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1. Company Snapshot

1.a. Company Description

TWC Enterprises Limited owns, operates, and manages golf clubs under the ClubLink One Membership More Golf brand in Canada and the United States.The company was formerly known as ClubLink Enterprises Limited and changed its name to TWC Enterprises Limited in May 2014.The company was incorporated in 1997 and is based in King City, Canada.


TWC Enterprises Limited is a subsidiary of Paros Enterprises Limited.

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1.b. Last Insights on TWC

TWC Enterprises Limited's recent performance was negatively driven by concerns over the quality of its earnings, as highlighted by a recent article suggesting underlying issues with its earnings report. The company's Q3 2024 earnings showed a decline in revenue, down 1.9% from the same period last year, with net earnings increasing to CA$42.7 million due to property investment gains. However, the company's reliance on non-operating income, such as property investment gains, raises questions about the sustainability of its earnings.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Investors Can Find Comfort In TWC Enterprises' (TSE:TWC) Earnings Quality

Nov -10

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TWC Enterprises (TSX:TWC) Profit Margin Drops on One-Off Gain, Challenging Quality of Earnings

Nov -02

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TWC Enterprises Limited Announces Third Quarter 2025 Results and Eligible Dividend

Oct -31

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Investors in TWC Enterprises (TSE:TWC) have seen favorable returns of 93% over the past five years

Oct -30

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Unveiling Three Undiscovered Gems in the Canadian Market

Oct -30

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Canadian Hidden Gems And 2 Other Small Caps With Strong Potential

Oct -27

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Clairvest Group And 2 Other Canadian Small Caps With Strong Fundamentals

Oct -17

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3 Undiscovered Canadian Gems To Enhance Your Investment Portfolio

Oct -16

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Canadian Golf Club

Expected Growth: 4.5%

Growing demand for luxury leisure activities, increasing popularity of golf among millennials, and rising disposable income in Ontario drive growth in the private golf club market.

Corporate Operations and Other

Expected Growth: 4.5%

The Corporate Operations and Other segment of TWC Enterprises Limited is expected to grow steadily, driven by the company's increasing focus on operational efficiency and cost reduction initiatives, as well as its efforts to diversify into new business areas.

US Golf Club

Expected Growth: 4.5%

Growing demand for premium golfing experiences, increasing popularity of golf among millennials, and strategic acquisitions by TWC Enterprises Limited drive the growth of the US Golf Club.

7. Detailed Products

Golf Course Management

TWC Enterprises Limited provides comprehensive golf course management services, including course maintenance, operations, and marketing.

Food and Beverage Services

The company offers food and beverage services, including catering, event planning, and hospitality management.

Real Estate Development

TWC Enterprises Limited develops and manages commercial and residential properties, offering a range of services from project planning to property management.

Recreation and Leisure

The company operates and manages recreational facilities, including golf courses, fitness centers, and spas.

Hospitality Services

TWC Enterprises Limited provides hospitality services, including hotel management, event planning, and concierge services.

8. TWC Enterprises Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for TWC Enterprises Limited is moderate due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers is high due to the presence of a large number of competitors in the market, giving customers the power to negotiate prices and services.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the company's large scale of operations and its ability to negotiate better prices with suppliers.

Threat Of New Entrants

The threat of new entrants is moderate due to the presence of barriers to entry, such as high capital requirements and regulatory hurdles, but also due to the attractiveness of the market.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of many competitors in the market, leading to a high level of competition and advertising expenses.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 10.85%
Debt Cost 9.59%
Equity Weight 89.15%
Equity Cost 9.59%
WACC 9.59%
Leverage 12.17%

11. Quality Control: TWC Enterprises Limited passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
TWC Enterprises

A-Score: 6.8/10

Value: 7.1

Growth: 6.6

Quality: 7.9

Yield: 3.0

Momentum: 8.0

Volatility: 8.3

1-Year Total Return ->

Stock-Card
Escalade

A-Score: 6.0/10

Value: 7.9

Growth: 5.4

Quality: 6.2

Yield: 8.0

Momentum: 4.0

Volatility: 4.3

1-Year Total Return ->

Stock-Card
OneSpaWorld

A-Score: 5.2/10

Value: 2.6

Growth: 6.9

Quality: 6.4

Yield: 1.0

Momentum: 7.5

Volatility: 6.7

1-Year Total Return ->

Stock-Card
Vista Outdoor

A-Score: 4.5/10

Value: 5.2

Growth: 5.0

Quality: 5.7

Yield: 0.0

Momentum: 5.0

Volatility: 6.0

1-Year Total Return ->

Stock-Card
JAKKS Pacific

A-Score: 4.1/10

Value: 5.9

Growth: 4.4

Quality: 4.6

Yield: 4.0

Momentum: 2.0

Volatility: 4.0

1-Year Total Return ->

Stock-Card
American Outdoor Brands

A-Score: 3.6/10

Value: 6.9

Growth: 4.2

Quality: 4.2

Yield: 0.0

Momentum: 3.0

Volatility: 3.3

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

23.27$

Current Price

23.27$

Potential

-0.00%

Expected Cash-Flows