TALEN ENERGY CORP (TLN) Stock Fundamental Analysis
USA - NASDAQ:TLN - US87422Q1094 - Common Stock
407.81 USD
+23.99 (+6.25%)
406.5 USD
-1.31 (-0.32%)
Overall TLN gets a fundamental rating of 5 out of 10. We evaluated TLN against 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. While showing a medium growth rate, TLN is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
TLN had positive earnings in the past year.
TLN had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 3.21%, TLN belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
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.
TLN's Return On Invested Capital of 1.89% is in line compared to the rest of the industry. TLN outperforms 45.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TLN is above the industry average of 4.08%.
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
Looking at the Profit Margin, with a value of 8.75%, TLN is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
The Operating Margin of TLN (5.99%) is worse than 65.00% of its industry peers.
With a decent Gross Margin value of 62.61%, TLN is doing good in the industry, outperforming 65.00% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TLN is destroying value.
The number of shares outstanding for TLN has been reduced compared to 1 year ago.
The debt/assets ratio for TLN is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.26 indicates that TLN is not in any danger for bankruptcy at the moment.
The Altman-Z score of TLN (3.26) 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.
Looking at the Debt to Equity ratio, with a value of 2.44, TLN is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.26 |
ROIC/WACC0.22
WACC8.44%
2.3 Liquidity
A Current Ratio of 1.84 indicates that TLN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.84, TLN belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
TLN has a Quick Ratio of 1.34. This is a normal value and indicates that TLN is financially healthy and should not expect problems in meeting its short term obligations.
TLN has a better Quick ratio (1.34) than 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
TLN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -77.19%.
The Revenue has been growing slightly by 4.70% in the past year.
Measured over the past years, TLN shows a very strong growth in Revenue. The Revenue has been growing by 31.60% on average per year.
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 18.33% yearly.
Based on estimates for the next years, TLN will show a quite strong growth in Revenue. The Revenue will grow by 17.37% on average per year.
EPS Next Y-65.12%
EPS Next 2Y16.35%
EPS Next 3Y16.92%
EPS Next 5Y18.33%
Revenue Next Year15.84%
Revenue Next 2Y42.42%
Revenue Next 3Y29.77%
Revenue Next 5Y17.37%
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 107.60 indicates a quite expensive valuation of TLN.
TLN's Price/Earnings is on the same level as the industry average.
TLN's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.89.
With a Price/Forward Earnings ratio of 19.35, TLN is valued on the expensive side.
Based on the Price/Forward Earnings ratio, TLN is valued cheaply inside the industry as 85.00% of the companies are valued more expensively.
TLN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 107.6 | ||
| Fwd PE | 19.35 |
4.2 Price Multiples
TLN's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. TLN is more expensive than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 41.83 |
4.3 Compensation for Growth
The decent profitability rating of TLN may justify a higher PE ratio.
TLN's earnings are expected to grow with 16.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y16.35%
EPS Next 3Y16.92%
5. Dividend
5.1 Amount
No dividends for TLN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
407.81
+23.99 (+6.25%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners100.63%
Inst Owner Change0%
Ins Owners0.7%
Ins Owner Change0.17%
Market Cap18.63B
Revenue(TTM)2.14B
Net Income(TTM)187.00M
Analysts84
Price Target416.84 (2.21%)
Short Float %7.57%
Short Ratio3.55
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)0%
PT rev (3m)35.13%
EPS NQ rev (1m)-11.58%
EPS NQ rev (3m)1.58%
EPS NY rev (1m)-8.5%
EPS NY rev (3m)-3.16%
Revenue NQ rev (1m)2.06%
Revenue NQ rev (3m)14.01%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)2.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 107.6 | ||
| Fwd PE | 19.35 | ||
| P/S | 8.72 | ||
| P/FCF | N/A | ||
| P/OCF | 454.46 | ||
| P/B | 14.95 | ||
| P/tB | 14.95 | ||
| EV/EBITDA | 41.83 |
EPS(TTM)3.79
EY0.93%
EPS(NY)21.07
Fwd EY5.17%
FCF(TTM)-1.09
FCFYN/A
OCF(TTM)0.9
OCFY0.22%
SpS46.77
BVpS27.27
TBVpS27.27
PEG (NY)N/A
PEG (5Y)N/A
Graham Number48.22
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
ROICexgc growth 3YN/A
ROICexgc 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 | 3.26 |
F-Score4
WACC8.44%
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-65.12%
EPS Next 2Y16.35%
EPS Next 3Y16.92%
EPS Next 5Y18.33%
Revenue 1Y (TTM)4.7%
Revenue growth 3Y31.6%
Revenue growth 5YN/A
Sales Q2Q%28.83%
Revenue Next Year15.84%
Revenue Next 2Y42.42%
Revenue Next 3Y29.77%
Revenue Next 5Y17.37%
EBIT growth 1Y-1.54%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year185.32%
EBIT Next 3Y83.66%
EBIT Next 5Y48.34%
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
TALEN ENERGY CORP / TLN FAQ
What is the fundamental rating for TLN stock?
ChartMill assigns a fundamental rating of 5 / 10 to TLN.
What is the valuation status of TALEN ENERGY CORP (TLN) stock?
ChartMill assigns a valuation rating of 2 / 10 to TALEN ENERGY CORP (TLN). This can be considered as Overvalued.
What is the profitability of TLN stock?
TALEN ENERGY CORP (TLN) has a profitability rating of 6 / 10.
What are the PE and PB ratios of TALEN ENERGY CORP (TLN) stock?
The Price/Earnings (PE) ratio for TALEN ENERGY CORP (TLN) is 107.6 and the Price/Book (PB) ratio is 14.95.
Can you provide the financial health for TLN stock?
The financial health rating of TALEN ENERGY CORP (TLN) is 5 / 10.