TSX:TWM

Stock Analysis Report

Tidewater Midstream and Infrastructure

Executive Summary

Tidewater Midstream and Infrastructure Ltd., through its subsidiaries, engages in the gathering, processing, and transportation of natural gas liquids (NGLs) primarily in North America.

Snowflake

Fundamentals

High growth potential and fair value.

Share Price & News

How has Tidewater Midstream and Infrastructure's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TWM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.5%

TWM

-1.4%

CA Oil and Gas

0.3%

CA Market


1 Year Return

-27.9%

TWM

-2.3%

CA Oil and Gas

8.5%

CA Market

Return vs Industry: TWM underperformed the Canadian Oil and Gas industry which returned -2.3% over the past year.

Return vs Market: TWM underperformed the Canadian Market which returned 8.5% over the past year.


Shareholder returns

TWMIndustryMarket
7 Day-7.5%-1.4%0.3%
30 Day2.1%3.8%3.1%
90 Day-7.5%6.0%3.6%
1 Year-25.7%-27.9%2.2%-2.3%12.1%8.5%
3 Year-35.1%-40.6%-13.8%-22.6%16.4%6.0%
5 Yearn/a-18.0%-30.4%27.3%8.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Tidewater Midstream and Infrastructure 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: TWM (CA$0.98) is trading below our estimate of fair value (CA$4.28)

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


Price To Earnings Ratio

PE vs Industry: TWM is poor value based on its PE Ratio (24.8x) compared to the Oil and Gas industry average (10.4x).

PE vs Market: TWM is poor value based on its PE Ratio (24.8x) compared to the Canadian market (14.4x).


Price to Earnings Growth Ratio

PEG Ratio: TWM is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: TWM is overvalued based on its PB Ratio (0.7x) compared to the CA Oil and Gas industry average (0.6x).


Next Steps

Future Growth

How is Tidewater Midstream and Infrastructure forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

81.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TWM's forecast earnings growth (81.7% per year) is above the savings rate (1.9%).

Earnings vs Market: TWM's earnings (81.7% per year) are forecast to grow faster than the Canadian market (9.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TWM's revenue (41% per year) is forecast to grow faster than the Canadian market (4.7% per year).

High Growth Revenue: TWM's revenue (41% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TWM's Return on Equity is forecast to be low in 3 years time (13.8%).


Next Steps

Past Performance

How has Tidewater Midstream and Infrastructure performed over the past 5 years?

-16.3%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: TWM's current net profit margins (2.5%) are higher than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: TWM's earnings have declined by -16.3% per year over the past 5 years.

Accelerating Growth: TWM's earnings growth over the past year (73.9%) exceeds its 5-year average (-16.3% per year).

Earnings vs Industry: TWM earnings growth over the past year (73.9%) exceeded the Oil and Gas industry 19.5%.


Return on Equity

High ROE: TWM's Return on Equity (2.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Tidewater Midstream and Infrastructure's financial position?


Financial Position Analysis

Short Term Liabilities: TWM's short term assets (CA$160.7M) do not cover its short term liabilities (CA$216.3M)

Long Term Liabilities: TWM's short term assets (CA$160.7M) do not cover its long term liabilities (899.3M)


Debt to Equity History and Analysis

Debt Level: TWM's debt to equity ratio (111%) is considered high.

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

Debt Coverage: TWM's debt is not well covered by operating cash flow (9.6%).

Interest Coverage: TWM's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet

Inventory Level: TWM has a high level of physical assets or inventory.

Debt Coverage by Assets: TWM's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is Tidewater Midstream and Infrastructure's current dividend yield, its reliability and sustainability?

4.08%

Current Dividend Yield


Dividend Yield vs Market

company4.1%marketbottom25%2.0%markettop25%5.8%industryaverage4.7%forecastin3Years4.1%

Current dividend yield vs market & industry

Notable Dividend: TWM's dividend (4.08%) is higher than the bottom 25% of dividend payers in the Canadian market (1.99%).

High Dividend: TWM's dividend (4.08%) is low compared to the top 25% of dividend payers in the Canadian market (5.75%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, TWM has been paying a dividend for less than 10 years.

Growing Dividend: TWM has only been paying a dividend for 4 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (101.1%), TWM's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TWM's dividends in 3 years are forecast to be well covered by earnings (19.7% payout ratio).


Next Steps

Management

What is the CEO of Tidewater Midstream and Infrastructure's salary, the management and board of directors tenure and is there insider trading?

4.7yrs

Average management tenure


CEO

Joel MacLeod (40yo)

4.6yrs

Tenure

CA$822,854

Compensation

Mr. Joel A. MacLeod has been the Chief Executive Officer and President of Tidewater Midstream and Infrastructure Ltd. since April 20, 2015 and its Chairman of the Board since February 4, 2015. Mr. MacLeod  ...


CEO Compensation Analysis

Compensation vs Market: Joel's total compensation ($USD618.22K) is about average for companies of similar size in the Canadian market ($USD681.52K).

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


Management Age and Tenure

4.7yrs

Average Tenure

42yo

Average Age

Experienced Management: TWM's management team is considered experienced (4.7 years average tenure).


Board Age and Tenure

2.5yrs

Average Tenure

49yo

Average Age

Experienced Board: TWM's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: TWM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$289,02010 Oct 19
Joel MacLeod
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares300,000
Max PriceCA$0.96
BuyCA$700,00008 Oct 19
Joel MacLeod
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares700,000
Max PriceCA$1.00

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Joel MacLeod (40yo)

    Chairman

    • Tenure: 4.6yrs
    • Compensation: CA$822.85k
  • Toby McKenna (46yo)

    Vice President of Business Development & Marketing

    • Tenure: 0yrs
    • Compensation: CA$860.95k
  • Joel Vorra (33yo)

    Chief Financial Officer

    • Tenure: 4.8yrs
    • Compensation: CA$860.95k
  • Jeff Ketch (44yo)

    Vice President of Field Operations

    • Tenure: 4.8yrs
    • Compensation: CA$542.37k
  • David Barva

    VP of Legal

    • Tenure: 2.2yrs

Board Members

  • Greta Raymond (66yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: CA$107.05k
  • Doug Fraser (60yo)

    Lead Director

    • Tenure: 2yrs
    • Compensation: CA$117.05k
  • Rob Colcleugh (49yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: CA$107.05k
  • Joel MacLeod (40yo)

    Chairman

    • Tenure: 4.6yrs
    • Compensation: CA$822.85k
  • Steve Holyoake (45yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: CA$107.05k

Company Information

Tidewater Midstream and Infrastructure Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tidewater Midstream and Infrastructure Ltd.
  • Ticker: TWM
  • Exchange: TSX
  • Founded: 2015
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: CA$330.042m
  • Shares outstanding: 336.78m
  • Website: https://www.tidewatermidstream.com

Number of Employees


Location

  • Tidewater Midstream and Infrastructure Ltd.
  • 222 – 3rd Avenue SW
  • Suite 900
  • Calgary
  • Alberta
  • T2P 0B4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TWMTSX (The Toronto Stock Exchange)YesCommon SharesCACADApr 2015
TL5DB (Deutsche Boerse AG)YesCommon SharesDEEURApr 2015
TWMI.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDApr 2015

Biography

Tidewater Midstream and Infrastructure Ltd., through its subsidiaries, engages in the gathering, processing, and transportation of natural gas liquids (NGLs) primarily in North America. The company transpo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/21 00:33
End of Day Share Price2019/11/20 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.