Education
About Us
Working with TipRanks
Follow Us
Talen Energy Corp (TLN)
NASDAQ:TLN
Top Page
Talen Energy Corp
(NASDAQ:TLN)
75Outperform
Positive Factors
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.
Strategic Partnerships
Talen Energy Corp is unique as it is the only operating nuclear plant with a data center contract, which distinguishes it in the market.
Negative Factors
Market Competition
The outlook for merchant nuclear has been impaired with increasing competition and uncertainty in securing high-value contracts.
Regulatory Risks
FERC's denial of amended ISAs may lead to Talen bearing the cost of network fees, potentially lowering margins.
Talen Energy Corp (TLN) vs. S&P 500 (SPY)
Market Cap
$1.80B
Dividend YieldN/A
Average Volume (3M)1.38M
Price to Earnings (P/E)12.6
Beta (1Y)1.44
Revenue Growth65.16%
EPS Growth73.21%
CountryUS
Employees1,894
SectorUtilities
Sector Strength82
IndustryIndependent Power Producers
Share Statistics
EPS (TTM)17.38
Shares Outstanding45,509,780
10 Day Avg. Volume1,569,288
30 Day Avg. Volume1,382,265
Financial Highlights & Ratios
PEG Ratio0.17
Price to Book (P/B)N/A
Price to Sales (P/S)15.19
Price to Cash Flow (P/CF)10.00
P/FCF Ratio13.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$259.00Price Target Upside18.29% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
Talen Energy Corp Business Overview & Revenue Model
Company DescriptionTalen 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 MoneyTalen Energy Corp generates revenue primarily through the sale of electricity generated by its power plants. The company operates in competitive wholesale electricity markets, where it sells power at market-based rates. Key revenue streams include energy sales, capacity payments, and ancillary services. Talen Energy may also engage in long-term contracts or power purchase agreements (PPAs) with utilities and other large energy consumers to secure a stable revenue flow. Additionally, the company may benefit from government incentives or regulatory frameworks that support the use of cleaner energy sources, contributing to its earnings.
Talen Energy Corp Financial Statement Overview
Summary
Talen Energy Corp demonstrates strong income growth and improved leverage management, with a significant reduction in debt and a positive equity position. Cash flow generation shows improvement, but inconsistencies remain, suggesting the need for sustained focus on financial stability.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.78
Positive
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.70
Positive
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.65
Positive
| Breakdown | ||
| Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|
| Income Statement | Total Revenue | |
| 2.07B | 1.44B | 3.02B |
| Gross Profit | ||
| 664.00M | 453.00M | 1.34B |
| EBIT | ||
| 226.00M | -401.00M | 588.00M |
| EBITDA | ||
| 1.76B | 1.71B | 1.20B |
| Net Income Common Stockholders | ||
| 998.00M | 613.00M | -1.29B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |
| 328.00M | 901.00M | 988.00M |
| Total Assets | ||
| 6.11B | 7.12B | 10.72B |
| Total Debt | ||
| 3.00B | 2.82B | 4.35B |
| Net Debt | ||
| 2.68B | 1.92B | 3.36B |
| Total Liabilities | ||
| 4.72B | 4.59B | 11.20B |
| Stockholders Equity | ||
| 1.39B | 2.46B | -573.00M |
| Cash Flow | Free Cash Flow | |
| 67.00M | 516.00M | -125.00M |
| Operating Cash Flow | ||
| 256.00M | 864.00M | 187.00M |
| Investing Cash Flow | ||
| 1.17B | -347.00M | -368.00M |
| Financing Cash Flow | ||
| -1.96B | -604.00M | 426.00M |
Talen Energy Corp Technical Analysis
Positive
218.96
Price Trends
218.36
Positive
211.46
Positive
176.61
Positive
Market Momentum
-1.37
Negative
55.98
Neutral
95.96
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 218.96 is above the 20-day moving average (MA) of 199.29, above the 50-day MA of 218.36, and above the 200-day MA of 176.61, indicating a bullish trend. The MACD of -1.37 indicates Negative momentum. The RSI at 55.98 is Neutral, neither overbought nor oversold. The STOCH value of 95.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TLN.
