TRANSCONTINENTAL INC-CL A (TCL-A.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TCL-A - CA8935781044 - Common Stock
22.68 CAD
-0.06 (-0.26%)
Taking everything into account, TCL-A scores 5 out of 10 in our fundamental rating. TCL-A was compared to 9 industry peers in the Containers & Packaging industry. TCL-A has only an average score on both its financial health and profitability. TCL-A is valued quite cheap, but it does not seem to be growing. These ratings would make TCL-A suitable for value investing!
1. Profitability
1.1 Basic Checks
TCL-A had positive earnings in the past year.
TCL-A had a positive operating cash flow in the past year.
In the past 5 years TCL-A has always been profitable.
TCL-A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.39%, TCL-A is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
TCL-A's Return On Equity of 9.40% is in line compared to the rest of the industry. TCL-A outperforms 55.56% of its industry peers.
TCL-A has a Return On Invested Capital (8.40%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for TCL-A is in line with the industry average of 8.09%.
The last Return On Invested Capital (8.40%) for TCL-A is above the 3 year average (6.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.39% | ||
| ROE | 9.4% | ||
| ROIC | 8.4% |
ROA(3y)3.12%
ROA(5y)3.33%
ROE(3y)6.13%
ROE(5y)6.68%
ROIC(3y)6.31%
ROIC(5y)6.35%
1.3 Margins
The Profit Margin of TCL-A (6.37%) is better than 66.67% of its industry peers.
TCL-A's Profit Margin has declined in the last couple of years.
The Operating Margin of TCL-A (9.40%) is comparable to the rest of the industry.
TCL-A's Operating Margin has been stable in the last couple of years.
TCL-A has a Gross Margin of 50.06%. This is amongst the best in the industry. TCL-A outperforms 100.00% of its industry peers.
In the last couple of years the Gross Margin of TCL-A has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.4% | ||
| PM (TTM) | 6.37% | ||
| GM | 50.06% |
OM growth 3Y2.61%
OM growth 5Y-1.39%
PM growth 3Y-4.43%
PM growth 5Y-4.63%
GM growth 3Y1.42%
GM growth 5Y1.1%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TCL-A is still creating some value.
The number of shares outstanding for TCL-A has been reduced compared to 1 year ago.
Compared to 5 years ago, TCL-A has less shares outstanding
The debt/assets ratio for TCL-A has been reduced compared to a year ago.
2.2 Solvency
TCL-A has an Altman-Z score of 2.55. This is not the best score and indicates that TCL-A is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.55, TCL-A is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
TCL-A has a debt to FCF ratio of 3.10. This is a good value and a sign of high solvency as TCL-A would need 3.10 years to pay back of all of its debts.
TCL-A has a better Debt to FCF ratio (3.10) than 66.67% of its industry peers.
TCL-A has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
TCL-A has a better Debt to Equity ratio (0.29) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3.1 | ||
| Altman-Z | 2.55 |
ROIC/WACC1.09
WACC7.7%
2.3 Liquidity
TCL-A has a Current Ratio of 1.39. This is a normal value and indicates that TCL-A is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.39, TCL-A is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
A Quick Ratio of 0.80 indicates that TCL-A may have some problems paying its short term obligations.
With a Quick ratio value of 0.80, TCL-A perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
TCL-A shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.56%.
The Earnings Per Share has been decreasing by -1.47% on average over the past years.
The Revenue has decreased by -2.90% in the past year.
TCL-A shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.53% yearly.
EPS 1Y (TTM)7.56%
EPS 3Y-0.42%
EPS 5Y-1.47%
EPS Q2Q%16.67%
Revenue 1Y (TTM)-2.9%
Revenue growth 3Y2.09%
Revenue growth 5Y-1.53%
Sales Q2Q%-2.23%
3.2 Future
TCL-A is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.38% yearly.
The Revenue is expected to decrease by -0.86% on average over the next years.
