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.


Snowflake Analysis

Mediocre 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.3%

TMG

1.0%

CA Machinery

7.1%

CA Market


1 Year Return

-7.1%

TMG

-39.7%

CA Machinery

-25.3%

CA Market

Return vs Industry: TMG exceeded the Canadian Machinery industry which returned -39.7% over the past year.

Return vs Market: TMG exceeded the Canadian Market which returned -25.3% over the past year.


Shareholder returns

TMGIndustryMarket
7 Day8.3%1.0%7.1%
30 Day-35.0%-34.5%-24.1%
90 Day-7.1%-36.1%-26.7%
1 Year-7.1%-7.1%-38.2%-39.7%-22.9%-25.3%
3 Year-43.5%-43.5%-39.7%-43.8%-15.6%-23.4%
5 Year0%0%-17.1%-24.1%-3.2%-17.5%

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$2.6)

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


Price To Earnings Ratio

PE vs Industry: TMG is poor value based on its PE Ratio (28.9x) compared to the Machinery industry average (20.1x).

PE vs Market: TMG is poor value based on its PE Ratio (28.9x) compared to the Canadian market (10.6x).


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 (2.2x) compared to the CA Machinery industry average (1.6x).


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?

31.3%

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?

48.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TMG has high quality earnings.

Growing Profit Margin: TMG's current net profit margins (1.6%) are lower than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: TMG has become profitable over the past 5 years, growing earnings by 48% per year.

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

Earnings vs Industry: TMG had negative earnings growth (-38.9%) over the past year, making it difficult to compare to the Machinery industry average (-16.9%).


Return on Equity

High ROE: TMG's Return on Equity (7.3%) is considered low.


Next Steps

Financial Health

How is Thermal Energy International's financial position?


Financial Position Analysis

Short Term Liabilities: TMG's short term assets (CA$9.6M) exceed its short term liabilities (CA$7.1M).

Long Term Liabilities: TMG's short term assets (CA$9.6M) exceed its long term liabilities (CA$3.4M).


Debt to Equity History and Analysis

Debt Level: TMG's debt to equity ratio (60.3%) 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 3.4x 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: TMG is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: TMG is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

4.4yrs

Average management tenure


CEO

Bill Crossland

10.58s

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 ($USD201.08K) is about average for companies of similar size in the Canadian market ($USD157.44K).

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


Leadership Team

NamePositionTenureCompensationOwnership
William Crossland
President10.58yrsCA$283.00k3.55% CA$370.9k
Jie Zhang
Chief Financial Officer1.67yrsCA$135.33kno data
Robert Triebe
Chief Operating Officer15yrsCA$207.88k0.41% CA$43.2k
Deborah Weinstein
Corporate Secretaryno datano datano data
Vince Sands
Founder & President of Boilerroom Equipment Inc0.17yrno datano data
Samuel Mawby
Director of Business Development & Technology4.42yrsCA$153.11k0.16% CA$16.5k

4.4yrs

Average Tenure

Experienced Management: TMG's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Crossland
President10.58yrsCA$283.00k3.55% CA$370.9k
John Kelly
Chairman of the Board10.5yrsCA$37.35k1.49% CA$155.0k
Michael Williams
Independent Director15.08yrsCA$29.25k0.61% CA$63.7k
William White
Independent Director3.33yrsCA$18.50k0.091% CA$9.5k
William Ollerhead
Independent Director8.42yrsCA$33.65k1.49% CA$156.0k
David Spagnolo
Independent Director5.33yrsCA$20.25k0.17% CA$17.6k

9.5yrs

Average Tenure

Experienced Board: TMG's board of directors are considered experienced (9.5 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

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$10.439m
  • Shares outstanding: 160.60m
  • 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, and internationally. Its products include GEM steam traps; FLU-ACE, a direct contact condensing heat recovery system that recycles the heat lost through the boiler flue gas exhaust; and DRY-REX, a low temperature biomass drying system. The company also provides turn-key thermal energy solutions; and sells water treatment products and services. It serves food and beverage, pulp and paper, hospital, pharmaceutical, chemical and petrochemical, and other industry sectors. The company was founded in 1991 and is headquartered in Ottawa, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 01:55
End of Day Share Price2020/03/26 00:00
Earnings2019/11/30
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.