TVK serves the oil & gas industry, but some of their service/products do have characteristics of repeat business in nature. For example, the compressed gas segment served primarily oil and gas producers but is highly recurring business. On the other hand, some portions of its revenue are correlated with the cyclicality of the energy sector such as Demand for products and services in the Processing Equipment (14% of total revenue) and Service (20% of total revenue) segments are dependent on capital spending tied to oil and gas production in Western Canada. So theoratically, 1/3 of TVK’s revenue could experience some cyclicality of the oil &gas industry. That said, TVK's management is well aware of the industry nature and currently targeting acquisitions targets ranging from recurring business to only mild cyclicality. The company also handled the recent oil downturn quite well: revenue was flat in FY2020.
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