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TALEN ENERGY CORP (TLN) Stock Fundamental Analysis

NASDAQ:TLN - Nasdaq - US87422Q1094 - Common Stock - Currency: USD

380.25  -0.36 (-0.09%)

After market: 380.25 0 (0%)

Fundamental Rating

4

TLN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 19 industry peers in the Independent Power and Renewable Electricity Producers industry. Both the profitability and the financial health of TLN get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, TLN is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

TLN had positive earnings in the past year.
In the past year TLN had a positive cash flow from operations.
In multiple years TLN reported negative net income over the last 5 years.
TLN had a positive operating cash flow in 4 of the past 5 years.
TLN Yearly Net Income VS EBIT VS OCF VS FCFTLN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2020 2021 2022 2023 2024 0 500M -500M -1B

1.2 Ratios

TLN has a better Return On Assets (3.21%) than 84.21% of its industry peers.
With an excellent Return On Equity value of 15.01%, TLN belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.89%, TLN is in line with its industry, outperforming 52.63% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TLN is above the industry average of 3.64%.
The 3 year average ROIC (6.50%) for TLN is well above the current ROIC(1.89%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 3.21%
ROE 15.01%
ROIC 1.89%
ROA(3y)4.31%
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)6.5%
ROIC(5y)N/A
TLN Yearly ROA, ROE, ROICTLN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2020 2021 2022 2023 2024 0 100 -100 200

1.3 Margins

The Profit Margin of TLN (8.75%) is better than 68.42% of its industry peers.
The Operating Margin of TLN (5.99%) is worse than 63.16% of its industry peers.
With a decent Gross Margin value of 62.61%, TLN is doing good in the industry, outperforming 73.68% of the companies in the same industry.
In the last couple of years the Gross Margin of TLN has grown nicely.
Industry RankSector Rank
OM 5.99%
PM (TTM) 8.75%
GM 62.61%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y105.35%
GM growth 5YN/A
TLN Yearly Profit, Operating, Gross MarginsTLN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2020 2021 2022 2023 2024 0 50 -50 -100

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4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TLN is destroying value.
Compared to 1 year ago, TLN has less shares outstanding
Compared to 1 year ago, TLN has a worse debt to assets ratio.
TLN Yearly Shares OutstandingTLN Yearly Shares OutstandingYearly Shares Outstanding 2015 2021 2022 2023 2024 20M 40M 60M 80M 100M
TLN Yearly Total Debt VS Total AssetsTLN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

An Altman-Z score of 3.09 indicates that TLN is not in any danger for bankruptcy at the moment.
TLN has a Altman-Z score of 3.09. This is amongst the best in the industry. TLN outperforms 94.74% of its industry peers.
A Debt/Equity ratio of 2.44 is on the high side and indicates that TLN has dependencies on debt financing.
TLN has a Debt to Equity ratio (2.44) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 2.44
Debt/FCF N/A
Altman-Z 3.09
ROIC/WACC0.22
WACC8.66%
TLN Yearly LT Debt VS Equity VS FCFTLN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2020 2021 2022 2023 2024 0 1B 2B 3B 4B

2.3 Liquidity

A Current Ratio of 1.84 indicates that TLN should not have too much problems paying its short term obligations.
The Current ratio of TLN (1.84) is better than 73.68% of its industry peers.
A Quick Ratio of 1.34 indicates that TLN should not have too much problems paying its short term obligations.
TLN has a Quick ratio of 1.34. This is in the better half of the industry: TLN outperforms 73.68% of its industry peers.
Industry RankSector Rank
Current Ratio 1.84
Quick Ratio 1.34
TLN Yearly Current Assets VS Current LiabilitesTLN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2021 2022 2023 2024 1B 2B 3B 4B

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4

3. Growth

3.1 Past

The earnings per share for TLN have decreased strongly by -77.19% in the last year.
Looking at the last year, TLN shows a small growth in Revenue. The Revenue has grown by 4.70% in the last year.
TLN shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 31.60% yearly.
EPS 1Y (TTM)-77.19%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-80.22%
Revenue 1Y (TTM)4.7%
Revenue growth 3Y31.6%
Revenue growth 5YN/A
Sales Q2Q%28.83%

3.2 Future

TLN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.18% yearly.
TLN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.24% yearly.
EPS Next Y-63.99%
EPS Next 2Y-5.97%
EPS Next 3Y0.06%
EPS Next 5Y18.18%
Revenue Next Year12.86%
Revenue Next 2Y26.72%
Revenue Next 3Y19.51%
Revenue Next 5Y6.24%

