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TALEN ENERGY CORP (TLN) Stock Fundamental Analysis

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

285.88  +4.96 (+1.77%)

After market: 285.5 -0.38 (-0.13%)

Fundamental Rating

4

Overall TLN gets a fundamental rating of 4 out of 10. We evaluated TLN against 19 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 not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

In the past year TLN was profitable.
In the past year TLN had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: TLN reported negative net income in multiple years.
Of the past 5 years TLN 4 years had a positive operating cash flow.
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 Return On Assets of 9.70%. This is amongst the best in the industry. TLN outperforms 94.74% of its industry peers.
TLN has a better Return On Equity (48.22%) than 100.00% of its industry peers.
Industry RankSector Rank
ROA 9.7%
ROE 48.22%
ROIC N/A
ROA(3y)4.31%
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
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

Looking at the Profit Margin, with a value of 28.51%, TLN belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
TLN has a Gross Margin of 59.32%. This is in the better half of the industry: TLN outperforms 78.95% of its industry peers.
In the last couple of years the Gross Margin of TLN has grown nicely.
Industry RankSector Rank
OM N/A
PM (TTM) 28.51%
GM 59.32%
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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5

2. Health

2.1 Basic Checks

TLN does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, TLN has less shares outstanding
TLN has a worse debt/assets ratio than last year.
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

TLN has an Altman-Z score of 2.32. This is not the best score and indicates that TLN is in the grey zone with still only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.32, TLN belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
The Debt to FCF ratio of TLN is 24.13, which is on the high side as it means it would take TLN, 24.13 years of fcf income to pay off all of its debts.
TLN's Debt to FCF ratio of 24.13 is fine compared to the rest of the industry. TLN outperforms 78.95% of its industry peers.
A Debt/Equity ratio of 2.52 is on the high side and indicates that TLN has dependencies on debt financing.
TLN's Debt to Equity ratio of 2.52 is in line compared to the rest of the industry. TLN outperforms 57.89% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.52
Debt/FCF 24.13
Altman-Z 2.32
ROIC/WACCN/A
WACC8.72%
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 1.62 indicates that TLN should not have too much problems paying its short term obligations.
TLN has a better Current ratio (1.62) than 73.68% of its industry peers.
TLN has a Quick Ratio of 1.20. This is a normal value and indicates that TLN is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of TLN (1.20) is better than 63.16% of its industry peers.
Industry RankSector Rank
Current Ratio 1.62
Quick Ratio 1.2
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

TLN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -35.59%.
TLN shows a small growth in Revenue. In the last year, the Revenue has grown by 0.30%.
TLN shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 31.60% yearly.
EPS 1Y (TTM)-35.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-725.53%
Revenue 1Y (TTM)0.3%
Revenue growth 3Y31.6%
Revenue growth 5YN/A
Sales Q2Q%-23.38%

3.2 Future

Based on estimates for the next years, TLN will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.02% on average per year.
The Revenue is expected to grow by 4.84% on average over the next years.
EPS Next Y-58.74%
EPS Next 2Y-7.81%
EPS Next 3Y-3.6%
EPS Next 5Y15.02%
Revenue Next Year14.65%
Revenue Next 2Y17.01%
Revenue Next 3Y12.23%
Revenue Next 5Y4.84%

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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4

4. Valuation

4.1 Price/Earnings Ratio

TLN is valuated quite expensively with a Price/Earnings ratio of 30.51.
TLN's Price/Earnings ratio is a bit cheaper when compared to the industry. TLN is cheaper than 73.68% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.32, TLN is valued at the same level.
TLN is valuated rather expensively with a Price/Forward Earnings ratio of 21.61.
TLN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TLN is cheaper than 73.68% of the companies in the same industry.
TLN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.19.
Industry RankSector Rank
PE 30.51
Fwd PE 21.61
TLN Price Earnings VS Forward Price EarningsTLN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150 200

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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TLN indicates a rather cheap valuation: TLN is cheaper than 84.21% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 104.92
EV/EBITDA 40
TLN Per share dataTLN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

TLN's earnings are expected to decrease with -3.60% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.81%
EPS Next 3Y-3.6%

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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 (6/17/2025, 8:21:29 PM)

After market: 285.5 -0.38 (-0.13%)

285.88

+4.96 (+1.77%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)05-08 2025-05-08/bmo
Earnings (Next)N/A N/A
Inst Owners99.28%
Inst Owner Change0%
Ins Owners0.29%
Ins Owner Change0.14%
Market Cap13.01B
Analysts85.88
Price Target266.03 (-6.94%)
Short Float %4.22%
Short Ratio1.98
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)666.31%
Min EPS beat(2)-343.93%
Max EPS beat(2)1676.54%
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)0
Avg Revenue beat(2)-14.89%
Min Revenue beat(2)-23.6%
Max Revenue beat(2)-6.19%
Revenue beat(4)1
Avg Revenue beat(4)-3.18%
Min Revenue beat(4)-23.6%
Max Revenue beat(4)23.25%
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)0.45%
PT rev (3m)-1.74%
EPS NQ rev (1m)-19.32%
EPS NQ rev (3m)-48.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.81%
Valuation
Industry RankSector Rank
PE 30.51
Fwd PE 21.61
P/S 6.52
P/FCF 104.92
P/OCF 64.41
P/B 11.03
P/tB 11.07
EV/EBITDA 40
EPS(TTM)9.37
EY3.28%
EPS(NY)13.23
Fwd EY4.63%
FCF(TTM)2.72
FCFY0.95%
OCF(TTM)4.44
OCFY1.55%
SpS43.86
BVpS25.93
TBVpS25.82
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 9.7%
ROE 48.22%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 28.51%
GM 59.32%
FCFM 6.21%
ROA(3y)4.31%
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
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 Turnover0.34
Health
Industry RankSector Rank
Debt/Equity 2.52
Debt/FCF 24.13
Debt/EBITDA 7.69
Cap/Depr 19.7%
Cap/Sales 3.91%
Interest Coverage N/A
Cash Conversion 52.2%
Profit Quality 21.79%
Current Ratio 1.62
Quick Ratio 1.2
Altman-Z 2.32
F-Score4
WACC8.72%
ROIC/WACCN/A
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)-35.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-725.53%
EPS Next Y-58.74%
EPS Next 2Y-7.81%
EPS Next 3Y-3.6%
EPS Next 5Y15.02%
Revenue 1Y (TTM)0.3%
Revenue growth 3Y31.6%
Revenue growth 5YN/A
Sales Q2Q%-23.38%
Revenue Next Year14.65%
Revenue Next 2Y17.01%
Revenue Next 3Y12.23%
Revenue Next 5Y4.84%
EBIT growth 1Y-118%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year205.32%
EBIT Next 3Y59.19%
EBIT Next 5Y35.33%
FCF growth 1Y-71.97%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-70.37%
OCF growth 3YN/A
OCF growth 5YN/A