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Tree Island Steel
(TSX:TSL)
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Rating:47Neutral
Price Target:
C$2.50
▲(9.65% Upside)
Action:Reiterated
Date:08/17/26
The score is held back primarily by weak financial performance (losses and negative operating/free cash flow), despite a relatively stable balance sheet. Technicals are somewhat improved in the near term (above 20- and 50-day averages with moderate RSI), but the longer-term trend remains softer (below 100- and 200-day averages). Valuation is constrained by negative earnings (negative P/E), with only partial support from the ~2.55% dividend yield.
Positive Factors
Broad product and end-market diversification
A broad wire-product portfolio and exposure to industrial, construction, and agricultural customers diversify the sources of demand. This range can support customer retention and allow product mix to shift across end markets over the next several quarters, reducing reliance on one application.
Negative Factors
Persistent losses and compressed margins
Very thin gross margins and negative EBIT and net margins show that current sales are not converting into sustainable profits. Continued margin pressure limits reinvestment capacity, weakens resilience to input or demand changes, and makes earnings recovery dependent on improved pricing, mix, or operating efficiency.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad product and end-market diversification
A broad wire-product portfolio and exposure to industrial, construction, and agricultural customers diversify the sources of demand. This range can support customer retention and allow product mix to shift across end markets over the next several quarters, reducing reliance on one application.
Read all positive factors
Tree Island Steel (TSL) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$71.85M
Dividend Yield2.16%
Average Volume (3M)6.78K
Price to Earnings (P/E)―
Beta (1Y)0.23
Revenue Growth-17.61%
EPS Growth-35.19%
CountryCA
Employees300
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)-0.27
Shares Outstanding25,846,272
10 Day Avg. Volume11,987
30 Day Avg. Volume6,781
Financial Highlights & Ratios
PEG Ratio-0.35
Price to Book (P/B)0.71
Price to Sales (P/S)0.45
P/FCF Ratio-27.30
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)N/A
Tree Island Steel Business Overview & Revenue Model
Company Description
Tree Island Steel Ltd., founded in 1964 and headquartered in Richmond, Canada, is a leading manufacturer and supplier of steel wire and various fabricated steel wire products. The company serves a broad spectrum of applications, including industri...
How the Company Makes Money
Tree Island Steel makes money by selling manufactured and fabricated steel wire products to customers through a mix of direct sales and distribution channels. Its revenue is primarily generated from (1) manufacturing and selling finished wire-base...
Tree Island Steel Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
62
Positive
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 157.56M | 170.83M | 206.99M | 239.57M | 359.56M | 301.85M |
| Gross Profit | 7.64M | 9.45M | 11.79M | 30.29M | 65.33M | 68.63M |
| EBITDA | 957.00K | 1.35M | 4.81M | 18.34M | 51.98M | 121.85M |
| Net Income | -6.84M | -5.33M | -3.91M | 7.55M | 33.11M | 87.97M |
Balance Sheet | ||||||
| Total Assets | 168.18M | 154.88M | 168.82M | 171.98M | 176.33M | 225.81M |
| Cash, Cash Equivalents and Short-Term Investments | 872.00K | 1.43M | 8.70M | 20.34M | 14.98M | 33.25M |
| Total Debt | 30.76M | 25.57M | 26.95M | 23.80M | 25.91M | 41.02M |
| Total Liabilities | 60.64M | 46.51M | 49.95M | 45.10M | 48.23M | 93.19M |
| Stockholders Equity | 107.53M | 108.37M | 118.86M | 126.88M | 128.10M | 132.62M |
Cash Flow | ||||||
| Free Cash Flow | -3.50M | -2.81M | -3.24M | 18.20M | 41.92M | -258.00K |
| Operating Cash Flow | -2.10M | -914.00K | -1.43M | 23.73M | 43.38M | 11.87M |
| Investing Cash Flow | -1.40M | -1.89M | -1.39M | -4.77M | -1.32M | 57.11M |
| Financing Cash Flow | 952.00K | -3.90M | -10.15M | -13.32M | -60.25M | -36.99M |
Tree Island Steel Technical Analysis
Positive
2.28
Price Trends
2.29
Positive
2.36
Positive
2.53
Positive
Market Momentum
0.09
Negative
72.26
Negative
56.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TSL, the sentiment is Positive. The current price of 2.28 is below the 20-day moving average (MA) of 2.35, below the 50-day MA of 2.29, and below the 200-day MA of 2.53, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 72.26 is Negative, neither overbought nor oversold. The STOCH value of 56.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TSL.
Tree Island Steel Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | C$1.68B | 21.75 | 12.04% | 5.13% | -15.44% | -32.07% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
52 Neutral | C$190.07M | -1.41 | -22.53% | 1.62% | 17.30% | -44.89% | |
49 Neutral | C$687.86M | -0.63 | -220.30% | 2.18% | -32.82% | -259.39% | |
47 Neutral | C$71.85M | -10.47 | -6.25% | 2.16% | -17.61% | -35.19% | |
46 Neutral | C$101.12M | 38.26 | 2.38% | ― | ― | ― |
* Basic Materials Sector Average
TSE:TSL
Tree Island Steel
2.78
0.24
9.45%
TSE:FEO
Oceanic Iron Ore
0.74
-0.11
-13.53%
TSE:LIF
Labrador Iron Ore
26.32
-0.21
-0.78%
TSE:S
Sherritt International
0.27
0.15
116.00%
TSE:NKL
Nickel 28 Capital Corp
1.18
0.49
70.29%
TSE:ASTL
Algoma Steel Group
6.51
0.02
0.31%
Tree Island Steel Corporate Events
Business Operations and StrategyExecutive/Board Changes
Tree Island Steel Names New COO as Veteran Executive Retires
Positive
Aug 28, 2026
Tree Island Steel announced that longtime executive Nancy Davies will retire as chief operating officer on Oct. 1, 2026, after an 18-year tenure that included roles as CFO and COO. Under her leadership, the company strengthened financial controls,...
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.