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Transcontinental

TSX:TCL.A
Snowflake Description

Undervalued established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TCL.A
TSX
CA$1B
Market Cap
  1. Home
  2. CA
  3. Commercial Services
Company description

Transcontinental Inc. engages in flexible packaging business in Canada, the United States, Latin America, the United Kingdom, Australia, and New Zealand. The last earnings update was 68 days ago. More info.


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TCL.A Share Price and Events
7 Day Returns
0.1%
TSX:TCL.A
1.6%
CA Commercial Services
1.1%
CA Market
1 Year Returns
-25.7%
TSX:TCL.A
-6.3%
CA Commercial Services
6.6%
CA Market
TCL.A Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Transcontinental (TCL.A) 0.1% 2.9% 3.9% -25.7% -12.2% -2.1%
CA Commercial Services 1.6% 5.5% 0.9% -6.3% 3.2% -27.7%
CA Market 1.1% 2.5% 2.8% 6.6% 8.7% 8.7%
1 Year Return vs Industry and Market
  • TCL.A underperformed the Commercial Services industry which returned -6.3% over the past year.
  • TCL.A underperformed the Market in Canada which returned 6.6% over the past year.
Price Volatility
TCL.A
Industry
5yr Volatility vs Market
Related Companies

TCL.A Value

 Is Transcontinental undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Transcontinental to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Transcontinental.

TSX:TCL.A Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.5%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:TCL.A
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Commercial Services Unlevered Beta Simply Wall St/ S&P Global 0.66
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.66 (1 + (1- 26.5%) (102.12%))
1.104
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.104 * 5.96%)
8.53%

Discounted Cash Flow Calculation for TSX:TCL.A using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Transcontinental is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

TSX:TCL.A DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 8.53%)
2020 260.98 Analyst x6 240.47
2021 308.00 Analyst x1 261.49
2022 323.39 Est @ 5% 252.98
2023 336.59 Est @ 4.08% 242.61
2024 348.17 Est @ 3.44% 231.24
2025 358.59 Est @ 2.99% 219.44
2026 368.20 Est @ 2.68% 207.61
2027 377.26 Est @ 2.46% 196.00
2028 385.96 Est @ 2.31% 184.76
2029 394.44 Est @ 2.2% 173.98
Present value of next 10 years cash flows CA$2,210.00
TSX:TCL.A DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$394.44 × (1 + 1.95%) ÷ (8.53% – 1.95%)
CA$6,108.99
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$6,108.99 ÷ (1 + 8.53%)10
CA$2,694.60
TSX:TCL.A Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$2,210.00 + CA$2,694.60
CA$4,904.60
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$4,904.60 / 87.34
CA$56.16
TSX:TCL.A Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$56.16
Current discount Discount to share price of CA$15.50
= -1 x (CA$15.50 - CA$56.16) / CA$56.16
72.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Transcontinental is available for.
Intrinsic value
>50%
Share price is CA$15.5 vs Future cash flow value of CA$56.16
Current Discount Checks
For Transcontinental to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Transcontinental's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Transcontinental's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Transcontinental's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Transcontinental's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:TCL.A PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-07-28) in CAD CA$1.38
TSX:TCL.A Share Price ** TSX (2019-11-12) in CAD CA$15.5
Canada Commercial Services Industry PE Ratio Median Figure of 9 Publicly-Listed Commercial Services Companies 12.92x
Canada Market PE Ratio Median Figure of 515 Publicly-Listed Companies 14.64x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Transcontinental.

TSX:TCL.A PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:TCL.A Share Price ÷ EPS (both in CAD)

= 15.5 ÷ 1.38

11.22x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Transcontinental is good value based on earnings compared to the CA Commercial Services industry average.
  • Transcontinental is good value based on earnings compared to the Canada market.
Price based on expected Growth
Does Transcontinental's expected growth come at a high price?
Raw Data
TSX:TCL.A PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.22x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
Not available
North America Commercial Services Industry PEG Ratio Median Figure of 37 Publicly-Listed Commercial Services Companies 1.39x
Canada Market PEG Ratio Median Figure of 232 Publicly-Listed Companies 1.05x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Transcontinental, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Transcontinental's assets?
Raw Data
TSX:TCL.A PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-07-28) in CAD CA$18.57
TSX:TCL.A Share Price * TSX (2019-11-12) in CAD CA$15.5
Canada Commercial Services Industry PB Ratio Median Figure of 21 Publicly-Listed Commercial Services Companies 0.85x
Canada Market PB Ratio Median Figure of 2,291 Publicly-Listed Companies 1.27x
TSX:TCL.A PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:TCL.A Share Price ÷ Book Value per Share (both in CAD)

