Thermal Energy International (TMG) AI Stock Analysis

• Market Cap: C$22.50M
• Dividend Yield: N/A
• Average Volume (3M): 258.91K
• Price to Earnings (P/E): 144.4
• Beta (1Y): -0.09
• Revenue Growth: 14.78%
• EPS Growth: -90.82%
• Country: CA
• Employees: N/A
• Sector: Energy
• Sector Strength: 48
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): >-0.01
• Shares Outstanding: 173,114,300
• 10 Day Avg. Volume: 368,121
• 30 Day Avg. Volume: 258,908
• PEG Ratio: -0.18
• Price to Book (P/B): 9.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.62
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: C$0.00 ▼(-100.00%Downside)

Thermal Energy International's overall stock score is driven primarily by its solid growth trajectory and strategic initiatives to reduce leverage, as well as promising corporate actions like share buybacks and securing new orders. However, profitability challenges and high valuation remain significant concerns. Technical indicators suggest a neutral outlook, while the earnings call provides mixed signals about current performance and future growth potential.

Thermal Energy International Business Overview & Revenue Model

Company Description

Thermal Energy International Inc. engages in the development, engineering, and supply of pollution control products, heat recovery systems, and condensate return solutions in North America, Europe, and internationally. Its products include GEM steam traps; FLU-ACE, a direct contact condensing heat recovery system that recycles the heat lost through the boiler flue gas exhaust; DRY-REX, a low temperature biomass dryer; indirect contact heat recovery equipment; boiler economizers under the HeatSponge brand; wet and dry steam accumulators; electricity co-generation solutions; turn-key thermal energy solutions; and water treatment products and services. It serves food and beverage, pulp and paper, hospital, pharmaceutical, chemicals and petrochemicals, and other industry sectors. Thermal Energy International Inc. was incorporated in 1991 and is based in Ottawa, Canada.

How the Company Makes Money

Thermal Energy International generates revenue through the sale and implementation of its energy efficiency and emissions reduction products and services. Key revenue streams include equipment sales, engineering services, and long-term maintenance contracts. The company also engages in partnerships with industrial and commercial entities, which help drive sales and expand market reach. Additionally, TMG may benefit from government incentives and programs aimed at promoting energy efficiency and reducing carbon footprints.

Thermal Energy International Financial Statement Overview

Summary

Thermal Energy International shows a promising growth trajectory with consistent revenue increases and a strategic decrease in leverage. However, profitability and cash flow stability present challenges that need to be addressed for long-term sustainability. Strengthening operational efficiency and ensuring stable cash flows are critical for continued success.

Income Statement

The company exhibits strong revenue growth, with recent TTM revenue significantly higher than previous annual reports. Gross profit margin remains consistent, highlighting efficient cost management. However, net profit margin is modest, indicating room for improvement in cost control or pricing strategy. The recent decline in EBIT and EBITDA margins suggests operational challenges.

Balance Sheet

The balance sheet shows a healthy decrease in debt levels, improving the debt-to-equity ratio over time. There is a consistent increase in stockholders' equity, indicating retained earnings or capital infusion. However, the equity ratio remains low, suggesting that the company relies heavily on liabilities for financing.

Cash Flow

The company experienced a significant drop in operating cash flow in the latest TTM period, which is a concern for liquidity. Free cash flow has fluctuated, showing a negative trend recently, which could affect future investments. Despite this, historically strong free cash flow to net income ratios indicate past efficiency in converting net income into cash.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
30.48M	25.88M	21.09M	15.91M	15.35M	21.42M
	Gross Profit
11.61M	12.45M	9.57M	6.73M	6.75M	8.95M
	EBIT
220.64K	1.37M	1.14M	-1.41M	335.47K	-1.79M
	EBITDA
1.29M	2.14M	1.76M	-772.74K	894.88K	-1.44M
	Net Income Common Stockholders
153.11K	929.50K	717.96K	-1.92M	198.13K	-1.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.14M	6.97M	2.81M	2.46M	4.24M	4.77M
	Total Assets
14.43M	16.79M	13.51M	9.60M	11.55M	10.44M
	Total Debt
2.81M	3.89M	4.73M	5.31M	4.81M	3.30M
	Net Debt
-2.34M	-3.07M	1.92M	2.84M	572.63K	-1.48M
	Total Liabilities
10.91M	13.37M	11.59M	8.55M	8.58M	8.44M
	Stockholders Equity
3.55M	3.46M	1.97M	1.08M	3.04M	2.10M
Cash Flow		Free Cash Flow
-704.62K	5.02M	1.33M	-1.99M	-1.31M	1.03M
	Operating Cash Flow
-609.26K	5.40M	1.41M	-1.64M	-1.19M	1.31M
	Investing Cash Flow
-95.36K	-376.89K	-77.70K	-351.93K	-125.39K	-280.55K
	Financing Cash Flow
-1.54M	-1.06M	-1.04M	357.56K	892.79K	-451.09K

