Talen Energy Corp (TLN) AI Stock Analysis

• Market Cap: $14.27B
• Dividend Yield: N/A
• Average Volume (3M): 1.27M
• Price to Earnings (P/E): 32.7
• Beta (1Y): 1.45
• Revenue Growth: 68.95%
• EPS Growth: -34.72%
• Country: US
• Employees: 1,894
• Sector: Utilities
• Sector Strength: 75
• Industry: Independent Power Producers
• EPS (TTM): -2.94
• Shares Outstanding: 45,509,780
• 10 Day Avg. Volume: 1,439,106
• 30 Day Avg. Volume: 1,272,113
• PEG Ratio: -0.52
• Price to Book (P/B): 11.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 875.79
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 2.24
• Enterprise Value/Gross Profit: 25.80
• Enterprise Value/Ebitda: 3.40
• 1Y Price Target: $334.22
• Price Target Upside: -1.48% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 63 Neutral
• Price Target: $361.00 ▲(6.41%Upside)

Talen Energy's stock score is driven by positive corporate events and earnings call insights, indicating strategic growth and strong financial performance. However, high leverage and valuation concerns moderate the overall outlook.

Positive Factors

Acquisition Impact

The acquisition of Moxie Freedom and Guernsey gas plants is expected to be immediately accretive to free cash flow per share by 40% to 50% over a few years.

Contract Expansion

Talen announced an upsizing of the contract between Amazon Web Services and the company's Susquehanna nuclear plant, indicating strong demand and business growth.

Growth and Expansion

Talen is in a strong position to capitalize on the AI/Datacenter growth theme due to its ability to deliver gigawatt-scale solutions.

Negative Factors

Market Perception

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

Nuclear Sector Challenges

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

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 production and sale of electricity. The company's diverse portfolio allows it to sell power to wholesale markets and directly to large industrial and commercial customers. Revenue is derived from long-term power purchase agreements, capacity payments, and energy market sales. Additionally, Talen Energy benefits from ancillary services and renewable energy credits, which provide additional income streams. The company's strategic partnerships and investments in renewable energy projects also contribute to its earnings by expanding its clean energy footprint and leveraging government incentives for renewable power generation.

Talen Energy Corp Financial Statement Overview

Summary

Talen Energy Corp's financial statements present a mixed picture. Strong profitability margins, particularly at the net income level, contrast with challenges in revenue growth and cash flow generation. High leverage and a low equity ratio present potential financial risks, underscoring the need for improved cash flow conversion and leverage reduction.

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
EBITDA	1.17B	1.77B	1.71B	1.20B	-301.00M
Net Income	569.00M	998.00M	613.00M	-1.29B	-977.00M
Balance Sheet
Total Assets	5.87B	6.11B	7.12B	10.72B	10.05B
Cash, Cash Equivalents and Short-Term Investments	295.00M	329.00M	401.00M	988.00M	276.00M
Total Debt	3.00B	3.00B	2.83B	5.91B	4.81B
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: 339.24
• 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 339.24 is above the 20-day moving average (MA) of 287.98, above the 50-day MA of 269.96, and above the 200-day MA of 222.22, indicating a bullish trend. The MACD of 12.03 indicates Negative momentum. The RSI at 68.98 is Neutral, neither overbought nor oversold. The STOCH value of 79.15 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	78 Outperform	$67.91B	31.39	46.29%	0.44%	49.22%	313.49%
HTO	71 Outperform	$1.74B	17.09	7.49%	3.25%	12.34%	11.78%
NRG	71 Outperform	$30.10B	24.25	44.91%	1.06%	2.57%	-10.19%
CEPU	69 Neutral	$1.81B	17.99	5.84%	2.99%	-9.99%	-73.66%
TLN	63 Neutral	$14.27B	32.68	29.32%	―	68.95%	-34.72%
Sector *	63 Neutral	HK$30.50B	8.75	5.37%	4.09%	-3.09%	4.51%
HE	52 Neutral	$1.87B	―	-67.93%	―	-7.58%	-819.97%

Talen Energy Corp Corporate Events

Talen Energy Reports Strong PJM Auction Results

On July 22, 2025, Talen Energy announced its results from the PJM Base Residual Auction for the 2026/2027 planning year, where it cleared 6,702 megawatts at a price of $329.17 per megawatt-day, resulting in approximately $805 million in capacity revenues. This outcome underscores Talen’s robust position in the power market, highlighting its ability to secure substantial revenues and maintain its competitive edge in the energy sector.

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 Acquires Moxie Freedom and Guernsey Stations

On July 17, 2025, Talen Energy announced the acquisition of Caithness Energy’s Moxie Freedom Energy Center in Pennsylvania and Guernsey Power Station in Ohio for a net price of $3.5 billion. These acquisitions, involving highly efficient combined-cycle gas-fired plants, are expected to significantly enhance Talen’s energy portfolio by increasing annual generation by 50% and providing substantial cash flow benefits. The transaction is projected to be immediately accretive to free cash flow per share by over 40% in 2026, with further benefits through 2029, while maintaining Talen’s balance sheet strength and supporting future capital allocation strategies.

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 Expands Nuclear Partnership with AWS

On June 11, 2025, Talen Energy announced an expansion of its nuclear energy partnership with Amazon Web Services, involving a power purchase agreement to supply 1,920 megawatts of carbon-free electricity from Talen’s Susquehanna nuclear power plant to AWS data centers in Pennsylvania. This agreement, which extends through 2042, aims to support Amazon’s AI and cloud technologies and includes plans to explore Small Modular Reactors and expand the plant’s energy output. The partnership is expected to decrease Talen’s market risk and support Pennsylvania’s energy future, with significant economic and employment benefits for the region.

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 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.