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TRANSCONTINENTAL INC-CL A (TCL-A.CA) Stock Fundamental Analysis

TSX:TCL-A - Toronto Stock Exchange - CA8935781044 - Common Stock - Currency: CAD

17.39  +0.15 (+0.87%)

Fundamental Rating

5

TCL-A gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 9 industry peers in the Containers & Packaging industry. Both the profitability and the financial health of TCL-A get a neutral evaluation. Nothing too spectacular is happening here. TCL-A has a bad growth rate and is valued cheaply. Finally TCL-A also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

TCL-A had positive earnings in the past year.
In the past year TCL-A had a positive cash flow from operations.
TCL-A had positive earnings in each of the past 5 years.
Each year in the past 5 years TCL-A had a positive operating cash flow.
TCL-A.CA Yearly Net Income VS EBIT VS OCF VS FCFTCL-A.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

1.2 Ratios

TCL-A has a Return On Assets of 3.33%. This is in the lower half of the industry: TCL-A underperforms 66.67% of its industry peers.
With a Return On Equity value of 6.35%, TCL-A is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 7.46%, TCL-A is doing worse than 66.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TCL-A is below the industry average of 8.97%.
The last Return On Invested Capital (7.46%) for TCL-A is above the 3 year average (6.31%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.33%
ROE 6.35%
ROIC 7.46%
ROA(3y)3.12%
ROA(5y)3.33%
ROE(3y)6.13%
ROE(5y)6.68%
ROIC(3y)6.31%
ROIC(5y)6.35%
TCL-A.CA Yearly ROA, ROE, ROICTCL-A.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

TCL-A has a Profit Margin of 4.31%. This is in the lower half of the industry: TCL-A underperforms 66.67% of its industry peers.
TCL-A's Profit Margin has declined in the last couple of years.
The Operating Margin of TCL-A (9.04%) is comparable to the rest of the industry.
TCL-A's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 48.99%, TCL-A belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
TCL-A's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 9.04%
PM (TTM) 4.31%
GM 48.99%
OM growth 3Y2.61%
OM growth 5Y-1.39%
PM growth 3Y-4.43%
PM growth 5Y-4.63%
GM growth 3Y1.42%
GM growth 5Y1.1%
TCL-A.CA Yearly Profit, Operating, Gross MarginsTCL-A.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

5

2. Health

2.1 Basic Checks

TCL-A has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
TCL-A has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, TCL-A has less shares outstanding
TCL-A has a better debt/assets ratio than last year.
TCL-A.CA Yearly Shares OutstandingTCL-A.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
TCL-A.CA Yearly Total Debt VS Total AssetsTCL-A.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.2 Solvency

An Altman-Z score of 2.13 indicates that TCL-A is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.13, TCL-A is doing worse than 66.67% of the companies in the same industry.
TCL-A has a debt to FCF ratio of 3.38. This is a good value and a sign of high solvency as TCL-A would need 3.38 years to pay back of all of its debts.
The Debt to FCF ratio of TCL-A (3.38) is comparable to the rest of the industry.
TCL-A has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.40, TCL-A perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF 3.38
Altman-Z 2.13
ROIC/WACC1.2
WACC6.21%
TCL-A.CA Yearly LT Debt VS Equity VS FCFTCL-A.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.3 Liquidity

A Current Ratio of 1.59 indicates that TCL-A should not have too much problems paying its short term obligations.
The Current ratio of TCL-A (1.59) is worse than 77.78% of its industry peers.
A Quick Ratio of 1.11 indicates that TCL-A should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.11, TCL-A is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.59
Quick Ratio 1.11
TCL-A.CA Yearly Current Assets VS Current LiabilitesTCL-A.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2