= 15.5 ÷ 18.57

0.83x

* Primary Listing of Transcontinental.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Transcontinental is good value based on assets compared to the CA Commercial Services industry average.
X
Value checks
We assess Transcontinental's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Commercial Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Commercial Services industry average (and greater than 0)? (1 check)
  5. Transcontinental has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

TCL.A Future Performance

 How is Transcontinental expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.2%
Expected annual growth in earnings per share.
Earnings growth vs Low Risk Savings
Is Transcontinental expected to grow at an attractive rate?
  • Transcontinental's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Transcontinental's earnings growth is positive but not above the Canada market average.
  • Transcontinental's revenues are expected to decrease over the next 1-3 years, this is below the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:TCL.A Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:TCL.A Future Earnings per Share Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 9.2%
TSX:TCL.A Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts -0.9%
Canada Commercial Services Industry Earnings Growth Rate Market Cap Weighted Average 59.7%
Canada Commercial Services Industry Revenue Growth Rate Market Cap Weighted Average 10%
Canada Market Earnings Growth Rate Market Cap Weighted Average 11.2%
Canada Market Revenue Growth Rate Market Cap Weighted Average 5.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:TCL.A Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:TCL.A Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-10-31
2023-10-31
2022-10-31
2021-10-31 2,991 429 2
2020-10-31 3,021 390 7
2019-11-12
2019-10-31 3,041 353 7
TSX:TCL.A Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-07-28 3,077 363 121
2019-04-28 3,106 350 137
2019-01-27 2,873 306 183
2018-10-28 2,624 313 213
2018-07-29 2,322 335 220
2018-04-29 2,041 331 250
2018-01-28 2,005 333 227
2017-10-29 2,007 324 212
2017-07-30 2,036 274 196
2017-04-30 2,026 286 193
2017-01-29 2,024 320 152
2016-10-31 2,020 273 146
2016-07-31 2,004 318 192

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Transcontinental's earnings are expected to grow by 9.2% yearly, however this is not considered high growth (20% yearly).
  • Transcontinental's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:TCL.A Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Transcontinental Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:TCL.A Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-10-31
2023-10-31
2022-10-31
2021-10-31
2020-10-31 1.86 1.86 1.86 1.00
2019-11-12
2019-10-31 1.77 1.77 1.77 1.00
TSX:TCL.A Past Financials Data
Date (Data in CAD Millions) EPS *
2019-07-28 1.38
2019-04-28 1.56
2019-01-27 2.16
2018-10-28 2.59
2018-07-29 2.75
2018-04-29 3.23
2018-01-28 2.93
2017-10-29 2.74
2017-07-30 2.53
2017-04-30 2.49
2017-01-29 1.96
2016-10-31 1.89
2016-07-31 2.47

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Transcontinental is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Transcontinental's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Transcontinental has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

