# Transcontinental Inc. (TCL-A.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Industrials / Professional Services. Price C$5.37, market value C$449 million.

## Valuation
- **P/E (trailing): 2.9×** (5-yr avg 1.3×, 3-yr avg 1.4×). Transcontinental Inc. trades at 2.9× trailing earnings, well above its own five-year average of 1.3×: investors are paying up relative to the company's past. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 4.7×, higher than trailing, so analysts expect earnings to fall.
- **PEG: 0.10**. A PEG of 0.10 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.2×**. Each dollar of revenue is priced at 0.2×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.2×**. The shares trade at 1.2× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 4.3×**. Enterprise value is 4.3× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 30.3%** (5-yr avg 130.5%). Free cash flow equals 30.3% of the market value, below its five-year average of 130.5%, so the shares are pricier on cash than usual. Above 5% is generally attractive.
- **Earnings yield: 34.5%**. The inverse of the P/E: 34.5% of the price is earned each year.

## Profitability
- **Gross margin: 38.6%**. Transcontinental Inc. keeps 38.6% of revenue after the direct cost of what it sells.
- **Operating margin: 8.6%**. 8.6% of revenue is left after running the business.
- **Net margin: 6.2%**. 6.2% of each dollar of sales reaches the bottom line.
- **Return on equity: 8.9%**. 8.9% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 5.2%**. Return on all capital, debt included, is 5.2%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: 10.1%**. Each dollar of assets produces 10.1% of profit.

## Growth
- **Revenue growth (1 yr): -2.5%** (3-yr -2.5%/yr, 5-yr 1.3%/yr). Revenue fell 2.5% over the last year, against 1.3% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 44.7%** (3-yr 7.8%/yr, 5-yr 6.2%/yr). Earnings per share rose 44.7%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 52.7%/yr**. Free cash flow has compounded at 52.7% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.41**. Debt is 0.41 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 2.7×**. It would take 2.7 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 4.9×**. Operating profit covers interest 4.9× over, a safe margin.
- **Current ratio: 1.29** (quick 0.77). Current assets cover the next year's liabilities 1.29 times.
- **Altman Z-score: 2.15**. A Z-score of 2.15 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 8/9**. 8 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 13.50%** (C$0.68 per share, trailing). Transcontinental Inc. yields 13.50%, high enough to check carefully: yields this high often precede a cut.
- **Payout ratio: 93%** (889% of free cash flow). 93% of earnings goes out as dividends, leaving a thin cushion.
- **Consecutive years of increases: 8**. 8 straight years of increases.
- **Dividend growth (5 yr): 16.2%/yr** (1-yr 111.1%). The dividend has compounded at 16.2% a year over five years, doubling roughly every 4 years at that pace.
- **Shareholder yield: 128.9%**. Dividends plus net buybacks return 128.9% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (6 analysts). 6 analysts cover Transcontinental Inc.; the consensus is buy, with an average price target of C$7.17 (+33% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 88.6%** (YTD 67.9%, 3-mo 7.1%). The shares are up 88.6% over twelve months including dividends.
- **From 52-week high: -79.1%** (29.1% above the low). Trading 79% below its 52-week high, deep in a drawdown.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 47**. An RSI of 47 is neutral.
- **Beta (1 yr): 0.54** (volatility 56%). Beta of 0.54 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=TCL-A.TO · Page: https://foliofundamentals.com/stocks/tcl-a.to

Not investment advice.