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Transcontinental Inc. Class B (TSE:TCL.B)
:TCL.B
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Transcontinental Inc. Class B
(TSX:TCL.B)68Neutral
Transcontinental Inc. Class B (TCL.B) vs. S&P 500 (SPY)
Market Cap
C$1.38B
Dividend Yield5.14%
Average Volume (3M)203.00
Price to Earnings (P/E)12.4
Beta (1Y)0.71
Revenue Growth-4.34%
EPS Growth42.86%
CountryCA
Employees7,500
SectorConsumer Cyclical
Sector Strength53
IndustryContainers & Packaging
Share Statistics
EPS (TTM)1.42
Shares Outstanding9,506,272
10 Day Avg. Volume216
30 Day Avg. Volume203
Financial Highlights & Ratios
PEG Ratio0.29
Price to Book (P/B)N/A
Price to Sales (P/S)0.51
Price to Cash Flow (P/CF)3.70
P/FCF Ratio4.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Transcontinental Inc. Class B Business Overview & Revenue Model
Company DescriptionTranscontinental Inc. Class B (TCL.B) is a leading Canadian company primarily engaged in flexible packaging, publishing, and media solutions. The company operates through three main sectors: Packaging, Printing, and Media. Its core services include the production of flexible packaging for various industries, printing services for magazines, marketing materials, and newspapers, as well as media services that encompass content creation and distribution for consumers and businesses.
How the Company Makes MoneyTranscontinental Inc. generates revenue through its diverse operations in the packaging, printing, and media sectors. The packaging segment, which is the largest contributor to the company's revenue, involves the manufacturing and sale of flexible packaging solutions to industries such as food, agriculture, and consumer goods. This segment benefits from long-term contracts and partnerships with major companies, ensuring steady income. The printing segment earns revenue by providing high-volume printing services for retailers, publishers, and other businesses, leveraging economies of scale to maintain profitability. The media sector, although a smaller portion of the business, makes money through advertising sales, subscriptions, and content licensing. Transcontinental's strategic focus on innovation and efficiency in these sectors supports its financial performance.
Transcontinental Inc. Class B Financial Statement Overview
Summary
Transcontinental Inc. exhibits strengths in profitability and moderate leverage. However, challenges such as declining revenue and fluctuating cash flow growth rates need addressing to enhance growth and efficiency.Income Statement
Transcontinental Inc. has shown stable gross profit margins with a positive trend in EBIT and EBITDA margins over the years. However, revenue has decreased over the last two years, indicating challenges in growth. The net profit margin shows improvement from the previous year, suggesting better cost management.65
Positive
Balance Sheet
The company's balance sheet is solid with a reasonable debt-to-equity ratio, indicating moderate leverage. The equity ratio is healthy, reflecting a stable financial position. However, the return on equity has fluctuated, pointing to inconsistent efficiency in utilizing shareholder funds.72
Positive
Cash Flow
Cash flow metrics reveal a positive trajectory with stable operating cash flow and improved free cash flow over time. However, fluctuations in free cash flow growth rates suggest some inconsistency in cash management, though the overall cash flow to net income ratios are favorable.68
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.81B | 2.94B | 2.96B | 2.64B | 2.57B | Gross Profit |
| 1.38B | 457.30M | 1.32B | 1.24B | 1.25B | EBIT |
| 209.50M | 164.70M | 217.30M | 233.80M | 241.40M | EBITDA |
| 416.30M | 391.70M | 446.00M | 450.00M | 479.60M | Net Income Common Stockholders |
| 121.30M | 85.80M | 141.20M | 130.60M | 131.70M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 185.20M | 137.00M | 45.70M | 231.10M | 241.00M | Total Assets |
| 3.64B | 3.70B | 3.80B | 3.61B | 3.60B | Total Debt |
| 989.00M | 1.06B | 1.15B | 1.13B | 1.17B | Net Debt |
| 803.80M | 921.00M | 1.10B | 894.80M | 933.90M | Total Liabilities |
| 1.73B | 1.79B | 1.92B | 1.85B | 1.86B | Stockholders Equity |
| 1.91B | 1.90B | 1.88B | 1.76B | 1.73B |
| Cash Flow | Free Cash Flow | |||
| 292.20M | 294.80M | 78.40M | 177.00M | 329.50M | Operating Cash Flow |
| 413.70M | 472.30M | 220.80M | 315.30M | 427.00M | Investing Cash Flow |
| -112.60M | -165.20M | -257.40M | -181.00M | 126.40M | Financing Cash Flow |
| -258.00M | -216.30M | -150.90M | -150.10M | -526.40M |
Transcontinental Inc. Class B Technical Analysis
Negative
17.50
Price Trends
17.55
Negative
17.25
Negative
16.28
Positive
Market Momentum
-0.07
Positive
41.50
Neutral
18.09
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TCL.B, the sentiment is Negative. The current price of 17.5 is below the 20-day moving average (MA) of 17.55, below the 50-day MA of 17.55, and above the 200-day MA of 16.28, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 41.50 is Neutral, neither overbought nor oversold. The STOCH value of 18.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TCL.B.
