TSXV:TORR

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Torrent Capital Ltd. focuses on investments in private and public company securities. More Details


Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TORR is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: TORR's weekly volatility (11%) has been stable over the past year.


Market Performance


7 Day Return

14.1%

TORR

-1.1%

CA Capital Markets

-0.2%

CA Market


1 Year Return

110.9%

TORR

-5.2%

CA Capital Markets

2.4%

CA Market

Return vs Industry: TORR exceeded the Canadian Capital Markets industry which returned -5.2% over the past year.

Return vs Market: TORR exceeded the Canadian Market which returned 2.4% over the past year.


Shareholder returns

TORRIndustryMarket
7 Day14.1%-1.1%-0.2%
30 Day22.8%-2.8%2.8%
90 Day9.0%17.0%15.1%
1 Year110.9%110.9%-3.0%-5.2%6.1%2.4%
3 Year266.0%266.0%34.9%25.2%14.7%3.8%
5 Yearn/a80.4%57.0%62.6%37.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Torrent Capital 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: TORR (CA$0.97) is trading below our estimate of fair value (CA$2.27)

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


Price To Earnings Ratio

PE vs Industry: TORR is good value based on its PE Ratio (2.3x) compared to the CA Capital Markets industry average (11.7x).

PE vs Market: TORR is good value based on its PE Ratio (2.3x) compared to the Canadian market (16.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TORR is good value based on its PB Ratio (1x) compared to the CA Capital Markets industry average (1.4x).


Next Steps

Future Growth

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

42.5%

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 Torrent 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 Torrent Capital performed over the past 5 years?

58.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TORR has a high level of non-cash earnings.

Growing Profit Margin: TORR's current net profit margins (79.6%) are higher than last year (23.3%).


Past Earnings Growth Analysis

Earnings Trend: TORR has become profitable over the past 5 years, growing earnings by 58.4% per year.

Accelerating Growth: TORR's earnings growth over the past year (3003.1%) exceeds its 5-year average (58.4% per year).

Earnings vs Industry: TORR earnings growth over the past year (3003.1%) exceeded the Capital Markets industry 15.2%.


Return on Equity

High ROE: TORR's Return on Equity (44.7%) is considered outstanding.


Next Steps

Financial Health

How is Torrent Capital's financial position?


Financial Position Analysis

Short Term Liabilities: TORR's short term assets (CA$1.8M) exceed its short term liabilities (CA$477.3K).

Long Term Liabilities: TORR's short term assets (CA$1.8M) exceed its long term liabilities (CA$1.3M).


Debt to Equity History and Analysis

Debt Level: TORR is debt free.

Reducing Debt: TORR has not had any debt for past 5 years.

Debt Coverage: TORR has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: TORR has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Torrent Capital current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if TORR'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 TORR'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

Wade Dawe (50 yo)

4.75yrs

Tenure

CA$180,000

Compensation

Mr. Wade K. Dawe serves as Chief Executive Officer of Torrent Capital Ltd. (formerly known as Metallum Resources Inc.) since April 15, 2016. Mr. Dawe is an accomplished Entrepreneur, Financier and Investor...


CEO Compensation Analysis

Compensation vs Market: Wade's total compensation ($USD141.09K) is about average for companies of similar size in the Canadian market ($USD152.60K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Wade Dawe
CEO & Director4.75yrsCA$180.00k16.38%
CA$ 3.7m
Robert William Randall
CFO & Corporate Secretary4.42yrsCA$66.30k0.083%
CA$ 19.0k
Scott Gardner
Chief Investment Officer3.92yrsCA$236.50kno data

4.4yrs

Average Tenure

50yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Wade Dawe
CEO & Director4.75yrsCA$180.00k16.38%
CA$ 3.7m
Philip Armstrong
Independent Chairman3.67yrsCA$30.00k0.52%
CA$ 118.8k
Carl Hansen
Independent Director12.17yrsCA$23.50k2.05%
CA$ 468.4k
Harold Megann
Director7.42yrsCA$23.00k4.69%
CA$ 1.1m

7.4yrs

Average Tenure

56.5yo

Average Age

Experienced Board: TORR's board of directors are considered experienced (7.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: TORR 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

Torrent Capital Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Torrent Capital Ltd.
  • Ticker: TORR
  • Exchange: TSXV
  • Founded: NaN
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: CA$22.830m
  • Shares outstanding: 24.03m
  • Website: https://torrentcapital.ca

Location

  • Torrent Capital Ltd.
  • Purdy’s Wharf II
  • Suite 2001
  • Halifax
  • Nova Scotia
  • B3J 3R7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TORRTSXV (TSX Venture Exchange)YesCommon SharesCACADMar 1990
TRRP.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMar 1990
0MLAMUN (Boerse Muenchen)YesCommon SharesDEEURMar 1990

Biography

Torrent Capital Ltd. focuses on investments in private and public company securities. It also provides merchant banking services to small scale companies, as well as advisory services for corporate finance...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/26 00:28
End of Day Share Price2021/01/25 00:00
Earnings2020/09/30
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.