3. Growth

3.1 Past

TCL-A shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.27%, which is quite good.
Measured over the past years, TCL-A shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.47% on average per year.
TCL-A shows a decrease in Revenue. In the last year, the revenue decreased by -4.34%.
The Revenue has been decreasing by -1.53% on average over the past years.
EPS 1Y (TTM)15.27%
EPS 3Y-0.42%
EPS 5Y-1.47%
EPS Q2Q%-4.82%
Revenue 1Y (TTM)-4.34%
Revenue growth 3Y2.09%
Revenue growth 5Y-1.53%
Sales Q2Q%-3.9%

3.2 Future

The Earnings Per Share is expected to grow by 2.69% on average over the next years.
TCL-A is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.98% yearly.
EPS Next Y7.02%
EPS Next 2Y5.53%
EPS Next 3Y2.69%
EPS Next 5YN/A
Revenue Next Year-2.78%
Revenue Next 2Y-1.37%
Revenue Next 3Y-1.98%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
TCL-A.CA Yearly Revenue VS EstimatesTCL-A.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B
TCL-A.CA Yearly EPS VS EstimatesTCL-A.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5 2 2.5

8

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 7.43 indicates a rather cheap valuation of TCL-A.
Based on the Price/Earnings ratio, TCL-A is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 30.43, TCL-A is valued rather cheaply.
A Price/Forward Earnings ratio of 6.94 indicates a rather cheap valuation of TCL-A.
Based on the Price/Forward Earnings ratio, TCL-A is valued cheaper than 88.89% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TCL-A to the average of the S&P500 Index (23.78), we can say TCL-A is valued rather cheaply.
Industry RankSector Rank
PE 7.43
Fwd PE 6.94
TCL-A.CA Price Earnings VS Forward Price EarningsTCL-A.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, TCL-A is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
TCL-A's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TCL-A is cheaper than 88.89% of the companies in the same industry.
Industry RankSector Rank
P/FCF 4.98
EV/EBITDA 4.81
TCL-A.CA Per share dataTCL-A.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

TCL-A's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.06
PEG (5Y)N/A
EPS Next 2Y5.53%
EPS Next 3Y2.69%

7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.22%, TCL-A is a good candidate for dividend investing.
TCL-A's Dividend Yield is rather good when compared to the industry average which is at 3.07. TCL-A pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, TCL-A pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.22%

5.2 History

The dividend of TCL-A has a limited annual growth rate of 0.76%.
TCL-A has been paying a dividend for at least 10 years, so it has a reliable track record.
TCL-A has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)0.76%
Div Incr Years0
Div Non Decr Years3
TCL-A.CA Yearly Dividends per shareTCL-A.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

TCL-A pays out 63.81% of its income as dividend. This is not a sustainable payout ratio.
TCL-A's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP63.81%
EPS Next 2Y5.53%
EPS Next 3Y2.69%
TCL-A.CA Yearly Income VS Free CF VS DividendTCL-A.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
TCL-A.CA Dividend Payout.TCL-A.CA Dividend Payout, showing the Payout Ratio.TCL-A.CA Dividend Payout.PayoutRetained Earnings

TRANSCONTINENTAL INC-CL A

TSX:TCL-A (2/14/2025, 7:00:00 PM)

