TRANSCONTINENTAL INC-CL A (TCL-A.CA) Stock Fundamental Analysis
TSX:TCL-A - Toronto Stock Exchange - CA8935781044 - Common Stock - Currency: CAD
Taking everything into account, TCL-A scores 5 out of 10 in our fundamental rating. TCL-A was compared to 9 industry peers in the Containers & Packaging industry. TCL-A has only an average score on both its financial health and profitability. TCL-A has a bad growth rate and is valued cheaply. Finally TCL-A also has an excellent dividend rating. This makes TCL-A very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
In the past year TCL-A was profitable.
TCL-A had a positive operating cash flow in the past year.
In the past 5 years TCL-A has always been profitable.
In the past 5 years TCL-A always reported a positive cash flow from operatings.
1.2 Ratios
TCL-A has a Return On Assets (4.51%) which is in line with its industry peers.
The Return On Equity of TCL-A (8.30%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 7.38%, TCL-A is in line with its industry, outperforming 44.44% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TCL-A is below the industry average of 9.00%.
The last Return On Invested Capital (7.38%) for TCL-A is above the 3 year average (6.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.51% | ||
| ROE | 8.3% | ||
| ROIC | 7.39% |
ROA(3y)3.12%
ROA(5y)3.33%
ROE(3y)6.13%
ROE(5y)6.68%
ROIC(3y)6.31%
ROIC(5y)6.35%
1.3 Margins
TCL-A has a Profit Margin (5.87%) which is in line with its industry peers.
In the last couple of years the Profit Margin of TCL-A has declined.
The Operating Margin of TCL-A (9.29%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TCL-A has remained more or less at the same level.
TCL-A's Gross Margin of 49.61% is amongst the best of the industry. TCL-A outperforms 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 | 9.29% | ||
| PM (TTM) | 5.87% | ||
| GM | 49.61% |
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.
The number of shares outstanding for TCL-A has been reduced compared to 1 year ago.
Compared to 5 years ago, TCL-A has less shares outstanding
The debt/assets ratio for TCL-A has been reduced compared to a year ago.
2.2 Solvency
TCL-A has an Altman-Z score of 2.30. 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's Altman-Z score of 2.30 is on the low side compared to the rest of the industry. TCL-A is outperformed by 77.78% of its industry peers.
TCL-A has a debt to FCF ratio of 3.64. This is a good value and a sign of high solvency as TCL-A would need 3.64 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.64, TCL-A is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 0.39 indicates that TCL-A is not too dependend on debt financing.
TCL-A has a Debt to Equity ratio (0.39) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 3.64 | ||
| Altman-Z | 2.3 |
ROIC/WACC1.14
WACC6.45%
2.3 Liquidity
A Current Ratio of 1.74 indicates that TCL-A should not have too much problems paying its short term obligations.
TCL-A's Current ratio of 1.74 is in line compared to the rest of the industry. TCL-A outperforms 44.44% of its industry peers.
A Quick Ratio of 1.17 indicates that TCL-A should not have too much problems paying its short term obligations.
TCL-A has a Quick ratio (1.17) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.74 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.11% over the past year.
The Earnings Per Share has been decreasing by -1.47% on average over the past years.
Looking at the last year, TCL-A shows a decrease in Revenue. The Revenue has decreased by -4.75% in the last year.
The Revenue has been decreasing by -1.53% on average over the past years.
EPS 1Y (TTM)8.11%
EPS 3Y-0.42%
EPS 5Y-1.47%
EPS Q2Q%13.95%
Revenue 1Y (TTM)-4.75%
Revenue growth 3Y2.09%
Revenue growth 5Y-1.53%
Sales Q2Q%-5.5%
3.2 Future
TCL-A is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.00% yearly.
TCL-A is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.99% yearly.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.67 indicates a reasonable valuation of TCL-A.
Based on the Price/Earnings ratio, TCL-A is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.60. TCL-A is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.75 indicates a rather cheap valuation of TCL-A.
88.89% of the companies in the same industry are more expensive than TCL-A, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.43. TCL-A is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.67 | ||
| Fwd PE | 7.75 |
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 88.89% of the companies listed in the same industry.
