Review of TerraVest Industries Inc.
MAR 04, 2025 - TVK continues to be a great serial acquirer in the energy sector. TVK possessed a solid track record of value creation and best-inclass capital allocation. TVK has been one of the best-performing stocks in the Canadian market in the last 10 years. That being said, there have been changes in terms of capital allocation in recent years. The company recently issued shares and raised dividends meaningfully, which TVK has rarely done in the past. This could indicate that management believes TVK’s valuation is not as attractive as it used to be. Fundamentally, we believe TVK will do just fine. However, investors need to temper expectations as the share price performance over the next five years may not do as well as the last five years due to a higher starting valuation multiple. We think the story of TVK as a long-term compounder is still intact. We are maintaining our rating at “B+.”
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TerraVest Industries Inc. (TVK $154.35)
- $154.35 Cap: $3.34B
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Kraken Robotics Inc. (PNG $8.10)
- $8.10 P/E (TTM): 125.0X Cap: $2.48B
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Zedcor Inc. (ZDC $6.16)
- $6.16 P/E (TTM): 430.71X Cap: $650M
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Topicus.com Inc. (TOI $94.72)
- $94.72 P/E (TTM): 822.13X Cap: $7.88B
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Tantalus Systems Holding Inc. (GRID $5.50)
- $5.50 Cap: $282M
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Wild few days in the market. As a stroke of luck, I transferred one of my managed accounts over so I could manage it myself, and that sale happened early last week and it is sitting in my account, ready to deploy. As a lucky tailwind, I don't want to squander it. Mostly in RRSP account.
Would you be adding to CLS, BAM, SHOP, TVK, PNG, ZDC right now? In order of priority please with a small 'why'.
I had purchased some AEM 1-2 years ago (great recommendation, thanks), and it has flown. Is it an add now and/or are there other Materials tickers you would suggest? Doesn't have to be precious, as long as they are executing well and have quality assets and a solid runway. maybe 1-2 each for precious, critical, and non-precious?
I sold TOI last summer, and with this crazy "Software off" cycle here, would you start accumulating? like 20 or 25% of a position? Is TOI the most likely candidate to return to its growth trajectory when the world begins to appear normal again?
Thanks for Everything!
James
PS. While looking at all my statements while transferring over to Questrade for their cashback promotion, my statements had my annualized returns calculated over 1 3 5 and inception. Since inception was 21% which I'm staked about, but my 3 year annualized was 43% !!! I just renewed my 4th year with 5i. Thanks Thanks THANKS!
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Costco Wholesale Corporation (COST $1,001.16)
- $1,001.16 P/E (TTM): 71.02X Cap: $444.38B
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Chevron Corporation (CVX $180.86)
- $180.86 P/E (TTM): 25.21X Cap: $364.16B
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Deere & Company (DE $583.11)
- $583.11 P/E (TTM): 30.58X Cap: $157.69B
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Sherwin-Williams Company (The) (SHW $361.98)
- $361.98 P/E (TTM): 35.22X Cap: $89.73B
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Walmart Inc. (WMT $131.18)
- $131.18 Cap: $1.04T
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Exxon Mobil Corporation (XOM $149.05)
- $149.05 P/E (TTM): 21.23X Cap: $628.56B
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Suncor Energy Inc. (SU $73.46)
- $73.46 P/E (TTM): 16.99X Cap: $87.41B
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Canadian Natural Resources Limited (CNQ $53.40)
- $53.40 P/E (TTM): 16.37X Cap: $111.23B
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Loblaw Companies Limited (L $67.09)
- $67.09 P/E (TTM): 8.25X Cap: $80.19B
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Cenovus Energy Inc. (CVE $28.11)
- $28.11 P/E (TTM): 15.69X Cap: $50.35B
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Alimentation Couche-Tard Inc. (ATD $78.74)
- $78.74 P/E (TTM): 20.4X Cap: $72.27B
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TerraVest Industries Inc. (TVK $154.35)
- $154.35 Cap: $3.34B
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Nutrien Ltd. (NTR $93.69)
- $93.69 P/E (TTM): 54.43X Cap: $45.28B
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Linde plc (LIN $448.24)
- $448.24 P/E (TTM): 30.79X Cap: $209.30B
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Corteva Inc. (CTVA $72.60)
- $72.60 P/E (TTM): 30.9X Cap: $49.05B
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VanEck Agribusiness ETF (MOO $83.03)
- $83.03 P/E (TTM): 23.07X Cap: $839M
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Celestica Inc. (CLS $419.62)
- $419.62 P/E (TTM): 47.78X Cap: $48.27B
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Shopify Inc. Class A Subordinate Voting Shares (SHOP $153.06)
- $153.06 P/E (TTM): 81.74X Cap: $199.17B
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goeasy Ltd. (GSY $131.36)
- $131.36 P/E (TTM): 9.34X Cap: $2.10B
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TerraVest Industries Inc. (TVK $154.35)
- $154.35 Cap: $3.34B
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EQB Inc. (EQB $114.32)
- $114.32 P/E (TTM): 16.82X Cap: $4.29B
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