TALEN ENERGY CORP (TLN) Stock Fundamental Analysis
NASDAQ:TLN - US87422Q1094 - Common Stock
389.19 USD
+8.75 (+2.3%)
389.19 USD
0 (0%)
Taking everything into account, TLN scores 5 out of 10 in our fundamental rating. TLN was compared to 20 industry peers in the Independent Power and Renewable Electricity Producers industry. TLN has only an average score on both its financial health and profitability. TLN is valied quite expensively at the moment, while it does show a decent growth rate.
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.
Of the past 5 years TLN 4 years had a positive operating cash flow.
1.2 Ratios
TLN has a Return On Assets of 3.21%. This is amongst the best in the industry. TLN outperforms 85.00% of its industry peers.
TLN has a Return On Equity of 15.01%. This is amongst the best in the industry. TLN outperforms 85.00% of its industry peers.
The Return On Invested Capital of TLN (1.89%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for TLN is above the industry average of 4.22%.
The last Return On Invested Capital (1.89%) for TLN is well below the 3 year average (6.50%), which needs to be investigated, but indicates that TLN had better years and this may not be a problem.
| Industry Rank | Sector 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
1.3 Margins
With a decent Profit Margin value of 8.75%, TLN is doing good in the industry, outperforming 70.00% of the companies in the same industry.
The Operating Margin of TLN (5.99%) is worse than 70.00% of its industry peers.
TLN has a better Gross Margin (62.61%) than 70.00% of its industry peers.
In the last couple of years the Gross Margin of TLN has grown nicely.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
TLN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
2.2 Solvency
An Altman-Z score of 3.15 indicates that TLN is not in any danger for bankruptcy at the moment.
The Altman-Z score of TLN (3.15) is better than 95.00% 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.
With a Debt to Equity ratio value of 2.44, TLN perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.15 |
ROIC/WACC0.22
WACC8.5%
2.3 Liquidity
A Current Ratio of 1.84 indicates that TLN should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.84, TLN belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
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 amongst the best in the industry. TLN outperforms 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.34 |
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.
The Revenue has been growing by 31.60% on average over the past years. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 19.42% on average over the next years. This is quite good.
The Revenue is expected to grow by 17.21% on average over the next years. This is quite good.
EPS Next Y-57.76%
EPS Next 2Y11.64%
EPS Next 3Y17.28%
EPS Next 5Y19.42%
Revenue Next Year20.03%
Revenue Next 2Y36.58%
Revenue Next 3Y25.23%
Revenue Next 5Y17.21%
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 102.69 indicates a quite expensive valuation of TLN.
Compared to the rest of the industry, the Price/Earnings ratio of TLN is on the same level as its industry peers.
TLN's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.06.
The Price/Forward Earnings ratio is 20.06, which indicates a rather expensive current valuation of TLN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TLN indicates a rather cheap valuation: TLN is cheaper than 85.00% 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 (22.69), we can say TLN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 102.69 | ||
| Fwd PE | 20.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TLN is valued a bit more expensive than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 40.17 |
4.3 Compensation for Growth
TLN has a very decent profitability rating, which may justify a higher PE ratio.
TLN's earnings are expected to grow with 17.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y11.64%
EPS Next 3Y17.28%
5. Dividend
5.1 Amount
TLN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
389.19
+8.75 (+2.3%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners96.6%
Inst Owner Change2985.71%
Ins Owners0.7%
Ins Owner Change0.17%
Market Cap17.78B
Analysts84.21
Price Target403.58 (3.7%)
Short Float %6.05%
Short Ratio2.08
Dividend
| Industry Rank | Sector 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)30.83%
PT rev (3m)51.71%
EPS NQ rev (1m)24.61%
EPS NQ rev (3m)55.76%
EPS NY rev (1m)17.29%
EPS NY rev (3m)2.37%
Revenue NQ rev (1m)19.3%
Revenue NQ rev (3m)7.81%
Revenue NY rev (1m)6.36%
Revenue NY rev (3m)4.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 102.69 | ||
| Fwd PE | 20.06 | ||
| P/S | 8.32 | ||
| P/FCF | N/A | ||
| P/OCF | 433.71 | ||
| P/B | 14.27 | ||
| P/tB | 14.27 | ||
| EV/EBITDA | 40.17 |
EPS(TTM)3.79
EY0.97%
EPS(NY)19.4
Fwd EY4.99%
FCF(TTM)-1.09
FCFYN/A
OCF(TTM)0.9
OCFY0.23%
SpS46.77
BVpS27.27
TBVpS27.27
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 3.15 |
F-Score4
WACC8.5%
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-57.76%
EPS Next 2Y11.64%
EPS Next 3Y17.28%
EPS Next 5Y19.42%
Revenue 1Y (TTM)4.7%
Revenue growth 3Y31.6%
Revenue growth 5YN/A
Sales Q2Q%28.83%
Revenue Next Year20.03%
Revenue Next 2Y36.58%
Revenue Next 3Y25.23%
Revenue Next 5Y17.21%
EBIT growth 1Y-1.54%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year198.65%
EBIT Next 3Y71.01%
EBIT Next 5Y49.92%
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