Talen Energy Corp (TLN) AI Stock Analysis

• Market Cap: $1.80B
• Dividend Yield: N/A
• Average Volume (3M): 785.36K
• Price to Earnings (P/E): 26.8
• Beta (1Y): 1.45
• Revenue Growth: 68.95%
• EPS Growth: -34.72%
• Country: US
• Employees: 1,894
• Sector: Utilities
• Sector Strength: 76
• Industry: Independent Power Producers
• EPS (TTM): -2.94
• Shares Outstanding: 45,509,780
• 10 Day Avg. Volume: 694,530
• 30 Day Avg. Volume: 785,355
• PEG Ratio: -0.47
• Price to Book (P/B): 10.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 148.94
• Enterprise Value/Market Cap: 6.37
• Enterprise Value/Revenue: 1.62
• Enterprise Value/Gross Profit: 18.67
• Enterprise Value/Ebitda: 2.46
• 1Y Price Target: $271.67
• Price Target Upside: 5.08% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 64 Neutral
• Price Target: $278.00 ▲(7.53%Upside)

Talen Energy's overall score reflects strong earnings call performance and bullish technical indicators, which are balanced by financial stability concerns and high valuation. The company's profitability and strategic initiatives are positive, but high leverage and cash flow challenges present risks.

Positive Factors

Earnings Guidance

Improved conviction on 25 and 26 outlook on the back of higher hedges, solid 1Q, and favorable market dynamics since guidance was introduced.

Operational Efficiency

Very strong operational track record at the Susquehanna Nuclear plant, consistently ranking in the top decile among peers on its cost structure, with no forced outages for one unit over the last three years.

Strategic Partnerships

Talen Energy is unique in its existing relationship with Amazon, being the only independent power producer to contract an existing nuclear plant.

Negative Factors

Investor Sentiment

Investors have soured on the nuclear-data center thematic, indicating challenges in the broader market perception.

Market Competition

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 Corp (TLN) is a privately held independent power producer headquartered in the United States. The company operates a diverse portfolio of power generation assets, including nuclear, coal, natural gas, and renewable energy facilities. Talen Energy is committed to delivering reliable energy solutions while transitioning towards cleaner and more sustainable energy sources.

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's financial performance shows strong profitability margins but is hindered by declining revenue and negative cash flow growth. High leverage and a low equity ratio pose financial risks, although the company demonstrates effective equity capital utilization with a strong return on equity.

Income Statement

The company's income statement reveals mixed results. The gross profit margin for TTM is approximately 33.7%, indicating strong efficiency in converting revenue into profit. However, the net profit margin is much higher at 31.2%, reflecting substantial net income. Revenue has decreased from the previous year, creating a negative growth trend, although the EBIT margin of 5.6% suggests some operational profitability. EBITDA margin remains robust at 64.3%, indicative of strong earnings before non-cash expenses.

Balance Sheet

The balance sheet shows a moderate level of financial stability. The debt-to-equity ratio is 2.54, indicating a high level of leverage which could pose financial risks if not managed properly. The return on equity is strong at 48.2% for TTM, suggesting effective use of equity capital to generate profits. However, the equity ratio is relatively low at 20.1%, which points to a reliance on debt financing.

Cash Flow

Cash flow analysis indicates challenges with growth and earnings conversion. The free cash flow growth rate is negative, showing a significant decline compared to the previous year. The operating cash flow to net income ratio is low at 0.35, suggesting that net income does not closely translate into cash flow. The free cash flow to net income ratio is also low at 0.03, indicating limited free cash generation relative to net income.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement		Total Revenue
1.82B	2.07B	1.44B	3.02B	1.77B
	Gross Profit
614.00M	664.00M	453.00M	1.34B	244.00M
	EBIT
102.00M	226.00M	-401.00M	588.00M	-1.10B
	EBITDA
1.17B	1.77B	1.71B	1.20B	-301.00M
	Net Income Common Stockholders
569.00M	998.00M	613.00M	-1.29B	-977.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
295.00M	328.00M	901.00M	988.00M	276.00M
	Total Assets
5.87B	6.11B	7.12B	10.72B	10.05B
	Total Debt
2.99B	3.00B	2.82B	4.35B	4.74B
	Net Debt
2.70B	2.68B	2.42B	3.36B	4.47B
	Total Liabilities
4.68B	4.72B	4.59B	11.20B	9.32B
	Stockholders Equity
1.18B	1.39B	2.46B	-573.00M	733.00M
Cash Flow		Free Cash Flow
15.00M	67.00M	516.00M	-125.00M	-518.00M
	Operating Cash Flow
202.00M	256.00M	864.00M	187.00M	-294.00M
	Investing Cash Flow
838.00M	1.17B	-347.00M	-368.00M	-280.00M
	Financing Cash Flow
-1.80B	-1.96B	-604.00M	426.00M	956.00M

Talen Energy Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 258.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 258.54 is above the 20-day moving average (MA) of 246.24, above the 50-day MA of 222.53, and above the 200-day MA of 203.47, indicating a bullish trend. The MACD of 9.30 indicates Negative momentum. The RSI at 67.11 is Neutral, neither overbought nor oversold. The STOCH value of 70.10 is Neutral, 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
VST	77 Outperform	$58.91B	27.23	46.29%	0.51%	49.22%	313.49%
HTO	72 Outperform	$1.75B	17.20	7.49%	3.20%	12.34%	11.78%
CEPU	71 Outperform	$1.90B	18.79	5.84%	2.86%	-9.99%	-73.66%
NRG	71 Outperform	$30.49B	24.56	44.91%	1.09%	2.57%	-10.19%
Sector *	64 Neutral	$8.53B	10.34	4.24%	4.37%	4.14%	-13.04%
TLN	64 Neutral	$1.80B	26.79	29.32%	―	68.95%	-34.72%
HE	49 Neutral	$1.80B	―	-67.93%	―	-7.58%	-819.97%

Talen Energy Corp Corporate Events

Talen Energy Extends Maintenance at Susquehanna Station

On May 19, 2025, Talen Energy Corp announced an update regarding the maintenance outage at its Susquehanna Steam Electric Station. The planned refueling outage on Unit 2, which began in late March, was extended due to additional maintenance needs, increasing costs by $35 million. The completion of maintenance is expected by the first week of June, with efficiency gains anticipated to offset costs within two years. Despite the delay, the company’s financial guidance for 2025 remains unchanged.

The most recent analyst rating on (TLN) stock is a Buy with a $233.00 price target. To see the full list of analyst forecasts on Talen Energy Corp stock, see the TLN Stock Forecast page.

Talen Energy Corp Approves 2025 Employee Stock Plan

On May 7, 2025, Talen Energy Corporation held its Annual Meeting of Stockholders, where several proposals were approved, including the 2025 Employee Stock Purchase Plan (ESPP), which allows employees to buy company stock at a 15% discount. Additionally, the election of directors, executive compensation, and the appointment of PricewaterhouseCoopers LLP as the independent auditor for 2025 were ratified, impacting the company’s governance and financial oversight.

The most recent analyst rating on (TLN) stock is a Buy with a $233.00 price target. To see the full list of analyst forecasts on Talen Energy Corp stock, see the TLN Stock Forecast page.