TCL.A Past Performance

  How has Transcontinental performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Transcontinental's growth in the last year to its industry (Commercial Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Transcontinental's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Transcontinental's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Transcontinental's 1-year earnings growth is negative, it can't be compared to the CA Commercial Services industry average.
Earnings and Revenue History
Transcontinental's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Transcontinental Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:TCL.A Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-07-28 3,077.10 120.80 28.90
2019-04-28 3,106.10 136.70 28.70
2019-01-27 2,873.40 183.30 28.40
2018-10-28 2,623.50 213.40 28.30
2018-07-29 2,321.50 219.80 24.70
2018-04-29 2,041.30 249.50 24.80
2018-01-28 2,005.30 227.00 24.90
2017-10-29 2,007.20 211.50 24.90
2017-07-30 2,035.60 195.80 24.90
2017-04-30 2,025.70 192.70 24.60
2017-01-29 2,024.20 151.70 24.20
2016-10-31 2,019.50 146.30 23.90
2016-07-31 2,004.00 192.40 22.40
2016-04-30 2,018.10 189.10 22.20
2016-01-31 2,011.40 234.20 22.20
2015-10-31 2,002.20 237.00 22.00
2015-07-31 2,010.30 139.50 25.30
2015-04-30 2,011.40 141.10 25.50
2015-01-31 1,998.40 123.10 25.60
2014-10-31 1,990.40 103.60 25.80
2014-07-31 2,004.80 2.80 28.70
2014-04-30 2,012.50 -11.30 30.10
2014-01-31 2,052.80 -18.50 31.50
2013-10-31 2,096.70 -23.40 32.90
2013-07-31 2,119.20 19.50 30.30
2013-04-30 2,145.50 3.20 28.70
2013-01-31 2,150.10 -126.90 27.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Transcontinental has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Transcontinental used its assets less efficiently than the CA Commercial Services industry average last year based on Return on Assets.
  • Transcontinental's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Transcontinental's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Commercial Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Transcontinental has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

TCL.A Health

 How is Transcontinental's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Transcontinental's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Transcontinental is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Transcontinental's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Transcontinental's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Transcontinental Company Filings, last reported 3 months ago.

TSX:TCL.A Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-07-28 1,621.70 1,393.70 41.50
2019-04-28 1,666.70 1,457.40 55.40
2019-01-27 1,653.20 1,478.30 53.70
2018-10-28 1,634.10 1,461.00 40.50
2018-07-29 1,597.90 1,506.00 27.70
2018-04-29 1,299.90 348.40 298.10
2018-01-28 1,236.40 348.20 313.70
2017-10-29 1,218.70 348.30 247.10
2017-07-30 1,153.00 348.20 152.80
2017-04-30 1,156.50 348.00 113.40
2017-01-29 1,109.50 347.90 67.00
2016-10-31 1,068.70 348.10 16.70
2016-07-31 1,042.70 348.00 35.00
2016-04-30 1,001.40 349.80 42.90
2016-01-31 1,034.00 377.70 25.60
2015-10-31 1,016.30 384.10 38.60
2015-07-31 936.00 360.90 54.30
2015-04-30 896.30 420.20 35.40
2015-01-31 837.30 482.90 24.40
2014-10-31 793.10 476.80 35.20
2014-07-31 881.20 482.80 29.60
2014-04-30 852.60 281.60 29.90
2014-01-31 816.00 316.80 28.90
2013-10-31 815.40 347.20 26.40
2013-07-31 893.80 412.40 45.90
2013-04-30 832.30 405.00 28.50
2013-01-31 901.40 361.40 27.60
  • Transcontinental's level of debt (85.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (54.3% vs 85.9% today).
  • Debt is well covered by operating cash flow (26%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.5x coverage).
X
Financial health checks
We assess Transcontinental's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Transcontinental has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

TCL.A Dividends

 What is Transcontinental's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.68%
Current annual income from Transcontinental dividends. Estimated to be 5.91% next year.
If you bought CA$2,000 of Transcontinental shares you are expected to receive CA$114 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Transcontinental's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.02%).
  • Transcontinental's dividend is below the markets top 25% of dividend payers in Canada (5.72%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:TCL.A Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
North America Commercial Services Industry Average Dividend Yield Market Cap Weighted Average of 43 Stocks 1.7%
Canada Market Average Dividend Yield Market Cap Weighted Average of 331 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2%
Canada Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:TCL.A Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2024-10-31
2023-10-31
2022-10-31
2021-10-31 0.96 1.00
2020-10-31 0.90 2.00
2019-11-12
2019-10-31 0.88 2.00
TSX:TCL.A Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-09-05 0.880 5.736
2019-06-06 0.880 6.009
2019-02-28 0.880 5.477
2018-12-13 0.840 4.131
2018-09-06 0.840 3.858
2018-06-07 0.840 2.710
2018-03-01 0.840 3.066
2017-12-14 0.800 3.226
2017-09-07 0.800 2.942
2017-06-08 0.800 3.193
2017-03-03 0.800 3.320
2016-09-08 0.740 3.763
2016-06-10 0.740 4.028
2016-03-09 0.740 3.770
2015-12-08 0.680 3.806
2015-06-11 0.680 3.945
2015-03-17 0.680 3.764
2014-12-09 0.640 3.994
2014-06-06 0.640 4.298
2014-03-11 0.640 4.086
2013-09-12 0.580 3.842
2013-06-06 0.580 4.583
2013-03-13 0.580 4.671
2012-12-06 0.580 4.979
2012-09-06 0.580 6.301
2012-06-07 0.580 6.090
2012-03-13 0.580 5.104
2011-12-08 0.540 4.332
2011-09-07 0.540 4.604
2011-06-08 0.540 3.712
2011-03-09 0.440 2.987
2010-12-08 0.440 2.687
2010-09-08 0.360 2.461
2010-06-08 0.360 2.654
2010-03-17 0.360 2.752
2009-12-15 0.320 2.465
2009-09-10 0.320 2.575
2009-06-11 0.320 3.686
2009-03-12 0.320 4.454
2008-12-11 0.320 3.780