EPS Next Y16.96%
EPS Next 2Y6.63%
EPS Next 3Y6.38%
EPS Next 5YN/A
Revenue Next Year-2.34%
Revenue Next 2Y-0.88%
Revenue Next 3Y-0.86%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.86, the valuation of TCL-A can be described as reasonable.
TCL-A's Price/Earnings ratio is rather cheap when compared to the industry. TCL-A is cheaper than 100.00% of the companies in the same industry.
TCL-A's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.38.
TCL-A is valuated reasonably with a Price/Forward Earnings ratio of 8.53.
88.89% of the companies in the same industry are more expensive than TCL-A, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.83, TCL-A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.86 | ||
| Fwd PE | 8.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TCL-A is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
TCL-A's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TCL-A is cheaper than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.12 | ||
| EV/EBITDA | 5.73 |
4.3 Compensation for Growth
TCL-A's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of TCL-A may justify a higher PE ratio.
PEG (NY)0.52
PEG (5Y)N/A
EPS Next 2Y6.63%
EPS Next 3Y6.38%
5. Dividend
5.1 Amount
TCL-A has a Yearly Dividend Yield of 3.96%.
TCL-A's Dividend Yield is a higher than the industry average which is at 2.07.
Compared to an average S&P500 Dividend Yield of 1.87, TCL-A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
5.2 History
On average, the dividend of TCL-A grows each year by 16.17%, which is quite nice.
TCL-A has been paying a dividend for at least 10 years, so it has a reliable track record.
TCL-A has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)16.17%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
90.45% of the earnings are spent on dividend by TCL-A. This is not a sustainable payout ratio.
The dividend of TCL-A is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP90.45%
EPS Next 2Y6.63%
EPS Next 3Y6.38%
TSX:TCL-A (12/19/2025, 7:00:00 PM)
22.68
-0.06 (-0.26%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners33.53%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap1.90B
Revenue(TTM)2.76B
Net Income(TTM)176.00M
Analysts80
Price Target25.25 (11.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
Yearly Dividend1.89
Dividend Growth(5Y)16.17%
DP90.45%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.31%
Min EPS beat(2)-1.03%
Max EPS beat(2)3.64%
EPS beat(4)3
Avg EPS beat(4)9.58%
Min EPS beat(4)-1.03%
Max EPS beat(4)30.34%
EPS beat(8)7
Avg EPS beat(8)14.1%
EPS beat(12)9
Avg EPS beat(12)8.08%
EPS beat(16)12
Avg EPS beat(16)5.61%
Revenue beat(2)1
Avg Revenue beat(2)-0.97%
Min Revenue beat(2)-2.14%
Max Revenue beat(2)0.21%
Revenue beat(4)1
Avg Revenue beat(4)-2.44%
Min Revenue beat(4)-4.08%
Max Revenue beat(4)0.21%
Revenue beat(8)1
Avg Revenue beat(8)-3.62%
Revenue beat(12)2
Avg Revenue beat(12)-3.77%
Revenue beat(16)5
Avg Revenue beat(16)-1.93%
PT rev (1m)0%
PT rev (3m)0.58%
