TALEN ENERGY CORP (TLN) Stock Fundamental Analysis
USA - NASDAQ:TLN - US87422Q1094 - Common Stock
385.93 USD
-17.56 (-4.35%)
385.93 USD
0 (0%)
Overall TLN gets a fundamental rating of 5 out of 10. We evaluated TLN against 20 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 is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TLN was profitable.
In the past year TLN had a positive cash flow from operations.
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.
1.2 Ratios
With an excellent Return On Assets value of 3.21%, TLN belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
TLN has a Return On Equity of 15.01%. This is amongst the best in the industry. TLN outperforms 85.00% of its industry peers.
The Return On Invested Capital of TLN (1.89%) is comparable to the rest of the industry.
TLN had an Average Return On Invested Capital over the past 3 years of 6.50%. This is above the industry average of 4.08%.
The 3 year average ROIC (6.50%) for TLN is well above the current ROIC(1.89%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.21% | ||
| ROE | 15.01% | ||
| ROIC | 1.89% |
ROA(3y)4.31%
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)6.5%
ROIC(5y)N/A
1.3 Margins
TLN's Profit Margin of 8.75% is fine compared to the rest of the industry. TLN outperforms 70.00% of its industry peers.
TLN's Operating Margin of 5.99% is on the low side compared to the rest of the industry. TLN is outperformed by 65.00% of its industry peers.
With a decent Gross Margin value of 62.61%, TLN is doing good in the industry, outperforming 65.00% of the companies in the same industry.
TLN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.99% | ||
| PM (TTM) | 8.75% | ||
| GM | 62.61% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y105.35%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TLN is destroying value.
Compared to 1 year ago, TLN has less shares outstanding
Compared to 1 year ago, TLN has a worse debt to assets ratio.
2.2 Solvency
TLN has an Altman-Z score of 3.23. This indicates that TLN is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.23, TLN belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
TLN has a Debt/Equity ratio of 2.44. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of TLN (2.44) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.23 |
ROIC/WACC0.22
WACC8.51%
2.3 Liquidity
TLN has a Current Ratio of 1.84. This is a normal value and indicates that TLN is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of TLN (1.84) is better than 85.00% of its industry peers.
A Quick Ratio of 1.34 indicates that TLN should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.34, TLN belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
TLN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -77.19%.
Looking at the last year, TLN shows a small growth in Revenue. The Revenue has grown by 4.70% in the last year.
TLN shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 31.60% yearly.
EPS 1Y (TTM)-77.19%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-80.22%
Revenue 1Y (TTM)4.7%
Revenue growth 3Y31.6%
Revenue growth 5YN/A
Sales Q2Q%28.83%
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 20.64% on average per year.
Based on estimates for the next years, TLN will show a quite strong growth in Revenue. The Revenue will grow by 17.84% on average per year.
EPS Next Y-63.85%
EPS Next 2Y16.37%
EPS Next 3Y17.29%
EPS Next 5Y20.64%
Revenue Next Year17.34%
Revenue Next 2Y42.37%
Revenue Next 3Y29.57%
Revenue Next 5Y17.84%
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 101.83 indicates a quite expensive valuation of TLN.
TLN's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.13. TLN is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 18.31 indicates a rather expensive valuation of TLN.
Based on the Price/Forward Earnings ratio, TLN is valued cheaply inside the industry as 85.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of TLN to the average of the S&P500 Index (22.35), we can say TLN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 101.83 | ||
| Fwd PE | 18.31 |
4.2 Price Multiples
TLN's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. TLN is more expensive than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 41.44 |
4.3 Compensation for Growth
The decent profitability rating of TLN may justify a higher PE ratio.
