Transcontinental Inc. Fundamental Analysis
Transcontinental Inc. (TCLAF) shows moderate financial fundamentals with a PE ratio of 1.17, profit margin of 17.30%, and ROE of 22.23%. The company generates $2.0B in annual revenue with weak year-over-year growth of -2.45%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TCLAF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentTCLAF demonstrates superior asset utilization.
Valuation Score
ExcellentTCLAF trades at attractive valuation levels.
Growth Score
ModerateTCLAF shows steady but slowing expansion.
Financial Health Score
WeakTCLAF carries high financial risk with limited liquidity.
Profitability Score
ExcellentTCLAF achieves industry-leading margins.
Key Financial Metrics
Is TCLAF Expensive or Cheap?
P/E Ratio
TCLAF trades at 1.17 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TCLAF's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Transcontinental Inc. at 1.02 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.25 times EBITDA. This is generally considered low.
How Well Does TCLAF Make Money?
Net Profit Margin
For every $100 in sales, Transcontinental Inc. keeps $17.30 as profit after all expenses.
Operating Margin
Core operations generate 8.60 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.23 in profit for every $100 of shareholder equity.
ROA
Transcontinental Inc. generates $28.08 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Transcontinental Inc. generates limited operating cash flow of $161.61M, signaling weaker underlying cash strength.
Free Cash Flow
Transcontinental Inc. produces free cash flow of $95.05M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.14 in free cash annually.
FCF Yield
TCLAF converts 24.11% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
1.17
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.009
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.20
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.15
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.79
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.22
vs 25 benchmark
ROA
Return on assets percentage
0.28
vs 25 benchmark
ROCE
Return on capital employed
0.24
vs 25 benchmark
How TCLAF Stacks Against Its Sector Peers
| Metric | TCLAF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 1.17 | 25.99 | Better (Cheaper) |
| ROE | 22.23% | 1259.00% | Weak |
| Net Margin | 17.30% | -34891.00% (disorted) | Strong |
| Debt/Equity | 1.15 | 0.74 | Weak (High Leverage) |
| Current Ratio | 0.79 | 9.71 | Weak Liquidity |
| ROA | 28.08% | -1482943.00% (disorted) | Strong |
TCLAF outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Transcontinental Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
10.80%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
34.95%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-14.85%
Industry Style: Cyclical, Value, Infrastructure
Declining