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Transcontinental's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).
X
Income/ dividend checks
We assess Transcontinental's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Transcontinental afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Transcontinental has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

TCL.A Management

 What is the CEO of Transcontinental's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
François Olivier
COMPENSATION CA$7,280,138
AGE 54
TENURE AS CEO 11.8 years
CEO Bio

Mr. François Olivier has been the Chief Executive Officer and President of Transcontinental Inc. since February 20, 2008. Mr. Olivier is heading the diversification strategy of TC Transcontinental, driving the growth of its flexible packaging division. He served as Interim Head at TC Media, Inc. since June 2012 and served as its Interim President of Tc Media and Senior Vice President of Newspaper Group of Transcontinental Printing Information Products. Mr. Olivier has an impressive track record at Transcontinental. He joined Transcontinental Inc. in 1993 as general manager of one of the printing plants in Montreal, then was put in charge of a group of four printing plants in the Montreal and Toronto areas. Since November 1999, he served as Senior Vice President of the Newspaper Group in the Information Products Printing Sector, overseeing a coast-to-coast network of 17 printing plants. He served as Chief Operating Officer of Transcontinental Inc. since September 2007 and its President of the Information Products Printing Sector since November 1, 2005 and President of Printing Products and Services Sector since December 2005. He has led a transformation and consolidation in the printing and media industry. He has deep financial acumen and strategic planning experience. Mr. Olivier has been key to the success of the project to print the daily paper La Presse at the new Transcontinental Metropolitan plant since October 2003, as well as the solid partnership with The Globe and Mail - resulted in a renewed contract to print the paper until 2015. He worked as General Manager of Canada Packers. He has been an Independent Director of CAE Inc. since February 14, 2017 and a Director of PLM Group Ltd. since October 17, 2007. He has been a Director at Transcontinental Inc. since 2008. Mr. Olivier holds a B.Sc. from McGill University and is a graduate of the Program for Management Development at Harvard Business School.

CEO Compensation
  • François's compensation has been consistent with company performance over the past year, both up more than 20%.
  • François's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the Transcontinental management team in years:

6.2
Average Tenure
  • The average tenure for the Transcontinental management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

François Olivier

TITLE
President
COMPENSATION
CA$7M
AGE
54
TENURE
11.8 yrs

Rémi Marcoux

TITLE
Founder & Director
COMPENSATION
CA$86K
AGE
79
TENURE
43.8 yrs

Donald LeCavalier

TITLE
Chief Financial Officer
COMPENSATION
CA$767K
TENURE
1.2 yrs

Christine Desaulniers

TITLE
Chief Legal Officer & Corporate Secretary
COMPENSATION
CA$994K
TENURE
14 yrs

Brian Reid

TITLE
President of TC Transcontinental Printing
COMPENSATION
CA$2M
TENURE
5.8 yrs

Jacques Grégoire

TITLE
President of TC Transcontinental Printing
COMPENSATION
CA$729K
TENURE
5.5 yrs

