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Thermal Energy International
(TMG)
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Rating:66Neutral
Price Target:
C$0.16
▼(-7.65% Downside)
Action:Reiterated
Date:10/29/26
The score is driven primarily by improved financial health and profitability alongside a constructive earnings call highlighting backlog/order momentum and balance-sheet strength. This is tempered by weaker technical trend signals (below key moving averages with negative MACD) and only mid-range valuation support (P/E ~19.6 with no dividend yield provided).
Positive Factors
TTM Growth and EBITDA Improvement
Strong multi-year revenue expansion combined with a substantial increase in adjusted EBITDA indicates improving scale and operating leverage. If sustained, this progress can strengthen internal funding capacity, support product investment, and improve the company’s ability to compete for larger efficiency projects.
Negative Factors
Revenue and Margin Volatility
Recent revenue softness and a history of fluctuating margins make earnings less predictable than the growth trajectory alone suggests. Project mix, timing, and execution can materially affect profitability, which may constrain consistent cash generation and make results uneven across coming reporting periods.
Read all positive and negative factors
Positive Factors
Negative Factors
TTM Growth and EBITDA Improvement
Strong multi-year revenue expansion combined with a substantial increase in adjusted EBITDA indicates improving scale and operating leverage. If sustained, this progress can strengthen internal funding capacity, support product investment, and improve the company’s ability to compete for larger efficiency projects.
Read all positive factors
Thermal Energy International (TMG) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$26.50M
Dividend YieldN/A
Average Volume (3M)125.29K
Price to Earnings (P/E)33.0
Beta (1Y)0.28
Revenue Growth16.89%
EPS GrowthN/A
CountryCA
Employees78
SectorGeneral
Sector StrengthN/A
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)<0.01
Shares Outstanding170,970,230
10 Day Avg. Volume107,215
30 Day Avg. Volume125,294
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)5.32
Price to Sales (P/S)0.82
P/FCF Ratio15.78
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)C$39.10M
Thermal Energy International Business Overview & Revenue Model
Company Description
Thermal Energy International Inc. engages in the development, engineering, and supply of pollution control, heat recovery systems, and condensate return solutions in North America, Europe, and internationally. The company offers GEM steam traps; F...
How the Company Makes Money
The company makes money primarily by selling and delivering energy-efficiency projects and associated services to industrial and institutional facilities.
Key revenue streams typically include:
1) Equipment and project revenue: Revenue from the s...
Thermal Energy International Earnings Call Summary
Earnings Call Date:Oct 27, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Feb 02, 2027
Earnings Call Sentiment Positive
Management acknowledged that first-quarter results were below expectations because of project timing, delayed customer-site readiness, GEM shipment timing, foreign exchange effects, and higher operating expenses. However, the call emphasized strong trailing-twelve-month growth, a 76% increase in Adjusted EBITDA, sustained profitability and cash generation, a strong balance sheet, expanding backlog, nearly CAD 13 million of fiscal 2027 orders, new customer wins, and progress on scalable offerings and sales channels. The positive operational and strategic developments significantly outweighed the primarily timing-related quarterly setbacks.Positive Updates
Strong Trailing-Twelve-Month Performance
For the trailing 12 months ended August 31, revenue, gross profit, Adjusted EBITDA, and net income were all up significantly year-over-year. Trailing-twelve-month revenue was approximately CAD 33 million, up 17% year-over-year and 42% over the last three years.
Negative Updates
First-Quarter Revenue Decline
First-quarter revenue was CAD 6.2 million, down 9% year-over-year and below management's expectations. The decrease was primarily attributed to project timing and revenue recognition.
Read all updates
Q1-2027 Updates
Positive
Negative
Strong Trailing-Twelve-Month Performance
For the trailing 12 months ended August 31, revenue, gross profit, Adjusted EBITDA, and net income were all up significantly year-over-year. Trailing-twelve-month revenue was approximately CAD 33 million, up 17% year-over-year and 42% over the last three years.
