Transcontinental Inc. Class B (TSE:TCL.B)
TSX:TCL.B
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Transcontinental Inc. Class B
(TSX:TCL.B)
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Rating:68Neutral
Price Target:
C$7.50
▼(-68.38% Downside)
Action:ReiteratedDate:03/25/26
The score is driven primarily by stable financial health (strong cash generation and manageable leverage) but held back by declining revenue and margin compression. Technicals are favorable with strong trend support, though the stock appears overheated on RSI. Valuation is helped by a high dividend yield and a moderate P/E, while the earnings call points to stable (not expanding) 2026 EBITDA alongside segment headwinds, partially offset by the planned Packaging sale and shareholder distribution.
Positive Factors
Consistent free cash flow
Sustained OCF and FCF (FCF ≈78% of net income) give the company durable internal funding for capex, dividends, and debt reduction. Strong cash conversion cushions operational cyclicality and supports strategic choices without heavy external financing over the next 2–6 months.
Negative Factors
Persistent revenue decline
A multi-period top-line contraction undermines operating leverage and limits reinvestment capacity. Continued volume declines compress fixed-cost coverage, making margin recovery harder and increasing dependence on non-core disposals or consolidation to stabilize revenue.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent free cash flow
Sustained OCF and FCF (FCF ≈78% of net income) give the company durable internal funding for capex, dividends, and debt reduction. Strong cash conversion cushions operational cyclicality and supports strategic choices without heavy external financing over the next 2–6 months.
Read all positive factors
Transcontinental Inc. Class B (TCL.B) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$469.51M
Dividend Yield8.22%
Average Volume (3M)63.00
Price to Earnings (P/E)16.3
Beta (1Y)-0.03
Revenue Growth-2.45%
EPS Growth44.20%
CountryCA
Employees7,400
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.08
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)1.12
Revenue Forecast (FY)C$1.15B
Transcontinental Inc. Class B Business Overview & Revenue Model
Company Description
Transcontinental Inc. engages in the flexible packaging business in Canada, the United States, Latin America, the United Kingdom, Australia, and New Zealand. It operates through Packaging, Printing, and Media sectors. The Packaging sector engages ...
How the Company Makes Money
Transcontinental makes money primarily by selling packaging products and associated services to business customers. Its core revenue stream comes from manufacturing and converting flexible packaging (e.g., producing multilayer films and packaging ...
Transcontinental Inc. Class B Earnings Call Summary
Earnings Call Date:Dec 10, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jun 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.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.
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.
Read all updates
Q4-2025 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
62
Positive
Balance Sheet
71
Positive
Cash Flow
68
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.36B | 2.74B | 2.81B | 2.94B | 2.96B | 2.64B |
| Gross Profit | 1.07B | 1.37B | 1.38B | 1.36B | 1.32B | 1.25B |
| EBITDA | 362.30M | 474.50M | 416.30M | 391.70M | 447.50M | 450.00M |
| Net Income | 145.10M | 171.00M | 121.30M | 85.80M | 141.20M | 130.60M |
Balance Sheet | ||||||
| Total Assets | 3.27B | 3.35B | 3.64B | 3.70B | 3.80B | 3.61B |
| Cash, Cash Equivalents and Short-Term Investments | 43.00M | 47.00M | 185.20M | 137.00M | 45.70M | 231.10M |
| Total Debt | 752.20M | 787.40M | 989.00M | 1.06B | 1.15B | 1.13B |
| Total Liabilities | 1.37B | 1.43B | 1.73B | 1.79B | 1.92B | 1.85B |
| Stockholders Equity | 1.90B | 1.91B | 1.91B | 1.90B | 1.88B | 1.76B |
Cash Flow | ||||||
| Free Cash Flow | 236.10M | 245.60M | 275.30M | 277.50M | 69.00M | 168.00M |
| Operating Cash Flow | 302.60M | 314.90M | 370.40M | 422.80M | 186.10M | 283.00M |
| Investing Cash Flow | -110.50M | 11.00M | -112.60M | -165.20M | -257.40M | -181.00M |
| Financing Cash Flow | -422.90M | -470.40M | -214.70M | -166.80M | -116.20M | -117.80M |
Transcontinental Inc. Class B Technical Analysis
Positive
23.72
Price Trends
5.28
Positive
4.83
Positive
4.36
Positive
Market Momentum
0.65
Negative
59.45
Neutral
24.21
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 6.15, above the 50-day MA of 5.28, and above the 200-day MA of 4.36, indicating a bullish trend. The MACD of 0.65 indicates Negative momentum. The RSI at 59.45 is Neutral, neither overbought nor oversold. The STOCH value of 24.21 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | C$469.51M | 16.26 | 7.69% | 8.22% | -2.45% | 44.20% | |
62 Neutral | C$89.07M | 9.79 | 26.87% | 5.99% | -7.01% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
42 Neutral | C$407.94K | >-0.01 | 62.53% | ― | 22.60% | -33.96% |
* Consumer Cyclical Sector Average
TSE:TCL.B
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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.