TRANSCONTINENTAL INC-CL B (TCL-B.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:TCL-B • CA8935782034
23.25 CAD
0 (0%)
Last: Jan 30, 2026, 07:00 PM
Taking everything into account, TCL-B scores 4 out of 10 in our fundamental rating. TCL-B was compared to 9 industry peers in the Containers & Packaging industry. TCL-B has only an average score on both its financial health and profitability. TCL-B has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- TCL-B had positive earnings in the past year.
- TCL-B had a positive operating cash flow in the past year.
- Each year in the past 5 years TCL-B has been profitable.
- TCL-B had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- TCL-B's Return On Assets of 5.11% is in line compared to the rest of the industry. TCL-B outperforms 44.44% of its industry peers.
- With a Return On Equity value of 8.94%, TCL-B perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 7.77%, TCL-B is in line with its industry, outperforming 44.44% of the companies in the same industry.
- TCL-B 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 last Return On Invested Capital (7.77%) for TCL-B is above the 3 year average (6.69%), which is a sign of increasing profitability.
| 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
- TCL-B's Profit Margin of 6.23% is in line compared to the rest of the industry. TCL-B outperforms 55.56% of its industry peers.
- In the last couple of years the Profit Margin of TCL-B has grown nicely.
- The Operating Margin of TCL-B (9.34%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of TCL-B has remained more or less at the same level.
- With an excellent Gross Margin value of 50.10%, TCL-B belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
- TCL-B'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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TCL-B is destroying value.
- TCL-B has less shares outstanding than it did 1 year ago.
- TCL-B has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, TCL-B has an improved debt to assets ratio.
2.2 Solvency
- TCL-B has an Altman-Z score of 2.49. This is not the best score and indicates that TCL-B is in the grey zone with still only limited risk for bankruptcy at the moment.
- The Altman-Z score of TCL-B (2.49) is comparable to the rest of the industry.
- TCL-B has a debt to FCF ratio of 3.09. This is a good value and a sign of high solvency as TCL-B would need 3.09 years to pay back of all of its debts.
- TCL-B has a Debt to FCF ratio of 3.09. This is comparable to the rest of the industry: TCL-B outperforms 55.56% of its industry peers.
- A Debt/Equity ratio of 0.27 indicates that TCL-B is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.27, TCL-B perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 3.09 | ||
| Altman-Z | 2.49 |
ROIC/WACC0.98
WACC7.93%
2.3 Liquidity
- A Current Ratio of 1.29 indicates that TCL-B should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.29, TCL-B is doing worse than 88.89% of the companies in the same industry.
- TCL-B has a Quick Ratio of 1.29. This is a bad value and indicates that TCL-B is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.77, TCL-B is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| 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.
- The Earnings Per Share has been decreasing by -0.08% on average over the past years.
- The Revenue has decreased by -2.45% in the past year.
- TCL-B shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.29% yearly.
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-B will show a very negative growth in Earnings Per Share. The EPS will decrease by -26.46% on average per year.
- The Revenue is expected to decrease by -25.18% on average over the next years. This is quite bad
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
- The EPS growth rate is decreasing: in the next years the growth will be less 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 8.98 indicates a reasonable valuation of TCL-B.
- TCL-B's Price/Earnings ratio is rather cheap when compared to the industry. TCL-B is cheaper than 88.89% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, TCL-B is valued rather cheaply.
- With a Price/Forward Earnings ratio of 18.81, TCL-B is valued on the expensive side.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TCL-B indicates a slightly more expensive valuation: TCL-B is more expensive than 77.78% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of TCL-B to the average of the S&P500 Index (25.57), we can say TCL-B is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.98 | ||
| Fwd PE | 18.81 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TCL-B is valued cheaper than 88.89% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, TCL-B is valued a bit cheaper than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.63 | ||
| EV/EBITDA | 5.77 |
4.3 Compensation for Growth
- The decent profitability rating of TCL-B may justify a higher PE ratio.
- A cheap valuation may be justified as TCL-B's earnings are expected to decrease with -26.46% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-33.62%
EPS Next 3Y-26.46%
5. Dividend
5.1 Amount
- TCL-B has a Yearly Dividend Yield of 3.90%.
- Compared to an average industry Dividend Yield of 2.07, TCL-B pays a better dividend. On top of this TCL-B pays more dividend than 100.00% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, TCL-B pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
5.2 History
- On average, the dividend of TCL-B grows each year by 16.17%, which is quite nice.
- TCL-B has been paying a dividend for at least 10 years, so it has a reliable track record.
- TCL-B has decreased its dividend recently.
Dividend Growth(5Y)16.17%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- TCL-B pays out 92.98% of its income as dividend. This is not a sustainable payout ratio.
- The Dividend Rate of TCL-B 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 B / TCL-B.CA FAQ
What is the ChartMill fundamental rating of TRANSCONTINENTAL INC-CL B (TCL-B.CA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to TCL-B.CA.
What is the valuation status of TRANSCONTINENTAL INC-CL B (TCL-B.CA) stock?
ChartMill assigns a valuation rating of 5 / 10 to TRANSCONTINENTAL INC-CL B (TCL-B.CA). This can be considered as Fairly Valued.
What is the profitability of TCL-B stock?
TRANSCONTINENTAL INC-CL B (TCL-B.CA) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for TCL-B stock?
The Price/Earnings (PE) ratio for TRANSCONTINENTAL INC-CL B (TCL-B.CA) is 8.98 and the Price/Book (PB) ratio is 1.02.
How sustainable is the dividend of TRANSCONTINENTAL INC-CL B (TCL-B.CA) stock?
The dividend rating of TRANSCONTINENTAL INC-CL B (TCL-B.CA) is 5 / 10 and the dividend payout ratio is 92.98%.