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Tornado Infrastructure Equipment Ltd V.TGH

Alternate Symbol(s):  TGHLF

Tornado Infrastructure Equipment Ltd., formerly Tornado Global Hydrovacs Ltd., is engaged in vacuum truck industry. The Company designs and manufactures hydrovac trucks as well as provides heavy duty truck maintenance operations in central Alberta. It sells hydrovac trucks to excavation service providers in the infrastructure and industrial construction and oil and gas markets. Hydrovac trucks use high pressure water and vacuum to safely penetrate and cut soil to expose critical infrastructure for repair and installation without damage. The Company's hydrovac trucks include F2 Urban, F3 City, F4 Rural, and F5 Remote. Its trucks are offered with various features, such as standard blowers, water pump; water heater; boom, turret & hose; offloading; winterization options; heated van body, and remote control. It offers a comprehensive one-year limited warranty on workmanship and material defects, including the boom, tank, silencers, blower, water pump, boiler, inverter, and hydraulic pumps.


TSXV:TGH - Post by User

Post by FormerHedgieon Apr 26, 2024 1:34pm
171 Views
Post# 36009841

Future 12 Month Target price of $2.80/share

Future 12 Month Target price of $2.80/share
It I take a couple of very simplistic approaches to a future valuation, I think we can base it off of an annualized Q4 number

P/E Based Valuation
Q4 EPS of $0.033 
Annualized Q4 EPS $0.132/share
A PE multiple of at least 20x for this kind of revenue / GM% / EPS growth is very reasonable

$0.133 x 20 = FTM target price of $2.66
$0.133 x 25 = FTM target price of $3.33

EV / EVITDA Based Valuation
Q4 EBITDA/Share $0.048
Annualized Q4 EBIDTA $0.192
A EV/EBIDTA multiple for this type of growth and profitiability could sustain at least 12x-15x
$0.192 x 12 = FTM target price of $2.30
$0.192 x 15 = FTM target price of $2.88

If we average the 4 valuations ($2.66+3.33+$2.30+$2.88)/4 = $2.79

This is assuming no future growth which is clearly occuring.

I would say that a target of $2.80 is well justifiable and will only go higher!!!!


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