Transcontinental Inc. Class B Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | C$2.36B | 12.04 | 11.45% | 0.41% | 0.56% | 4.94% | |
68 Neutral | C$1.38B | 12.42 | 6.37% | 5.14% | -4.34% | 42.86% | |
61 Neutral | C$1.95B | 23.27 | 9.36% | 1.69% | ― | ― | |
61 Neutral | C$1.04B | ― | -1.80% | 4.85% | 1.36% | 59.36% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
52 Neutral | $794.96M | ― | -18.73% | ― | -8.81% | -13.99% | |
48 Neutral | C$1.75B | ― | -18.83% | ― | -4.84% | -77.50% |
* Consumer Cyclical Sector Average
Performance Comparison
TSE:TCL.B
Transcontinental Inc. Class B
16.71
2.87
20.74%
TSE:IFP
Interfor
15.45
-4.99
-24.41%
TSE:CAS
Cascades
10.28
1.02
11.02%
TSE:CFP
Canfor
14.80
-1.48
-9.09%
TSE:RCH
Richelieu Hardware
35.31
-7.33
-17.19%
TSE:WPK
Winpak Limited
38.22
-0.12
-0.31%
Transcontinental Inc. Class B Earnings Call Summary
Earnings Call Date: Dec 11, 2024 | % Change Since: 2.70% | Next Earnings Date: Mar 11, 2025
Earnings Call Sentiment Neutral
The earnings call highlights strong profitability improvements and strategic advancements in sustainability and safety. However, challenges such as revenue declines, the impact of external labor disputes, and pricing pressures present notable concerns. The sentiment reflects a balanced outlook with both achievements and challenges.Highlights
Record Adjusted EBITDA in Packaging Sector
The Packaging sector achieved a record adjusted EBITDA of $262 million for fiscal 2024, marking a 14.2% improvement over the previous year.
Profit Growth in Retail Services & Printing
The Retail Services & Printing sector saw its adjusted EBITDA grow by 4.1% to $63.6 million in Q4, marking the second consecutive quarter of profitability improvement.
Sustainability Milestone
The Science Based Targets Initiative Organization approved the company's near-term emission targets, a significant step in their sustainability objectives.
Reduction in Workplace Accidents
Achieved a 9% reduction in workplace accidents, improving the frequency rate to 1.0, an important milestone in their safety program.
Strong Cash Flow and Financial Position
The company generated $185 million from operating activities in Q4, leading to an improved net debt ratio of 1.71 times and positioning them well for future acquisitions.
Lowlights
Revenue Decline
Overall revenues for Q4 were $749.3 million, a 3.9% decrease compared to last year, driven by lower volume in the company's two main sectors.
Impact of Canada Post Strike
The ongoing strike at Canada Post has already led to an estimated $7 million impact on EBITDA, affecting flyer distribution and resulting in a decrease in store traffic in affected regions.
Continued Weakness in Medical Market
The Packaging sector experienced a decrease in revenue, notably in the medical market, contributing to an overall 1.2% revenue decrease in Q4.
Pricing Pressure in Packaging Sector
The company anticipates pricing pressures in the Packaging sector for fiscal 2025, despite expected volume growth.
Company Guidance
During the TC Transcontinental Fourth Quarter and Fiscal Year 2024 Results Conference Call, the company reported significant financial metrics and outlined future guidance. The adjusted EBITDA for the fiscal year increased by 5.1% to $469.4 million, driven by cost reduction initiatives and efficiency improvements. The Packaging sector achieved a record adjusted EBITDA of $262.2 million, marking a 14.2% increase over the previous year, despite a 1.2% decrease in revenue, primarily due to lower volumes in the medical market. The Retail Services & Printing sector saw a 4.1% increase in adjusted EBITDA to $63.6 million, despite a 7.4% decline in revenue. The company also improved its safety record, reducing accidents by 9% and achieving a frequency rate of 1.0. Looking ahead to fiscal 2025, TC Transcontinental expects volume growth in the Packaging sector, offset by pricing pressures, and aims to maintain stable EBITDA in the Retail Services & Printing sector amid the Canada Post strike. The company plans to continue its share buyback program and expects capital expenditures to remain around $120 million.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.