Benoit Guilbault

TITLE
Chief Information Officer
TENURE
6.6 yrs

Yan Lapointe

TITLE
Director of Investor Relations

Katherine Chartrand

TITLE
Senior Director of Corporate Communications

Sam Bendavid

TITLE
Vice President of Corporate Development
TENURE
1.8 yrs
Board of Directors Tenure

Average tenure and age of the Transcontinental board of directors in years:

8.7
Average Tenure
55
Average Age
  • The tenure for the Transcontinental board of directors is about average.
Board of Directors

Isabelle Marcoux

TITLE
Chair of the Board
COMPENSATION
CA$1M
AGE
49
TENURE
7.8 yrs

François Olivier

TITLE
President
COMPENSATION
CA$7M
AGE
54
TENURE
11.8 yrs

Rémi Marcoux

TITLE
Founder & Director
COMPENSATION
CA$86K
AGE
79
TENURE
43.8 yrs

Mario Plourde

TITLE
Independent Director
COMPENSATION
CA$113K
AGE
58
TENURE
4.7 yrs

Jacynthe Côté

TITLE
Lead Director
COMPENSATION
CA$115K
AGE
60
TENURE
0.8 yrs

H. Brues

TITLE
Independent Director
COMPENSATION
CA$17K
AGE
50
TENURE
1.2 yrs

Pierre Marcoux

TITLE
Non-Independent Director
COMPENSATION
CA$605K
AGE
47
TENURE
14.7 yrs

François Roy

TITLE
Independent Director
COMPENSATION
CA$113K
AGE
64
TENURE
11.5 yrs

Nathalie Marcoux

TITLE
Non-Independent Director
COMPENSATION
CA$107K
AGE
50
TENURE
8.7 yrs

Anna Martini

TITLE
Independent Director
COMPENSATION
CA$143K
AGE
56
TENURE
8.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
15. Jul 19 Buy H. Brues Individual 10. Jul 19 10. Jul 19 6,850 CA$14.70 CA$100,674
05. Apr 19 Buy Donald LeCavalier Individual 05. Apr 19 05. Apr 19 2,050 CA$16.85 CA$34,422
22. Mar 19 Buy Annie Thabet Individual 18. Mar 19 18. Mar 19 3,000 CA$16.90 CA$50,660
08. Mar 19 Buy François Roy Individual 07. Mar 19 07. Mar 19 5,000 CA$17.08 CA$85,349
06. Mar 19 Buy Christine Desaulniers Individual 06. Mar 19 06. Mar 19 3,800 CA$17.56 CA$66,728
06. Mar 19 Buy Yves Leduc Individual 06. Mar 19 06. Mar 19 3,000 CA$17.60 CA$52,550
19. Dec 18 Buy Mario Plourde Individual 18. Dec 18 18. Dec 18 1,600 CA$18.75 CA$29,982
X
Management checks
We assess Transcontinental's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Transcontinental has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

TCL.A News

Simply Wall St News

Transcontinental Inc. (TSE:TCL.A) Is A Real Dividend Rock Star - Here Is Why

View our latest analysis for Transcontinental What Is A Dividend Rock Star? … More specifically: Its annual yield is among the top 25% of dividend payers It has paid dividend every year without dramatically reducing payout in the past Its dividend per share amount has increased over the past It can afford to pay the current rate of dividends from its earnings It has the ability to keep paying its dividends going forward High Yield And Dependable The company's dividend yield stands at 6.3%, which is high for Commercial Services stocks. … Next Steps: With Transcontinental producing strong dividend income for your portfolio over the past few years, you can take comfort in knowing that this stock will still continue to be a top dividend generator moving forward.

Simply Wall St -

Here’s What Transcontinental Inc.’s (TSE:TCL.A) Return On Capital Can Tell Us

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Transcontinental: 0.092 = CA$283m ÷ (CA$3.8b - CA$684m) (Based on the trailing twelve months to April 2019.) Therefore, Transcontinental has an ROCE of 9.2%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

How Much Of Transcontinental Inc. (TSE:TCL.A) Do Institutions Own?

Companies that used to be publicly owned tend to have lower insider ownership. … Taking a look at our data on the ownership groups (below), it's seems that institutions own shares in the company. … Private Company Ownership It seems that Private Companies own 15%, of the TCL.A stock.

