NASDAQ:TLN is an undervalued gem with solid fundamentals.

Our stock screener has singled out TALEN ENERGY CORP (NASDAQ:TLN) as a stellar value proposition. NASDAQ:TLN not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Understanding NASDAQ:TLN's Valuation

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:TLN has achieved a 7 out of 10:

• Based on the Price/Earnings ratio, TLN is valued cheaper than 85.00% of the companies in the same industry.
• The average S&P500 Price/Earnings ratio is at 28.58. TLN is valued rather cheaply when compared to this.
• TLN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TLN is cheaper than 65.00% of the companies in the same industry.
• TLN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 95.03.
• 85.00% of the companies in the same industry are more expensive than TLN, based on the Price/Free Cash Flow ratio.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• A more expensive valuation may be justified as TLN's earnings are expected to grow with 43.88% in the coming years.

What does the Profitability looks like for NASDAQ:TLN

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:TLN, the assigned 5 is a significant indicator of profitability:

• TLN's Return On Assets of 16.03% is amongst the best of the industry. TLN outperforms 100.00% of its industry peers.
• TLN has a Return On Equity of 46.00%. This is amongst the best in the industry. TLN outperforms 100.00% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 3.43%, TLN is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
• The Profit Margin of TLN (50.48%) is better than 100.00% of its industry peers.
• TLN's Gross Margin of 70.16% is fine compared to the rest of the industry. TLN outperforms 75.00% of its industry peers.
• In the last couple of years the Gross Margin of TLN has grown nicely.

Health Insights: NASDAQ:TLN

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:TLN was assigned a score of 7 for health:

• With an excellent Altman-Z score value of 2.64, TLN belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
• Looking at the Debt to FCF ratio, with a value of 7.42, TLN belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
• TLN has a Debt to Equity ratio of 1.10. This is in the better half of the industry: TLN outperforms 80.00% of its industry peers.
• A Current Ratio of 4.10 indicates that TLN has no problem at all paying its short term obligations.
• The Current ratio of TLN (4.10) is better than 95.00% of its industry peers.
• A Quick Ratio of 3.37 indicates that TLN has no problem at all paying its short term obligations.
• The Quick ratio of TLN (3.37) is better than 90.00% of its industry peers.

Growth Assessment of NASDAQ:TLN

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:TLN boasts a 4 out of 10:

• TLN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 86.34%, which is quite impressive.
• TLN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.95% yearly.
• Based on estimates for the next years, TLN will show a very strong growth in Earnings Per Share. The EPS will grow by 43.91% on average per year.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of TLN contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.