TCL-A's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TCL-A is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.37 | ||
| EV/EBITDA | 5.23 |
4.3 Compensation for Growth
TCL-A's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.62
PEG (5Y)N/A
EPS Next 2Y7.08%
EPS Next 3Y5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.36%, TCL-A is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.08, 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.36% |
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 Years0
Div Non Decr Years3
5.3 Sustainability
47.12% of the earnings are spent on dividend by TCL-A. This is a bit on the high side, but may be sustainable.
TCL-A's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP47.12%
EPS Next 2Y7.08%
EPS Next 3Y5%
TSX:TCL-A (5/20/2025, 7:00:00 PM)
20.8
+0.13 (+0.63%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners38.35%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap1.74B
Analysts81.33
Price Target23.02 (10.67%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.36% |
Yearly Dividend0.9
Dividend Growth(5Y)0.76%
DP47.12%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.85%
Min EPS beat(2)5.36%
Max EPS beat(2)30.34%
EPS beat(4)4
Avg EPS beat(4)13.54%
Min EPS beat(4)4.77%
Max EPS beat(4)30.34%
EPS beat(8)7
Avg EPS beat(8)15.97%
EPS beat(12)10
Avg EPS beat(12)9.37%
EPS beat(16)12
Avg EPS beat(16)5.86%
Revenue beat(2)0
Avg Revenue beat(2)-3.91%
Min Revenue beat(2)-4.08%
Max Revenue beat(2)-3.74%
Revenue beat(4)0
Avg Revenue beat(4)-4.64%
Min Revenue beat(4)-7.58%
Max Revenue beat(4)-3.14%
Revenue beat(8)1
Avg Revenue beat(8)-4.48%
Revenue beat(12)3
Avg Revenue beat(12)-2.9%
Revenue beat(16)4
Avg Revenue beat(16)-2.17%
PT rev (1m)0%
PT rev (3m)-0.63%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)-0.66%
EPS NY rev (1m)0%
EPS NY rev (3m)6.52%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)-1.26%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.67 | ||
| Fwd PE | 7.75 | ||
| P/S | 0.63 | ||
| P/FCF | 6.37 | ||
| P/OCF | 4.58 | ||
| P/B | 0.89 | ||
| P/tB | 3.97 | ||
| EV/EBITDA | 5.23 |
EPS(TTM)2.4
EY11.54%
EPS(NY)2.68
Fwd EY12.9%
FCF(TTM)3.26
FCFY15.69%
OCF(TTM)4.54
OCFY21.84%
SpS33.19
BVpS23.47
TBVpS5.24
PEG (NY)0.62
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.51% | ||
| ROE | 8.3% | ||
| ROCE | 8.75% | ||
| ROIC | 7.39% | ||
| ROICexc | 8.14% | ||
| ROICexgc | 18.93% | ||
| OM | 9.29% | ||
| PM (TTM) | 5.87% | ||
| GM | 49.61% | ||
| FCFM | 9.83% |
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-Score6
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 3.64 | ||
| Debt/EBITDA | 1.63 | ||
| Cap/Depr | 50.23% | ||
| Cap/Sales | 3.86% | ||
| Interest Coverage | 5.39 | ||
| Cash Conversion | 80.69% | ||
| Profit Quality | 167.42% | ||
| Current Ratio | 1.74 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 2.3 |
F-Score6
WACC6.45%
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)8.11%
EPS 3Y-0.42%
EPS 5Y-1.47%
EPS Q2Q%13.95%
EPS Next Y14%
EPS Next 2Y7.08%
EPS Next 3Y5%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.75%
Revenue growth 3Y2.09%
Revenue growth 5Y-1.53%
Sales Q2Q%-5.5%
Revenue Next Year-3.3%
Revenue Next 2Y-1.75%
Revenue Next 3Y-1.99%
Revenue Next 5YN/A
EBIT growth 1Y12.28%
EBIT growth 3Y4.76%
EBIT growth 5Y-2.9%
EBIT Next Year58.64%
EBIT Next 3Y16.17%
EBIT Next 5YN/A
FCF growth 1Y241.98%
FCF growth 3Y18.19%
FCF growth 5Y-0.92%
OCF growth 1Y58.82%
OCF growth 3Y9.48%
OCF growth 5Y-0.84%