TRANSCONTINENTAL INC-CL A (TCL-A.CA) Stock Fundamental Analysis
TSX:TCL-A - Toronto Stock Exchange - CA8935781044 - Common Stock - Currency: CAD
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. TCL-A has an average financial health and profitability rating. TCL-A is valued quite cheap, but it does not seem to be growing. With these ratings, TCL-A could be worth investigating further for value investing!.
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.
Each year in the past 5 years TCL-A has been profitable.
Each year in the past 5 years TCL-A had a positive operating cash flow.
1.2 Ratios
TCL-A has a Return On Assets of 5.50%. This is comparable to the rest of the industry: TCL-A outperforms 44.44% of its industry peers.
With a Return On Equity value of 9.70%, TCL-A perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
TCL-A has a Return On Invested Capital (7.58%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TCL-A is below the industry average of 8.67%.
The last Return On Invested Capital (7.58%) for TCL-A is above the 3 year average (6.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 9.7% | ||
| ROIC | 7.58% |
ROA(3y)3.12%
ROA(5y)3.33%
ROE(3y)6.13%
ROE(5y)6.68%
ROIC(3y)6.31%
ROIC(5y)6.35%
1.3 Margins
With a Profit Margin value of 6.52%, TCL-A perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
TCL-A's Profit Margin has declined in the last couple of years.
The Operating Margin of TCL-A (9.30%) is comparable to the rest of the industry.
TCL-A's Operating Margin has been stable in the last couple of years.
The Gross Margin of TCL-A (49.82%) is better than 100.00% of its industry peers.
TCL-A's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.3% | ||
| PM (TTM) | 6.52% | ||
| GM | 49.82% |
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%
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.
Compared to 1 year ago, TCL-A has less shares outstanding
The number of shares outstanding for TCL-A has been reduced compared to 5 years ago.
Compared to 1 year ago, TCL-A has an improved debt to assets ratio.
2.2 Solvency
TCL-A has an Altman-Z score of 2.53. This is not the best score and indicates that TCL-A is in the grey zone with still only limited risk for bankruptcy at the moment.
TCL-A has a Altman-Z score of 2.53. This is in the lower half of the industry: TCL-A underperforms 66.67% of its industry peers.
The Debt to FCF ratio of TCL-A is 2.95, which is a good value as it means it would take TCL-A, 2.95 years of fcf income to pay off all of its debts.
TCL-A has a better Debt to FCF ratio (2.95) than 66.67% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that TCL-A is not too dependend on debt financing.
TCL-A has a Debt to Equity ratio of 0.44. This is comparable to the rest of the industry: TCL-A outperforms 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 2.95 | ||
| Altman-Z | 2.53 |
ROIC/WACC1.14
WACC6.65%
2.3 Liquidity
TCL-A has a Current Ratio of 2.24. This indicates that TCL-A is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.24, TCL-A is doing good in the industry, outperforming 66.67% of the companies in the same industry.
A Quick Ratio of 1.27 indicates that TCL-A should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.27, TCL-A perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.24 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
TCL-A shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.42%.
TCL-A shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.47% yearly.
TCL-A shows a decrease in Revenue. In the last year, the revenue decreased by -2.58%.
Measured over the past years, TCL-A shows a decrease in Revenue. The Revenue has been decreasing by -1.53% on average per year.
EPS 1Y (TTM)7.42%
EPS 3Y-0.42%
EPS 5Y-1.47%
EPS Q2Q%11.54%
Revenue 1Y (TTM)-2.58%
Revenue growth 3Y2.09%
Revenue growth 5Y-1.53%
Sales Q2Q%0.13%
3.2 Future
Based on estimates for the next years, TCL-A will show a small growth in Earnings Per Share. The EPS will grow by 5.00% on average per year.
Based on estimates for the next years, TCL-A will show a decrease in Revenue. The Revenue will decrease by -1.99% on average per year.
EPS Next Y14%
EPS Next 2Y7.08%
EPS Next 3Y5%
EPS Next 5YN/A
Revenue Next Year-3.3%
Revenue Next 2Y-1.75%
Revenue Next 3Y-1.99%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.31 indicates a reasonable valuation of TCL-A.
100.00% of the companies in the same industry are more expensive than TCL-A, based on the Price/Earnings ratio.
TCL-A's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.19.
With a Price/Forward Earnings ratio of 7.62, the valuation of TCL-A can be described as very cheap.
Based on the Price/Forward Earnings ratio, TCL-A is valued cheaper than 88.89% of the companies in the same industry.
