Transcontinental (TCL.A) AI Stock Analysis

• Market Cap: C$1.91B
• Dividend Yield: 8.38%
• Average Volume (3M): 118.84K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.77
• Revenue Growth: -2.45%
• EPS Growth: 44.20%
• Country: CA
• Employees: 7,400
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Business Services
• EPS (TTM): 0.82
• Shares Outstanding: 74,112,650
• 10 Day Avg. Volume: 111,798
• 30 Day Avg. Volume: 118,845
• PEG Ratio: 0.22
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 6.72
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$27.40
• Price Target Upside: 20.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: C$25.00 ▲(9.94% Upside)

Transcontinental's overall stock score reflects a stable financial foundation with strong cash flow metrics and a positive technical outlook. The stock's undervaluation and high dividend yield make it attractive, despite challenges in revenue growth and recent earnings call highlights. The company's strategic initiatives and cost management efforts are expected to support future performance.

Positive Factors

Sustainable Packaging Demand

The growing demand for sustainable packaging solutions positions Transcontinental to capitalize on long-term industry trends, supporting revenue growth and market leadership in the packaging sector.

Strong Cash Flow Metrics

Strong cash flow metrics ensure financial flexibility, enabling Transcontinental to invest in growth opportunities and manage debt effectively, supporting long-term stability.

Strategic Acquisitions

Strategic acquisitions enhance Transcontinental's market position and revenue base, fostering growth in the ISM business and diversifying income streams for sustained performance.

Negative Factors

Decline in Revenue Growth

Declining revenue growth indicates challenges in market conditions and competitive pressures, potentially impacting future profitability and necessitating strategic adjustments.

Decrease in Fourth Quarter Revenue

A decrease in fourth-quarter revenue reflects challenges in key segments, which could affect overall financial performance and necessitate operational adjustments to regain momentum.

Free Cash Flow Decline

Declining free cash flow growth could constrain liquidity, limiting the company's ability to invest in growth initiatives and manage financial obligations effectively over the long term.

Transcontinental Business Overview & Revenue Model

Company Description

Transcontinental Inc. (TCL.A) is a leading North American provider of printing and packaging solutions, operating primarily in the flexible packaging, commercial printing, and publishing sectors. The company offers a diverse range of products, including flexible packaging materials, labels, and printed media, serving various industries such as food, beverage, and consumer goods. Transcontinental is committed to innovation and sustainability, focusing on providing high-quality services that meet the evolving needs of its clients.

How the Company Makes Money

Transcontinental generates revenue through multiple key streams, primarily from its flexible packaging and printing divisions. The flexible packaging segment accounts for a significant portion of the company's revenue, driven by demand for sustainable packaging solutions and the growing need for food and consumer goods packaging. The commercial printing segment contributes to earnings through the production of printed materials for businesses, including marketing collateral and promotional products. Additionally, Transcontinental's publishing division generates revenue from the printing and distribution of newspapers and magazines. The company benefits from strategic partnerships with major brands and retailers, which enhance its market presence and drive sales. Its focus on innovation, sustainability, and operational efficiency further strengthens its competitive advantage and profitability.

Transcontinental Financial Statement Overview

Summary

Transcontinental demonstrates a stable financial foundation with moderate leverage and strong cash flow metrics. However, the decline in revenue growth and gross profit margin poses challenges that need addressing to sustain profitability. The company should focus on improving revenue streams and managing costs to enhance future performance.

