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TALEN ENERGY CORP (TLN) Stock Fundamental Analysis

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

197.59  +6.22 (+3.25%)

After market: 197.59 0 (0%)

Fundamental Rating

5

TLN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 21 industry peers in the Independent Power and Renewable Electricity Producers industry. Both the profitability and the financial health of TLN get a neutral evaluation. Nothing too spectacular is happening here. TLN has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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6

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.
In multiple years TLN reported negative net income over the last 5 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

With an excellent Return On Assets value of 16.34%, TLN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Equity of TLN (71.95%) is better than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.96%, TLN is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TLN is above the industry average of 3.62%.
Industry RankSector Rank
ROA 16.34%
ROE 71.95%
ROIC 2.96%
ROA(3y)4.31%
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)6.5%
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

Looking at the Profit Margin, with a value of 47.19%, TLN belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
TLN has a Operating Margin (9.83%) which is in line with its industry peers.
TLN has a Gross Margin of 67.19%. This is amongst the best in the industry. TLN outperforms 80.95% of its industry peers.
In the last couple of years the Gross Margin of TLN has grown nicely.
Industry RankSector Rank
OM 9.83%
PM (TTM) 47.19%
GM 67.19%
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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6

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TLN is destroying value.
The number of shares outstanding for TLN has been reduced compared to 1 year ago.
TLN has a worse debt/assets ratio than last year.
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 2.00 indicates that TLN is not a great score, but indicates only limited risk for bankruptcy at the moment.
TLN's Altman-Z score of 2.00 is amongst the best of the industry. TLN outperforms 85.71% of its industry peers.
The Debt to FCF ratio of TLN is 17.57, which is on the high side as it means it would take TLN, 17.57 years of fcf income to pay off all of its debts.
TLN has a Debt to FCF ratio of 17.57. This is amongst the best in the industry. TLN outperforms 80.95% of its industry peers.
A Debt/Equity ratio of 2.15 is on the high side and indicates that TLN has dependencies on debt financing.
The Debt to Equity ratio of TLN (2.15) is better than 66.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.15
Debt/FCF 17.57
Altman-Z 2
ROIC/WACC0.35
WACC8.57%
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

TLN has a Current Ratio of 2.29. This indicates that TLN is financially healthy and has no problem in meeting its short term obligations.
TLN has a Current ratio of 2.29. This is amongst the best in the industry. TLN outperforms 85.71% of its industry peers.
A Quick Ratio of 1.62 indicates that TLN should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.62, TLN belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.29
Quick Ratio 1.62
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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5

3. Growth

3.1 Past

TLN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 66.63%, which is quite impressive.
Looking at the last year, TLN shows a very negative growth in Revenue. The Revenue has decreased by -17.19% in the last year.
The Revenue has been growing by 31.60% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)66.63%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%2170%
Revenue 1Y (TTM)-17.19%
Revenue growth 3Y31.6%
Revenue growth 5YN/A
Sales Q2Q%-19.35%

3.2 Future

TLN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.02% yearly.
TLN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.84% yearly.
EPS Next Y-54.55%
EPS Next 2Y-7.67%
EPS Next 3Y-4.08%
EPS Next 5Y15.02%
Revenue Next Year17.14%
Revenue Next 2Y17.31%
Revenue Next 3Y12.39%
Revenue Next 5Y4.84%

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 2015 2023 2024 2025 2026 2027 2028 2029 2030 20 40 60

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5

4. Valuation

4.1 Price/Earnings Ratio

TLN is valuated reasonably with a Price/Earnings ratio of 11.42.
Compared to the rest of the industry, the Price/Earnings ratio of TLN indicates a rather cheap valuation: TLN is cheaper than 85.71% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.63. TLN is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 27.93, the valuation of TLN can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TLN indicates a somewhat cheap valuation: TLN is cheaper than 76.19% of the companies listed in the same industry.
TLN's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 20.85.
Industry RankSector Rank
PE 11.42
Fwd PE 27.93
TLN Price Earnings VS Forward Price EarningsTLN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150 200

4.2 Price Multiples

TLN's Enterprise Value to EBITDA ratio is in line with the industry average.
TLN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TLN is cheaper than 85.71% of the companies in the same industry.
Industry RankSector Rank
P/FCF 52.59
EV/EBITDA 18.48
TLN Per share dataTLN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

The decent profitability rating of TLN may justify a higher PE ratio.
A cheap valuation may be justified as TLN's earnings are expected to decrease with -4.08% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.67%
EPS Next 3Y-4.08%

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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 (4/22/2025, 4:30:00 PM)

After market: 197.59 0 (0%)

197.59

+6.22 (+3.25%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)02-27 2025-02-27/amc
Earnings (Next)05-08 2025-05-08
Inst Owners98.65%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner Change0%
Market Cap8.99B
Analysts85.88
Price Target265.01 (34.12%)
Short Float %4.7%
Short Ratio1.58
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)2
Avg EPS beat(2)922.26%
Min EPS beat(2)167.98%
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)1
Avg Revenue beat(2)8.53%
Min Revenue beat(2)-6.19%
Max Revenue beat(2)23.25%
Revenue beat(4)1
Avg Revenue beat(4)-1.17%
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)-2.11%
PT rev (3m)3.26%
EPS NQ rev (1m)-5.59%
EPS NQ rev (3m)9.14%
EPS NY rev (1m)4.21%
EPS NY rev (3m)4.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.4%
Revenue NY rev (1m)4.03%
Revenue NY rev (3m)9.25%
Valuation
Industry RankSector Rank
PE 11.42
Fwd PE 27.93
P/S 4.25
P/FCF 52.59
P/OCF 35.13
P/B 6.48
P/tB 6.51
EV/EBITDA 18.48
EPS(TTM)17.3
EY8.76%
EPS(NY)7.07
Fwd EY3.58%
FCF(TTM)3.76
FCFY1.9%
OCF(TTM)5.63
OCFY2.85%
SpS46.47
BVpS30.48
TBVpS30.37
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 16.34%
ROE 71.95%
ROCE 3.68%
ROIC 2.96%
ROICexc 3.15%
ROICexgc 3.15%
OM 9.83%
PM (TTM) 47.19%
GM 67.19%
FCFM 8.09%
ROA(3y)4.31%
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)6.5%
ROIC(5y)N/A
ROICexc(3y)7.09%
ROICexc(5y)N/A
ROICexgc(3y)7.14%
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 Turnover0.35
Health
Industry RankSector Rank
Debt/Equity 2.15
Debt/FCF 17.57
Debt/EBITDA 4.85
Cap/Depr 20.83%
Cap/Sales 4.02%
Interest Coverage 0.82
Cash Conversion 41.56%
Profit Quality 17.13%
Current Ratio 2.29
Quick Ratio 1.62
Altman-Z 2
F-Score4
WACC8.57%
ROIC/WACC0.35
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)66.63%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%2170%
EPS Next Y-54.55%
EPS Next 2Y-7.67%
EPS Next 3Y-4.08%
EPS Next 5Y15.02%
Revenue 1Y (TTM)-17.19%
Revenue growth 3Y31.6%
Revenue growth 5YN/A
Sales Q2Q%-19.35%
Revenue Next Year17.14%
Revenue Next 2Y17.31%
Revenue Next 3Y12.39%
Revenue Next 5Y4.84%
EBIT growth 1Y-64.92%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year201.99%
EBIT Next 3Y60.42%
EBIT Next 5Y35.33%
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