TSXV:TCC

Stock Analysis Report

Executive Summary

Trenchant Capital Corp., an investment and venture capital company, focuses on providing special situation debt financing to various companies in Canada.


Snowflake Analysis

Worrying balance sheet with weak fundamentals.

Share Price & News

How has Trenchant Capital's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TCC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

TCC

0.3%

CA Capital Markets

0.6%

CA Market


1 Year Return

-55.0%

TCC

17.6%

CA Capital Markets

5.3%

CA Market

Return vs Industry: TCC underperformed the Canadian Capital Markets industry which returned 17.6% over the past year.

Return vs Market: TCC underperformed the Canadian Market which returned 5.3% over the past year.


Shareholder returns

TCCIndustryMarket
7 Day0%0.3%0.6%
30 Day0%0.6%1.0%
90 Dayn/a4.3%4.5%
1 Year-55.0%-55.0%22.9%17.6%8.6%5.3%
3 Year-73.1%-73.1%28.0%12.1%18.0%7.4%
5 Year-53.2%-53.2%49.4%17.7%34.4%14.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Trenchant Capital undervalued compared to its fair value and its price relative to the market?

596.03x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate TCC's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate TCC's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

PE vs Market: TCC 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 TCC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TCC is overvalued based on its PB Ratio (596x) compared to the CA Capital Markets industry average (0.9x).


Next Steps

Future Growth

How is Trenchant Capital forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.5%

Forecasted Diversified Financials 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 Trenchant Capital 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 Trenchant Capital performed over the past 5 years?

41.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TCC is currently unprofitable.

Growing Profit Margin: TCC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TCC is unprofitable, but has reduced losses over the past 5 years at a rate of 41.8% per year.

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

Earnings vs Industry: TCC is unprofitable, making it difficult to compare its past year earnings growth to the Capital Markets industry (-13.4%).


Return on Equity

High ROE: TCC has a negative Return on Equity (-7.46%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Trenchant 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

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

Debt Coverage by Assets: TCC's debt is not covered by short term assets (assets are 0x 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: TCC has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if TCC has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Financial Institutions Analysis

Asset Level: TCC's level of assets compared to its equity is moderate.

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

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

Loan Level: Insufficient data to determine if TCC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: TCC has advanced significantly more loans than the customer deposits it holds.

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


Next Steps

Dividend

What is Trenchant Capital's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.3%industryaverage4.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate TCC'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 TCC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TCC'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 TCC'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?

4.8yrs

Average board tenure


CEO

Eric Boehnke (53yo)

5.8yrs

Tenure

0

Mr. Eric Boehnke has been the Chief Executive Officer and Director of Trenchant Capital Corp. (alternative name Echelon Petroleum Corp.) since May 26, 2014 and serves as its President. Mr. Boehnke served a ...


Board Members

NamePositionTenureCompensationOwnership
Eric Boehnke
President5.8yrsno data42.69% CA$448.4k
Jennie Choboter
CFO, Secretary & Director1.2yrsCA$6.00kno data
Lee Groat
Founding Member of Advisory Board8.6yrsno datano data
Thomas English
Independent Director3.8yrsno data17.55% CA$184.3k

4.8yrs

Average Tenure

53yo

Average Age

Experienced Board: TCC's board of directors are considered experienced (4.8 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

Trenchant Capital Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Trenchant Capital Corp.
  • Ticker: TCC
  • Exchange: TSXV
  • Founded: 2009
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: CA$1.050m
  • Shares outstanding: 11.67m
  • Website: https://www.trenchantcapital.net

Location

  • Trenchant Capital Corp.
  • 1066 West Hastings Street
  • Suite 1790
  • Vancouver
  • British Columbia
  • V6E 3X1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TCCTSXV (TSX Venture Exchange)YesCommon SharesCACADAug 2010

Biography

Trenchant Capital Corp., an investment and venture capital company, focuses on providing special situation debt financing to various companies in Canada. The company was formerly known as Echelon Petroleum Corp. and changed its name to Trenchant Capital Corp. in May 2017. Trenchant Capital Corp. was incorporated in 2009 and is headquartered in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 02:06
End of Day Share Price2019/12/27 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.