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TALEN ENERGY CORP (TLN) Stock Fundamental Analysis

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

268.15  -13.81 (-4.9%)

After market: 268.15 0 (0%)

Fundamental Rating

4

Overall TLN gets a fundamental rating of 4 out of 10. We evaluated TLN against 19 industry peers in the Independent Power and Renewable Electricity Producers industry. TLN has only an average score on both its financial health and 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.
TLN had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: TLN reported negative net income in multiple years.
Of the past 5 years TLN 4 years had a positive operating cash flow.
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 2024 0 500M -500M -1B

1.2 Ratios

TLN's Return On Assets of 9.70% is amongst the best of the industry. TLN outperforms 94.74% of its industry peers.
TLN has a Return On Equity of 48.22%. This is amongst the best in the industry. TLN outperforms 100.00% of its industry peers.
Industry RankSector Rank
ROA 9.7%
ROE 48.22%
ROIC N/A
ROA(3y)4.31%
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 2024 0 100 -100 200

1.3 Margins

The Profit Margin of TLN (28.51%) is better than 94.74% of its industry peers.
TLN has a better Gross Margin (59.32%) than 78.95% of its industry peers.
TLN's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM N/A
PM (TTM) 28.51%
GM 59.32%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y105.35%
GM growth 5YN/A
TLN Yearly Profit, Operating, Gross MarginsTLN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2020 2021 2022 2023 2024 0 50 -50 -100

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5

2. Health

2.1 Basic Checks

TLN does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for TLN has been reduced compared to 1 year ago.
Compared to 1 year ago, TLN has a worse debt to assets ratio.
TLN Yearly Shares OutstandingTLN Yearly Shares OutstandingYearly Shares Outstanding 2015 2021 2022 2023 2024 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 2024 2B 4B 6B 8B 10B

2.2 Solvency

An Altman-Z score of 2.33 indicates that TLN is not a great score, but indicates only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.33, TLN belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
TLN has a debt to FCF ratio of 24.13. This is a negative value and a sign of low solvency as TLN would need 24.13 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 24.13, TLN is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
TLN has a Debt/Equity ratio of 2.52. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.52, TLN is in line with its industry, outperforming 57.89% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 2.52
Debt/FCF 24.13
Altman-Z 2.33
ROIC/WACCN/A
WACC8.69%
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 2024 0 1B 2B 3B 4B

2.3 Liquidity

A Current Ratio of 1.62 indicates that TLN should not have too much problems paying its short term obligations.
The Current ratio of TLN (1.62) is better than 73.68% of its industry peers.
A Quick Ratio of 1.20 indicates that TLN should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.20, TLN is in the better half of the industry, outperforming 63.16% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.62
Quick Ratio 1.2
TLN Yearly Current Assets VS Current LiabilitesTLN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2021 2022 2023 2024 1B 2B 3B 4B

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4

3. Growth

3.1 Past

TLN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -35.59%.
Looking at the last year, TLN shows a small growth in Revenue. The Revenue has grown by 0.30% in the last year.
Measured over the past years, TLN shows a very strong growth in Revenue. The Revenue has been growing by 31.60% on average per year.
EPS 1Y (TTM)-35.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-725.53%
Revenue 1Y (TTM)0.3%
Revenue growth 3Y31.6%
Revenue growth 5YN/A
Sales Q2Q%-23.38%

3.2 Future

The Earnings Per Share is expected to grow by 18.18% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.24% on average over the next years.
EPS Next Y-63.99%
EPS Next 2Y-5.97%
EPS Next 3Y0.06%
EPS Next 5Y18.18%
Revenue Next Year12.71%
Revenue Next 2Y19.27%
Revenue Next 3Y15.93%
Revenue Next 5Y6.24%

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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 2015 2023 2024 2025 2026 2027 2028 2029 2030 20 40 60