Thermal Energy International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.13
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TMG, the sentiment is Positive. The current price of 0.13 is above the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.12, and below the 200-day MA of 0.17, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.30 is Neutral, neither overbought nor oversold. The STOCH value of 65.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TMG.

Thermal Energy International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRM	74 Outperform	C$30.47M	12.29	30.34%	―	29.80%	-11.58%
TMG	66 Neutral	C$22.50M	144.44	4.63%	―	14.78%	-90.82%
GRN	61 Neutral	C$14.91M	―	-6.67%	―	-32.69%	94.36%
Sector *	58 Neutral	$7.37B	3.39	-4.49%	10.01%	0.82%	-49.15%
QST	56 Neutral	C$11.29M	―	-9.94%	―	1.06%	56.94%
SHRC	52 Neutral	C$17.10M	―	-539.37%	―	46.73%	6.56%
DST	43 Neutral	C$3.21M	―	23.34%	―	-41.98%	-123.77%

Thermal Energy International Corporate Events

Thermal Energy International Launches Share Buyback Program

Thermal Energy International Inc. announced a Normal Course Issuer Bid to purchase up to 8,655,715 common shares, representing approximately 5.0% of its outstanding shares. The company believes the market price does not reflect its business value and future prospects, and this move is aimed at benefiting the company and its shareholders. The bid will run from May 22, 2025, to May 21, 2026, with the option to terminate earlier if necessary. Shares acquired will be cancelled, and Beacon Securities Limited will handle the acquisitions in accordance with TSX Venture Exchange rules.

Thermal Energy Secures $930K Order from Multinational Consumer Goods Firm

Thermal Energy International Inc. has secured a $930,000 order from a multinational consumer products company to expand the use of its GEM steam traps at a European site. This decision follows successful fuel savings and carbon emission reductions achieved at this and other sites, with the customer having invested over $4 million in GEM projects across nine global locations since 2022. The order is expected to be fulfilled within six months, indicating continued growth and strengthening of Thermal Energy’s relationship with the customer, potentially leading to further opportunities at other production sites worldwide.

Thermal Energy International Reports Record Year-to-Date Revenue Despite Q3 Challenges

Thermal Energy International reported a record revenue of $23 million for the fiscal year-to-date period, despite a 4.1% decrease in third-quarter revenue to $5.8 million compared to the previous year. The company experienced a net loss of $403 thousand and negative EBITDA of $167 thousand for the quarter, but remains optimistic about future profitability due to recent investments in engineering and sales teams. The company aims to capitalize on its strong business development pipeline and expects higher revenues to contribute more significantly to profitability in fiscal 2026.

Thermal Energy International to Announce Q3 2025 Financial Results

Thermal Energy International Inc. announced it will release its fiscal 2025 third quarter financial results on April 29, 2025. The company will host an earnings conference call and webcast to discuss the results, providing an opportunity for equity analysts to engage with management. This announcement is part of Thermal Energy’s ongoing efforts to maintain transparency with stakeholders and could impact the company’s market positioning by showcasing its financial health and operational progress.

Thermal Energy Expands Heat Recovery Project for Major Client

Thermal Energy International Inc. has announced a $1 million expansion project to enhance the existing heat recovery system at a major multinational food and beverage company’s American site. This project is expected to significantly reduce natural gas consumption and CO2 emissions, further solidifying Thermal Energy’s role in providing energy efficiency solutions. The expansion is set to be completed within 9 to 12 months and is anticipated to strengthen the company’s relationship with the client, opening up additional opportunities at other sites.