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TALEN ENERGY CORP (TLN) Stock Fundamental Analysis

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

243.08  +4.45 (+1.86%)

After market: 243.01 -0.07 (-0.03%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to TLN. 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 has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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6

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.
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

The Return On Assets of TLN (16.34%) is better than 100.00% of its industry peers.
With an excellent Return On Equity value of 71.95%, TLN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
TLN's Return On Invested Capital of 2.96% is fine compared to the rest of the industry. TLN outperforms 75.00% of 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 3.71%.
Industry RankSector Rank
ROA 16.34%
ROE 71.95%
ROIC 2.96%
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 (47.19%) is better than 95.00% of its industry peers.
TLN has a Operating Margin of 9.83%. This is comparable to the rest of the industry: TLN outperforms 55.00% of its industry peers.
TLN's Gross Margin of 67.19% is amongst the best of the industry. TLN outperforms 85.00% of its industry peers.
In the last couple of years the Gross Margin of TLN has grown nicely.
Industry RankSector Rank
OM 9.83%
PM (TTM) 47.19%
GM 67.19%
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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6

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TLN is destroying value.
Compared to 1 year ago, TLN has less shares outstanding
The debt/assets ratio for TLN is higher compared to a year ago.
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 2.28 indicates that TLN is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.28, TLN belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
The Debt to FCF ratio of TLN is 17.57, which is on the high side as it means it would take TLN, 17.57 years of fcf income to pay off all of its debts.
TLN has a better Debt to FCF ratio (17.57) than 85.00% of its industry peers.
A Debt/Equity ratio of 2.15 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 2.15, TLN is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 2.15
Debt/FCF 17.57
Altman-Z 2.28
ROIC/WACC0.34
WACC8.71%
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

TLN has a Current Ratio of 2.29. This indicates that TLN is financially healthy and has no problem in meeting its short term obligations.
TLN has a better Current ratio (2.29) than 80.00% of its industry peers.
A Quick Ratio of 1.62 indicates that TLN should not have too much problems paying its short term obligations.
TLN's Quick ratio of 1.62 is fine compared to the rest of the industry. TLN outperforms 80.00% of its industry peers.
Industry RankSector Rank
Current Ratio 2.29
Quick Ratio 1.62
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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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 66.63% over the past year.
The Revenue for TLN has decreased by -17.19% in the past year. This is quite bad
TLN shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 31.60% yearly.
EPS 1Y (TTM)66.63%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%2170%
Revenue 1Y (TTM)-17.19%
Revenue growth 3Y31.6%
Revenue growth 5YN/A
Sales Q2Q%-19.35%

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.
TLN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.84% yearly.
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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5

4. Valuation

4.1 Price/Earnings Ratio

TLN is valuated correctly with a Price/Earnings ratio of 14.05.
Based on the Price/Earnings ratio, TLN is valued cheaper than 85.00% of the companies in the same industry.
TLN is valuated rather cheaply when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 37.85 indicates a quite expensive valuation of TLN.
Based on the Price/Forward Earnings ratio, TLN is valued a bit cheaper than the industry average as 65.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.76. TLN is valued rather expensively when compared to this.
Industry RankSector Rank
PE 14.05
Fwd PE 37.85
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

The rest of the industry has a similar Enterprise Value to EBITDA ratio as TLN.
85.00% of the companies in the same industry are more expensive than TLN, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 64.69
EV/EBITDA 21.97
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 has a very decent profitability rating, which may justify a higher PE ratio.
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

TLN does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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TALEN ENERGY CORP

NASDAQ:TLN (5/23/2025, 8:59:20 PM)

After market: 243.01 -0.07 (-0.03%)

243.08

+4.45 (+1.86%)

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 Owners98.65%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner Change0%
Market Cap11.06B
Analysts85.88
Price Target264.84 (8.95%)
Short Float %4.4%
Short Ratio1.64
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)2
Avg EPS beat(2)922.26%
Min EPS beat(2)167.98%
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)1
Avg Revenue beat(2)8.53%
Min Revenue beat(2)-6.19%
Max Revenue beat(2)23.25%
Revenue beat(4)1
Avg Revenue beat(4)-1.17%
Min Revenue beat(4)-15.58%
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)-0.06%
PT rev (3m)0.24%
EPS NQ rev (1m)13.11%
EPS NQ rev (3m)35.61%
EPS NY rev (1m)-9.21%
EPS NY rev (3m)-5.39%
Revenue NQ rev (1m)-9.25%
Revenue NQ rev (3m)-10.01%
Revenue NY rev (1m)-2.13%
Revenue NY rev (3m)3.93%
Valuation
Industry RankSector Rank
PE 14.05
Fwd PE 37.85
P/S 5.23
P/FCF 64.69
P/OCF 43.21
P/B 7.98
P/tB 8
EV/EBITDA 21.97
EPS(TTM)17.3
EY7.12%
EPS(NY)6.42
Fwd EY2.64%
FCF(TTM)3.76
FCFY1.55%
OCF(TTM)5.63
OCFY2.31%
SpS46.47
BVpS30.48
TBVpS30.37
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 16.34%
ROE 71.95%
ROCE 3.68%
ROIC 2.96%
ROICexc 3.15%
ROICexgc 3.15%
OM 9.83%
PM (TTM) 47.19%
GM 67.19%
FCFM 8.09%
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 Turnover0.35
Health
Industry RankSector Rank
Debt/Equity 2.15
Debt/FCF 17.57
Debt/EBITDA 4.85
Cap/Depr 20.83%
Cap/Sales 4.02%
Interest Coverage 0.82
Cash Conversion 41.56%
Profit Quality 17.13%
Current Ratio 2.29
Quick Ratio 1.62
Altman-Z 2.28
F-Score4
WACC8.71%
ROIC/WACC0.34
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)66.63%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%2170%
EPS Next Y-58.74%
EPS Next 2Y-7.81%
EPS Next 3Y-3.6%
EPS Next 5Y15.02%
Revenue 1Y (TTM)-17.19%
Revenue growth 3Y31.6%
Revenue growth 5YN/A
Sales Q2Q%-19.35%
Revenue Next Year14.65%
Revenue Next 2Y17.01%
Revenue Next 3Y12.23%
Revenue Next 5Y4.84%
EBIT growth 1Y-64.92%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year201.99%
EBIT Next 3Y60.42%
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