market: TMG underperformed the Canadian Market which returned 10.5% over the past year.


Shareholder returns

TMGIndustryMarket
7 Day-6.7%-1.9%-0.4%
30 Day-6.7%-3.5%0.8%
90 Day27.3%1.0%1.7%
1 Year-6.7%-6.7%2.4%-0.4%14.1%10.5%
3 Year-39.1%-39.1%1.6%-5.2%16.1%5.6%
5 Year0%0%28.3%18.0%41.2%20.4%

Price Volatility Vs. Market

How volatile is Thermal Energy International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Thermal Energy International undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TMG (CA$0.07) is trading below our estimate of fair value (CA$2.09)

Significantly Below Fair Value: TMG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TMG is unprofitable, so we can't compare its PE Ratio to the Machinery industry average.

PE vs Market: TMG is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TMG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TMG is overvalued based on its PB Ratio (2.8x) compared to the CA Machinery industry average (2.4x).


Next Steps

Future Growth

How is Thermal Energy International forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

37.2%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Thermal Energy International has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Thermal Energy International performed over the past 5 years?

40.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TMG is currently unprofitable.

Growing Profit Margin: TMG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TMG is unprofitable, but has reduced losses over the past 5 years at a rate of 40.1% per year.

Accelerating Growth: Unable to compare TMG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TMG is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (-22.5%).


Return on Equity

High ROE: TMG has a negative Return on Equity (-3.98%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Thermal Energy International's financial position?


Financial Position Analysis

Short Term Liabilities: TMG's short term assets (CA$9.5M) exceed its short term liabilities (CA$7.4M).

Long Term Liabilities: TMG's short term assets (CA$9.5M) exceed its long term liabilities (CA$3.1M).


Debt to Equity History and Analysis

Debt Level: TMG's debt to equity ratio (71.7%) is considered high.

Reducing Debt: Insufficient data to determine if TMG's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: TMG has a low level of unsold assets or inventory.

Debt Coverage by Assets: TMG's debt is covered by short term assets (assets are 3.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable TMG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: TMG is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 50% per year.


Next Steps

Dividend

What is Thermal Energy International's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.7%industryaverage5.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate TMG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate TMG's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TMG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TMG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TMG's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

What is the CEO of Thermal Energy International's salary, the management and board of directors tenure and is there insider trading?

7.3yrs

Average management tenure


CEO

Bill Crossland 0

10.3yrs

Tenure

CA$283,000

Compensation

Mr. William M. Crossland, also known as Bill, B. Sc., MBA, has been the Chief Executive Officer and President of Thermal Energy International Inc. since August 07, 2009. Mr. Crossland served as the Managin ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD214.07K) is above average for companies of similar size in the Canadian market ($USD136.16K).

Compensation vs Earnings: Bill's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

7.3yrs

Average Tenure

Experienced Management: TMG's management team is seasoned and experienced (7.3 years average tenure).


Board Age and Tenure

9.2yrs

Average Tenure

Experienced Board: TMG's board of directors are considered experienced (9.2 years average tenure).


Insider Trading

Insider Buying: TMG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$5,26207 Nov 19
David Spagnolo
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares70,000
Max PriceCA$0.075
BuyCA$20,00004 Mar 19
John Kelly
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares250,000
Max PriceCA$0.08

Ownership Breakdown

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


Management Team

  • Deborah Weinstein (59yo)

    Corporate Secretary

    • Tenure: 0yrs
  • Rob Triebe

    Chief Operating Officer

    • Tenure: 14.8yrs
    • Compensation: CA$207.88k
  • Bill Crossland

    President

    • Tenure: 10.3yrs
    • Compensation: CA$283.00k
  • Sam Mawby

    Director of Business Development & Technology

    • Tenure: 4.2yrs
    • Compensation: CA$153.11k
  • Julia Zhang

    Chief Financial Officer

    • Tenure: 1.4yrs
    • Compensation: CA$135.33k

Board Members

  • John Kelly (84yo)

    Chairman of the Board

    • Tenure: 10.3yrs
    • Compensation: CA$37.35k
  • Michael Williams

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: CA$29.25k
  • Bill White (66yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: CA$18.50k
  • Bill Crossland

    President

    • Tenure: 10.3yrs
    • Compensation: CA$283.00k
  • Will Ollerhead

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: CA$33.65k
  • David Spagnolo

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: CA$20.25k

Company Information

Thermal Energy International Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Thermal Energy International Inc.
  • Ticker: TMG
  • Exchange: TSXV
  • Founded: 1991
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: CA$12.141m
  • Shares outstanding: 161.89m
  • Website: https://www.thermalenergy.com

Location

  • Thermal Energy International Inc.
  • 36 Antares Drive
  • Suite 850
  • Ottawa
  • Ontario
  • K2E 7W5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TMGTSXV (TSX Venture Exchange)YesClass A Common SharesCACADAug 1994
EUWDB (Deutsche Boerse AG)YesClass A Common SharesDEEURAug 1994
TMGE.FOTCPK (Pink Sheets LLC)YesClass A Common SharesUSUSDAug 1994

Biography

Thermal Energy International Inc. engages in the development, engineering, and supply of pollution control products, heat recovery systems, and condensate return solutions in North America, Europe, China,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/06 23:44
End of Day Share Price2019/12/06 00:00
Earnings2019/08/31
Annual Earnings2019/05/31


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.