TRANSCONTINENTAL INC-CL A (TCL-A.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TCL-A - CA8935781044 - Common Stock
20.05 CAD
+0.36 (+1.83%)
We assign a fundamental rating of 5 out of 10 to TCL-A. TCL-A was compared to 7 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. Finally TCL-A also has an excellent dividend rating. These ratings would make TCL-A suitable for value and dividend investing!
1. Profitability
1.1 Basic Checks
TCL-A had positive earnings in the past year.
TCL-A had a positive operating cash flow in the past year.
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.
1.2 Ratios
TCL-A has a better Return On Assets (5.39%) than 71.43% of its industry peers.
With a Return On Equity value of 9.40%, TCL-A perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
TCL-A's Return On Invested Capital of 8.40% is in line compared to the rest of the industry. TCL-A outperforms 57.14% of its industry peers.
TCL-A had an Average Return On Invested Capital over the past 3 years of 6.31%. This is in line with the industry average of 7.88%.
The 3 year average ROIC (6.31%) for TCL-A is below the current ROIC(8.40%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.39% | ||
| ROE | 9.4% | ||
| ROIC | 8.4% |
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
Looking at the Profit Margin, with a value of 6.37%, TCL-A is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
TCL-A's Profit Margin has declined in the last couple of years.
TCL-A has a Operating Margin of 9.40%. This is comparable to the rest of the industry: TCL-A outperforms 57.14% of its industry peers.
TCL-A's Operating Margin has been stable in the last couple of years.
The Gross Margin of TCL-A (50.06%) is better than 100.00% of its industry peers.
In the last couple of years the Gross Margin of TCL-A has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.4% | ||
| PM (TTM) | 6.37% | ||
| GM | 50.06% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TCL-A is creating some value.
Compared to 1 year ago, TCL-A has less shares outstanding
TCL-A has less shares outstanding than it did 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 2.45. 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 (2.45) which is comparable to the rest of the industry.
The Debt to FCF ratio of TCL-A is 3.10, which is a good value as it means it would take TCL-A, 3.10 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.10, TCL-A is in line with its industry, outperforming 57.14% of the companies in the same industry.
A Debt/Equity ratio of 0.29 indicates that TCL-A is not too dependend on debt financing.
TCL-A has a Debt to Equity ratio (0.29) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3.1 | ||
| Altman-Z | 2.45 |
ROIC/WACC1.09
WACC7.71%
2.3 Liquidity
TCL-A has a Current Ratio of 1.39. This is a normal value and indicates that TCL-A is financially healthy and should not expect problems in meeting its short term obligations.
TCL-A's Current ratio of 1.39 is on the low side compared to the rest of the industry. TCL-A is outperformed by 85.71% of its industry peers.
A Quick Ratio of 0.80 indicates that TCL-A may have some problems paying its short term obligations.
TCL-A has a Quick ratio of 0.80. This is comparable to the rest of the industry: TCL-A outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.56% over the past year.
The Earnings Per Share has been decreasing by -1.47% on average over the past years.
TCL-A shows a decrease in Revenue. In the last year, the revenue decreased by -2.90%.
The Revenue has been decreasing by -1.53% on average over the past years.
EPS 1Y (TTM)7.56%
EPS 3Y-0.42%
EPS 5Y-1.47%
EPS Q2Q%16.67%
Revenue 1Y (TTM)-2.9%
Revenue growth 3Y2.09%
Revenue growth 5Y-1.53%
Sales Q2Q%-2.23%
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 6.38% on average per year.
Based on estimates for the next years, TCL-A will show a decrease in Revenue. The Revenue will decrease by -0.86% on average per year.
EPS Next Y17.27%
EPS Next 2Y6.68%
EPS Next 3Y6.38%
EPS Next 5YN/A
Revenue Next Year-2.3%
Revenue Next 2Y-0.88%
Revenue Next 3Y-0.86%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.83, the valuation of TCL-A can be described as very cheap.
Based on the Price/Earnings ratio, TCL-A is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TCL-A to the average of the S&P500 Index (25.47), we can say TCL-A is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.53, the valuation of TCL-A can be described as very cheap.
Based on the Price/Forward Earnings ratio, TCL-A is valued cheaper than 85.71% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.42. TCL-A is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.83 | ||
| Fwd PE | 7.53 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TCL-A indicates a rather cheap valuation: TCL-A is cheaper than 85.71% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TCL-A is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.3 | ||
| EV/EBITDA | 5.25 |
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.
TCL-A has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.45
PEG (5Y)N/A
EPS Next 2Y6.68%
EPS Next 3Y6.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.57%, 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 2.80. TCL-A pays more dividend than 100.00% of the companies in the same industry.
TCL-A's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.57% |
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
90.45% 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.
