This Growth Stock Is up 1,200% in 10 Years: Its Growth Could Accelerate

Growth stocks like TerraVest Industries (TSX:TVK) should be on your radar.

| More on:
potted green plant grows up in arrow shape

Image source: Getty Images

Growth stocks struggle during bear markets. If demand declines at the same time that financing gets tighter, many growth stocks struggle to maintain their pace of expansion. However, some sectors of the economy are better positioned. Companies in these sectors that have a track record of steadily compounding investor wealth should be on the top of your list. 

Here’s a stock that’s delivered a 28% compounded annual growth rate (CAGR) over the past 10 years and could see faster growth in the years ahead. 

TerraVest Industries

TerraVest Industries (TSX:TVK) is best described as an energy services conglomerate. The company’s various subsidiaries offer products ranging from home heating equipment to propane tanks. 

Steadily expanding demand for energy coupled with a robust acquisition strategy has helped the company expand over the years. The Alberta-based company has seen its stock price surge 1,200% from July 2012. Now, some macroeconomic factors could accelerate the company’s growth. 

Natural gas shortage

Russia’s invasion of Ukraine upended the global energy market. Russia is one of the largest suppliers of crude oil and natural gas, much of which was transported to Europe via Ukraine. Sanctions and the ongoing battle have disrupted this flow, which is why Russia has diverted crude oil to China and India. Europe, meanwhile, must look for alternative sources of energy. 

While it’s easier to secure crude oil from other parts of the world, natural gas is much more tricky. It requires pipelines for transport. This infrastructure cannot be built overnight. Producers in Canada and the United States have stepped in to fill the gap with liquefied natural gas (LNG) that can be transported via ships. 

TerraVest offers several products and services in this critical supply chain. The company’s subsidiaries like Fischer Tanks and ProPar offer LNG storage, trucking, distribution, and delivery systems. The company’s RJV Gas Field Services subsidiary also helps U.S. and Canadian gas producers process the fuel and refine it. 

Put simply, TerraVest plays an important part in helping Europe solve its energy crisis. That means investors can expect an accelerated pace of growth for the foreseeable future. In its most recent quarter, the company’s sales and net income were up 114% and 132%, respectively. 


Despite its track record and recent growth spurt, TerraVest stock is still undervalued. The stock trades at just 11 times earnings per share. 

Meanwhile, the dividend yield is deceptively low. At the moment, TerraVest offers a $0.10 per share dividend every quarter. That works out to a yield of just 1.6%. However, the dividend-payout ratio is a mere 15% based on the company’s latest quarterly report. 

Eventually, I expect the company to either raise dividends or use the excess cash flow to acquire more energy-related service companies. Either way, investors should be in for a windfall soon. 

Bottom line

TerraVest is an underrated energy services business that could see growth accelerate. Keep an eye on it. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Vishesh Raisinghani has no position in any of the stocks mentioned. The Motley Fool recommends TerraVest Industries Inc.

More on Energy Stocks

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Monday, June 5

An early morning rally in oil prices could lift TSX energy stocks at the open today.

Read more »

oil and natural gas
Energy Stocks

These Canadian Energy Stocks Are Bargain Buys for 2023

Here are two of the best Canadian energy stocks you can buy on the dip in 2023 to hold for…

Read more »

Oil pumps against sunset
Energy Stocks

Freehold Royalties Stock: A Dependable 7.5% Monthly Dividend

Canadian investors hungry for income can trust Freehold Royalties Ltd. (TSX:FRU) stock for its fantastic monthly dividend in 2023.

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Wednesday, May 31

The TSX index could remain volatile today, as discussions and final voting on the U.S. debt ceiling deal will remain…

Read more »

Energy Stocks

Better Dividend Buy: Suncor Energy or Canadian Natural Resources Stock?

Suncor Energy stock's additional 10.6% dividend raise in 2023 is doubtful. Canadian Natural Resources stock may outperform despite a current…

Read more »

Canadian energy stocks are rising with oil prices
Energy Stocks

TFSA Investors: The Best TSX Energy Stocks for Fast-growing Passive Income

Are you building your TFSA passive income portfolio? Then you can’t miss out on having Canadian energy stocks.

Read more »

Group of industrial workers in a refinery - oil processing equipment and machinery
Energy Stocks

Suncor Stock: How High Could it Keep Going?

Down 26% from 52-week highs, Suncor stock offers you a dividend yield of 5.3%. But is this TSX energy stock…

Read more »

canadian energy oil
Energy Stocks

Better Buy: Suncor Energy Stock or Canadian Natural Resources Stock?

Suncor and Canadian Natural Resources are off their 12-month highs. Is one now oversold?

Read more »