TRANSCONTINENTAL INC-CL B (TCL-B.CA) Stock Fundamental Analysis
TSX:TCL-B - Toronto Stock Exchange - CA8935782034 - Common Stock - Currency: CAD
Overall TCL-B gets a fundamental rating of 5 out of 10. We evaluated TCL-B against 8 industry peers in the Containers & Packaging industry. TCL-B has only an average score on both its financial health and profitability. TCL-B has a bad growth rate and is valued cheaply. Finally TCL-B also has an excellent dividend rating. With these ratings, TCL-B could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
In the past year TCL-B was profitable.
In the past year TCL-B had a positive cash flow from operations.
In the past 5 years TCL-B has always been profitable.
In the past 5 years TCL-B always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 4.51%, TCL-B perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
TCL-B has a Return On Equity (8.30%) which is comparable to the rest of the industry.
TCL-B has a Return On Invested Capital (7.38%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for TCL-B is below the industry average of 8.86%.
The 3 year average ROIC (6.31%) for TCL-B is below the current ROIC(7.38%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.51% | ||
| ROE | 8.3% | ||
| ROIC | 7.39% |
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
TCL-B's Profit Margin of 5.87% is fine compared to the rest of the industry. TCL-B outperforms 62.50% of its industry peers.
In the last couple of years the Profit Margin of TCL-B has declined.
TCL-B's Operating Margin of 9.29% is fine compared to the rest of the industry. TCL-B outperforms 62.50% of its industry peers.
In the last couple of years the Operating Margin of TCL-B has remained more or less at the same level.
TCL-B's Gross Margin of 49.61% is amongst the best of the industry. TCL-B outperforms 100.00% of its industry peers.
In the last couple of years the Gross Margin of TCL-B has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.29% | ||
| PM (TTM) | 5.87% | ||
| GM | 49.61% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TCL-B is creating some value.
The number of shares outstanding for TCL-B has been reduced compared to 1 year ago.
TCL-B has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TCL-B has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.20 indicates that TCL-B 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 2.20, TCL-B is doing worse than 75.00% of the companies in the same industry.
The Debt to FCF ratio of TCL-B is 3.64, which is a good value as it means it would take TCL-B, 3.64 years of fcf income to pay off all of its debts.
TCL-B's Debt to FCF ratio of 3.64 is fine compared to the rest of the industry. TCL-B outperforms 62.50% of its industry peers.
TCL-B has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
TCL-B has a Debt to Equity ratio of 0.39. This is comparable to the rest of the industry: TCL-B outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 3.64 | ||
| Altman-Z | 2.2 |
ROIC/WACC1.19
WACC6.19%
2.3 Liquidity
A Current Ratio of 1.74 indicates that TCL-B should not have too much problems paying its short term obligations.
TCL-B has a Current ratio of 1.74. This is comparable to the rest of the industry: TCL-B outperforms 50.00% of its industry peers.
TCL-B has a Quick Ratio of 1.17. This is a normal value and indicates that TCL-B is financially healthy and should not expect problems in meeting its short term obligations.
TCL-B has a Quick ratio (1.17) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.74 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.11% over the past year.
Measured over the past years, TCL-B shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.47% on average per year.
The Revenue has decreased by -4.75% in the past year.
Measured over the past years, TCL-B shows a decrease in Revenue. The Revenue has been decreasing by -1.53% on average per year.
EPS 1Y (TTM)8.11%
EPS 3Y-0.42%
EPS 5Y-1.47%
EPS Q2Q%13.95%
Revenue 1Y (TTM)-4.75%
Revenue growth 3Y2.09%
Revenue growth 5Y-1.53%
Sales Q2Q%-5.5%
3.2 Future
TCL-B is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.00% yearly.
TCL-B is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.98% yearly.
EPS Next Y14%
EPS Next 2Y7.08%
EPS Next 3Y5%
EPS Next 5YN/A
Revenue Next Year-3.03%
Revenue Next 2Y-1.61%
Revenue Next 3Y-1.98%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.38 indicates a rather cheap valuation of TCL-B.
Compared to the rest of the industry, the Price/Earnings ratio of TCL-B indicates a rather cheap valuation: TCL-B is cheaper than 100.00% of the companies listed in the same industry.
TCL-B's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.64.
TCL-B is valuated cheaply with a Price/Forward Earnings ratio of 6.60.