Read all positive updates
Company Guidance
Management expects the two delayed heat recovery projects to “accelerate in the near term” once site-related issues are resolved; the fiscal year will focus on establishing the independent representative network, with “some contribution” expected “next year.” HeatSponge in Europe is expected to be “a material contributor? No,” with “an order or two” and “a few orders this year,” but it “will not be material to the bottom line or to the top line.” European manufacturing is expected to begin “right away,” initially “entirely in the U.S.,” then “partially manufacture in the U.S.,” and finally “total contract manufacturing,” depending on orders. Management said it has no further plans for the “over CAD 1 million annualized” growth investments, has “no imminent plans right now for any acquisitions,” and may pursue acquisitions or normal course issuer bids “when we feel we have lots of cash available for the foreseeable future.”Thermal Energy International Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
74
Positive
Cash Flow
61
Positive
| Breakdown | Aug 2026 | Aug 2025 | Aug 2024 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 33.55M | 29.78M | 25.88M | 21.09M | 15.91M |
| Gross Profit | 13.55M | 12.34M | 12.45M | 9.57M | 6.73M |
| EBITDA | 1.88M | 1.17M | 2.14M | 1.76M | -716.46K |
| Net Income | 1.25M | 73.17K | 929.50K | 717.96K | -1.92M |
Balance Sheet | |||||
| Total Assets | 13.81M | 11.95M | 16.79M | 13.51M | 9.60M |
| Cash, Cash Equivalents and Short-Term Investments | 3.27M | 2.80M | 6.97M | 2.81M | 2.46M |
| Total Debt | 1.81M | 1.59M | 3.89M | 4.73M | 5.31M |
| Total Liabilities | 8.63M | 8.38M | 13.37M | 11.59M | 8.55M |
| Stockholders Equity | 5.15M | 3.57M | 3.46M | 1.97M | 1.08M |
Cash Flow | |||||
| Free Cash Flow | 1.73M | -1.75M | 5.02M | 1.33M | -1.99M |
| Operating Cash Flow | 2.20M | -1.67M | 5.40M | 1.41M | -1.64M |
| Investing Cash Flow | -470.84K | -77.73K | -376.89K | -77.70K | -351.93K |
| Financing Cash Flow | -1.24M | -2.41M | -1.06M | -1.04M | 357.56K |
Thermal Energy International Technical Analysis
Positive
0.17
Price Trends
0.15
Positive
0.16
Positive
0.16
Positive
Market Momentum
>-0.01
Negative
57.52
Neutral
50.00
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 0.17 is above the 20-day moving average (MA) of 0.15, above the 50-day MA of 0.15, and above the 200-day MA of 0.16, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 57.52 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | C$26.50M | 32.98 | 16.53% | ― | 16.89% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
49 Neutral | C$27.17M | -6.25 | -18.95% | ― | 5.01% | -3122.22% | |
48 Neutral | C$7.08M | -2.32 | -16.34% | ― | -74.07% | -251.51% | |
43 Neutral | C$2.47M | -12.50 | 5.26% | ― | 159.71% | 97.18% | |
43 Neutral | C$14.04M | -3.92 | 109.61% | ― | -21.35% | 12.15% | |
41 Neutral | C$508.04M | -23.87 | -51.78% | ― | -44.40% | -8.31% |
* General Sector Average
TSE:TMG
Thermal Energy International
0.16
0.03
24.00%
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Thermal Energy International Corporate Events
Business Operations and StrategyFinancial Disclosures
Thermal Energy Wins $2 Million Heat Recovery Deal with Global Nutrition Client
Positive
Oct 28, 2026
Thermal Energy International has secured a $2 million turnkey heat recovery project with a leading global nutrition company, marking the 12th turnkey engagement with this client and the sixth in the past year. The project will capture waste heat f...
Business Operations and StrategyFinancial Disclosures
Thermal Energy International Delivers Strong Backlog Despite Soft First Quarter
Neutral
Oct 27, 2026
Thermal Energy International reported weaker first-quarter results for the period ended August 31, 2026, with revenue down 9.2% to $6.2 million, a negative adjusted EBITDA of $80,000, and a net loss of $272,000, largely due to delays in delivering...
Business Operations and StrategyFinancial Disclosures
Thermal Energy Wins $3.2 Million Heat Recovery Deal with European Dairy Co-op
Positive
Oct 26, 2026
Thermal Energy International has secured a $3.2 million turnkey heat recovery project with a European agricultural and dairy co-operative, marking a significant win in one of its key target sectors. The system will recover waste heat from two boil...
Business Operations and Strategy
Thermal Energy International Targets Microcap Investors with Planet MicroCap Toronto Appearance
Positive
Oct 20, 2026
Thermal Energy International, a specialist in high-return energy efficiency and carbon reduction projects for large industrial clients, is deepening its outreach to the microcap investment community. The company leverages its proprietary technolog...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Thermal Energy International Sets Date for Fiscal Q1 2027 Results and Investor Call
Positive
Oct 19, 2026
Thermal Energy International will release its fiscal 2027 first quarter financial results before the market opens on October 27, 2026, and follow with an earnings conference call and webcast at 8:30 a.m. ET that morning. The company will make its ...
Business Operations and StrategyFinancial Disclosures
Thermal Energy Lands $2.1 Million Heat Recovery Deals With Global Nutrition Company
Positive
Aug 24, 2026
Thermal Energy International has secured three repeat heat recovery orders totalling about $2.1 million from a global nutrition company, covering two turnkey projects in the United States and a major equipment package for Indonesia, its first such...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.