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Thermal Energy International
(TMG)
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Rating:71Outperform
Price Target:
C$0.18
▲(4.12% Upside)
Action:Upgraded
Date:09/23/26
The score is driven primarily by improving financials (strong growth, better profitability, and reduced leverage) and a constructive earnings call emphasizing record results and backlog strength. These positives are moderated by historically volatile cash flows and a largely neutral technical setup, while valuation appears mid-range with no dividend yield data to add support.
Positive Factors
Strong revenue and profit growth
The sharp multi-year revenue increase, combined with a return to positive net income, indicates improving commercial traction and operating scale. If growth continues, higher volume can support better absorption of fixed costs and provide more resources for product development, sales, and market expansion.
Negative Factors
Volatile cash generation
The wide swings in operating and free cash flow show that reported earnings do not consistently translate into cash generation. Such volatility can reflect working-capital or project-execution timing and may constrain internally funded investment, debt reduction, and shareholder returns during weaker periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue and profit growth
The sharp multi-year revenue increase, combined with a return to positive net income, indicates improving commercial traction and operating scale. If growth continues, higher volume can support better absorption of fixed costs and provide more resources for product development, sales, and market expansion.
Read all positive factors
Thermal Energy International (TMG) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$25.65M
Dividend YieldN/A
Average Volume (3M)95.61K
Price to Earnings (P/E)20.3
Beta (1Y)0.27
Revenue Growth12.66%
EPS Growth1725.00%
CountryCA
Employees78
SectorGeneral
Sector StrengthN/A
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)<0.01
Shares Outstanding170,970,230
10 Day Avg. Volume146,773
30 Day Avg. Volume95,606
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$45.50M
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:Sep 22, 2026
(Q4-2026)
| Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call was strongly positive overall. Management highlighted record fiscal-year order intake, revenue, profitability, gross profit, net income, backlog, cash generation, and a substantially strengthened balance sheet, along with early success from simplified HeatSponge and major equipment packages. The main negatives were concentrated in the fourth-quarter comparisons, including a 38% adjusted EBITDA decline, a 6% gross profit decline, flat net income, and regional revenue or margin mix fluctuations. Management characterized these quarterly issues as driven primarily by one-time prior-year adjustments and project timing or mix, while expressing confidence in the strategy and ongoing growth.Positive Updates
Record Fiscal 2026 Results
Fiscal 2026 reached new all-time highs for order intake, revenue, and profitability. Revenue was almost CAD 34 million, up 13% year over year, while revenue increased by almost 60% over the last three years.
Negative Updates
Fourth-Quarter Gross Profit Decline
Fourth-quarter gross profit was down 6% year over year despite revenue increasing about 4%. Management attributed the comparison to two one-time adjustments on large corporate sales that benefited the fourth quarter of fiscal 2025; without those adjustments, prior-year fourth-quarter gross profit would have been very similar to fiscal 2026.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Fiscal 2026 Results
Fiscal 2026 reached new all-time highs for order intake, revenue, and profitability. Revenue was almost CAD 34 million, up 13% year over year, while revenue increased by almost 60% over the last three years.
Read all positive updates
Company Guidance
For fiscal 2027, Thermal Energy International said it will continue executing its strategy, expects both North America and Europe “to continue to be strong,” is “not planning to add more people at this point, significantly,” and expects major equipment packages “to continue to grow”; their margin is “generally a bit better,” while large turnkey projects are usually revenue over “12-18 months or 9-18 months,” compared with faster conversion for major equipment packages and simplified turnkey projects. The company sees Europe as a “significant and largely untapped growth opportunity” for HeatSponge, initially supporting it from the U.S. facility before transitioning to European contract manufacturing “as demand builds,” and said its Bristol facility is “probably 4x or 5x the size” of the previous facility, with “lots of opportunity for growth.”Thermal Energy International Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
69
Positive
| Breakdown | May 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
Negative
0.17
Price Trends
0.16
Negative
0.16
Negative
0.16
Negative
Market Momentum
>-0.01
Positive
43.14
Neutral
16.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TMG, the sentiment is Negative. The current price of 0.17 is above the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.16, and above the 200-day MA of 0.16, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.14 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | C$25.65M | 20.27 | 27.38% | ― | 12.66% | 1725.00% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
49 Neutral | C$27.96M | -6.43 | -18.95% | ― | 5.01% | -3122.22% | |
46 Neutral | C$6.67M | -2.06 | -16.34% | ― | -74.07% | -251.51% | |
46 Neutral | C$567.71M | -18.95 | -101.75% | ― | -27.68% | -86.64% | |
43 Neutral | C$2.47M | -12.50 | 5.26% | ― | 159.71% | 97.18% | |
41 Neutral | C$16.52M | -4.61 | 109.61% | ― | -21.35% | 12.15% |
* General Sector Average
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Thermal Energy International
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Thermal Energy International Corporate Events
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.