Torrent Capital (TSXV:TORR) - Share price, News & Analysis

TORR fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	2/6
Financial Health	5/6
Dividends	0/6

TORR Stock Overview

Torrent Capital Ltd., an investment company and merchant bank, invests primarily in the securities of public and private companies.

Rewards

Trading at 81.7% below our estimate of its fair value

Risk Analysis

High level of non-cash earnings

Does not have a meaningful market cap (CA$25M)

Price History & Performance

Summary of all time highs, changes and price drops for Torrent Capital
Historical stock prices
Current Share Price	CA$1.05
52 Week High	CA$1.25
52 Week Low	CA$0.89
Beta	0.94
1 Month Change	-6.25%
3 Month Change	-15.32%
1 Year Change	2.94%
3 Year Change	172.73%
5 Year Change	n/a
Change since IPO	-72.00%

Shareholder Returns

	TORR	CA Capital Markets	CA Market
7D	2.9%	-3.9%	-2.9%
1Y	2.9%	33.1%	16.1%

Return vs Industry: TORR underperformed the Canadian Capital Markets industry which returned 33.7% over the past year.

Return vs Market: TORR underperformed the Canadian Market which returned 15% over the past year.

Price Volatility

Is TORR's price volatile compared to industry and market?
TORR volatility
TORR Average Weekly Movement	12.0%
Capital Markets Industry Average Movement	6.4%
Market Average Movement	9.8%
10% most volatile stocks in CA Market	17.3%
10% least volatile stocks in CA Market	3.7%

Stable Share Price: TORR is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: TORR's weekly volatility (12%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
n/a	n/a	Wade Dawe	https://torrentcapital.ca

Torrent Capital Ltd., an investment company and merchant bank, invests primarily in the securities of public and private companies. It also provides merchant banking services to select companies, as well as advisory services for corporate finance and capital markets. The company was formerly known as Metallum Resources Inc. and changed its name to Torrent Capital Ltd.

Torrent Capital Fundamentals Summary

How do Torrent Capital's earnings and revenue compare to its market cap?
TORR fundamental statistics
Market Cap	CA$25.44m
Earnings (TTM)	CA$6.36m
Revenue (TTM)	CA$9.19m

4.0x

P/E Ratio

2.8x

P/S Ratio

Is TORR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TORR income statement (TTM)
Revenue	CA$9.19m
Cost of Revenue	CA$0
Gross Profit	CA$9.19m
Expenses	CA$2.83m
Earnings	CA$6.36m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.26
Gross Margin	100.00%
Net Profit Margin	69.20%
Debt/Equity Ratio	0.0%

How did TORR perform over the long term?

See historical performance and comparison

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$1.05) is trading below our estimate of fair value (CA$5.74)

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 (4x) compared to the Canadian Capital Markets industry average (9.6x).

PE vs Market: TORR is good value based on its PE Ratio (4x) compared to the Canadian market (12.6x).

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 (0.9x) compared to the CA Capital Markets industry average (1.8x).

Future Growth

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

-2.2%

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.

Past Performance

How has Torrent Capital performed over the past 5 years?

58.7%

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 (69.2%) are lower than last year (79.6%).

Past Earnings Growth Analysis

Earnings Trend: TORR's earnings have grown significantly by 58.7% per year over the past 5 years.

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

Earnings vs Industry: TORR had negative earnings growth (-36.7%) over the past year, making it difficult to compare to the Capital Markets industry average (26.2%).

Return on Equity

High ROE: TORR's Return on Equity (21.8%) is considered high.

Financial Health

How is Torrent Capital's financial position?

Financial Position Analysis

Short Term Liabilities: TORR's short term assets (CA$797.3K) exceed its short term liabilities (CA$183.3K).

Long Term Liabilities: TORR's short term assets (CA$797.3K) do not cover its long term liabilities (CA$1.8M).

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

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

Explore strong dividend paying companies in the Diversified Financials industry.

Management

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

5.4yrs

Average management tenure

CEO

Wade Dawe (51 yo)

5.75yrs

Tenure

CA$702,512

Compensation

Mr. Wade K. Dawe serves as a Managing Director at Brigus Capital Inc. He serves as Chief Executive Officer of Torrent Capital Ltd. since April 15, 2016 and serves as its President. Mr. Dawe is an accomplis...

CEO Compensation Analysis

Compensation vs Market: Wade's total compensation ($USD556.23K) is above average for companies of similar size in the Canadian market ($USD158.71K).

Compensation vs Earnings: Wade's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Experienced Management: TORR's management team is seasoned and experienced (5.4 years average tenure).

Board Members

Experienced Board: TORR's board of directors are considered experienced (7 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.

Data	Last Updated (UTC time)
Company Analysis	2022/01/26 01:01
End of Day Share Price	2022/01/25 00:00
Earnings	2021/09/30
Annual Earnings	2020/12/31