EPS NQ rev (1m)-1.12%
EPS NQ rev (3m)-1.49%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)0.7%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.86 | ||
| Fwd PE | 8.53 | ||
| P/S | 0.69 | ||
| P/FCF | 7.12 | ||
| P/OCF | 5.17 | ||
| P/B | 1.01 | ||
| P/tB | 4.58 | ||
| EV/EBITDA | 5.73 |
EPS(TTM)2.56
EY11.29%
EPS(NY)2.66
Fwd EY11.73%
FCF(TTM)3.18
FCFY14.04%
OCF(TTM)4.39
OCFY19.34%
SpS33.02
BVpS22.38
TBVpS4.95
PEG (NY)0.52
PEG (5Y)N/A
Graham Number35.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.39% | ||
| ROE | 9.4% | ||
| ROCE | 9.95% | ||
| ROIC | 8.4% | ||
| ROICexc | 8.52% | ||
| ROICexgc | 19.69% | ||
| OM | 9.4% | ||
| PM (TTM) | 6.37% | ||
| GM | 50.06% | ||
| FCFM | 9.65% |
ROA(3y)3.12%
ROA(5y)3.33%
ROE(3y)6.13%
ROE(5y)6.68%
ROIC(3y)6.31%
ROIC(5y)6.35%
ROICexc(3y)6.59%
ROICexc(5y)6.75%
ROICexgc(3y)14.51%
ROICexgc(5y)15.86%
ROCE(3y)7.47%
ROCE(5y)7.53%
ROICexgc growth 3Y1.96%
ROICexgc growth 5Y-1.59%
ROICexc growth 3Y4.74%
ROICexc growth 5Y-0.14%
OM growth 3Y2.61%
OM growth 5Y-1.39%
PM growth 3Y-4.43%
PM growth 5Y-4.63%
GM growth 3Y1.42%
GM growth 5Y1.1%
F-Score8
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3.1 | ||
| Debt/EBITDA | 1.17 | ||
| Cap/Depr | 47.76% | ||
| Cap/Sales | 3.64% | ||
| Interest Coverage | 5.09 | ||
| Cash Conversion | 78.09% | ||
| Profit Quality | 151.31% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 2.55 |
F-Score8
WACC7.7%
ROIC/WACC1.09
Cap/Depr(3y)64.48%
Cap/Depr(5y)59.07%
Cap/Sales(3y)5.06%
Cap/Sales(5y)4.84%
Profit Quality(3y)213.34%
Profit Quality(5y)205.14%
High Growth Momentum
Growth
EPS 1Y (TTM)7.56%
EPS 3Y-0.42%
EPS 5Y-1.47%
EPS Q2Q%16.67%
EPS Next Y16.96%
EPS Next 2Y6.63%
EPS Next 3Y6.38%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.9%
Revenue growth 3Y2.09%
Revenue growth 5Y-1.53%
Sales Q2Q%-2.23%
Revenue Next Year-2.34%
Revenue Next 2Y-0.88%
Revenue Next 3Y-0.86%
Revenue Next 5YN/A
EBIT growth 1Y2.33%
EBIT growth 3Y4.76%
EBIT growth 5Y-2.9%
EBIT Next Year59.38%
EBIT Next 3Y17.41%
EBIT Next 5YN/A
FCF growth 1Y81.28%
FCF growth 3Y18.19%
FCF growth 5Y-0.92%
OCF growth 1Y11.26%
OCF growth 3Y9.48%
OCF growth 5Y-0.84%
TRANSCONTINENTAL INC-CL A / TCL-A.CA FAQ
What is the fundamental rating for TCL-A stock?
ChartMill assigns a fundamental rating of 5 / 10 to TCL-A.CA.
What is the valuation status of TRANSCONTINENTAL INC-CL A (TCL-A.CA) stock?
ChartMill assigns a valuation rating of 8 / 10 to TRANSCONTINENTAL INC-CL A (TCL-A.CA). This can be considered as Undervalued.
Can you provide the profitability details for TRANSCONTINENTAL INC-CL A?
TRANSCONTINENTAL INC-CL A (TCL-A.CA) has a profitability rating of 6 / 10.
What is the earnings growth outlook for TRANSCONTINENTAL INC-CL A?
The Earnings per Share (EPS) of TRANSCONTINENTAL INC-CL A (TCL-A.CA) is expected to grow by 16.96% in the next year.
Is the dividend of TRANSCONTINENTAL INC-CL A sustainable?
The dividend rating of TRANSCONTINENTAL INC-CL A (TCL-A.CA) is 5 / 10 and the dividend payout ratio is 90.45%.