TSX:TEV

Stock Analysis Report

Executive Summary

Tervita Corporation operates as a waste and environmentally focused energy service provider in Canada and the United States.


Snowflake Analysis

Slightly overvalued with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-6.1%

TEV

3.9%

CA Energy Services

2.1%

CA Market


1 Year Return

-47.9%

TEV

-72.6%

CA Energy Services

-21.2%

CA Market

Return vs Industry: TEV exceeded the Canadian Energy Services industry which returned -72.9% over the past year.

Return vs Market: TEV underperformed the Canadian Market which returned -22.9% over the past year.


Shareholder returns

TEVIndustryMarket
7 Day-6.1%3.9%2.1%
30 Day-51.6%-46.8%-13.8%
90 Day-56.4%-60.0%-21.9%
1 Year-47.9%-47.9%-71.1%-72.6%-18.6%-21.2%
3 Yearn/a-80.0%-82.0%-11.0%-19.3%
5 Yearn/a-82.5%-84.9%1.6%-13.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Tervita 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: TEV (CA$3.25) is trading below our estimate of fair value (CA$18.03)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: TEV is overvalued based on its PB Ratio (1.7x) compared to the CA Energy Services industry average (0.3x).


Next Steps

Future Growth

How is Tervita forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

85.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TEV is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: TEV is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: TEV is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: TEV's revenue is expected to decline over the next 3 years (-2.3% per year).

High Growth Revenue: TEV's revenue is forecast to decline over the next 3 years (-2.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TEV is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Tervita performed over the past 5 years?

32.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TEV is currently unprofitable.

Growing Profit Margin: TEV is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TEV is unprofitable, but has reduced losses over the past 5 years at a rate of 32.9% per year.

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

Earnings vs Industry: TEV is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (4.1%).


Return on Equity

High ROE: TEV has a negative Return on Equity (-51.79%), as it is currently unprofitable.


Next Steps

Financial Health

How is Tervita's financial position?


Financial Position Analysis

Short Term Liabilities: TEV's short term assets (CA$238.0M) exceed its short term liabilities (CA$216.0M).

Long Term Liabilities: TEV's short term assets (CA$238.0M) do not cover its long term liabilities (CA$1.2B).


Debt to Equity History and Analysis

Debt Level: TEV's debt to equity ratio (339.3%) is considered high.

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


Balance Sheet


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: TEV has sufficient cash runway for more than a year based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

0.9yrs

Average management tenure


CEO

John Cooper (59yo)

2.75s

Tenure

CA$2,283,435

Compensation

Mr. John William Cooper has been Chief Executive Officer of Tervita Corporation since July 14, 2017 and has been its President since July 2017. Mr. Cooper has been Chief Operating Officer of Tervita Corpor ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD1.61M) is above average for companies of similar size in the Canadian market ($USD781.13K).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Cooper
CEO, President2.75yrsCA$2.28m0.015% CA$53.9k
Robert Dawson
Executive Vice President of Strategy & Corporate Development0.92yrCA$1.31mno data
Shandy Vida
President of Metals Recyclingno dataCA$621.86kno data
Duane Burkard
Vice President of Energy Servicesno dataCA$886.81kno data
Linda Dietsche
Chief Financial Officer0.92yrno datano data
Garry Wegleitner
President of BECK Drilling & Environment Services Ltdno datano datano data

0.9yrs

Average Tenure

Experienced Management: TEV's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
John Cooper
CEO, President2.75yrsCA$2.28m0.015% CA$53.9k
Grant Billing
Independent Chairman of the Boardno dataCA$225.00k0.066% CA$243.8k
Allen Hagerman
Independent Director3.33yrsCA$158.75kno data
Cameron Kramer
Independent Director3.33yrsCA$151.25kno data
Gordon Pridham
Independent Director1.75yrsCA$64.94k0.020% CA$72.7k
Susan L. Rose
Independent Director1.75yrsCA$64.94k0.0082% CA$30.3k
Douglas Ramsay
Independent Director3.25yrsCA$151.25kno data
Jay Thornton
Independent Director3.33yrsCA$151.25k0.044% CA$162.5k
Kevin Walbridge
Independent Director2.83yrsCA$143.75kno data
Michael Colodner
Director1.75yrsno datano data

2.8yrs

Average Tenure

60.5yo

Average Age

Experienced Board: TEV's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 5.7%.


Top Shareholders

Company Information

Tervita Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tervita Corporation
  • Ticker: TEV
  • Exchange: TSX
  • Founded: 1979
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: CA$368.148m
  • Shares outstanding: 113.28m
  • Website: https://www.tervita.com

Number of Employees


Location

  • Tervita Corporation
  • 140 - 10th Avenue SE
  • Suite 1600
  • Calgary
  • Alberta
  • T2G 0R1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TEVTSX (The Toronto Stock Exchange)YesCommon SharesCACADJul 2018
TRVC.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJul 2018
30WADB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2018

Biography

Tervita Corporation operates as a waste and environmentally focused energy service provider in Canada and the United States. It operates in two segments, Energy Services and Industrial Services. The Energy Services segment treats, recovers, and disposes fluids; provides oil terminalling and energy marketing services; processes and disposes solid materials; disposes oilfield-generated waste; offers onsite services using centrifugation or other processes for heavy oil producers involved in mining and in situ production; and supplies and operates drill site processing equipment, such as solids control and drill cuttings management. The Industrial Services segment provides site remediation, facility decommissioning, water treatment, sludge and slurry management, bio-remediation, emergency response, and rail, as well as hazardous and non-hazardous waste management, and disposal services; and technologies. This segment also offers recycling services that include purchase and processing of ferrous and non-ferrous metals recovered from demolition sites and other locations. As of December 31, 2019, the company operated 107 active waste processing, disposal, and industrial facilities, including 47 treatment, recovery, and disposal facilities; seven stand-alone disposal wells; three cavern disposal facilities; seven onsite facilities; 24 engineered landfills; four transfer stations; one naturally occurring radioactive material facility; nine bioremediation facilities; and five metals recycling facilities. It serves oil and gas industry, and industrial and natural resource sectors. The company was formerly known as CCS Corporation and changed its name to Tervita Corporation in March 2012. Tervita Corporation was founded in 1979 and is headquartered in Calgary, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 11:40
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
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.