Simply Wall St -

Our Take On Transcontinental Inc.'s (TSE:TCL.A) CEO Salary

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … After that, we will consider the growth in the business. … How Does François Olivier's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Who Has Been Buying Transcontinental Inc. (TSE:TCL.A) Shares?

In the last twelve months, the biggest single purchase by an insider was when Richard Fortin bought CA$1.1m worth of shares at a price of CA$26.60 per share. … That means that an insider was happy to buy shares at above the current price of CA$16.30. … Over the last year, we can see that insiders have bought 172k shares worth CA$4.0m.

Simply Wall St -

Is Transcontinental Inc. (TSE:TCL.A) A Financially Sound Company?

Investors are always looking for growth in small-cap stocks like Transcontinental Inc. … However, an important fact which most ignore is: how financially healthy is the business? … The following basic checks can help you get a picture of the company's balance sheet strength.

Simply Wall St -

Why Fundamental Investors Might Love Transcontinental Inc. (TSE:TCL.A)

(TSE:TCL.A) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … that has been a rockstar for income investors, currently trading at an attractive share price

Simply Wall St -

Did You Manage To Avoid Transcontinental's (TSE:TCL.A) 35% Share Price Drop?

(TSE:TCL.A) shareholders over the last year, as the share price declined 35%. … Unfortunately the share price momentum is still quite negative, with prices down 22% in thirty days. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Simply Wall St -

Is Transcontinental Inc. (TSE:TCL.A) A Cash Cow?

Free cash flow (FCF) is the amount of cash Transcontinental has left after it pays off its expenses, including its net capital expenditures, which is what the company needs to spend each year to maintain or grow its business operations. … I will be analysing Transcontinental’s FCF by looking at its FCF yield and its operating cash flow growth. … The yield will tell us whether the stock is generating enough cash to compensate for the risk investors take on by holding a single stock, which I will compare to the market index.

Simply Wall St -

Why We Like Transcontinental Inc.’s (TSE:TCL.A) 11% Return On Capital Employed

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

TCL.A Company Info

Description

Transcontinental Inc. engages in flexible packaging business in Canada, the United States, Latin America, the United Kingdom, Australia, and New Zealand. It operates through three segments: Packaging, Printing, and Media. The Packaging segment engages in extrusion, lamination, printing, and converting activities, as well as offers flexible plastic and paper products, including rollstock, bags and pouches, coextruded films, shrink films and bags, and advanced coatings. This segment serves dairy, coffee, meat and poultry, pet food, agriculture, beverage, confectionery, industrial, and consumer product markets, as well as supermarkets. The Printing segment provides integrated services for retailers, including premedia services, flyer and in-store marketing product printing, and door-to-door distribution, as well as print solutions for newspapers, magazines, four-color books, and personalized and mass marketing products. The Media segment is involved in printing and digital publishing of newspapers, educational books, and specialized publications for professionals in French and English. Transcontinental Inc. was founded in 1976 and is headquartered in Montreal, Canada.

Details
Name: Transcontinental Inc.
TCL.A
Exchange: TSX
Founded: 1976
CA$1,364,820,821
87,340,380
Website: http://www.tctranscontinental.com
Address: Transcontinental Inc.
1 Place Ville Marie,
Suite 3240,
Montreal,
Quebec, H3B 0G1,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX TCL.A Class A Shares The Toronto Stock Exchange CA CAD 22. May 1992
OTCPK TCLA.F Class A Shares Pink Sheets LLC US USD 22. May 1992
DB 53L Class A Shares Deutsche Boerse AG DE EUR 22. May 1992
TSX TCL.B Class B Shares The Toronto Stock Exchange CA CAD 21. Mar 1985
Number of employees
Current staff
Staff numbers
9,000
Transcontinental employees.
Industry
Commercial Printing
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/12 23:37
End of day share price update: 2019/11/12 00:00
Last estimates confirmation: 2019/11/12
Last earnings filing: 2019/09/05
Last earnings reported: 2019/07/28
Last annual earnings reported: 2018/10/28


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.