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4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 28.62 indicates a quite expensive valuation of TLN.
Compared to the rest of the industry, the Price/Earnings ratio of TLN indicates a somewhat cheap valuation: TLN is cheaper than 78.95% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.51. TLN is around the same levels.
Based on the Price/Forward Earnings ratio of 19.48, the valuation of TLN can be described as rather expensive.
Based on the Price/Forward Earnings ratio, TLN is valued cheaply inside the industry as 84.21% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of TLN to the average of the S&P500 Index (35.58), we can say TLN is valued slightly cheaper.
Industry RankSector Rank
PE 28.62
Fwd PE 19.48
TLN Price Earnings VS Forward Price EarningsTLN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150 200 250

4.2 Price Multiples

TLN's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, TLN is valued cheaply inside the industry as 84.21% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 98.42
EV/EBITDA 40.13
TLN Per share dataTLN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.97%
EPS Next 3Y0.06%

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0

5. Dividend

5.1 Amount

No dividends for TLN!.
Industry RankSector Rank
Dividend Yield N/A

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TALEN ENERGY CORP

NASDAQ:TLN (7/15/2025, 4:24:46 PM)

After market: 268.15 0 (0%)

268.15

-13.81 (-4.9%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)05-08 2025-05-08/bmo
Earnings (Next)N/A N/A
Inst Owners99.28%
Inst Owner Change0%
Ins Owners0.29%
Ins Owner Change0.16%
Market Cap12.20B
Analysts85
Price Target296.37 (10.52%)
Short Float %5.15%
Short Ratio2.33
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)1
Avg EPS beat(2)666.31%
Min EPS beat(2)-343.93%
Max EPS beat(2)1676.54%
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)0
Avg Revenue beat(2)-14.89%
Min Revenue beat(2)-23.6%
Max Revenue beat(2)-6.19%
Revenue beat(4)1
Avg Revenue beat(4)-3.18%
Min Revenue beat(4)-23.6%
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)11.41%
PT rev (3m)11.84%
EPS NQ rev (1m)-56.85%
EPS NQ rev (3m)-79.56%
EPS NY rev (1m)-12.72%
EPS NY rev (3m)-21.32%
Revenue NQ rev (1m)-6.64%
Revenue NQ rev (3m)-14.25%
Revenue NY rev (1m)-1.69%
Revenue NY rev (3m)-3.79%
Valuation
Industry RankSector Rank
PE 28.62
Fwd PE 19.48
P/S 6.11
P/FCF 98.42
P/OCF 60.41
P/B 10.34
P/tB 10.39
EV/EBITDA 40.13
EPS(TTM)9.37
EY3.49%
EPS(NY)13.76
Fwd EY5.13%
FCF(TTM)2.72
FCFY1.02%
OCF(TTM)4.44
OCFY1.66%
SpS43.86
BVpS25.93
TBVpS25.82
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 9.7%
ROE 48.22%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 28.51%
GM 59.32%
FCFM 6.21%
ROA(3y)4.31%
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)8.64%
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 3Y105.35%
GM growth 5YN/A
F-Score4
Asset Turnover0.34
Health
Industry RankSector Rank
Debt/Equity 2.52
Debt/FCF 24.13
Debt/EBITDA 7.69
Cap/Depr 19.7%
Cap/Sales 3.91%
Interest Coverage N/A
Cash Conversion 52.2%
Profit Quality 21.79%
Current Ratio 1.62
Quick Ratio 1.2
Altman-Z 2.33
F-Score4
WACC8.69%
ROIC/WACCN/A
Cap/Depr(3y)36.27%
Cap/Depr(5y)30.16%
Cap/Sales(3y)7.16%
Cap/Sales(5y)8.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-35.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-725.53%
EPS Next Y-63.99%
EPS Next 2Y-5.97%
EPS Next 3Y0.06%
EPS Next 5Y18.18%
Revenue 1Y (TTM)0.3%
Revenue growth 3Y31.6%
Revenue growth 5YN/A
Sales Q2Q%-23.38%
Revenue Next Year12.71%
Revenue Next 2Y19.27%
Revenue Next 3Y15.93%
Revenue Next 5Y6.24%
EBIT growth 1Y-118%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year205.32%
EBIT Next 3Y59.19%
EBIT Next 5Y44.49%
FCF growth 1Y-71.97%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-70.37%
OCF growth 3YN/A
OCF growth 5YN/A