Based on the Price/Forward Earnings ratio, TCL-B is valued cheaper than 87.50% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.44. TCL-B is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.38 | ||
| Fwd PE | 6.6 |
4.2 Price Multiples
87.50% of the companies in the same industry are more expensive than TCL-B, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TCL-B is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.42 | ||
| EV/EBITDA | 4.68 |
4.3 Compensation for Growth
TCL-B's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TCL-B has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.53
PEG (5Y)N/A
EPS Next 2Y7.08%
EPS Next 3Y5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.08%, TCL-B is a good candidate for dividend investing.
TCL-B's Dividend Yield is a higher than the industry average which is at 3.56.
TCL-B's Dividend Yield is rather good when compared to the S&P500 average which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.08% |
5.2 History
The dividend of TCL-B has a limited annual growth rate of 0.76%.
TCL-B has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)0.76%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
47.12% of the earnings are spent on dividend by TCL-B. This is a bit on the high side, but may be sustainable.
The dividend of TCL-B is growing, but earnings are growing more, so the dividend growth is sustainable.
DP47.12%
EPS Next 2Y7.08%
EPS Next 3Y5%
TSX:TCL-B (4/17/2025, 7:00:00 PM)
17.7
+0.55 (+3.21%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners38.35%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap1.48B
Analysts81.33
Price Target23.01 (30%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.08% |
Yearly Dividend0.9
Dividend Growth(5Y)0.76%
DP47.12%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.85%
Min EPS beat(2)5.36%
Max EPS beat(2)30.34%
EPS beat(4)4
Avg EPS beat(4)13.54%
Min EPS beat(4)4.77%
Max EPS beat(4)30.34%
EPS beat(8)7
Avg EPS beat(8)15.97%
EPS beat(12)10
Avg EPS beat(12)9.37%
EPS beat(16)12
Avg EPS beat(16)5.86%
Revenue beat(2)0
Avg Revenue beat(2)-3.91%
Min Revenue beat(2)-4.08%
Max Revenue beat(2)-3.74%
Revenue beat(4)0
Avg Revenue beat(4)-4.64%
Min Revenue beat(4)-7.58%
Max Revenue beat(4)-3.14%
Revenue beat(8)1
Avg Revenue beat(8)-4.48%
Revenue beat(12)3
Avg Revenue beat(12)-2.9%
Revenue beat(16)4
Avg Revenue beat(16)-2.17%
PT rev (1m)0.13%
PT rev (3m)0.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.77%
EPS NY rev (1m)6.52%
EPS NY rev (3m)8.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.38 | ||
| Fwd PE | 6.6 | ||
| P/S | 0.53 | ||
| P/FCF | 5.42 | ||
| P/OCF | 3.9 | ||
| P/B | 0.75 | ||
| P/tB | 3.38 | ||
| EV/EBITDA | 4.68 |
EPS(TTM)2.4
EY13.56%
EPS(NY)2.68
Fwd EY15.16%
FCF(TTM)3.26
FCFY18.44%
OCF(TTM)4.54
OCFY25.67%
SpS33.19
BVpS23.47
TBVpS5.24
PEG (NY)0.53
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.51% | ||
| ROE | 8.3% | ||
| ROCE | 8.75% | ||
| ROIC | 7.39% | ||
| ROICexc | 8.14% | ||
| ROICexgc | 18.93% | ||
| OM | 9.29% | ||
| PM (TTM) | 5.87% | ||
| GM | 49.61% | ||
| FCFM | 9.83% |
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%
ROICexcg growth 3Y1.96%
ROICexcg 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-Score6
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 3.64 | ||
| Debt/EBITDA | 1.63 | ||
| Cap/Depr | 50.23% | ||
| Cap/Sales | 3.86% | ||
| Interest Coverage | 5.39 | ||
| Cash Conversion | 80.69% | ||
| Profit Quality | 167.42% | ||
| Current Ratio | 1.74 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 2.2 |
F-Score6
WACC6.19%
ROIC/WACC1.19
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)8.11%
EPS 3Y-0.42%
EPS 5Y-1.47%
EPS Q2Q%13.95%
EPS Next Y14%
EPS Next 2Y7.08%
EPS Next 3Y5%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.75%
Revenue growth 3Y2.09%
Revenue growth 5Y-1.53%
Sales Q2Q%-5.5%
Revenue Next Year-3.03%
Revenue Next 2Y-1.61%
Revenue Next 3Y-1.98%
Revenue Next 5YN/A
EBIT growth 1Y12.28%
EBIT growth 3Y4.76%
EBIT growth 5Y-2.9%
EBIT Next Year58.64%
EBIT Next 3Y16.17%
EBIT Next 5YN/A
FCF growth 1Y241.98%
FCF growth 3Y18.19%
FCF growth 5Y-0.92%
OCF growth 1Y58.82%
OCF growth 3Y9.48%
OCF growth 5Y-0.84%