Income Statement

Transcontinental's income statement shows a mixed performance. The company experienced a decline in revenue growth with a negative rate of -0.612% in the latest year, indicating a challenging market environment. However, the company maintains a reasonable net profit margin of 6.23% and an EBIT margin of 9.32%, suggesting operational efficiency. The gross profit margin has decreased significantly from previous years, which could impact future profitability if not addressed.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.41, indicating moderate leverage. The equity ratio is 57.16%, showing a strong equity base relative to total assets. Return on equity is at 8.94%, which is decent but shows room for improvement. Overall, the balance sheet suggests financial stability but highlights potential for better asset utilization.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by -7.77%, which is a concern for future liquidity. However, the operating cash flow to net income ratio is 1.84, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 1.44, suggesting good cash conversion. Despite the decline in free cash flow growth, the company maintains healthy cash flow metrics.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.74B	2.81B	2.94B	2.96B	2.64B
Gross Profit	255.60M	1.38B	1.36B	1.32B	1.25B
EBITDA	470.80M	416.30M	391.70M	447.50M	450.00M
Net Income	171.00M	121.30M	85.80M	141.20M	130.60M
Balance Sheet
Total Assets	3.35B	3.64B	3.70B	3.80B	3.61B
Cash, Cash Equivalents and Short-Term Investments	47.00M	185.20M	137.00M	45.70M	231.10M
Total Debt	787.40M	989.00M	1.06B	1.15B	1.13B
Total Liabilities	1.43B	1.73B	1.79B	1.92B	1.85B
Stockholders Equity	1.91B	1.91B	1.90B	1.88B	1.76B
Cash Flow
Free Cash Flow	245.60M	292.20M	294.80M	78.40M	177.00M
Operating Cash Flow	314.90M	413.70M	472.30M	220.80M	315.30M
Investing Cash Flow	11.00M	-112.60M	-165.20M	-257.40M	-181.00M
Financing Cash Flow	-470.40M	-258.00M	-216.30M	-150.90M	-150.10M

Transcontinental Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.74
• 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 TSE:TCL.A, the sentiment is Positive. The current price of 22.74 is above the 20-day moving average (MA) of 21.71, above the 50-day MA of 20.37, and above the 200-day MA of 19.48, indicating a bullish trend. The MACD of 0.83 indicates Negative momentum. The RSI at 60.88 is Neutral, neither overbought nor oversold. The STOCH value of 23.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TCL.A.

Transcontinental Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TCL.A	74 Outperform	C$1.91B	11.11	8.95%	8.38%	-2.45%	44.20%
CGY	71 Outperform	C$654.71M	32.35	6.36%	1.95%	3.69%	92.38%
GDI	65 Neutral	C$692.94M	16.50	8.55%	―	-2.83%	179.03%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DCM	54 Neutral	C$93.40M	8.88	26.87%	5.88%	-7.01%	―

Transcontinental Corporate Events

Transcontinental Inc. Earnings Call Highlights Growth and Challenges

The recent earnings call of Transcontinental Inc. conveyed an overall positive sentiment, highlighted by significant improvements in adjusted earnings per share, EBITDA growth, and effective cost management. The Retail Services and Printing sector demonstrated robust performance, bolstered by strategic acquisitions and advancements in artificial intelligence. However, the Packaging sector faced hurdles with a revenue decline and non-recurring growth in book printing, which tempered the otherwise optimistic outlook.

Transcontinental Inc. Reports Q3 2025 Results with Earnings Growth Amid Revenue Decline

Transcontinental Inc. reported a 2.2% decrease in revenues for the third quarter of fiscal year 2025, primarily due to the sale of its industrial packaging operations and lower demand in the Packaging Sector. Despite this, the company achieved a 16.7% increase in adjusted net earnings per share, driven by improved profitability in its Retail Services and Printing Sector and strategic acquisitions. The company remains optimistic about organic growth in earnings for the fiscal year, supported by expected volume growth in several markets.

The most recent analyst rating on ($TSE:TCL.A) stock is a Buy with a C$25.00 price target. To see the full list of analyst forecasts on Transcontinental stock, see the TSE:TCL.A Stock Forecast page.

TC Transcontinental Expands In-Store Marketing Segment with Strategic Acquisitions

TC Transcontinental has acquired Mirazed Inc. and Intergraphics Decal Limited from Canva Group to enhance its in-store marketing segment. This move, following a recent acquisition of Middleton Group, strengthens its leadership in in-store marketing, expanding its capabilities in Quebec and Western Canada. The acquisition aims to accelerate growth in this sector, which generated over $200 million in revenue last fiscal year, leveraging a network of over 1,200 employees across Canada.

The most recent analyst rating on ($TSE:TCL.A) stock is a Buy with a C$23.00 price target. To see the full list of analyst forecasts on Transcontinental stock, see the TSE:TCL.A Stock Forecast page.