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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)
Select Model
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Rating:70Neutral
Price Target:
C$26.00
▲(9.61% Upside)
Transcontinental Inc. shows strong technical indicators and attractive valuation metrics, with a low P/E ratio and high dividend yield. Financial performance is stable but challenged by declining revenues and margins. The earnings call provided a mixed outlook with both positive achievements and notable challenges. Overall, the stock presents a balanced risk-reward profile, with technical strength and valuation attractiveness offsetting financial and operational challenges.
Positive Factors
Sustainable Packaging Innovation
Innovation in sustainable packaging aligns with industry trends towards eco-friendly products, enhancing long-term customer relationships and market position.
Successful Acquisitions
Strategic acquisitions are expected to significantly increase revenue, indicating a strong growth strategy and expansion of market reach.
Long-term Partnership
Renewing long-term partnerships secures stable revenue streams and strengthens market position in the printing sector.
Negative Factors
Declining Revenue
Decreasing revenues highlight challenges in maintaining sales volume, which could impact profitability and market competitiveness over time.
Gross Margin Pressure
A decline in gross margins suggests difficulties in cost management or pricing strategy, potentially affecting long-term profitability.
Challenges in Book Printing
Anticipated declines in book printing volumes could reduce revenue from this segment, impacting overall business performance.
Transcontinental Inc. Class B (TCL.B) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.92B
Dividend Yield8.22%
Average Volume (3M)63.00
Price to Earnings (P/E)11.4
Beta (1Y)0.53
Revenue Growth-2.45%
EPS Growth44.20%
CountryCA
Employees7,400
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.82
Shares Outstanding9,506,272
10 Day Avg. Volume0
30 Day Avg. Volume63
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)0.86
Price to Sales (P/S)0.60
P/FCF Ratio6.72
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Transcontinental Inc. Class B Business Overview & Revenue Model
Company DescriptionTranscontinental Inc. Class B (TCL.B) is a leading North American provider of printing and packaging solutions, operating primarily in two segments: flexible packaging and printing. The company specializes in the production of flexible packaging products, including films, bags, and pouches for a variety of industries such as food, pharmaceuticals, and consumer goods. Additionally, Transcontinental offers commercial printing and marketing services, providing customers with comprehensive solutions for their branding and promotional needs.
How the Company Makes MoneyTranscontinental Inc. generates revenue through multiple key streams. The primary source of income comes from the sale of flexible packaging products, which are manufactured and distributed to various sectors including food and beverage, healthcare, and personal care. The company also earns revenue through its commercial printing services, which include the production of brochures, catalogs, and other marketing materials. Significant partnerships with major brands and retailers enhance its market reach and contribute to consistent sales. Furthermore, Transcontinental leverages innovation in sustainable packaging solutions, aligning with industry trends towards eco-friendly products, which not only drives revenue but also strengthens customer relationships. Overall, the company's diverse offerings and strategic partnerships are instrumental in its financial performance.
Transcontinental Inc. Class B Earnings Call Summary
Earnings Call Date:Dec 10, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Mar 10, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements in safety and earnings growth, alongside successful partnerships and acquisitions. However, it also pointed out challenges such as decreased revenues and EBITDA due to external factors like the Canada Post labor conflict, and anticipated declines in certain segments like book printing.Q4-2025 Updates
Positive Updates
Significant Reduction in Workplace Accidents
The company reported a 39% reduction in workplace accidents year-over-year, following a 9% reduction between 2024 and 2023, showcasing a strong emphasis on safety.
Improvement in Adjusted Net Earnings Per Share
Adjusted net earnings per share saw a significant growth of 10.7% for fiscal year 2025, marking the fourth consecutive quarter of improvement.
Renewed 10-Year Partnership with Globe and Mail
The company signed a 10-year extension of its printing agreement with the Globe and Mail, continuing a partnership that spans 40 years.
Successful Acquisitions in ISM
The acquisitions of Mirazed & Intergraphics in Q4 and Middleton in Q3 are expected to bring ISM business close to $300 million in revenue.
Positive Outlook for ISM Growth
ISM activities are expected to see organic growth and benefit from acquisitions in fiscal 2026.
Negative Updates
Decrease in Q4 Revenues
Q4 revenues were $732.4 million, a 2.3% decrease from the previous year, primarily due to lower volume in retail services and printing sector.
