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TCL.

TranscontinentalTSX:TCL.A Stock Report

Market Cap

CA$1.7b

7D

0.3%

1Y

-0.4%

Updated

28 Nov, 2021

Data

Company Financials +
TCL.A fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance1/6
Financial Health4/6
Dividends6/6

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

Winpak

TSX:WPK

CA$2.4b

Thomson Reuters

TSX:TRI

CA$75.2b

BCE

TSX:BCE

CA$58.7b

Rogers Communications

TSX:RCI.B

CA$30.1b

Price History & Performance

Summary of all time highs, changes and price drops for Transcontinental
Historical stock prices
Current Share PriceCA$18.97
52 Week HighCA$26.45
52 Week LowCA$18.27
Beta1.08
1 Month Change-3.21%
3 Month Change-22.98%
1 Year Change-0.37%
3 Year Change-5.39%
5 Year Change2.10%
Change since IPO451.86%

Recent News & Updates

Sep 29
Transcontinental (TSE:TCL.A) Is Due To Pay A Dividend Of CA$0.23

Transcontinental (TSE:TCL.A) Is Due To Pay A Dividend Of CA$0.23

Transcontinental Inc. ( TSE:TCL.A ) has announced that it will pay a dividend of CA$0.23 per share on the 19th of...

Sep 15
Transcontinental (TSE:TCL.A) Has Affirmed Its Dividend Of CA$0.23

Transcontinental (TSE:TCL.A) Has Affirmed Its Dividend Of CA$0.23

Transcontinental Inc. ( TSE:TCL.A ) will pay a dividend of CA$0.23 on the 19th of October. Based on this payment, the...

Sep 10
Here's Why Transcontinental (TSE:TCL.A) Can Manage Its Debt Responsibly

Here's Why Transcontinental (TSE:TCL.A) Can Manage Its Debt Responsibly

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

TCL.ACA PackagingCA Market
7D0.3%-3.4%-1.7%
1Y-0.4%0.5%21.9%

Return vs Industry: TCL.A matched the Canadian Packaging industry which returned 0.5% over the past year.

Return vs Market: TCL.A underperformed the Canadian Market which returned 21.9% over the past year.

Price Volatility

Is TCL.A's price volatile compared to industry and market?
TCL.A volatility
TCL.A Average Weekly Movement3.0%
Packaging Industry Average Movement3.0%
Market Average Movement9.4%
10% most volatile stocks in CA Market17.2%
10% least volatile stocks in CA Market3.5%

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

Volatility Over Time: TCL.A's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19768,000Francois Olivierhttps://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$1.67b
Earnings (TTM)CA$142.70m
Revenue (TTM)CA$2.52b

11.6x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TCL.A income statement (TTM)
RevenueCA$2.52b
Cost of RevenueCA$2.05b
Gross ProfitCA$470.00m
ExpensesCA$327.30m
EarningsCA$142.70m

Last Reported Earnings

Jul 25, 2021

Next Earnings Date

Dec 09, 2021

Earnings per share (EPS)1.64
Gross Margin18.63%
Net Profit Margin5.66%
Debt/Equity Ratio66.3%

How did TCL.A perform over the long term?

See historical performance and comparison

Dividends

4.7%

Current Dividend Yield

55%

Payout Ratio

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TCL.A (CA$18.97) is trading below our estimate of fair value (CA$39.48)

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 (11.6x) compared to the Canadian Packaging industry average (14.5x).

PE vs Market: TCL.A is good value based on its PE Ratio (11.6x) compared to the Canadian market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: TCL.A is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: TCL.A is good value based on its PB Ratio (0.9x) 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 6 analysts?

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCL.A's forecast earnings growth (6.5% per year) is above the savings rate (1.6%).

Earnings vs Market: TCL.A's earnings (6.5% per year) are forecast to grow slower than the Canadian market (10.6% per year).

High Growth Earnings: TCL.A's earnings are forecast to grow, but not significantly.

Revenue vs Market: TCL.A's revenue (1.6% per year) is forecast to grow slower than the Canadian market (5.6% per year).

High Growth Revenue: TCL.A's revenue (1.6% 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 (11.7%).


Past Performance

How has Transcontinental performed over the past 5 years?

-5.8%

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 (5.7%) are lower than last year (7.1%).


Past Earnings Growth Analysis

Earnings Trend: TCL.A's earnings have declined by 5.8% 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 (-25.8%) over the past year, making it difficult to compare to the Packaging industry average (22.9%).


Return on Equity

High ROE: TCL.A's Return on Equity (8.1%) is considered low.


Financial Health

How is Transcontinental's financial position?


Financial Position Analysis

Short Term Liabilities: TCL.A's short term assets (CA$1.2B) exceed its short term liabilities (CA$813.0M).

Long Term Liabilities: TCL.A's short term assets (CA$1.2B) exceed its long term liabilities (CA$1.2B).


Debt to Equity History and Analysis

Debt Level: TCL.A's net debt to equity ratio (43.9%) is considered high.

Reducing Debt: TCL.A's debt to equity ratio has increased from 33.5% to 66.3% over the past 5 years.

Debt Coverage: TCL.A's debt is well covered by operating cash flow (28%).

Interest Coverage: TCL.A's interest payments on its debt are well covered by EBIT (6.5x coverage).


Balance Sheet


Dividend

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

4.74%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TCL.A's dividend (4.74%) is higher than the bottom 25% of dividend payers in the Canadian market (1.59%).

High Dividend: TCL.A's dividend (4.74%) is in the top 25% of dividend payers in the Canadian market (4.6%)


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 reasonable payout ratio (54.9%), TCL.A's dividend payments are 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).


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

Francois Olivier (56 yo)

13.75yrs

Tenure

CA$6,965,153

Compensation

Mr. Francois 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: Francois's total compensation ($USD5.45M) is above average for companies of similar size in the Canadian market ($USD1.96M).

Compensation vs Earnings: Francois's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: TCL.A's management team is seasoned and experienced (5.5 years average tenure).


Board Members

Experienced Board: TCL.A's board of directors are seasoned and experienced ( 10.2 years average tenure).


Ownership

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

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
  • Market Cap: CA$1.667b
  • Shares outstanding: 87.02m
  • 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 Analysis2021/11/28 23:24
End of Day Share Price2021/11/26 00:00
Earnings2021/07/25
Annual Earnings2020/10/25


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.