TRANSCONTINENTAL INC-CL B (TCL-B.CA) Stock Fundamental Analysis
TSX:TCL-B - CA8935782034 - Common Stock
20.14 CAD
+1.13 (+5.94%)
We assign a fundamental rating of 6 out of 10 to TCL-B. TCL-B was compared to 8 industry peers in the Containers & Packaging industry. TCL-B has an average financial health and profitability rating. TCL-B is valued quite cheap, but it does not seem to be growing. These ratings would make TCL-B suitable for value investing!
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.
In the past 5 years TCL-B always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 5.50%, TCL-B perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
TCL-B has a Return On Equity of 9.70%. This is in the better half of the industry: TCL-B outperforms 62.50% of its industry peers.
TCL-B has a Return On Invested Capital (7.58%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for TCL-B is in line with the industry average of 8.04%.
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
TCL-B's Profit Margin of 6.52% is fine compared to the rest of the industry. TCL-B outperforms 75.00% of its industry peers.
In the last couple of years the Profit Margin of TCL-B has declined.
TCL-B has a better Operating Margin (9.30%) than 62.50% of its industry peers.
TCL-B's Operating Margin has been stable in the last couple of years.
TCL-B's Gross Margin of 49.82% is amongst the best of the industry. TCL-B outperforms 100.00% of its industry peers.
In the last couple of years the Gross Margin of TCL-B 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TCL-B is still creating some 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 2.52. 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 Altman-Z score of 2.52. This is in the lower half of the industry: TCL-B underperforms 62.50% of its industry peers.
TCL-B has a debt to FCF ratio of 2.95. This is a good value and a sign of high solvency as TCL-B would need 2.95 years to pay back of all of its debts.
TCL-B's Debt to FCF ratio of 2.95 is fine compared to the rest of the industry. TCL-B outperforms 75.00% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that TCL-B is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.44, TCL-B is doing good in the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 2.95 | ||
| Altman-Z | 2.52 |
ROIC/WACC1.1
WACC6.9%
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.
With a Current ratio value of 2.24, TCL-B perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
TCL-B has a Quick Ratio of 1.27. This is a normal value and indicates that TCL-B is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.27, TCL-B is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.24 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
TCL-B shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.42%.
The Earnings Per Share has been decreasing by -1.47% on average over the past years.
TCL-B shows a decrease in Revenue. In the last year, the revenue decreased by -2.58%.
Measured over the past years, TCL-B 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-B is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.00% yearly.
TCL-B is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.49% yearly.
EPS Next Y14%
EPS Next 2Y7.08%
EPS Next 3Y5%
EPS Next 5YN/A
Revenue Next Year-2.65%
Revenue Next 2Y-1.47%
Revenue Next 3Y-1.49%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TCL-B is valuated reasonably with a Price/Earnings ratio of 8.19.
Based on the Price/Earnings ratio, TCL-B is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
TCL-B's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.13.
Based on the Price/Forward Earnings ratio of 7.51, the valuation of TCL-B can be described as very cheap.
87.50% 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 22.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.19 | ||
| Fwd PE | 7.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TCL-B is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
TCL-B's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TCL-B is cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.89 | ||
| EV/EBITDA | 5.29 |
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.
TCL-B has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.58
PEG (5Y)N/A
EPS Next 2Y7.08%
EPS Next 3Y5%
5. Dividend
5.1 Amount
TCL-B has a Yearly Dividend Yield of 4.64%, which is a nice return.
TCL-B's Dividend Yield is rather good when compared to the industry average which is at 3.25. TCL-B pays more dividend than 87.50% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, TCL-B pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.64% |
5.2 History
The dividend of TCL-B has a limited annual growth rate of 0.76%.
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)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 (8/28/2025, 7:00:00 PM)
20.14
+1.13 (+5.94%)
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 Cap1.68B
Analysts80
Price Target24.69 (22.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.64% |
Yearly Dividend0.9
Dividend Growth(5Y)0.76%
DP88.28%
Div Incr Years1
Div Non Decr Years1
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)0.21%
PT rev (3m)7.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.24%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.19 | ||
| Fwd PE | 7.51 | ||
| P/S | 0.61 | ||
| P/FCF | 5.89 | ||
| P/OCF | 4.35 | ||
| P/B | 0.9 | ||
| P/tB | 4.44 | ||
| EV/EBITDA | 5.29 |
EPS(TTM)2.46
EY12.21%
EPS(NY)2.68
Fwd EY13.32%
FCF(TTM)3.42
FCFY16.97%
OCF(TTM)4.63
OCFY22.99%
SpS33.2
BVpS22.3
TBVpS4.53
PEG (NY)0.58
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
WACC6.9%
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 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-2.65%
Revenue Next 2Y-1.47%
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%