A more expensive valuation may be justified as TLN's earnings are expected to grow with 17.29% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y16.37%
EPS Next 3Y17.29%
5. Dividend
5.1 Amount
No dividends for TLN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
385.93
-17.56 (-4.35%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners100.63%
Inst Owner Change0%
Ins Owners0.7%
Ins Owner Change0.17%
Market Cap17.63B
Revenue(TTM)2.14B
Net Income(TTM)187.00M
Analysts83.64
Price Target434.29 (12.53%)
Short Float %5.7%
Short Ratio2.67
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)1
Avg EPS beat(2)290.58%
Min EPS beat(2)-343.93%
Max EPS beat(2)925.08%
EPS beat(4)3
Avg EPS beat(4)606.42%
Min EPS beat(4)-343.93%
Max EPS beat(4)1676.54%
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)9.98%
Min Revenue beat(2)-23.6%
Max Revenue beat(2)43.57%
Revenue beat(4)2
Avg Revenue beat(4)9.26%
Min Revenue beat(4)-23.6%
Max Revenue beat(4)43.57%
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)4.19%
PT rev (3m)40.79%
EPS NQ rev (1m)4.55%
EPS NQ rev (3m)-1.7%
EPS NY rev (1m)-8.5%
EPS NY rev (3m)-3.16%
Revenue NQ rev (1m)2.06%
Revenue NQ rev (3m)14.01%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)2.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 101.83 | ||
| Fwd PE | 18.31 | ||
| P/S | 8.25 | ||
| P/FCF | N/A | ||
| P/OCF | 430.08 | ||
| P/B | 14.15 | ||
| P/tB | 14.15 | ||
| EV/EBITDA | 41.44 |
EPS(TTM)3.79
EY0.98%
EPS(NY)21.08
Fwd EY5.46%
FCF(TTM)-1.09
FCFYN/A
OCF(TTM)0.9
OCFY0.23%
SpS46.77
BVpS27.27
TBVpS27.27
PEG (NY)N/A
PEG (5Y)N/A
Graham Number48.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.21% | ||
| ROE | 15.01% | ||
| ROCE | 2.38% | ||
| ROIC | 1.89% | ||
| ROICexc | 1.94% | ||
| ROICexgc | 1.94% | ||
| OM | 5.99% | ||
| PM (TTM) | 8.75% | ||
| GM | 62.61% | ||
| FCFM | N/A |
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
ROICexgc growth 3YN/A
ROICexgc 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 Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.44 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.92 | ||
| Cap/Depr | 23.58% | ||
| Cap/Sales | 4.26% | ||
| Interest Coverage | 0.54 | ||
| Cash Conversion | 7.98% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 3.23 |
F-Score4
WACC8.51%
ROIC/WACC0.22
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)-77.19%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-80.22%
EPS Next Y-63.85%
EPS Next 2Y16.37%
EPS Next 3Y17.29%
EPS Next 5Y20.64%
Revenue 1Y (TTM)4.7%
Revenue growth 3Y31.6%
Revenue growth 5YN/A
Sales Q2Q%28.83%
Revenue Next Year17.34%
Revenue Next 2Y42.37%
Revenue Next 3Y29.57%
Revenue Next 5Y17.84%
EBIT growth 1Y-1.54%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year185.32%
EBIT Next 3Y83.66%
EBIT Next 5Y49.7%
FCF growth 1Y-116.95%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-93.43%
OCF growth 3YN/A
OCF growth 5YN/A
TALEN ENERGY CORP / TLN FAQ
What is the fundamental rating for TLN stock?
ChartMill assigns a fundamental rating of 5 / 10 to TLN.
What is the valuation status of TALEN ENERGY CORP (TLN) stock?
ChartMill assigns a valuation rating of 2 / 10 to TALEN ENERGY CORP (TLN). This can be considered as Overvalued.
What is the profitability of TLN stock?
TALEN ENERGY CORP (TLN) has a profitability rating of 6 / 10.
What are the PE and PB ratios of TALEN ENERGY CORP (TLN) stock?
The Price/Earnings (PE) ratio for TALEN ENERGY CORP (TLN) is 101.83 and the Price/Book (PB) ratio is 14.15.
Can you provide the financial health for TLN stock?
The financial health rating of TALEN ENERGY CORP (TLN) is 5 / 10.