TerraVest Industries Inc T.TVK

Ink Research

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Morning Report: TerraVest Industries CFO buys after stock doubles 

March 26, 2024

INK Canadian Insider Index member TerraVest Industries (TVK) operates in North America via subsidiaries (most 100% owned) across four business segments. In its fiscal year ended on September 30, 2023, TVK enjoyed sales of just over $678 million, up 17.7% from a year earlier. Its HVAC Equipment segment, which makes commercial and residential refined fuel tanks, furnaces, boilers, air conditioning equipment and controls, generated just over $180 million in sales via its distribution networks. The Compressed Gas Equipment segment makes products for the storage, distribution, and dispensing of compressed gases including liquid propane gas. Sales via North American distribution channels were just over $211 million. The Processing Equipment segment, which generated about $128 million in revenue, makes and sells a range of equipment for wellhead processing and storage, desanding, biogas production, and water treatment. Markets include the oil patch, utilities, and municipalities. Finally, the Service segment, with just over $159 million in sales, provides water and environmental solutions, heating, rentals and well servicing to the oil patch in Western Canada.

Fiscal 2023 earnings were $2.32 per diluted share versus $2.50 a year earlier. For Q1 ended December 31, 2023, diluted EPS was $0.94 versus $0.66 a year earlier as the bottom line benefited from acquisitions in the quarter. The stock is up 111.8% over the past year. The latest push higher this winter nudged the stock's market cap over the $1 billion mark. Despite the rally, we have seen no insider profit-taking in 2024. In fact, earlier this month, the CFO modestly added to her position via a public market purchase which helped to keep the stock in the top 10% of our INK Edge rankings.