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Transcontinental Inc. Class B (TSE:TCL.B)
TSX:TCL.B
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Transcontinental Inc. Class B
(TSX:TCL.B)
Rating:74Outperform
Price Target:
C$22.50
▲(11.72% Upside)
Transcontinental Inc. Class B (TCL.B) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.70B
Dividend Yield9.43%
Average Volume (3M)99.00
Price to Earnings (P/E)9.4
Beta (1Y)0.68
Revenue Growth-2.58%
EPS Growth100.21%
CountryCA
Employees7,400
SectorConsumer Cyclical
Sector Strength80
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)N/A
Shares Outstanding9,506,272
10 Day Avg. Volume100
30 Day Avg. Volume99
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$22.50Price Target Upside11.72% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Transcontinental Inc. Class B Business Overview & Revenue Model
Company DescriptionTranscontinental Inc., operating under its Class B stock symbol TCL.B, is a prominent Canadian company primarily engaged in flexible packaging, printing, and media operations. The company operates through three key sectors: Packaging, Printing, and Media, offering a diverse range of products and services from flexible plastic packaging for consumer goods to comprehensive printing solutions for magazines, retail marketing, and newspapers. Transcontinental Inc. is committed to delivering sustainable and innovative solutions across its core markets, leveraging its extensive expertise and industry presence.
How the Company Makes MoneyTranscontinental Inc. generates revenue through its multi-faceted business operations. Its Packaging sector is a primary revenue driver, focusing on the production and sale of flexible plastic packaging that is used in various industries such as food, beverage, and consumer goods. The Printing sector contributes significantly to the company's earnings by providing commercial printing services, including the production of marketing materials, magazines, and newspapers for a wide range of clients. Additionally, the Media sector adds value by managing a portfolio of media assets, offering content creation, and digital media services. Key partnerships with major consumer brands and media companies, as well as a strategic focus on sustainability and innovation, further bolster the company's revenue streams. The combination of these diverse operations enables Transcontinental Inc. to maintain a stable and diversified income base.
Transcontinental Inc. Class B Earnings Call Summary
Earnings Call Date:Sep 04, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Dec 10, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with several key achievements like increased earnings per share and improvements in safety and the Retail Services & Printing sector. However, the Packaging sector faced revenue declines and challenges in Latin America, alongside potential tariff impacts. The sentiment is balanced with positive developments in financial health and certain market recoveries countered by specific sectorial challenges.Q2-2025 Updates
Positive Updates
Increase in Adjusted Net Earnings per Share
Achieved a growth of 11.5% in adjusted net earnings per share in Q2 compared to Q2 last year.
Improved Safety Performance
Reported a 40% decrease in incidents from 46 to 28 in the first 6 months of the fiscal year.
Strong Retail Services & Printing Performance
Retail Services & Printing sector saw a 5.1% increase in revenues to $279.9 million and a 15.5% growth in adjusted EBITDA to $54.4 million.
Solid Financial Position
Reported a decrease in financial expenses by $5.4 million to $9 million and maintained a healthy net debt ratio of 1.70x despite paying a special dividend.
Recovery in Medical Market
Observed positive volume growth in the medical packaging market, expected to continue in the second half of fiscal 2025.
Negative Updates
Decrease in Packaging Revenues
Packaging sector experienced a 2% decrease in revenues, primarily due to the sale of industrial activities and lower volumes.
Challenges in Latin America
Reported lower volumes in Latin America due to smaller crop yields, impacting year-over-year sales negatively.
Potential Impact of Tariffs
Discussed potential impacts from new tariffs, particularly in the ISM business, although not expected to be material.
Slower Real Estate Monetization
Faced a slowdown in the market for monetizing non-core real estate assets, delaying expected transactions.