3.3 Evolution

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.
TLN Yearly Revenue VS EstimatesTLN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1B 2B 3B 4B
TLN Yearly EPS VS EstimatesTLN Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2023 2024 2025 2026 2027 2028 2029 2030 20 40 60

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2

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 100.33, the valuation of TLN can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as TLN.
TLN's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.11.
The Price/Forward Earnings ratio is 27.63, which means the current valuation is very expensive for TLN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TLN indicates a somewhat cheap valuation: TLN is cheaper than 68.42% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of TLN to the average of the S&P500 Index (35.78), we can say TLN is valued slightly cheaper.
Industry RankSector Rank
PE 100.33
Fwd PE 27.63
TLN Price Earnings VS Forward Price EarningsTLN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150 200 250

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TLN is on the same level as its industry peers.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 39.28
TLN Per share dataTLN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

4.3 Compensation for Growth

The decent profitability rating of TLN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.97%
EPS Next 3Y0.06%

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0

5. Dividend

5.1 Amount

No dividends for TLN!.
Industry RankSector Rank
Dividend Yield N/A

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TALEN ENERGY CORP

NASDAQ:TLN (8/13/2025, 8:00:01 PM)

After market: 380.25 0 (0%)

380.25

-0.36 (-0.09%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)08-07 2025-08-07/bmo
Earnings (Next)N/A N/A
Inst Owners96.6%
Inst Owner Change2985.71%
Ins Owners0.7%
Ins Owner Change0.17%
Market Cap17.31B
Analysts85.56
Price Target357.07 (-6.1%)
Short Float %4%
Short Ratio1.56
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)290.58%
Min EPS beat(2)-343.93%
Max EPS beat(2)925.08%
EPS beat(4)3
Avg EPS beat(4)606.42%
Min EPS beat(4)-343.93%
Max EPS beat(4)1676.54%
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)9.98%
Min Revenue beat(2)-23.6%
Max Revenue beat(2)43.57%
Revenue beat(4)2
Avg Revenue beat(4)9.26%
Min Revenue beat(4)-23.6%
Max Revenue beat(4)43.57%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)20.48%
PT rev (3m)34.83%
EPS NQ rev (1m)-205.88%
EPS NQ rev (3m)-121.64%
EPS NY rev (1m)0%
EPS NY rev (3m)-20.75%
Revenue NQ rev (1m)-0.76%
Revenue NQ rev (3m)-14.9%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)-1.74%
Valuation
Industry RankSector Rank
PE 100.33
Fwd PE 27.63
P/S 8.1
P/FCF N/A
P/OCF 422.08
P/B 13.89
P/tB 13.89
EV/EBITDA 39.28
EPS(TTM)3.79
EY1%
EPS(NY)13.76
Fwd EY3.62%
FCF(TTM)-1.1
FCFYN/A
OCF(TTM)0.9
OCFY0.24%
SpS46.96
BVpS27.38
TBVpS27.38
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 3.21%
ROE 15.01%
ROCE 2.38%
ROIC 1.89%
ROICexc 1.94%
ROICexgc 1.94%
OM 5.99%
PM (TTM) 8.75%
GM 62.61%
FCFM N/A
ROA(3y)4.31%
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)6.5%
ROIC(5y)N/A
ROICexc(3y)7.09%
ROICexc(5y)N/A
ROICexgc(3y)7.14%
ROICexgc(5y)N/A
ROCE(3y)8.64%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y105.35%
GM growth 5YN/A
F-Score4
Asset Turnover0.37
Health
Industry RankSector Rank
Debt/Equity 2.44
Debt/FCF N/A
Debt/EBITDA 5.92
Cap/Depr 23.58%
Cap/Sales 4.26%
Interest Coverage 0.54
Cash Conversion 7.98%
Profit Quality N/A
Current Ratio 1.84
Quick Ratio 1.34
Altman-Z 3.09
F-Score4
WACC8.66%
ROIC/WACC0.22
Cap/Depr(3y)36.27%
Cap/Depr(5y)30.16%
Cap/Sales(3y)7.16%
Cap/Sales(5y)8.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-77.19%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-80.22%
EPS Next Y-63.99%
EPS Next 2Y-5.97%
EPS Next 3Y0.06%
EPS Next 5Y18.18%
Revenue 1Y (TTM)4.7%
Revenue growth 3Y31.6%
Revenue growth 5YN/A
Sales Q2Q%28.83%
Revenue Next Year12.86%
Revenue Next 2Y26.72%
Revenue Next 3Y19.51%
Revenue Next 5Y6.24%
EBIT growth 1Y-1.54%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year198.65%
EBIT Next 3Y71.01%
EBIT Next 5Y44.49%
FCF growth 1Y-116.95%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-93.43%
OCF growth 3YN/A
OCF growth 5YN/A