Transcontinental, Inc. (TCL.A) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Imaflex, Inc.

Transcontinental, Inc.

Postmedia Network Canada Corp.

FP Newspapers, Inc.

Why is Transcontinental, Inc. ?

Poor long term growth as Operating profit has grown by an annual rate -6.89% of over the last 5 years

Flat results in Apr 26

OPERATING CASH FLOW(Y) Lowest at CAD 200.4 MM
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
DEBT-EQUITY RATIO (HY) Highest at 112.75 %

With ROE of 34.37%, it has a very expensive valuation with a 1.12 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -76.06%, its profits have risen by 8.5% ; the PEG ratio of the company is 0.4

Below par performance in long term as well as near term

Along with generating -76.06% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Transcontinental, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Transcontinental, Inc.

-76.06%

-0.67

86.27%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.77%

EBIT Growth (5y)

-6.89%

EBIT to Interest (avg)

5.45

Debt to EBITDA (avg)

1.82

Net Debt to Equity (avg)

0.38

Sales to Capital Employed (avg)

1.05

Tax Ratio

23.84%

Dividend Payout Ratio

44.10%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

9.02%

ROE (avg)

8.47%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.12

EV to EBIT

3.96

EV to EBITDA

2.35

EV to Capital Employed

1.06

EV to Sales

0.41

PEG Ratio

0.38

Dividend Yield

ROCE (Latest)

26.74%

ROE (Latest)

34.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -5.83% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 6.87 times

DEBTORS TURNOVER RATIO(HY)

Highest at 5.52 times

EPS(Q)

Highest at CAD 2.7

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 200.4 MM

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

DEBT-EQUITY RATIO (HY)

Highest at 112.75 %

DIVIDEND PER SHARE(HY)

Lowest at CAD 5.52

Here's what is working for Transcontinental, Inc.

EPS

Highest at CAD 2.7

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Inventory Turnover Ratio

Highest at 6.87 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 5.52 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -5.83% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Transcontinental, Inc.

Operating Cash Flow

Lowest at CAD 200.4 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Debt-Equity Ratio

Highest at 112.75 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Dividend per share

Lowest at CAD 5.52

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (CAD)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)