Impact of Canada Post Labor Conflict
The Canada Post labor conflict negatively impacted the retail services and printing sector, leading to a 4.3% decline in revenues for Q4 and a reduction in adjusted EBITDA by 14.9%.
Decrease in Q4 Adjusted EBITDA
Adjusted EBITDA decreased by 3.2% to $137.6 million, mainly due to lower volume in the retail services and printing sector.
Challenges in Book Printing
Book printing volumes are expected to decline in 2026 due to the end of a major contract and the unwinding of previous gains in the U.S. market.
Company Guidance
During the TC Transcontinental Fourth Quarter and Fiscal Year 2025 Results Conference Call, several key metrics and projections were highlighted. The company reported a 10.7% year-over-year growth in adjusted net earnings per share, and for the full year, Packaging's adjusted EBITDA increased by 3.7%. However, Q4 revenues declined by 2.3% to $732.4 million, with adjusted EBITDA decreasing by 3.2% to $137.6 million, impacted by lower volume in the retail services and printing sector and the Canada Post labor conflict. The company expects 2026 adjusted EBITDA to remain stable compared to 2025, despite anticipated challenges in traditional activities such as book printing. Capital expenditures are projected to be around $60 million in fiscal 2026, and cash taxes are expected to be approximately $30 million. Following the anticipated sale of the Packaging business in Q1 2026, a $20 per share distribution to shareholders is planned, with remaining proceeds directed toward debt reduction.Transcontinental Inc. Class B Financial Statement Overview
Summary
Transcontinental Inc. faces challenges with declining revenue and gross profit margins, impacting its income statement performance. The balance sheet shows a stable financial position with moderate leverage and a reasonable return on equity. Cash flow metrics highlight strong cash generation capabilities, although free cash flow growth has been negative. Overall, the company demonstrates resilience in cash management but needs to address revenue and margin pressures.Income Statement
Transcontinental Inc. has experienced a decline in revenue over the past year, with a negative revenue growth rate of -6.12% in the latest period. The gross profit margin has decreased significantly, indicating potential challenges in cost management or pricing strategy. However, the company maintains a reasonable net profit margin of 6.23%, suggesting some level of profitability despite revenue challenges.Balance Sheet
The company's debt-to-equity ratio has improved slightly, indicating a reduction in leverage. The return on equity is moderate at 8.94%, reflecting a decent return for shareholders. The equity ratio stands at 57.18%, suggesting a stable financial structure with a good proportion of equity financing.Cash Flow
Transcontinental Inc. has seen a decline in free cash flow growth, with a rate of -7.77%. However, the operating cash flow to net income ratio is strong at 1.84, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also robust at 1.44, reflecting solid cash flow management.| 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 | 1.37B | 1.38B | 1.36B | 1.32B | 1.25B |
| EBITDA | 474.50M | 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 | 275.30M | 277.50M | 69.00M | 168.00M |
| Operating Cash Flow | 314.90M | 370.40M | 422.80M | 186.10M | 283.00M |
| Investing Cash Flow | 11.00M | -112.60M | -165.20M | -257.40M | -181.00M |
| Financing Cash Flow | -470.40M | -214.70M | -166.80M | -116.20M | -117.80M |
Transcontinental Inc. Class B Technical Analysis
Positive
23.72
Price Trends
21.12
Positive
20.24
Positive
19.62
Positive
Market Momentum
0.66
Positive
59.61
Neutral
23.69
Neutral
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 23.72 is above the 20-day moving average (MA) of 23.37, above the 50-day MA of 21.12, and above the 200-day MA of 19.62, indicating a bullish trend. The MACD of 0.66 indicates Positive momentum. The RSI at 59.61 is Neutral, neither overbought nor oversold. The STOCH value of 23.69 is Neutral, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Neutral | C$1.92B | 11.38 | 8.95% | 8.22% | -2.45% | 44.20% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | C$103.84M | 9.87 | 26.87% | 5.99% | -7.01% | ― | |
42 Neutral | C$407.94K | -0.01 | 77.27% | ― | 22.60% | -33.96% |
* Consumer Cyclical Sector Average
TSE:TCL.B
Transcontinental Inc. Class B
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8.32
54.85%
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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.