TALEN ENERGY CORP (TLN) Stock Fundamental Analysis
USA - NASDAQ:TLN - US87422Q1094 - Common Stock
411.23 USD
+0.51 (+0.12%)
409 USD
-2.23 (-0.54%)
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 an average financial health and profitability rating. TLN is valied quite expensively at the moment, while it does show a decent growth rate.
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.
1.2 Ratios
TLN has a better Return On Assets (3.21%) than 85.00% of its industry peers.
TLN has a better Return On Equity (15.01%) than 85.00% of its industry peers.
TLN has a Return On Invested Capital (1.89%) which is in line with its industry peers.
TLN had an Average Return On Invested Capital over the past 3 years of 6.50%. This is above the industry average of 4.08%.
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 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
TLN has a better Profit Margin (8.75%) than 70.00% of its industry peers.
With a Operating Margin value of 5.99%, TLN is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
TLN's Gross Margin of 62.61% is fine compared to the rest of the industry. TLN outperforms 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.
The number of shares outstanding for TLN has been reduced compared to 1 year ago.
Compared to 1 year ago, TLN has a worse debt to assets ratio.
2.2 Solvency
TLN has an Altman-Z score of 3.28. This indicates that TLN is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.28, TLN belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
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 | 3.28 |
ROIC/WACC0.22
WACC8.6%
2.3 Liquidity
TLN has a Current Ratio of 1.84. This is a normal value and indicates that TLN is financially healthy and should not expect problems in meeting its short term obligations.
TLN's Current ratio of 1.84 is amongst the best of the industry. TLN outperforms 85.00% of its industry peers.
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.
The Quick ratio of TLN (1.34) is better 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%.
TLN shows a small growth in Revenue. In the last year, the Revenue has grown by 4.70%.
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
Based on estimates for the next years, TLN will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.42% on average per year.
The Revenue is expected to grow by 17.21% on average over the next years. This is quite good.
EPS Next Y-61.89%
EPS Next 2Y14.47%
EPS Next 3Y16.4%
EPS Next 5Y19.42%
Revenue Next Year15.45%
Revenue Next 2Y43.73%
Revenue Next 3Y29.39%
Revenue Next 5Y17.21%
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 108.50, the valuation of TLN can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as TLN.
When comparing the Price/Earnings ratio of TLN to the average of the S&P500 Index (27.32), we can say TLN is valued expensively.
Based on the Price/Forward Earnings ratio of 20.16, the valuation of TLN can be described as rather expensive.
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.
The average S&P500 Price/Forward Earnings ratio is at 22.89. TLN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 108.5 | ||
| Fwd PE | 20.16 |
4.2 Price Multiples
70.00% of the companies in the same industry are cheaper than TLN, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 42.13 |
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 16.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y14.47%
EPS Next 3Y16.4%
5. Dividend
5.1 Amount
TLN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
411.23
+0.51 (+0.12%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners100.63%
Inst Owner Change2985.71%
Ins Owners0.7%
Ins Owner Change0.17%
Market Cap18.79B
Analysts84.21
Price Target416.84 (1.36%)
Short Float %7.86%
Short Ratio2.93
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)3.29%
PT rev (3m)40.65%
EPS NQ rev (1m)-16.84%
EPS NQ rev (3m)19.36%
EPS NY rev (1m)-9.77%
EPS NY rev (3m)-0.57%
Revenue NQ rev (1m)-6.36%
Revenue NQ rev (3m)9.65%
Revenue NY rev (1m)-3.82%
Revenue NY rev (3m)1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 108.5 | ||
| Fwd PE | 20.16 | ||
| P/S | 8.79 | ||
| P/FCF | N/A | ||
| P/OCF | 458.27 | ||
| P/B | 15.08 | ||
| P/tB | 15.08 | ||
| EV/EBITDA | 42.13 |
EPS(TTM)3.79
EY0.92%
EPS(NY)20.4
Fwd EY4.96%
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
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 | 3.28 |
F-Score4
WACC8.6%
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-61.89%
EPS Next 2Y14.47%
EPS Next 3Y16.4%
EPS Next 5Y19.42%
Revenue 1Y (TTM)4.7%
Revenue growth 3Y31.6%
Revenue growth 5YN/A
Sales Q2Q%28.83%
Revenue Next Year15.45%
Revenue Next 2Y43.73%
Revenue Next 3Y29.39%
Revenue Next 5Y17.21%
EBIT growth 1Y-1.54%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year185.32%
EBIT Next 3Y83.66%
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