TRANSCONTINENTAL INC-CL A (TCL-A.CA) Stock Fundamental Analysis
Canada - TSX:TCL-A - CA8935781044 - Common Stock
18.88 CAD
-0.01 (-0.05%)
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. TCL-A has an average financial health and profitability rating. TCL-A has a bad growth rate and is valued cheaply. Finally TCL-A also has an excellent dividend rating. With these ratings, TCL-A could be worth investigating further 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.
TCL-A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TCL-A has a Return On Assets (5.39%) which is comparable to the rest of the industry.
TCL-A has a Return On Equity (9.40%) which is in line with its industry peers.
TCL-A has a Return On Invested Capital of 8.40%. This is comparable to the rest of the industry: TCL-A outperforms 44.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TCL-A is in line with the industry average of 8.13%.
The last Return On Invested Capital (8.40%) for TCL-A is above the 3 year average (6.31%), which is a sign of increasing profitability.
| 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
TCL-A has a Profit Margin (6.37%) which is in line with its industry peers.
In the last couple of years the Profit Margin of TCL-A has declined.
TCL-A has a Operating Margin (9.40%) which 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 has a Gross Margin of 50.06%. This is amongst the best in the industry. TCL-A outperforms 88.89% of its industry peers.
TCL-A's Gross Margin has been stable in the last couple of years.
| 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
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.
TCL-A has a better debt/assets ratio than last year.
2.2 Solvency
TCL-A has an Altman-Z score of 2.41. 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.
The Altman-Z score of TCL-A (2.41) 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.
TCL-A has a better Debt to FCF ratio (3.10) than 66.67% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that TCL-A is not too dependend on debt financing.
TCL-A's Debt to Equity ratio of 0.29 is in line compared to the rest of the industry. TCL-A outperforms 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3.1 | ||
| Altman-Z | 2.41 |
ROIC/WACC1.07
WACC7.86%
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.
The Current ratio of TCL-A (1.39) is worse than 88.89% 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 worse Quick ratio (0.80) than 66.67% 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%.
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)7.56%
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
The Earnings Per Share is expected to grow by 6.38% on average over the next years.
The Revenue is expected to decrease by -0.86% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.37 indicates a rather cheap valuation of TCL-A.
Based on the Price/Earnings ratio, TCL-A is valued cheaper than 88.89% of the companies in the same industry.
When comparing the Price/Earnings ratio of TCL-A to the average of the S&P500 Index (27.69), we can say TCL-A is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.09, the valuation of TCL-A can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TCL-A indicates a somewhat cheap valuation: TCL-A is cheaper than 77.78% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of TCL-A to the average of the S&P500 Index (23.18), we can say TCL-A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.37 | ||
| Fwd PE | 7.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TCL-A is valued cheaper than 88.89% of the companies in the same industry.
77.78% of the companies in the same industry are more expensive than TCL-A, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.93 | ||
| EV/EBITDA | 5.05 |
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.
TCL-A has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.43
PEG (5Y)N/A
EPS Next 2Y6.68%
EPS Next 3Y6.38%
5. Dividend
5.1 Amount
TCL-A has a Yearly Dividend Yield of 4.78%, which is a nice return.
Compared to an average industry Dividend Yield of 3.13, 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.
TCL-A's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.78% |
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
TCL-A pays out 90.45% 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.
DP90.45%
EPS Next 2Y6.68%
EPS Next 3Y6.38%
TSX:TCL-A (10/20/2025, 7:00:00 PM)
18.88
-0.01 (-0.05%)
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 Cap1.58B
Analysts80
Price Target25.25 (33.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.78% |
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)0.58%
PT rev (3m)1.17%
EPS NQ rev (1m)-0.37%
EPS NQ rev (3m)1.91%
EPS NY rev (1m)0.97%
EPS NY rev (3m)2.87%
Revenue NQ rev (1m)0.46%
Revenue NQ rev (3m)1.57%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.37 | ||
| Fwd PE | 7.09 | ||
| P/S | 0.57 | ||
| P/FCF | 5.93 | ||
| P/OCF | 4.31 | ||
| P/B | 0.84 | ||
| P/tB | 3.81 | ||
| EV/EBITDA | 5.05 |
EPS(TTM)2.56
EY13.56%
EPS(NY)2.66
Fwd EY14.11%
FCF(TTM)3.18
FCFY16.87%
OCF(TTM)4.39
OCFY23.23%
SpS33.02
BVpS22.38
TBVpS4.95
PEG (NY)0.43
PEG (5Y)N/A
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%
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-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 | 2.41 |
F-Score8
WACC7.86%
ROIC/WACC1.07
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%