TRANSCONTINENTAL INC-CL A (TCL-A.CA) Stock Fundamental Analysis
Canada - TSX:TCL-A - CA8935781044 - Common Stock
20.22 CAD
+0.34 (+1.71%)
Overall TCL-A gets a fundamental rating of 5 out of 10. We evaluated TCL-A against 7 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 cheap, but on the other hand it scores bad on growth. 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
TCL-A had positive earnings in the past year.
TCL-A had a positive operating cash flow in the past year.
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
The Return On Assets of TCL-A (5.39%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 9.40%, TCL-A is in line with its industry, outperforming 57.14% of the companies in the same industry.
TCL-A has a Return On Invested Capital of 8.40%. This is comparable to the rest of the industry: TCL-A outperforms 57.14% 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 7.80%.
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
With a decent Profit Margin value of 6.37%, TCL-A is doing good in the industry, outperforming 71.43% of the companies in the same industry.
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.
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.
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
Compared to 1 year ago, TCL-A has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.45 indicates that TCL-A is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TCL-A (2.45) is comparable to the rest of the industry.
TCL-A has a debt to FCF ratio of 3.10. This is a good value and a sign of high solvency as TCL-A would need 3.10 years to pay back of all of its debts.
TCL-A has a Debt to FCF ratio of 3.10. This is in the better half of the industry: TCL-A outperforms 71.43% of its industry peers.
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 of 0.29. This is comparable to the rest of the industry: TCL-A outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3.1 | ||
| Altman-Z | 2.45 |
ROIC/WACC1.08
WACC7.78%
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.
TCL-A has a Quick Ratio of 1.39. 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 has a Quick ratio (0.80) which is in line with 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.
Looking at the last year, TCL-A shows a decrease in Revenue. The Revenue has decreased by -2.90% in the last year.
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
TCL-A is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.38% yearly.
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.
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
The Price/Earnings ratio is 7.90, which indicates a rather cheap 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.
Compared to an average S&P500 Price/Earnings ratio of 25.89, TCL-A is valued rather cheaply.
TCL-A is valuated cheaply with a Price/Forward Earnings ratio of 7.59.
Based on the Price/Forward Earnings ratio, TCL-A is valued cheaper than 85.71% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, TCL-A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.9 | ||
| Fwd PE | 7.59 |
4.2 Price Multiples
85.71% of the companies in the same industry are more expensive than TCL-A, based on the Enterprise Value to EBITDA ratio.
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 | 6.35 | ||
| EV/EBITDA | 5.22 |
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)0.46
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 4.53%, which is a nice return.
Compared to an average industry Dividend Yield of 2.75, TCL-A pays a better dividend. On top of this TCL-A pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, TCL-A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.53% |
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
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 (11/14/2025, 7:00:00 PM)
20.22
+0.34 (+1.71%)
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 Cap1.69B
Revenue(TTM)2.76B
Net Income(TTM)176.00M
Analysts80
Price Target25.25 (24.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.53% |
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)1.91%
EPS NY rev (1m)0%
EPS NY rev (3m)2.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.9 | ||
| Fwd PE | 7.59 | ||
| P/S | 0.61 | ||
| P/FCF | 6.35 | ||
| P/OCF | 4.61 | ||
| P/B | 0.9 | ||
| P/tB | 4.09 | ||
| EV/EBITDA | 5.22 |
EPS(TTM)2.56
EY12.66%
EPS(NY)2.66
Fwd EY13.17%
FCF(TTM)3.18
FCFY15.75%
OCF(TTM)4.39
OCFY21.69%
SpS33.02
BVpS22.38
TBVpS4.95
PEG (NY)0.46
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
WACC7.78%
ROIC/WACC1.08
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%.