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

Data as of 2026-09-08. TSX, Canada. Sector: Industrials / Professional Services. Price C$6.65, market value C$556 million.

## Valuation
- **P/E (trailing): 3.6×** (5-yr avg 1.9×, 3-yr avg 2.0×). Transcontinental Inc. trades at 3.6× trailing earnings, well above its own five-year average of 1.9×: investors are paying up relative to the company's past. The Industrials median in the September 2026 study was 25.7×.
- **Price / sales: 0.3×**. Each dollar of revenue is priced at 0.3×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.4×**. The shares trade at 1.4× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 4.7×**. Enterprise value is 4.7× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 24.5%** (5-yr avg 90.0%). Free cash flow equals 24.5% of the market value, below its five-year average of 90.0%, so the shares are pricier on cash than usual. Above 5% is generally attractive.
- **Earnings yield: 27.8%**. The inverse of the P/E: 27.8% 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: 2.19**. A Z-score of 2.19 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: 10.90%** (C$0.68 per share, trailing). Transcontinental Inc. yields 10.90%, 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: 3**. 3 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: 104.2%**. Dividends plus net buybacks return 104.2% of the market value a year.

## Price and momentum
- **Total return (1 yr): 66.6%** (YTD 43.8%, 3-mo 6.8%). The shares are up 66.6% over twelve months including dividends.
- **From 52-week high: -75.4%** (30.9% above the low). Trading 75% 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): 43**. An RSI of 43 is neutral.
- **Beta (1 yr): 0.67** (volatility 68%). Beta of 0.67 against the S&P/TSX Composite: the shares move much less than the market.

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

Not investment advice.