Company Guidance
During the TC Transcontinental Second Quarter Fiscal Year 2025 Results Conference Call, the company reported a 0.1% increase in revenues and an 11.5% rise in adjusted net earnings per share compared to the same quarter last year. The Retail Services & Printing sector saw a 5.1% revenue increase to $279.9 million, driven by growth in Book Printing, Specialty Solutions, and In-store Marketing, with adjusted EBITDA up 15.5% to $54.4 million. Packaging sector revenues decreased by 2% to $404 million, with an 8.1% drop in adjusted EBITDA to $65.4 million. Financial expenses fell by $5.4 million due to lower debt levels and interest rates, maintaining an effective tax rate of 20.8%. The company emphasized its focus on organic growth, cost reduction, and a solid sales pipeline, particularly in medical and beverage packaging, to drive profitability in the second half of fiscal 2025.Transcontinental Inc. Class B Financial Statement Overview
Summary
Transcontinental Inc. Class B exhibits solid financial health with stable profitability margins and a strong equity base. Despite slightly negative revenue growth, the company demonstrates strong cash flow and financial flexibility. Continued focus on revenue expansion and leverage management will be crucial for future growth.Income Statement
Transcontinental Inc. Class B's income statement shows a stable gross profit margin at 49.8% for TTM, indicating efficient production and service delivery. The net profit margin for TTM is 6.5%, reflecting a moderate level of profitability. The revenue growth has been slightly negative at -1.3% TTM compared to the previous year, which raises concerns about growth potential. The EBIT margin of 10.4% and EBITDA margin of 17.9% indicate solid operating performance, though there is room for improvement in converting revenue to profit.75
Positive
Balance Sheet
The balance sheet reveals a debt-to-equity ratio of 0.45 TTM, reflecting a moderate level of leverage, which is manageable but should be monitored. The return on equity (ROE) for TTM is 9.7%, indicating decent profitability for shareholders, though there is potential for enhancement. The equity ratio of 56.7% suggests a strong capital base, providing financial stability and reducing insolvency risk.70
Positive
Cash Flow
Cash flow analysis shows a healthy operating cash flow to net income ratio of 2.1 TTM, demonstrating strong cash generation from operations. The free cash flow to net income ratio is 1.58 for TTM, indicating robust free cash flow relative to net earnings. Despite a minor decline in free cash flow growth rate at -2.2%, the company maintains good liquidity and financial flexibility.80
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.81B | 2.94B | 2.96B | 2.64B | 2.57B |
| Gross Profit | 1.38B | 1.36B | 1.32B | 1.25B | 1.25B |
| EBITDA | 416.30M | 391.70M | 447.50M | 450.00M | 482.10M |
| Net Income | 121.30M | 85.80M | 141.20M | 130.60M | 131.70M |
Balance Sheet | |||||
| Total Assets | 3.64B | 3.70B | 3.80B | 3.61B | 3.60B |
| Cash, Cash Equivalents and Short-Term Investments | 185.20M | 137.00M | 45.70M | 231.10M | 241.00M |
| Total Debt | 989.00M | 1.06B | 1.15B | 1.13B | 1.17B |
| Total Liabilities | 1.73B | 1.79B | 1.92B | 1.85B | 1.86B |
| Stockholders Equity | 1.91B | 1.90B | 1.88B | 1.76B | 1.73B |
Cash Flow | |||||
| Free Cash Flow | 292.20M | 294.80M | 78.40M | 177.00M | 329.50M |
| Operating Cash Flow | 413.70M | 472.30M | 220.80M | 315.30M | 427.00M |
| Investing Cash Flow | -112.60M | -165.20M | -257.40M | -181.00M | 126.40M |
| Financing Cash Flow | -258.00M | -216.30M | -150.90M | -150.10M | -526.40M |
Transcontinental Inc. Class B Technical Analysis
Positive
20.14
Price Trends
19.96
Positive
19.66
Positive
17.95
Positive
Market Momentum
0.09
Negative
67.50
Neutral
96.11
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TCL.B, the sentiment is Positive. The current price of 20.14 is above the 20-day moving average (MA) of 19.36, above the 50-day MA of 19.96, and above the 200-day MA of 17.95, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 67.50 is Neutral, neither overbought nor oversold. The STOCH value of 96.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TCL.B.
Transcontinental Inc. Class B Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Performance Comparison
TSE:TCL.B
Transcontinental Inc. Class B
20.14
5.26
35.35%
TSE:DCM
Data Commun Management
1.50
-1.12
-42.75%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.