company background image
TCL.

Transcontinental TSX:TCL.A Stock Report

Last Price

CA$16.16

Market Cap

CA$1.4b

7D

6.8%

1Y

-30.6%

Updated

17 May, 2022

Data

Company Financials +
TCL.A fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance1/6
Financial Health3/6
Dividends5/6

TCL.A Stock Overview

Transcontinental Inc. engages in the flexible packaging business in Canada, the United States, Latin America, the United Kingdom, Australia, and New Zealand.

Transcontinental Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Transcontinental
Historical stock prices
Current Share PriceCA$16.16
52 Week HighCA$26.45
52 Week LowCA$14.60
Beta1.02
1 Month Change-4.89%
3 Month Change-21.74%
1 Year Change-30.61%
3 Year Change12.22%
5 Year Change-32.78%
Change since IPO370.11%

Recent News & Updates

Apr 22
Is Transcontinental (TSE:TCL.A) A Risky Investment?

Is Transcontinental (TSE:TCL.A) A Risky Investment?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

TCL.ACA PackagingCA Market
7D6.8%8.2%2.8%
1Y-30.6%-7.4%5.9%

Return vs Industry: TCL.A underperformed the Canadian Packaging industry which returned -8.9% over the past year.

Return vs Market: TCL.A underperformed the Canadian Market which returned 4.3% over the past year.

Price Volatility

Is TCL.A's price volatile compared to industry and market?
TCL.A volatility
TCL.A Average Weekly Movement5.1%
Packaging Industry Average Movement6.0%
Market Average Movement9.8%
10% most volatile stocks in CA Market16.7%
10% least volatile stocks in CA Market4.2%

Stable Share Price: TCL.A is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: TCL.A's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19768,000H. Brueshttps://tctranscontinental.com

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 Packaging, Printing, and Media sectors. The Packaging sector engages in the extrusion, lamination, printing, and converting packaging solutions; and manufacturing and recycling flexible plastic, including rollstock, bags and pouches, coextruded films, shrink films and bags, and advanced coatings.

Transcontinental Fundamentals Summary

How do Transcontinental's earnings and revenue compare to its market cap?
TCL.A fundamental statistics
Market CapCA$1.37b
Earnings (TTM)CA$121.30m
Revenue (TTM)CA$2.71b

11.5x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TCL.A income statement (TTM)
RevenueCA$2.71b
Cost of RevenueCA$2.27b
Gross ProfitCA$442.30m
Other ExpensesCA$321.00m
EarningsCA$121.30m

Last Reported Earnings

Jan 30, 2022

Next Earnings Date

Jun 08, 2022

Earnings per share (EPS)1.40
Gross Margin16.31%
Net Profit Margin4.47%
Debt/Equity Ratio50.0%

How did TCL.A perform over the long term?

See historical performance and comparison

Dividends

5.6%

Current Dividend Yield

65%

Payout Ratio

Valuation

Is Transcontinental undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: TCL.A (CA$16.16) is trading below our estimate of fair value (CA$62.75)

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 (11.5x) compared to the Canadian Packaging industry average (18x).

PE vs Market: TCL.A is poor value based on its PE Ratio (11.5x) compared to the Canadian market (11.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TCL.A's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TCL.A is good value based on its PB Ratio (0.8x) compared to the CA Packaging industry average (1.7x).


Future Growth

How is Transcontinental forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


0.9%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if TCL.A's forecast earnings growth is above the savings rate (1.6%).

Earnings vs Market: Insufficient data to determine if TCL.A's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TCL.A's revenue (0.9% per year) is forecast to grow slower than the Canadian market (6.3% per year).

High Growth Revenue: TCL.A's revenue (0.9% per year) is forecast to grow slower than 20% 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 (9.7%).


Past Performance

How has Transcontinental performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-9.2%

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 (4.5%) are lower than last year (6.2%).


Past Earnings Growth Analysis

Earnings Trend: TCL.A's earnings have declined by 9.2% per year over the past 5 years.

Accelerating Growth: TCL.A's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TCL.A had negative earnings growth (-21.1%) over the past year, making it difficult to compare to the Packaging industry average (5.1%).


Return on Equity

High ROE: TCL.A's Return on Equity (6.7%) is considered low.


Financial Health

How is Transcontinental's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: TCL.A's short term assets (CA$935.2M) exceed its short term liabilities (CA$586.4M).

Long Term Liabilities: TCL.A's short term assets (CA$935.2M) do not cover its long term liabilities (CA$1.1B).


Debt to Equity History and Analysis

Debt Level: TCL.A's net debt to equity ratio (48.7%) is considered high.

Reducing Debt: TCL.A's debt to equity ratio has increased from 31.3% to 50% over the past 5 years.

Debt Coverage: TCL.A's debt is well covered by operating cash flow (25%).

Interest Coverage: TCL.A's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet


Dividend

What is Transcontinental current dividend yield, its reliability and sustainability?

Dividend Score

6/6

Dividend Score 6/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


5.57%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: TCL.A's dividend (5.57%) is higher than the bottom 25% of dividend payers in the Canadian market (1.88%).

High Dividend: TCL.A's dividend (5.57%) is in the top 25% of dividend payers in the Canadian market (4.99%)


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (64.5%), TCL.A's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (91.7%), TCL.A's dividend payments are not well covered by cash flows.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

H. Brues (52 yo)

0.42

Tenure

CA$155,796

Compensation

Mr. H. Peter Brues serves as President and Chief Executive Officer at Transcontinental Inc. since December 10, 2021. He has been a Director of Transcontinental Inc. since September 6, 2018. Mr. Brues has h...


Leadership Team

Experienced Management: TCL.A's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: TCL.A's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TCL.A insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Transcontinental Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Transcontinental Inc.
  • Ticker: TCL.A
  • Exchange: TSX
  • Founded: 1976
  • Industry: Metal and Glass Containers
  • Sector: Materials
  • Implied Market Cap: CA$1.369b
  • Shares outstanding: 86.69m
  • Website: https://tctranscontinental.com

Number of Employees


Location

  • Transcontinental Inc.
  • 1 Place Ville Marie
  • Suite 3240
  • Montreal
  • Quebec
  • H3B 0G1
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/17 00:00
End of Day Share Price2022/05/17 00:00
Earnings2022/01/30
Annual Earnings2021/10/31


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.