Transcontinental Inc. engages in the flexible packaging business in Canada, the United States, Latin America, the United Kingdom, Australia, and New Zealand. More Details
Undervalued established dividend payer.
Share Price & News
How has Transcontinental's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: TCL.A has not had significant price volatility in the past 3 months.
7 Day Return
CA Commercial Services
1 Year Return
CA Commercial Services
Return vs Industry: TCL.A underperformed the Canadian Commercial Services industry which returned 19.9% over the past year.
Return vs Market: TCL.A exceeded the Canadian Market which returned -4.2% over the past year.
Price Volatility Vs. Market
How volatile is Transcontinental's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall StAn Intrinsic Calculation For Transcontinental Inc. (TSE:TCL.A) Suggests It's 38% Undervalued
6 months ago | Simply Wall StWhat Is Transcontinental's (TSE:TCL.A) P/E Ratio After Its Share Price Tanked?
7 months ago | Simply Wall StTranscontinental Inc. (TSE:TCL.A) Stock Goes Ex-Dividend In Just 4 Days
Is Transcontinental undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TCL.A (CA$16.89) is trading below our estimate of fair value (CA$26.47)
Significantly Below Fair Value: TCL.A is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: TCL.A is good value based on its PE Ratio (7.6x) compared to the CA Commercial Services industry average (24.2x).
PE vs Market: TCL.A is good value based on its PE Ratio (7.6x) compared to the Canadian market (16.5x).
Price to Earnings Growth Ratio
PEG Ratio: TCL.A's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: TCL.A is good value based on its PB Ratio (0.9x) compared to the CA Commercial Services industry average (1.6x).
How is Transcontinental forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TCL.A's earnings are forecast to decline over the next 3 years (-6.1% per year).
Earnings vs Market: TCL.A's earnings are forecast to decline over the next 3 years (-6.1% per year).
High Growth Earnings: TCL.A's earnings are forecast to decline over the next 3 years.
Revenue vs Market: TCL.A's revenue is expected to decline over the next 3 years (-1.5% per year).
High Growth Revenue: TCL.A's revenue is forecast to decline over the next 3 years (-1.5% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TCL.A's Return on Equity is forecast to be low in 3 years time (9.8%).
How has Transcontinental performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TCL.A has high quality earnings.
Growing Profit Margin: TCL.A's current net profit margins (7.1%) are higher than last year (3.9%).
Past Earnings Growth Analysis
Earnings Trend: TCL.A's earnings have declined by 3.8% per year over the past 5 years.
Accelerating Growth: TCL.A's earnings growth over the past year (59.3%) exceeds its 5-year average (-3.8% per year).
Earnings vs Industry: TCL.A earnings growth over the past year (59.3%) exceeded the Commercial Services industry 15.4%.
Return on Equity
High ROE: TCL.A's Return on Equity (11.2%) is considered low.
How is Transcontinental's financial position?
Financial Position Analysis
Short Term Liabilities: TCL.A's short term assets (CA$927.9M) exceed its short term liabilities (CA$663.8M).
Long Term Liabilities: TCL.A's short term assets (CA$927.9M) do not cover its long term liabilities (CA$1.2B).
Debt to Equity History and Analysis
Debt Level: TCL.A's debt to equity ratio (60.6%) is considered high.
Reducing Debt: TCL.A's debt to equity ratio has increased from 38.8% to 60.6% over the past 5 years.
Debt Coverage: TCL.A's debt is well covered by operating cash flow (46.4%).
Interest Coverage: TCL.A's interest payments on its debt are well covered by EBIT (5.5x coverage).
What is Transcontinental current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TCL.A's dividend (5.33%) is higher than the bottom 25% of dividend payers in the Canadian market (1.69%).
High Dividend: TCL.A's dividend (5.33%) is low compared to the top 25% of dividend payers in the Canadian market (5.78%).
Stability and Growth of Payments
Stable Dividend: TCL.A's dividends per share have been stable in the past 10 years.
Growing Dividend: TCL.A's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (40.3%), TCL.A's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: TCL.A's dividends in 3 years are forecast to be well covered by earnings (44.7% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
François Olivier (55 yo)
Mr. François Olivier has been the Chief Executive Officer and President of Transcontinental Inc. since February 20, 2008. Mr. Olivier is heading the diversification strategy of TC Transcontinental, driving ...
CEO Compensation Analysis
Compensation vs Market: François's total compensation ($USD5.24M) is above average for companies of similar size in the Canadian market ($USD1.32M).
Compensation vs Earnings: François's compensation has been consistent with company performance over the past year.
|Founder & Director||44.75yrs||CA$90.00k||no data|
|Chief Financial Officer||2.08yrs||CA$1.08m||0.018% |
|Chief Legal Officer & Corporate Secretary||14.92yrs||CA$922.62k||0.021% |
|President of TC Transcontinental Printing||6.75yrs||CA$2.13m||0.0034% |
|President of TC Transcontinental Packaging||1.25yrs||CA$1.77m||0.0021% |
|Chief Information Officer||7.5yrs||no data||no data|
|Director of Investor Relations||no data||no data||no data|
|Vice President of Corporate Communications & Public Affairs||0.75yr||no data||0.0011% |
|Vice President of Corporate Development||2.75yrs||no data||0.00098% |
|Chief Human Resources Officer||no data||no data||no data|
|Senior Vice President of Retail Group Transcontinental Printing - Marketing Products||no data||no data||no data|
Experienced Management: TCL.A's management team is seasoned and experienced (6.8 years average tenure).
|Founder & Director||44.75yrs||CA$90.00k||no data|
|Independent Director||5.58yrs||CA$124.13k||0.011% |
|Independent Director||12.42yrs||CA$118.50k||0.0057% |
|Chair of the Board||8.67yrs||CA$1.03m||0.0057% |
|Non-Independent Director||15.58yrs||CA$658.89k||0.0069% |
|Independent Lead Director||1.75yrs||CA$140.03k||0.0034% |
|Independent Director||9.58yrs||CA$155.63k||0.0043% |
|Independent Director||4.92yrs||CA$130.97k||0.016% |
|Non-Independent Director||9.58yrs||CA$112.70k||no data|
|Independent Director||3.58yrs||CA$122.27k||no data|
|Independent Director||2.08yrs||CA$121.56k||0.021% |
Experienced Board: TCL.A's board of directors are considered experienced (9.1 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Transcontinental Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Transcontinental Inc.
- Ticker: TCL.A
- Exchange: TSX
- Founded: 1976
- Industry: Commercial Printing
- Sector: Commercial Services
- Market Cap: CA$1.464b
- Shares outstanding: 87.03m
- Website: https://tctranscontinental.com
Number of Employees
- Transcontinental Inc.
- 1 Place Ville Marie
- Suite 3240
- H3B 0G1
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|TCL.B||TSX (The Toronto Stock Exchange)||Class B Shares||CA||CAD||Mar 1985|
|TCLC.F||OTCPK (Pink Sheets LLC)||Class B Shares||US||USD||Mar 1985|
|TCL.A||TSX (The Toronto Stock Exchange)||Yes||Class A Shares||CA||CAD||May 1992|
|TCLA.F||OTCPK (Pink Sheets LLC)||Yes||Class A Shares||US||USD||May 1992|
|53L||DB (Deutsche Boerse AG)||Yes||Class A Shares||DE||EUR||May 1992|
Transcontinental Inc. engages in the flexible packaging business in Canada, the United States, Latin America, the United Kingdom, Australia, and New Zealand. It operates through three segments: Packaging, ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/10/22 00:01|
|End of Day Share Price||2020/10/21 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.