The Panic-Proof Portfolio (Stockchase Research) TerraVest Capital Inc TVK-T PAST TOP PICK Oct 17, 2024

Has been dormant for many years, but has been one of the best Canadian compounders. They're not in a high-growth industries, but TVK can make highly accretive acquisitions. Earnings power is high. Have a strong balance sheet and capital to deploy. Are very good at synergizing, but doubts they can be as accretive when buying larger companies. Is a solid hold.

Getting more recognition all the time, not done yet. Continues to execute really well. Acquire, integrate, grow earning. Repeat. Well managed. Strong insider ownership, and that bodes well for the growth of the company.

Has been watching for a while, and recently bought shares. Company has continued to grow. Recently did a large equity raise. Very well run. Good capital allocation skills. Will continue to own shares. Valuation is still good - room for growth. 

TVK is a unique serial acquirer of energy assets that possesses a solid track record of growing nicely over the years. In the last five years, TVK managed to grow its topline and EBITDA by approximately 23% and 27%, respectively. Since going public in 2013, TVK has managed to compound capital at 42% per year, even more impressively than CSU during that period. 

TVK is trading at 15.0x EV/EBITDA, a premium valuation relative to its own historical averages of around 8.4x. The company is not as cheap as it used to be, but that being said, we think TVK is still a solid compounder and it is not too late to own the name. However investors need to set realistic expectations as the prospective returns in the near term may not be as attractive as in the past.
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Has followed it a long time and should have bought it. They compound their capital extremely well. Management executes. A great business.