TCL-A is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.33, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.31 | ||
| Fwd PE | 7.62 |
4.2 Price Multiples
88.89% of the companies in the same industry are more expensive than TCL-A, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TCL-A indicates a rather cheap valuation: TCL-A is cheaper than 88.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.98 | ||
| EV/EBITDA | 5.35 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.59
PEG (5Y)N/A
EPS Next 2Y7.08%
EPS Next 3Y5%
5. Dividend
5.1 Amount
TCL-A has a Yearly Dividend Yield of 4.39%, which is a nice return.
Compared to an average industry Dividend Yield of 3.01, TCL-A pays a bit more dividend than its industry peers.
TCL-A's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
5.2 History
The dividend of TCL-A has a limited annual growth rate of 0.76%.
TCL-A has paid a dividend for at least 10 years, which is a reliable track record.
TCL-A has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)0.76%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
88.28% of the earnings are spent on dividend by TCL-A. This is not a sustainable payout ratio.
TCL-A's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP88.28%
EPS Next 2Y7.08%
EPS Next 3Y5%
TSX:TCL-A (7/14/2025, 7:00:00 PM)
20.45
+0.09 (+0.44%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners32.62%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap1.71B
Analysts80
Price Target24.95 (22%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
Yearly Dividend0.9
Dividend Growth(5Y)0.76%
DP88.28%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.99%
Min EPS beat(2)3.64%
Max EPS beat(2)30.34%
EPS beat(4)4
Avg EPS beat(4)11.03%
Min EPS beat(4)3.64%
Max EPS beat(4)30.34%
EPS beat(8)7
Avg EPS beat(8)13.75%
EPS beat(12)10
Avg EPS beat(12)9.02%
EPS beat(16)12
Avg EPS beat(16)4.89%
Revenue beat(2)1
Avg Revenue beat(2)-1.77%
Min Revenue beat(2)-3.74%
Max Revenue beat(2)0.21%
Revenue beat(4)1
Avg Revenue beat(4)-2.69%
Min Revenue beat(4)-4.08%
Max Revenue beat(4)0.21%
Revenue beat(8)1
Avg Revenue beat(8)-4.51%
Revenue beat(12)3
Avg Revenue beat(12)-3.07%
Revenue beat(16)5
Avg Revenue beat(16)-1.95%
PT rev (1m)7.03%
PT rev (3m)8.39%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)0.24%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.31 | ||
| Fwd PE | 7.62 | ||
| P/S | 0.62 | ||
| P/FCF | 5.98 | ||
| P/OCF | 4.42 | ||
| P/B | 0.92 | ||
| P/tB | 4.51 | ||
| EV/EBITDA | 5.35 |
EPS(TTM)2.46
EY12.03%
EPS(NY)2.68
Fwd EY13.12%
FCF(TTM)3.42
FCFY16.71%
OCF(TTM)4.63
OCFY22.64%
SpS33.2
BVpS22.3
TBVpS4.53
PEG (NY)0.59
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 9.7% | ||
| ROCE | 8.97% | ||
| ROIC | 7.58% | ||
| ROICexc | 7.69% | ||
| ROICexgc | 16.16% | ||
| OM | 9.3% | ||
| PM (TTM) | 6.52% | ||
| GM | 49.82% | ||
| FCFM | 10.29% |
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 Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 2.95 | ||
| Debt/EBITDA | 1.74 | ||
| Cap/Depr | 48.08% | ||
| Cap/Sales | 3.65% | ||
| Interest Coverage | 5.31 | ||
| Cash Conversion | 82.52% | ||
| Profit Quality | 157.99% | ||
| Current Ratio | 2.24 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 2.53 |
F-Score7
WACC6.65%
ROIC/WACC1.14
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)7.42%
EPS 3Y-0.42%
EPS 5Y-1.47%
EPS Q2Q%11.54%
EPS Next Y14%
EPS Next 2Y7.08%
EPS Next 3Y5%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.58%
Revenue growth 3Y2.09%
Revenue growth 5Y-1.53%
Sales Q2Q%0.13%
Revenue Next Year-3.3%
Revenue Next 2Y-1.75%
Revenue Next 3Y-1.99%
Revenue Next 5YN/A
EBIT growth 1Y9.17%
EBIT growth 3Y4.76%
EBIT growth 5Y-2.9%
EBIT Next Year58.75%
EBIT Next 3Y16.17%
EBIT Next 5YN/A
FCF growth 1Y210.65%
FCF growth 3Y18.19%
FCF growth 5Y-0.92%
OCF growth 1Y43.51%
OCF growth 3Y9.48%
OCF growth 5Y-0.84%