TRANSCONTINENTAL INC-CL A (TCL-A.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:TCL-A • CA8935781044
23.1 CAD
+0.02 (+0.09%)
Last: Jan 30, 2026, 07:00 PM
We assign a fundamental rating of 5 out of 10 to TCL-A. TCL-A was compared to 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 is valued correctly, but it does not seem to be growing.
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.
- 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 5.11%. This is comparable to the rest of the industry: TCL-A outperforms 55.56% of its industry peers.
- TCL-A has a Return On Equity of 8.94%. This is comparable to the rest of the industry: TCL-A outperforms 55.56% of its industry peers.
- TCL-A has a Return On Invested Capital (7.77%) which is in line with its industry peers.
- TCL-A had an Average Return On Invested Capital over the past 3 years of 6.69%. This is in line with the industry average of 7.93%.
- The 3 year average ROIC (6.69%) for TCL-A is below the current ROIC(7.77%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.11% | ||
| ROE | 8.94% | ||
| ROIC | 7.77% |
ROA(3y)3.59%
ROA(5y)3.62%
ROE(3y)6.6%
ROE(5y)6.95%
ROIC(3y)6.69%
ROIC(5y)6.31%
1.3 Margins
- With a decent Profit Margin value of 6.23%, TCL-A is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- TCL-A's Profit Margin has improved in the last couple of years.
- With a Operating Margin value of 9.34%, TCL-A perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
- In the last couple of years the Operating Margin of TCL-A has remained more or less at the same level.
- The Gross Margin of TCL-A (50.10%) 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 | 9.34% | ||
| PM (TTM) | 6.23% | ||
| GM | 50.1% |
OM growth 3Y7.14%
OM growth 5Y1.45%
PM growth 3Y9.27%
PM growth 5Y4.02%
GM growth 3Y3.81%
GM growth 5Y0.58%
2. Health
2.1 Basic Checks
- TCL-A has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying 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.
2.2 Solvency
- An Altman-Z score of 2.48 indicates that TCL-A is not a great score, but indicates only limited risk for bankruptcy at the moment.
- TCL-A's Altman-Z score of 2.48 is on the low side compared to the rest of the industry. TCL-A is outperformed by 66.67% of its industry peers.
- The Debt to FCF ratio of TCL-A is 3.09, which is a good value as it means it would take TCL-A, 3.09 years of fcf income to pay off all of its debts.
- TCL-A has a Debt to FCF ratio of 3.09. This is in the better half of the industry: TCL-A outperforms 66.67% of its industry peers.
- A Debt/Equity ratio of 0.27 indicates that TCL-A is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.27, TCL-A is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 3.09 | ||
| Altman-Z | 2.48 |
ROIC/WACC0.98
WACC7.93%
2.3 Liquidity
- A Current Ratio of 1.29 indicates that TCL-A should not have too much problems paying its short term obligations.
- TCL-A has a worse Current ratio (1.29) than 77.78% of its industry peers.
- TCL-A has a Quick Ratio of 1.29. This is a bad value and indicates that TCL-A is not financially healthy enough and could expect problems in meeting its short term obligations.
- TCL-A's Quick ratio of 0.77 is in line compared to the rest of the industry. TCL-A outperforms 44.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 10.68% over the past year.
- Measured over the past years, TCL-A shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.08% on average per year.
- The Revenue has decreased by -2.45% in the past year.
- Measured over the past years, TCL-A shows a small growth in Revenue. The Revenue has been growing by 1.29% on average per year.
EPS 1Y (TTM)10.68%
EPS 3Y5.75%
EPS 5Y-0.08%
EPS Q2Q%3.8%
Revenue 1Y (TTM)-2.45%
Revenue growth 3Y-2.45%
Revenue growth 5Y1.29%
Sales Q2Q%-2.26%
3.2 Future
- Based on estimates for the next years, TCL-A will show a very negative growth in Earnings Per Share. The EPS will decrease by -26.46% on average per year.
- TCL-A is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -25.18% yearly.
EPS Next Y-52.28%
EPS Next 2Y-33.62%
EPS Next 3Y-26.46%
EPS Next 5YN/A
Revenue Next Year-55.23%
Revenue Next 2Y-36.07%
Revenue Next 3Y-25.18%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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 8.92 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.
- TCL-A's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.30.
- TCL-A is valuated rather expensively with a Price/Forward Earnings ratio of 18.69.
- TCL-A's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. TCL-A is more expensive than 66.67% of the companies in the same industry.
- TCL-A's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.92 | ||
| Fwd PE | 18.69 |
4.2 Price Multiples
- TCL-A's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TCL-A is cheaper than 100.00% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, TCL-A is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.58 | ||
| EV/EBITDA | 5.74 |
4.3 Compensation for Growth
- The decent profitability rating of TCL-A may justify a higher PE ratio.
- TCL-A's earnings are expected to decrease with -26.46% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-33.62%
EPS Next 3Y-26.46%
5. Dividend
5.1 Amount
- TCL-A has a Yearly Dividend Yield of 3.91%.
- Compared to an average industry Dividend Yield of 2.04, TCL-A pays a better dividend. On top of this TCL-A pays more dividend than 88.89% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, TCL-A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
5.2 History
- The dividend of TCL-A is nicely growing with an annual growth rate of 16.17%!
- 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)16.17%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
- 92.98% of the earnings are spent on dividend by TCL-A. This is not a sustainable payout ratio.
- The Dividend Rate of TCL-A has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP92.98%
EPS Next 2Y-33.62%
EPS Next 3Y-26.46%
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.
Can you provide the valuation status for TRANSCONTINENTAL INC-CL A?
ChartMill assigns a valuation rating of 6 / 10 to TRANSCONTINENTAL INC-CL A (TCL-A.CA). This can be considered as Fairly Valued.
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 valuation of TRANSCONTINENTAL INC-CL A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TRANSCONTINENTAL INC-CL A (TCL-A.CA) is 8.92 and the Price/Book (PB) ratio is 1.01.
Can you provide the expected EPS growth for TCL-A stock?
The Earnings per Share (EPS) of TRANSCONTINENTAL INC-CL A (TCL-A.CA) is expected to decline by -52.28% in the next year.