Talen Energy Corp Risk Analysis
Talen Energy Corp disclosed 38 risk factors in its most recent earnings report. Talen Energy Corp reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Talen Energy Corp Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $1.80B | 12.60 | 51.92% | ― | 65.16% | 73.21% | |
74 Outperform | $38.06B | 20.57 | 8.44% | 3.10% | 4.23% | -27.02% | |
72 Outperform | $44.22B | 17.86 | 9.34% | 3.52% | 5.98% | 4.99% | |
66 Neutral | $23.28B | 22.61 | 10.02% | 2.32% | -0.61% | 15.54% | |
65 Neutral | $12.12B | 15.70 | 7.09% | 4.31% | 5.53% | -2.84% | |
63 Neutral | $9.29B | 5.52 | 39.65% | 5.31% | -3.14% | 563.59% | |
62 Neutral | $20.50B | 20.17 | 41.79% | 1.65% | -1.72% | ― |
* Utilities Sector Average
Performance Comparison
TLN
Talen Energy Corp
218.96
128.06
140.88%
CNP
Centerpoint Energy
35.72
9.23
34.84%
ED
Consolidated Edison
106.83
22.33
26.43%
EXC
Exelon
43.58
8.43
23.98%
NRG
NRG Energy
102.86
38.27
59.25%
AES
AES
12.88
-3.02
-18.99%
Talen Energy Corp Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: 8.49% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance with significant capital returns to shareholders and a reaffirmed outlook. However, there are regulatory challenges and market uncertainties related to data center demand that need to be addressed.Highlights
Record Adjusted EBITDA and Free Cash Flow
Talen Energy generated $770 million of adjusted EBITDA and $283 million of adjusted free cash flow for the year, achieving record levels of reliability and safety.
Successful Share Repurchase Program
Since the start of 2024, Talen has repurchased approximately 13 million shares, or 22% of shares outstanding, returning nearly $2 billion of capital to shareholders.
Strong Contractual and Regulatory Position
Talen has an existing contract with AWS and is executing on electrifying the site, providing a steady stream of revenue and strategic positioning within the PJM market.
Reaffirmed Guidance and Positive Market Outlook
Talen reaffirmed its 2025 guidance and 2026 outlook, with a focus on maximizing shareholder returns through operational excellence and strategic opportunities.
Lowlights
Regulatory Challenges with FERC
There are ongoing regulatory uncertainties with FERC regarding co-located load connections, though Talen is working to address these through PJM.
Concerns Over Data Center Demand
Despite strong demand signals, there are market concerns about the pace of hyperscaler investments in AI and data centers.
Company Guidance
During the Talen Energy Corporation Full Year 2024 Earnings Call, the company provided significant guidance metrics, including reaffirming their 2025 adjusted EBITDA range of $925 million to $1.175 billion and adjusted free cash flow range of $395 million to $595 million. They highlighted their operational achievements with a record 36 terawatt-hours of power generated and an equivalent forced outage factor of 2.2%. In terms of financial performance, Talen generated $770 million of adjusted EBITDA and $283 million of adjusted free cash flow for 2024, with a net leverage ratio of 3.3 times as of February 2024. The company also discussed their strategic moves, including a $1 billion-plus share repurchase program and balance sheet flexibility, which allowed them to buy back approximately 22% of their market cap in 2024. Additionally, they noted the impact of the PJM capacity market price increases and the RMR agreements, projecting $145 million annually for Brandon Shores and $35 million for Wagner starting June 2025. The company expressed confidence in their path forward, leveraging their robust cash flow growth profile and continuing to explore strategic opportunities.Talen Energy Corp Corporate Events
Private Placements and Financing
Talen Energy Corp Announces Major Refinancing Moves
Positive
Dec 20, 2024
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.
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.