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TALEN ENERGY CORP (TLN) Stock Fundamental Analysis

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

243.04  -4.08 (-1.65%)

Fundamental Rating

5

Taking everything into account, TLN scores 5 out of 10 in our fundamental rating. TLN was compared to 21 industry peers in the Independent Power and Renewable Electricity Producers industry. TLN has an excellent financial health rating, but there are some minor concerns on its profitability. TLN has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

TLN had positive earnings in the past year.
In the past year TLN had a positive cash flow from operations.
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 0 500M -500M -1B

1.2 Ratios

TLN has a Return On Assets of 16.03%. This is amongst the best in 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.
The Return On Invested Capital of TLN (3.43%) is better than 70.00% of its industry peers.
Industry RankSector Rank
ROA 16.03%
ROE 46%
ROIC 3.43%
ROA(3y)-4.38%
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
TLN Yearly ROA, ROE, ROICTLN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2020 2021 2022 2023 0 100 -100 200

1.3 Margins

TLN has a better Profit Margin (50.48%) than 100.00% of its industry peers.
The Operating Margin of TLN (14.53%) is comparable to the rest of the industry.
With a decent Gross Margin value of 70.16%, TLN is doing good in the industry, outperforming 75.00% of the companies in the same industry.
TLN's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 14.53%
PM (TTM) 50.48%
GM 70.16%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.03%
GM growth 5YN/A
TLN Yearly Profit, Operating, Gross MarginsTLN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2020 2021 2022 2023 0 50 -50 -100

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7

2. Health

2.1 Basic Checks

TLN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, TLN has about the same amount of shares outstanding.
Compared to 1 year ago, TLN has an improved debt to assets ratio.
TLN Yearly Shares OutstandingTLN Yearly Shares OutstandingYearly Shares Outstanding 2015 2021 2022 2023 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 2B 4B 6B 8B 10B

2.2 Solvency

An Altman-Z score of 2.71 indicates that TLN is not a great score, but indicates only limited risk for bankruptcy at the moment.
TLN has a Altman-Z score of 2.71. This is amongst the best in the industry. TLN outperforms 90.00% of its industry peers.
TLN has a debt to FCF ratio of 7.42. This is a slightly negative value and a sign of low solvency as TLN would need 7.42 years to pay back of all of its debts.
TLN has a Debt to FCF ratio of 7.42. This is amongst the best in the industry. TLN outperforms 95.00% of its industry peers.
TLN has a Debt/Equity ratio of 1.10. This is a high value indicating a heavy dependency on external financing.
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.
Industry RankSector Rank
Debt/Equity 1.1
Debt/FCF 7.42
Altman-Z 2.71
ROIC/WACC0.38
WACC8.96%
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 0 1B 2B 3B 4B

2.3 Liquidity

TLN has a Current Ratio of 4.10. This indicates that TLN is financially healthy and has no problem in meeting 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.
TLN has a better Quick ratio (3.37) than 90.00% of its industry peers.
Industry RankSector Rank
Current Ratio 4.1
Quick Ratio 3.37
TLN Yearly Current Assets VS Current LiabilitesTLN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2021 2022 2023 1B 2B 3B 4B

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 86.34% over the past year.
Looking at the last year, TLN shows a very negative growth in Revenue. The Revenue has decreased by -29.88% in the last year.
TLN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.95% yearly.
EPS 1Y (TTM)86.34%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%343.08%
Revenue 1Y (TTM)-29.88%
Revenue growth 3Y13.95%
Revenue growth 5YN/A
Sales Q2Q%25.97%

3.2 Future

TLN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 43.91% yearly.
The Revenue is expected to grow by 6.98% on average over the next years.
EPS Next Y249.81%
EPS Next 2Y24.3%
EPS Next 3Y43.1%
EPS Next 5Y43.91%
Revenue Next Year-11.16%
Revenue Next 2Y-1.39%
Revenue Next 3Y4.63%
Revenue Next 5Y6.98%

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 2014 2015 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20 40 60

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6

4. Valuation

4.1 Price/Earnings Ratio

TLN is valuated correctly with a Price/Earnings ratio of 12.91.
Based on the Price/Earnings ratio, TLN is valued cheaper than 85.00% of the companies in the same industry.
TLN is valuated cheaply when we compare the Price/Earnings ratio to 28.64, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 36.00, which means the current valuation is very expensive for TLN.
65.00% of the companies in the same industry are more expensive than TLN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.51, TLN is valued a bit more expensive.
Industry RankSector Rank
PE 12.91
Fwd PE 36
TLN Price Earnings VS Forward Price EarningsTLN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150

4.2 Price Multiples

TLN's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TLN indicates a rather cheap valuation: TLN is cheaper than 85.00% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 31.55
EV/EBITDA 18.19
TLN Per share dataTLN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

4.3 Compensation for Growth

TLN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TLN's earnings are expected to grow with 43.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y24.3%
EPS Next 3Y43.1%

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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 (1/24/2025, 2:44:26 PM)

243.04

-4.08 (-1.65%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)11-14 2024-11-14/bmo
Earnings (Next)N/A N/A
Inst Owners58.54%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner Change0%
Market Cap11.17B
Analysts86.67
Price Target256.63 (5.59%)
Short Float %4.36%
Short Ratio2.18
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)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
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)8.54%
Min Revenue beat(2)-6.17%
Max Revenue beat(2)23.25%
Revenue beat(4)2
Avg Revenue beat(4)1.1%
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)5.47%
PT rev (3m)N/A
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 12.91
Fwd PE 36
P/S 5.14
P/FCF 31.55
P/OCF 23.87
P/B 4.68
P/tB 4.69
EV/EBITDA 18.19
EPS(TTM)18.82
EY7.74%
EPS(NY)6.75
Fwd EY2.78%
FCF(TTM)7.7
FCFY3.17%
OCF(TTM)10.18
OCFY4.19%
SpS47.32
BVpS51.94
TBVpS51.81
PEG (NY)0.05
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 16.03%
ROE 46%
ROCE 4.91%
ROIC 3.43%
ROICexc 3.81%
ROICexgc 3.81%
OM 14.53%
PM (TTM) 50.48%
GM 70.16%
FCFM 16.28%
ROA(3y)-4.38%
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
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 3Y7.03%
GM growth 5YN/A
F-Score5
Asset Turnover0.32
Health
Industry RankSector Rank
Debt/Equity 1.1
Debt/FCF 7.42
Debt/EBITDA 3.57
Cap/Depr 27.34%
Cap/Sales 5.24%
Interest Coverage 1.21
Cash Conversion 63.85%
Profit Quality 32.24%
Current Ratio 4.1
Quick Ratio 3.37
Altman-Z 2.71
F-Score5
WACC8.96%
ROIC/WACC0.38
Cap/Depr(3y)36.96%
Cap/Depr(5y)N/A
Cap/Sales(3y)10.92%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)86.34%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%343.08%
EPS Next Y249.81%
EPS Next 2Y24.3%
EPS Next 3Y43.1%
EPS Next 5Y43.91%
Revenue 1Y (TTM)-29.88%
Revenue growth 3Y13.95%
Revenue growth 5YN/A
Sales Q2Q%25.97%
Revenue Next Year-11.16%
Revenue Next 2Y-1.39%
Revenue Next 3Y4.63%
Revenue Next 5Y6.98%
EBIT growth 1Y-68.71%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year73.61%
EBIT Next 3Y47.38%
EBIT Next 5Y29.12%
FCF growth 1Y1455.56%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y362.03%
OCF growth 3Y103.85%
OCF growth 5YN/A