Plural Investing's Chris Waller shares thesis on industrial roll-up compounder, TerraVest $TVK.TO

Chris Waller, Founder and CIO at Plural Investing, joins the podcast to discuss his thesis on TerraVest Industries Inc. (TSX: TVK), a manufacturer of home heating products, propane, anhydrous ammonia (“NH3”) and natural gas liquids (“NGL”) transport vehicles and storage vessels, energy processing equipment and fiberglass storage tanks. For more information about Plural Invest, please visit: https://www.pluralinvesting.com/ Plural Investing write up on TerraVest $TVK.TO: https://static1.squarespace.com/static/57eff176e58c621a298bfa61/t/65c1736ea99cbe30a72634d1/1707176815309/Plural+Investing+Report+on+Terravest+%282024.01.24%29.pdf Chapters: [0:00] Introduction + Episode sponsor: Tegus [1:54] What is TerraVest and why are they so interesting to Chris [4:51] Why is TerraVest underfollowed? [6:47] Why can their acquire at a discount and $TVK.TO's business model, overview, value proposition [14:21] Propane tank industry / location moat [19:44] How TerraVest pulls off the reduction in steel costs [22:27] Why hasn't Private Equity stepped in to roll up the propane tank industry? [25:48] How does TerraVest get labor cost down? [29:35] Tanker and Boiler businesses / recent Highland Tanks acquisition [35:13] Terminal value questions [40:49] Management, insider ownership and incentives [44:50] Valuation / Organic growth / How much accretive acquisitions to drive real performance here [51:29] Cyclicality[54:27] Capital allocation [57:40] $TVK.TO bear case [1:00:46] Final thoughts Today's episode is sponsored by: Tegus This episode is brought to you by Tegus, the future of investment research. From the beginning, Tegus has been committed to creating efficiencies in the research process by making it easy to access the content that investors need to get to differentiated insights. Today, they’re taking it one step further by bundling qualitative content, quantitative data, and better automation and technology together in the same platform. Instead of piecing together data from fragmented sources, just log in to Tegus to get expert research, company- and industry-specific metrics and KPIs, SEC filings, and more, all under the same license cost. You can even take your work offline with an Excel Add-in that updates almost any model with the latest financial data — keeping all your custom formatting intact. Tegus is the fastest way to learn about a public or private company and the only platform you’ll need for fundamental research. To try it free today, visit Tegus.com/value