TRANSCONTINENTAL INC-CL A (TCL-A.CA) Stock Fundamental Analysis
TSX:TCL-A - CA8935781044 - Common Stock
20.36 CAD
+0.07 (+0.34%)
Overall TCL-A gets a fundamental rating of 5 out of 10. We evaluated TCL-A against 8 industry peers in the Containers & Packaging industry. TCL-A has an average financial health and profitability rating. TCL-A is cheap, but on the other hand it scores bad on growth. These ratings could make TCL-A a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year TCL-A was profitable.
In the past year TCL-A had a positive cash flow from operations.
In the past 5 years TCL-A has always 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 in the lower half of the industry: TCL-A underperforms 62.50% of its industry peers.
TCL-A has a Return On Equity (9.70%) which is comparable to the rest of the industry.
TCL-A's Return On Invested Capital of 7.58% is on the low side compared to the rest of the industry. TCL-A is outperformed by 62.50% 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 8.04%.
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
TCL-A has a Profit Margin of 6.52%. This is in the better half of the industry: TCL-A outperforms 62.50% of its industry peers.
In the last couple of years the Profit Margin of TCL-A has declined.
TCL-A has a Operating Margin (9.30%) which is comparable to the rest of the industry.
TCL-A's Operating Margin has been stable in the last couple of years.
TCL-A's Gross Margin of 49.82% is amongst the best of the industry. TCL-A outperforms 87.50% 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 | 9.3% | ||
| 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.
TCL-A has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, TCL-A has less shares outstanding
Compared to 1 year ago, TCL-A has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.52 indicates that TCL-A is not a great score, but indicates only limited risk for bankruptcy at the moment.
TCL-A has a Altman-Z score of 2.52. This is comparable to the rest of the industry: TCL-A outperforms 50.00% 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 62.50% of its industry peers.
TCL-A has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
TCL-A's Debt to Equity ratio of 0.44 is in line compared to the rest of the industry. TCL-A outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 2.95 | ||
| Altman-Z | 2.52 |
ROIC/WACC1.1
WACC6.91%
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.
TCL-A's Current ratio of 2.24 is on the low side compared to the rest of the industry. TCL-A is outperformed by 62.50% of its industry peers.
TCL-A has a Quick Ratio of 1.27. 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 Quick ratio of 1.27 is on the low side compared to the rest of the industry. TCL-A is outperformed by 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.24 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.42% over the past year.
Measured over the past years, TCL-A shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.47% on average per year.
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
TCL-A is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.79% yearly.
TCL-A is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.49% yearly.
EPS Next Y16.14%
EPS Next 2Y8.41%
EPS Next 3Y5.79%
EPS Next 5YN/A
Revenue Next Year-2.58%
Revenue Next 2Y-1.26%
Revenue Next 3Y-1.49%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.28, the valuation of TCL-A can be described as reasonable.
87.50% of the companies in the same industry are more expensive than TCL-A, based on the Price/Earnings ratio.
TCL-A is valuated cheaply when we compare the Price/Earnings ratio to 27.13, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.40, which indicates a rather cheap valuation of TCL-A.
Based on the Price/Forward Earnings ratio, TCL-A is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.76, TCL-A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.28 | ||
| Fwd PE | 7.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TCL-A is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TCL-A is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.96 | ||
| EV/EBITDA | 5.33 |
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)0.51
PEG (5Y)N/A
EPS Next 2Y8.41%
EPS Next 3Y5.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.44%, TCL-A is a good candidate for dividend investing.
TCL-A's Dividend Yield is a higher than the industry average which is at 3.25.
Compared to an average S&P500 Dividend Yield of 2.32, TCL-A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
5.2 History
The dividend of TCL-A has a limited annual growth rate of 0.76%.
TCL-A has been paying a dividend for at least 10 years, so it has 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.
The dividend of TCL-A is growing, but earnings are growing more, so the dividend growth is sustainable.
DP88.28%
EPS Next 2Y8.41%
EPS Next 3Y5.79%
TSX:TCL-A (8/29/2025, 7:00:00 PM)
20.36
+0.07 (+0.34%)
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 Cap1.70B
Analysts80
Price Target24.95 (22.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
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)0%
PT rev (3m)8.39%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)0%
EPS NY rev (1m)1.88%
EPS NY rev (3m)1.88%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-0.54%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.28 | ||
| Fwd PE | 7.4 | ||
| P/S | 0.61 | ||
| P/FCF | 5.96 | ||
| P/OCF | 4.4 | ||
| P/B | 0.91 | ||
| P/tB | 4.49 | ||
| EV/EBITDA | 5.33 |
EPS(TTM)2.46
EY12.08%
EPS(NY)2.75
Fwd EY13.51%
FCF(TTM)3.42
FCFY16.79%
OCF(TTM)4.63
OCFY22.74%
SpS33.2
BVpS22.3
TBVpS4.53
PEG (NY)0.51
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 | 2.52 |
F-Score7
WACC6.91%
ROIC/WACC1.1
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 Y16.14%
EPS Next 2Y8.41%
EPS Next 3Y5.79%
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-2.58%
Revenue Next 2Y-1.26%
Revenue Next 3Y-1.49%
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%