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Tree Island Steel Ltd
TSX:TSL

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Tree Island Steel Ltd
TSX:TSL
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Price: 2.45 CAD -2% Market Closed
Market Cap: CA$63.4m

EV/GP

9.1
Current
102%
More Expensive
vs 3-y average of 4.5

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
9.1
=
Enterprise Value
CA$95.5m
/
Gross Profit
CA$9.9m

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
9.1
=
Enterprise Value
CA$95.5m
/
Gross Profit
CA$9.9m

Valuation Scenarios

Tree Island Steel Ltd is trading above its 3-year average

If EV/GP returns to its 3-Year Average (4.5), the stock would be worth CA$1.22 (50% downside from current price).

Statistics
Positive Scenarios
1/4
Maximum Downside
-60%
Maximum Upside
+14%
Average Downside
31%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 9.1 CA$2.45
0%
3-Year Average 4.5 CA$1.22
-50%
5-Year Average 3.6 CA$0.97
-60%
Industry Average 10.3 CA$2.78
+14%
Country Average 6.6 CA$1.79
-27%

Forward EV/GP
Today’s price vs future gross profit

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
Close
Market Cap EV/GP P/E
CA
Tree Island Steel Ltd
TSX:TSL
63.5m CAD 9.1 -11.9
ZA
Kumba Iron Ore Ltd
JSE:KIO
98.1B ZAR 1.4 6.7
BR
Vale SA
BOVESPA:VALE3
339.1B BRL 5.1 25.2
US
Nucor Corp
NYSE:NUE
51.5B USD 14.3 29.7
AU
Fortescue Ltd
XMUN:FVJ
36.9B EUR 6.3 11.4
AU
Fortescue Metals Group Ltd
ASX:FMG
60.5B AUD 6.3 11.2
LU
ArcelorMittal SA
AEX:MT
37.5B EUR 9.5 13.7
IN
JSW Steel Ltd
NSE:JSWSTEEL
3.1T INR 6.3 41.2
US
Steel Dynamics Inc
NASDAQ:STLD
33.1B USD 13.8 24.1
IN
Tata Steel Ltd
NSE:TATASTEEL
2.7T INR 2.4 28.7
KR
Posco Holdings Inc
KRX:005490
34.9T KRW 8.6 54.3
P/E Multiple
Earnings Growth PEG
CA
Tree Island Steel Ltd
TSX:TSL
Average P/E: 24.6
Negative Multiple: -11.9
N/A N/A
ZA
K
Kumba Iron Ore Ltd
JSE:KIO
6.7
-5%
N/A
BR
Vale SA
BOVESPA:VALE3
25.2
47%
0.5
US
Nucor Corp
NYSE:NUE
29.7
25%
1.2
AU
F
Fortescue Ltd
XMUN:FVJ
11.4
-5%
N/A
AU
Fortescue Metals Group Ltd
ASX:FMG
11.2
-5%
N/A
LU
ArcelorMittal SA
AEX:MT
13.7
18%
0.8
IN
JSW Steel Ltd
NSE:JSWSTEEL
41.2
72%
0.6
US
Steel Dynamics Inc
NASDAQ:STLD
24.1
23%
1
IN
Tata Steel Ltd
NSE:TATASTEEL
28.7
82%
0.3
KR
Posco Holdings Inc
KRX:005490
54.3
65%
0.8

Market Distribution

In line with most companies in Canada
Percentile
63nd
Based on 1 947 companies
63nd percentile
9.1
Low
0.1 — 3.8
Typical Range
3.8 — 10.6
High
10.6 —
Distribution Statistics
Canada
Min 0.1
30th Percentile 3.8
Median 6.6
70th Percentile 10.6
Max 259 067.6

Tree Island Steel Ltd
Glance View

Market Cap
63.4m CAD
Industry
Metals & Mining

Tree Island Steel Ltd. engages in the manufacturing and supplying of steel wire and fabricated wire products. The company is headquartered in Richmond British Columbia, British Columbia and currently employs 480 full-time employees. The company went IPO on 2002-11-12. The firm is engaged in making products from steel wire for a range of customers for industrial, construction, agricultural and specialty applications. The Company, through its four operating facilities in Canada and the United States, produces wire products for a diverse range of industrial, residential construction, commercial construction and agricultural applications. The Company’s products include galvanized wire, bright wire; a broad array of fasteners, including packaged, collated and bulk nails; stucco reinforcing products; concrete reinforcing mesh; fencing and other fabricated wire products. The firm markets its products under the Tree Island, Halsteel, K-Lath, TI Wire, Tough Strand and ToughPanel brand names.

TSL Intrinsic Value
10.56 CAD
Undervaluation 77%
Intrinsic Value
Price CA$2.45
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