Talen Energy Corp (TLN) AI Stock Analysis

• Market Cap: $1.80B
• Dividend Yield: N/A
• Average Volume (3M): 1.31M
• Price to Earnings (P/E): 11.7
• Beta (1Y): 1.51
• Revenue Growth: 65.16%
• EPS Growth: 73.21%
• Country: US
• Employees: 1,894
• Sector: Utilities
• Sector Strength: 87
• Industry: Independent Power Producers
• EPS (TTM): 17.38
• Shares Outstanding: 45,509,780
• 10 Day Avg. Volume: 1,166,749
• 30 Day Avg. Volume: 1,309,741
• PEG Ratio: 0.16
• Price to Book (P/B): N/A
• Price to Sales (P/S): 15.19
• Price to Cash Flow (P/CF): 10.00
• P/FCF Ratio: 13.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $262.38
• Price Target Upside: 28.96% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

Talen Energy Corp demonstrates a solid recovery path with strong financial performance and strategic initiatives, including substantial share repurchases. While the technical indicators show mixed signals, the valuation remains attractive. Earnings call highlights positive business achievements and confidence in future performance, though regulatory challenges pose risks.

Positive Factors

Expansion Opportunities

The company's Montour plant screens attractive for potential data center contracting, with strong appetite from hyperscalers and sufficient available gas supply.

Financial Growth

There is an expectation for Talen Energy Corp to increase its adjusted EBITDA by 10-15% in the fiscal years 2026-2027, reflecting strong financial growth.

Unique Market Position

Talen Energy Corp is unique as it is the only operator with a nuclear plant that has a data center contract.

Negative Factors

Market Outlook

The outlook for merchant nuclear has been impaired with increasing competition and uncertainty in securing high-value contracts.

Regulatory Challenges

FERC reaffirmed its original rejection of Talen's proposal to expand the Amazon data center at its Susquehanna nuclear plant.

Talen Energy Corp Business Overview & Revenue Model

Company Description

Talen Energy Corporation, an independent power producer and infrastructure company, produces and sells electricity, capacity, and ancillary services into wholesale power markets in the United States. The company operates nuclear, fossil, solar, and coal power plants. It is also developing battery storage projects. The company owns and operates approximately 10.7 GW of power infrastructure. Talen Energy Corporation is headquartered in Houston, Texas.

How the Company Makes Money

Talen Energy Corp generates revenue primarily through the sale of electricity generated from its various power plants. The company sells electricity to wholesale markets, utilities, and large industrial customers. Talen Energy's revenue streams are influenced by factors such as electricity market prices, fuel costs, and regulatory environments. The company also engages in energy trading and management services, which contribute additional revenue. As part of its strategic initiatives, Talen Energy is investing in renewable energy and energy storage projects to enhance its revenue potential and align with industry trends towards sustainability.

Talen Energy Corp Financial Statement Overview

Summary

Talen Energy Corp shows a positive trajectory with improved net income, EBIT margin, and significant revenue growth. The balance sheet reflects reduced debt and a better debt-to-equity ratio, but the equity ratio is still low, indicating potential financial stability risks. Cash flow shows positive operating cash flows, though with some volatility.

Income Statement

Talen Energy Corp shows strong growth in net income and a significant improvement in EBIT margin from a negative to a positive figure over the years. The gross profit margin is robust at 100%, indicating efficient cost management. Revenue growth is also notable, increasing by 47.3% from 2023 to 2024, reflecting positive business trends. However, the net profit margin has some variability, moving from negative to highly positive, which suggests some volatility in profitability.

Balance Sheet

The balance sheet demonstrates improved stability with a reduction in total debt and a positive equity position as of 2024. The debt-to-equity ratio has decreased significantly, indicating better leverage management. However, the equity ratio remains relatively low at around 22.7%, which suggests potential risks in financial stability. Return on equity has improved dramatically, reflecting effective utilization of equity.

Cash Flow

Talen Energy Corp exhibits a positive trend in free cash flow, although growth has been inconsistent, with a decrease observed from 2023 to 2024. Operating cash flow to net income ratio remains positive, indicating good cash generation relative to earnings. However, fluctuations in free cash flow and operating cash flow suggest potential challenges in maintaining cash flow stability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2015
Income Statement		Total Revenue
2.07B	1.44B	3.02B	1.77B	3.61B
	Gross Profit
664.00M	453.00M	1.34B	244.00M	203.00M
	EBIT
226.00M	-401.00M	588.00M	-1.10B	138.00M
	EBITDA
1.76B	1.71B	1.20B	-301.00M	422.00M
	Net Income Common Stockholders
998.00M	613.00M	-1.29B	-977.00M	-341.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
328.00M	901.00M	988.00M	276.00M	809.00M
	Total Assets
6.11B	7.12B	10.72B	10.05B	12.83B
	Total Debt
3.00B	2.82B	4.35B	4.74B	4.81B
	Net Debt
2.68B	1.92B	3.36B	4.47B	4.56B
	Total Liabilities
4.72B	4.59B	11.20B	9.32B	8.52B
	Stockholders Equity
1.39B	2.46B	-573.00M	733.00M	4.30B
Cash Flow		Free Cash Flow
67.00M	516.00M	-125.00M	-518.00M	247.00M
	Operating Cash Flow
256.00M	864.00M	187.00M	-294.00M	768.00M
	Investing Cash Flow
1.17B	-347.00M	-368.00M	-280.00M	-915.00M
	Financing Cash Flow
-1.96B	-604.00M	426.00M	956.00M	-64.00M

Talen Energy Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 203.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TLN, the sentiment is Positive. The current price of 203.46 is above the 20-day moving average (MA) of 200.44, below the 50-day MA of 207.98, and above the 200-day MA of 184.11, indicating a neutral trend. The MACD of -1.41 indicates Negative momentum. The RSI at 51.58 is Neutral, neither overbought nor oversold. The STOCH value of 90.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TLN.

Talen Energy Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SJW	79 Outperform	$1.86B	19.05	7.23%	2.97%	11.65%	6.78%
VST	75 Outperform	$39.26B	16.50	48.89%	0.76%	24.68%	103.48%
TLN	72 Outperform	$1.80B	11.71	51.92%	―	65.16%	73.21%
CEPU	65 Neutral	$1.76B	31.48	3.52%	3.12%	-14.28%	-85.93%
Sector *	62 Neutral	$8.53B	12.05	6.29%	4.45%	3.04%	-9.39%
NRG	61 Neutral	$19.93B	19.61	41.79%	1.70%	-1.72%	―
HE	48 Neutral	$1.80B	―	-68.17%	―	-4.21%	-760.85%

Talen Energy Corp Corporate Events

Talen Energy Corp Announces Major Refinancing Moves

Talen Energy Corporation announced the completion of several refinancing transactions aimed at improving its debt structure and reducing financing costs. These transactions include repricing and extending the maturity of its revolving credit facility, introducing a new $900 million secured letter of credit facility, and terminating certain existing facilities. The adjustments are expected to save approximately $28 million annually in interest and fees. The company’s Chief Financial Officer highlighted the continued improvements in debt structure and costs, reflecting Talen’s stable financial performance.