Tree Island Steel (TSL) AI Stock Analysis

Tree Island Steel

(TSX:TSL)

Select Model

Rating:54.75Neutral

Price Target:CAD 2.50▲(4.17% Upside)

Action:reiterated

Date:08/17/26

The overall score is constrained primarily by weak financial performance, as negative margins and deteriorated cash generation indicate high fundamental risk despite a still-stable balance sheet. Technicals are moderately constructive, with price holding above key moving averages and supportive momentum indicators, which lifts the score from the low end but does not offset the underlying earnings and cash flow issues. Valuation contributes a mid-range impact: the negative P/E reflects current losses, while the modest dividend yield provides some compensation, resulting in a cautious, slightly below-average overall assessment.

Positive Factors

Manageable LeverageModerate leverage and a sizable equity base provide Tree Island Steel with a financial buffer during cyclical steel-market conditions. This relative balance-sheet stability can support continued operations and investment while management works to restore profitability and cash generation.

Negative Factors

Persistent Losses and Thin MarginsLoss-making operations and a very thin gross margin leave limited room to absorb changes in steel inputs, freight, energy, or product mix. Continued margin pressure could prevent revenue growth from translating into sustainable earnings and weaken long-term returns.

Tree Island Steel (TSL) vs. iShares MSCI Canada ETF (EWC)

Market Cap: CAD 62.03M
Dividend Yield: 2.50%
Average Volume (3M): 12.55K
Price to Earnings (P/E): -9.0
Beta (1Y): 0.22
Revenue Growth: -17.61%
EPS Growth: -35.19%
Country: Canada
Employees: 300
Sector: Basic Materials
Sector Strength: 61
Industry: Steel

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 industrial,...

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-based p...

Tree Island Steel Financial Statement Overview

Summary

Overall financial performance is weak: revenue has rebounded but profitability is poor with negative net margin, negative EBIT, and thin gross margins, while both operating and free cash flow are clearly negative, offset only partially by a relatively stable, moderately leveraged balance sheet.

Income Statement

24Negative

Balance Sheet

61Positive

Cash Flow

18Very Negative

Financial statement breakdown
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

Technical Analysis SentimentNeutral

Last Price2.40

Price Trends

50DMA2.48Negative

100DMA2.37Positive

200DMA2.47Negative

Market Momentum

MACD-0.03Negative

RSI49.25Neutral

STOCH71.11Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TSL, the sentiment is Neutral. The current price of 2.40 is above the 20-day moving average (MA) of 2.37, below the 50-day MA of 2.48, and below the 200-day MA of 2.47, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 49.25 is Neutral, neither overbought nor oversold. The STOCH value of 71.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:TSL.

Tree Island Steel Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

TSE:TSL against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSE:LIF	71Outperform	CAD 1.28B	16.50	12.04%	6.26%	-15.44%	-32.07%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
TSE:TSL	55Neutral	CAD 61.96M	-9.04	-6.25%	2.50%	-17.61%	-35.19%
TSE:ASTL	53Neutral	CAD 704.76M	-0.95	-225.44%	1.05%	-42.87%	-10.45%
TSE:NKL	47Neutral	CAD 83.50M	12.60	5.87%	―	―	―
TSE:S	45Neutral	CAD 147.83M	-1.10	-22.53%	―	17.30%	-44.89%

* Basic Materials Sector Average

Performance Comparison

TSE:TSL and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TSE:TSL	Tree Island Steel	2.40	-0.35	-12.73%
TSE:FEO	Oceanic Iron Ore	0.61	-0.11	-15.28%
TSE:LIF	Labrador Iron Ore	19.96	-7.76	-28.00%
TSE:S	Sherritt International	0.21	0.07	55.56%
TSE:NKL	Nickel 28 Capital Corp	0.98	0.27	38.03%
TSE:ASTL	Algoma Steel Group Inc.	6.67	0.76	12.86%

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, ex...

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.

Date of analysis: Aug 17, 2026

Tree Island Steel AI Stock Analysis