17.39

+0.15 (+0.87%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)12-11 2024-12-11/amc
Earnings (Next)03-11 2025-03-11
Inst Owners38.33%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap1.45B
Analysts81.33
Price Target23.17 (33.24%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 5.22%
Yearly Dividend0.9
Dividend Growth(5Y)0.76%
DP63.81%
Div Incr Years0
Div Non Decr Years3
Ex-Date01-06 2025-01-06 (0.225)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.06%
Min EPS beat(2)4.77%
Max EPS beat(2)5.36%
EPS beat(4)4
Avg EPS beat(4)13.37%
Min EPS beat(4)4.77%
Max EPS beat(4)29.65%
EPS beat(8)6
Avg EPS beat(8)6.85%
EPS beat(12)9
Avg EPS beat(12)4.11%
EPS beat(16)12
Avg EPS beat(16)4.03%
Revenue beat(2)0
Avg Revenue beat(2)-3.61%
Min Revenue beat(2)-4.08%
Max Revenue beat(2)-3.14%
Revenue beat(4)0
Avg Revenue beat(4)-4.82%
Min Revenue beat(4)-7.58%
Max Revenue beat(4)-3.14%
Revenue beat(8)1
Avg Revenue beat(8)-4.55%
Revenue beat(12)3
Avg Revenue beat(12)-2.66%
Revenue beat(16)5
Avg Revenue beat(16)-1.84%
PT rev (1m)0.21%
PT rev (3m)9.91%
EPS NQ rev (1m)-6.5%
EPS NQ rev (3m)-7.65%
EPS NY rev (1m)2.09%
EPS NY rev (3m)2.02%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.29%
Valuation
Industry RankSector Rank
PE 7.43
Fwd PE 6.94
P/S 0.52
P/FCF 4.98
P/OCF 3.51
P/B 0.76
P/tB 3.63
EV/EBITDA 4.81
EPS(TTM)2.34
EY13.46%
EPS(NY)2.5
Fwd EY14.4%
FCF(TTM)3.49
FCFY20.09%
OCF(TTM)4.95
OCFY28.45%
SpS33.64
BVpS22.83
TBVpS4.79
PEG (NY)1.06
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 3.33%
ROE 6.35%
ROCE 8.84%
ROIC 7.46%
ROICexc 7.97%
ROICexgc 18.15%
OM 9.04%
PM (TTM) 4.31%
GM 48.99%
FCFM 10.39%
ROA(3y)3.12%
ROA(5y)3.33%
ROE(3y)6.13%
ROE(5y)6.68%
ROIC(3y)6.31%
ROIC(5y)6.35%
ROICexc(3y)6.59%
ROICexc(5y)6.75%
ROICexgc(3y)14.51%
ROICexgc(5y)15.86%
ROCE(3y)7.47%
ROCE(5y)7.53%
ROICexcg growth 3Y1.96%
ROICexcg growth 5Y-1.59%
ROICexc growth 3Y4.74%
ROICexc growth 5Y-0.14%
OM growth 3Y2.61%
OM growth 5Y-1.39%
PM growth 3Y-4.43%
PM growth 5Y-4.63%
GM growth 3Y1.42%
GM growth 5Y1.1%
F-Score7
Asset Turnover0.77
Health
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF 3.38
Debt/EBITDA 1.63
Cap/Depr 56.46%
Cap/Sales 4.32%
Interest Coverage 5.43
Cash Conversion 88.13%
Profit Quality 240.89%
Current Ratio 1.59
Quick Ratio 1.11
Altman-Z 2.13
F-Score7
WACC6.21%
ROIC/WACC1.2
Cap/Depr(3y)64.48%
Cap/Depr(5y)59.07%
Cap/Sales(3y)5.06%
Cap/Sales(5y)4.84%
Profit Quality(3y)213.34%
Profit Quality(5y)205.14%
High Growth Momentum
Growth
EPS 1Y (TTM)15.27%
EPS 3Y-0.42%
EPS 5Y-1.47%
EPS Q2Q%-4.82%
EPS Next Y7.02%
EPS Next 2Y5.53%
EPS Next 3Y2.69%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.34%
Revenue growth 3Y2.09%
Revenue growth 5Y-1.53%
Sales Q2Q%-3.9%
Revenue Next Year-2.78%
Revenue Next 2Y-1.37%
Revenue Next 3Y-1.98%
Revenue Next 5YN/A
EBIT growth 1Y20.13%
EBIT growth 3Y4.76%
EBIT growth 5Y-2.9%
EBIT Next Year57.72%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-0.88%
FCF growth 3Y18.19%
FCF growth 5Y-0.92%
OCF growth 1Y-12.41%
OCF growth 3Y9.48%
OCF growth 5Y-0.84%