TALEN ENERGY CORP (TLN) Stock Fundamental Analysis
NASDAQ:TLN - Nasdaq - US87422Q1094 - Common Stock - Currency: USD
TLN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 19 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year TLN was profitable.
TLN had a positive operating cash flow in the past year.
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 73.68% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
TLN has a Profit Margin of 50.48%. This is amongst the best in the industry. TLN outperforms 100.00% of its industry peers.
TLN's Operating Margin of 14.53% is in line compared to the rest of the industry. TLN outperforms 42.11% of its industry peers.
With a decent Gross Margin value of 70.16%, TLN is doing good in the industry, outperforming 73.68% of the companies in the same industry.
In the last couple of years the Gross Margin of TLN has grown nicely.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TLN is destroying value.
Compared to 1 year ago, TLN has about the same amount of shares outstanding.
The debt/assets ratio for TLN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.53 indicates that TLN is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TLN (2.53) is better than 89.47% of its industry peers.
The Debt to FCF ratio of TLN is 7.42, which is on the high side as it means it would take TLN, 7.42 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.42, TLN belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
TLN has a Debt/Equity ratio of 1.10. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.10, TLN is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 7.42 | ||
| Altman-Z | 2.53 |
ROIC/WACC0.39
WACC8.8%
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.
TLN has a better Current ratio (4.10) than 94.74% of its industry peers.
A Quick Ratio of 3.37 indicates that TLN has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.37, TLN belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.1 | ||
| Quick Ratio | 3.37 |
3. Growth
3.1 Past
TLN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 86.34%, which is quite impressive.
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
Based on estimates for the next years, TLN will show a very strong growth in Earnings Per Share. The EPS will grow by 43.91% on average per year.
TLN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.15% yearly.
EPS Next Y256.21%
EPS Next 2Y24.64%
EPS Next 3Y43.47%
EPS Next 5Y43.91%
Revenue Next Year-9.17%
Revenue Next 2Y1.01%
Revenue Next 3Y6.96%
Revenue Next 5Y8.15%
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.
4. Valuation
4.1 Price/Earnings Ratio
TLN is valuated reasonably with a Price/Earnings ratio of 11.63.
Compared to the rest of the industry, the Price/Earnings ratio of TLN indicates a rather cheap valuation: TLN is cheaper than 89.47% of the companies listed in the same industry.
TLN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.62.
Based on the Price/Forward Earnings ratio of 32.23, the valuation of TLN can be described as expensive.
Based on the Price/Forward Earnings ratio, TLN is valued a bit cheaper than the industry average as 73.68% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.70. TLN is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.63 | ||
| Fwd PE | 32.23 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TLN is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, TLN is valued cheaply inside the industry as 89.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.41 | ||
| EV/EBITDA | 16.42 |
4.3 Compensation for Growth
The 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 43.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y24.64%
EPS Next 3Y43.47%
5. Dividend
5.1 Amount
TLN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
218.8
-17.63 (-7.46%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners98.65%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner Change0%
Market Cap10.06B
Analysts86.67
Price Target271.75 (24.2%)
Short Float %3.79%
Short Ratio1.81
Dividend
| Industry Rank | Sector 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)5.89%
PT rev (3m)12.31%
EPS NQ rev (1m)-136.36%
EPS NQ rev (3m)-177.78%
EPS NY rev (1m)1.83%
EPS NY rev (3m)12.23%
Revenue NQ rev (1m)-3.98%
Revenue NQ rev (3m)-3.98%
Revenue NY rev (1m)1.46%
Revenue NY rev (3m)4.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.63 | ||
| Fwd PE | 32.23 | ||
| P/S | 4.62 | ||
| P/FCF | 28.41 | ||
| P/OCF | 21.49 | ||
| P/B | 4.21 | ||
| P/tB | 4.22 | ||
| EV/EBITDA | 16.42 |
EPS(TTM)18.82
EY8.6%
EPS(NY)6.79
Fwd EY3.1%
FCF(TTM)7.7
FCFY3.52%
OCF(TTM)10.18
OCFY4.65%
SpS47.32
BVpS51.94
TBVpS51.81
PEG (NY)0.05
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.53 |
F-Score5
WACC8.8%
ROIC/WACC0.39
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 Y256.21%
EPS Next 2Y24.64%
EPS Next 3Y43.47%
EPS Next 5Y43.91%
Revenue 1Y (TTM)-29.88%
Revenue growth 3Y13.95%
Revenue growth 5YN/A
Sales Q2Q%25.97%
Revenue Next Year-9.17%
Revenue Next 2Y1.01%
Revenue Next 3Y6.96%
Revenue Next 5Y8.15%
EBIT growth 1Y-68.71%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year72.44%
EBIT Next 3Y47.44%
EBIT Next 5Y29.17%
FCF growth 1Y1455.56%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y362.03%
OCF growth 3Y103.85%
OCF growth 5YN/A