DP90.45%
EPS Next 2Y6.68%
EPS Next 3Y6.38%
TSX:TCL-A (11/21/2025, 7:00:00 PM)
20.05
+0.36 (+1.83%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners33.53%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap1.68B
Revenue(TTM)2.76B
Net Income(TTM)176.00M
Analysts80
Price Target25.25 (25.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.57% |
Yearly Dividend0.9
Dividend Growth(5Y)0.76%
DP90.45%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.31%
Min EPS beat(2)-1.03%
Max EPS beat(2)3.64%
EPS beat(4)3
Avg EPS beat(4)9.58%
Min EPS beat(4)-1.03%
Max EPS beat(4)30.34%
EPS beat(8)7
Avg EPS beat(8)14.1%
EPS beat(12)9
Avg EPS beat(12)8.08%
EPS beat(16)12
Avg EPS beat(16)5.61%
Revenue beat(2)1
Avg Revenue beat(2)-0.97%
Min Revenue beat(2)-2.14%
Max Revenue beat(2)0.21%
Revenue beat(4)1
Avg Revenue beat(4)-2.44%
Min Revenue beat(4)-4.08%
Max Revenue beat(4)0.21%
Revenue beat(8)1
Avg Revenue beat(8)-3.62%
Revenue beat(12)2
Avg Revenue beat(12)-3.77%
Revenue beat(16)5
Avg Revenue beat(16)-1.93%
PT rev (1m)0%
PT rev (3m)1.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.52%
EPS NY rev (1m)0%
EPS NY rev (3m)0.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.83 | ||
| Fwd PE | 7.53 | ||
| P/S | 0.61 | ||
| P/FCF | 6.3 | ||
| P/OCF | 4.57 | ||
| P/B | 0.9 | ||
| P/tB | 4.05 | ||
| EV/EBITDA | 5.25 |
EPS(TTM)2.56
EY12.77%
EPS(NY)2.66
Fwd EY13.28%
FCF(TTM)3.18
FCFY15.88%
OCF(TTM)4.39
OCFY21.87%
SpS33.02
BVpS22.38
TBVpS4.95
PEG (NY)0.45
PEG (5Y)N/A
Graham Number35.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.39% | ||
| ROE | 9.4% | ||
| ROCE | 9.95% | ||
| ROIC | 8.4% | ||
| ROICexc | 8.52% | ||
| ROICexgc | 19.69% | ||
| OM | 9.4% | ||
| PM (TTM) | 6.37% | ||
| GM | 50.06% | ||
| FCFM | 9.65% |
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%
ROICexgc growth 3Y1.96%
ROICexgc 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-Score8
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3.1 | ||
| Debt/EBITDA | 1.17 | ||
| Cap/Depr | 47.76% | ||
| Cap/Sales | 3.64% | ||
| Interest Coverage | 5.09 | ||
| Cash Conversion | 78.09% | ||
| Profit Quality | 151.31% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 2.45 |
F-Score8
WACC7.71%
ROIC/WACC1.09
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)7.56%
EPS 3Y-0.42%
EPS 5Y-1.47%
EPS Q2Q%16.67%
EPS Next Y17.27%
EPS Next 2Y6.68%
EPS Next 3Y6.38%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.9%
Revenue growth 3Y2.09%
Revenue growth 5Y-1.53%
Sales Q2Q%-2.23%
Revenue Next Year-2.3%
Revenue Next 2Y-0.88%
Revenue Next 3Y-0.86%
Revenue Next 5YN/A
EBIT growth 1Y2.33%
EBIT growth 3Y4.76%
EBIT growth 5Y-2.9%
EBIT Next Year59.61%
EBIT Next 3Y17.41%
EBIT Next 5YN/A
FCF growth 1Y81.28%
FCF growth 3Y18.19%
FCF growth 5Y-0.92%
OCF growth 1Y11.26%
OCF growth 3Y9.48%
OCF growth 5Y-0.84%
TRANSCONTINENTAL INC-CL A / TCL-A.CA FAQ
What is the fundamental rating for TCL-A stock?
ChartMill assigns a fundamental rating of 5 / 10 to TCL-A.CA.
What is the valuation status of TRANSCONTINENTAL INC-CL A (TCL-A.CA) stock?
ChartMill assigns a valuation rating of 9 / 10 to TRANSCONTINENTAL INC-CL A (TCL-A.CA). This can be considered as Undervalued.
Can you provide the profitability details for TRANSCONTINENTAL INC-CL A?
TRANSCONTINENTAL INC-CL A (TCL-A.CA) has a profitability rating of 6 / 10.
What is the earnings growth outlook for TRANSCONTINENTAL INC-CL A?
The Earnings per Share (EPS) of TRANSCONTINENTAL INC-CL A (TCL-A.CA) is expected to grow by 17.27% in the next year.
Is the dividend of TRANSCONTINENTAL INC-CL A sustainable?
The dividend rating of TRANSCONTINENTAL INC-CL A (TCL-A.CA) is 7 / 10 and the dividend payout ratio is 90.45%.