TCN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 62 industry peers in the Real Estate Management & Development industry. TCN has a medium profitability rating, but doesn't score so well on its financial health evaluation. TCN is not valued too expensively and it also shows a decent growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year TCN was profitable.
In the past year TCN had a positive cash flow from operations.
TCN had positive earnings in each of the past 5 years.
TCN had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

With a decent Return On Assets value of 0.86%, TCN is doing good in the industry, outperforming 69.23% of the companies in the same industry.
TCN has a Return On Equity of 2.96%. This is in the better half of the industry: TCN outperforms 72.31% of its industry peers.
TCN has a better Return On Invested Capital (1.64%) than 72.31% of its industry peers.

		Industry Rank	Sector Rank
ROA	0.86%
ROE	2.96%
ROIC	1.64%

ROA(3y)4.08%

ROA(5y)3.73%

ROE(3y)12.96%

ROE(5y)10.43%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

With an excellent Profit Margin value of 13.44%, TCN belongs to the best of the industry, outperforming 90.77% of the companies in the same industry.
In the last couple of years the Profit Margin of TCN has declined.
The Operating Margin of TCN (29.82%) is better than 96.92% of its industry peers.
TCN's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 69.17%, TCN belongs to the top of the industry, outperforming 87.69% of the companies in the same industry.
TCN's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	29.82%
PM (TTM)	13.44%
GM	69.17%

OM growth 3Y-5.22%

OM growth 5YN/A

PM growth 3Y-21.94%

PM growth 5Y-54.81%

GM growth 3Y-0.28%

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TCN is destroying value.
Compared to 1 year ago, TCN has about the same amount of shares outstanding.
Compared to 1 year ago, TCN has an improved debt to assets ratio.

2.2 Solvency

TCN has an Altman-Z score of 0.49. This is a bad value and indicates that TCN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.49, TCN is doing worse than 63.08% of the companies in the same industry.
TCN has a debt to FCF ratio of 65.95. This is a negative value and a sign of low solvency as TCN would need 65.95 years to pay back of all of its debts.
TCN has a Debt to FCF ratio (65.95) which is in line with its industry peers.
A Debt/Equity ratio of 1.48 is on the high side and indicates that TCN has dependencies on debt financing.
TCN's Debt to Equity ratio of 1.48 is on the low side compared to the rest of the industry. TCN is outperformed by 69.23% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.48
Debt/FCF	65.95
Altman-Z	0.49

ROIC/WACC0.22

WACC7.57%

2.3 Liquidity

TCN has a Current Ratio of 0.49. This is a bad value and indicates that TCN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of TCN (0.49) is worse than 86.15% of its industry peers.
TCN has a Quick Ratio of 0.49. This is a bad value and indicates that TCN is not financially healthy enough and could expect problems in meeting its short term obligations.
TCN's Quick ratio of 0.49 is on the low side compared to the rest of the industry. TCN is outperformed by 83.08% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.49
Quick Ratio	0.49

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for TCN have decreased strongly by -66.47% in the last year.
Measured over the past years, TCN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -17.03% on average per year.
The Revenue has been growing slightly by 5.48% in the past year.
Measured over the past years, TCN shows a very strong growth in Revenue. The Revenue has been growing by 94.79% on average per year.

EPS 1Y (TTM)-66.47%

EPS 3Y4.46%

EPS 5Y-17.03%

EPS Q2Q%36.36%

Revenue 1Y (TTM)5.48%

Revenue growth 3Y28.44%

Revenue growth 5Y94.79%

Sales Q2Q%15.69%

3.2 Future

Based on estimates for the next years, TCN will show a very negative growth in Earnings Per Share. The EPS will decrease by -15.81% on average per year.
The Revenue is expected to grow by 8.50% on average over the next years. This is quite good.

EPS Next Y-48.61%

EPS Next 2Y-15.81%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year6.66%

Revenue Next 2Y8.5%

Revenue Next 3YN/A

Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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.

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4. Valuation

4.1 Price/Earnings Ratio

TCN is valuated rather expensively with a Price/Earnings ratio of 19.74.
Based on the Price/Earnings ratio, TCN is valued cheaper than 84.62% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.60, TCN is valued a bit cheaper.
The Price/Forward Earnings ratio is 38.41, which means the current valuation is very expensive for TCN.
Based on the Price/Forward Earnings ratio, TCN is valued a bit cheaper than the industry average as 72.31% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, TCN is valued a bit more expensive.

		Industry Rank	Sector Rank
PE	19.74
Fwd PE	38.41

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TCN indicates a somewhat cheap valuation: TCN is cheaper than 64.62% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TCN is valued a bit cheaper than 70.77% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	36.46
EV/EBITDA	33.96

4.3 Compensation for Growth

The decent profitability rating of TCN may justify a higher PE ratio.
A cheap valuation may be justified as TCN's earnings are expected to decrease with -15.81% in the coming years.