TRANSCONTINENTAL INC-CL B (TCL-B.CA) Stock Fundamental Analysis
TSX:TCL-B - Toronto Stock Exchange - CA8935782034 - Common Stock - Currency: CAD
Overall TCL-B gets a fundamental rating of 5 out of 10. We evaluated TCL-B against 8 industry peers in the Containers & Packaging industry. TCL-B has an average financial health and profitability rating. TCL-B is cheap, but on the other hand it scores bad on growth. With these ratings, TCL-B could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
TCL-B had positive earnings in the past year.
In the past year TCL-B had a positive cash flow from operations.
Each year in the past 5 years TCL-B has been profitable.
Each year in the past 5 years TCL-B had a positive operating cash flow.
1.2 Ratios
TCL-B's Return On Assets of 5.50% is on the low side compared to the rest of the industry. TCL-B is outperformed by 62.50% of its industry peers.
TCL-B has a Return On Equity of 9.70%. This is comparable to the rest of the industry: TCL-B outperforms 50.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.58%, TCL-B is doing worse than 62.50% of the companies in the same industry.
TCL-B had an Average Return On Invested Capital over the past 3 years of 6.31%. This is below the industry average of 8.49%.
The 3 year average ROIC (6.31%) for TCL-B is below the current ROIC(7.58%), indicating increased profibility in the last year.
| 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
The Profit Margin of TCL-B (6.52%) is comparable to the rest of the industry.
TCL-B's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 9.30%, TCL-B is in line with its industry, outperforming 50.00% of the companies in the same industry.
TCL-B's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 49.82%, TCL-B belongs to the best of the industry, outperforming 87.50% 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 | 9.3% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TCL-B is creating some value.
Compared to 1 year ago, TCL-B has less shares outstanding
The number of shares outstanding for TCL-B has been reduced compared to 5 years ago.
The debt/assets ratio for TCL-B has been reduced compared to a year ago.
2.2 Solvency
TCL-B has an Altman-Z score of 2.55. 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.
TCL-B has a worse Altman-Z score (2.55) than 62.50% of its industry peers.
The Debt to FCF ratio of TCL-B is 2.95, which is a good value as it means it would take TCL-B, 2.95 years of fcf income to pay off all of its debts.
TCL-B has a Debt to FCF ratio (2.95) which is in line with its industry peers.
A Debt/Equity ratio of 0.44 indicates that TCL-B is not too dependend on debt financing.
TCL-B has a Debt to Equity ratio of 0.44. This is in the lower half of the industry: TCL-B underperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 2.95 | ||
| Altman-Z | 2.55 |
ROIC/WACC1.04
WACC7.27%
2.3 Liquidity
TCL-B has a Current Ratio of 2.24. This indicates that TCL-B is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of TCL-B (2.24) is comparable to the rest of the industry.
A Quick Ratio of 1.27 indicates that TCL-B should not have too much problems paying its short term obligations.
TCL-B's Quick ratio of 1.27 is on the low side compared to the rest of the industry. TCL-B 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 grown by an nice 15.27% over the past year.
TCL-B shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.47% yearly.
The Revenue has decreased by -2.58% in the past year.
The Revenue has been decreasing by -1.53% on average over the past years.
EPS 1Y (TTM)15.27%
EPS 3Y-0.42%
EPS 5Y-1.47%
EPS Q2Q%120.21%
Revenue 1Y (TTM)-2.58%
Revenue growth 3Y2.09%
Revenue growth 5Y-1.53%
Sales Q2Q%0.13%
3.2 Future
The Earnings Per Share is expected to grow by 5.00% on average over the next years.
The Revenue is expected to decrease by -1.99% on average over the next years.
EPS Next Y14%
EPS Next 2Y7.08%
EPS Next 3Y5%
EPS Next 5YN/A
Revenue Next Year-3.3%
Revenue Next 2Y-1.75%
Revenue Next 3Y-1.99%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.05 indicates a reasonable valuation of TCL-B.
Based on the Price/Earnings ratio, TCL-B is valued cheaper than 87.50% of the companies in the same industry.
TCL-B is valuated cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.89 indicates a rather cheap valuation of TCL-B.
75.00% of the companies in the same industry are more expensive than TCL-B, based on the Price/Forward Earnings ratio.
TCL-B's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.05 | ||
| Fwd PE | 7.89 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than TCL-B, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TCL-B is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.19 | ||
| EV/EBITDA | 5.48 |
4.3 Compensation for Growth
TCL-B's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.65
PEG (5Y)N/A
EPS Next 2Y7.08%
EPS Next 3Y5%
5. Dividend
5.1 Amount
TCL-B has a Yearly Dividend Yield of 4.22%, which is a nice return.
TCL-B's Dividend Yield is a higher than the industry average which is at 3.18.
TCL-B's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
5.2 History
The dividend of TCL-B has a limited annual growth rate of 0.76%.
TCL-B has paid a dividend for at least 10 years, which is a reliable track record.
TCL-B has decreased its dividend recently.
Dividend Growth(5Y)0.76%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
TCL-B pays out 88.28% of its income as dividend. This is not a sustainable payout ratio.
The dividend of TCL-B is growing, but earnings are growing more, so the dividend growth is sustainable.
DP88.28%
EPS Next 2Y7.08%
EPS Next 3Y5%
TSX:TCL-B (6/9/2025, 7:00:00 PM)
21.17
+0.15 (+0.71%)
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 Cap1.77B
Analysts81.33
Price Target23.45 (10.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
Yearly Dividend0.9
Dividend Growth(5Y)0.76%
DP88.28%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-1.64%
Min Revenue beat(2)-3.74%
Max Revenue beat(2)0.47%
Revenue beat(4)1
Avg Revenue beat(4)-2.62%
Min Revenue beat(4)-4.08%
Max Revenue beat(4)0.47%
Revenue beat(8)1
Avg Revenue beat(8)-4.47%
Revenue beat(12)3
Avg Revenue beat(12)-3.05%
Revenue beat(16)5
Avg Revenue beat(16)-1.94%
PT rev (1m)1.25%
PT rev (3m)2.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.68%
EPS NY rev (1m)0%
EPS NY rev (3m)6.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.05 | ||
| Fwd PE | 7.89 | ||
| P/S | 0.64 | ||
| P/FCF | 6.19 | ||
| P/OCF | 4.57 | ||
| P/B | 0.95 | ||
| P/tB | 4.67 | ||
| EV/EBITDA | 5.48 |
EPS(TTM)2.34
EY11.05%
EPS(NY)2.68
Fwd EY12.67%
FCF(TTM)3.42
FCFY16.14%
OCF(TTM)4.63
OCFY21.87%
SpS33.2
BVpS22.3
TBVpS4.53
PEG (NY)0.65
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 | 2.55 |
F-Score7
WACC7.27%
ROIC/WACC1.04
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)15.27%
EPS 3Y-0.42%
EPS 5Y-1.47%
EPS Q2Q%120.21%
EPS Next Y14%
EPS Next 2Y7.08%
EPS Next 3Y5%
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-3.3%
Revenue Next 2Y-1.75%
Revenue Next 3Y-1.99%
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%