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TSE:TIH
This summary was created by AI, based on 5 opinions in the last 12 months.
Toromont Industries (TIH-T) is positioned well within the infrastructure theme, leveraging its status as the largest Caterpillar dealer in Canada. The company benefits from a stream of recurring high-margin servicing revenue and emerging AI data center infrastructure spending. Despite the optimism, many experts suggest that the stock has seen significant run-up and has a lot of expectations priced in; thus, a moderate position is recommended. There is a general bull sentiment towards industrials entering phase 2 of the market cycle, which typically favors such stocks. However, concerns about high valuation and potential delays in major projects lead experts to advocate waiting for a pullback before purchasing more shares.
*Short.* The only Caterpillar dealer in Ontario as well as having a small business in arenas. Have benefited for years from an increasing mining sector, and in Ontario it is primarily gold related, and gold miners are not doing that well. Also trading at a pretty hefty premium to the competition. A strengthening US$ means that new equipment coming into the market is going to get re-priced at an expensive US$, and then a lot of used equipment will start competing. Yield of 2.17%.
Spun off Enerflex, which to him was a bit of a head scratcher. Bought it in 2010 and sold it in 2011. Really know accretive value. He would be mixed on this name. Last quarter their Q2 was up 15% which is good and did have a sequential good increase in bookings and a very solid backlog but margins were weaker than expected, which he doesn’t really think is a problem. Margin pressures will abate over the coming quarters. Would prefer Wajax (WJX-T).