Transcontinental Inc. (TCL-A.TO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+1192.7%

CA$71.74

vs CA$5.55 price

Levered DCF

CA$65.09

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

2.46

Grey zone

Rating

A+

Overall 5 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	9.65×	12.2×	10.31×	9.54×	13.18×	10.45×	7.92×	8.37×
P/B	0.86×	0.78×	0.47×	0.72×	0.98×	0.79×	0.78×	1.09×
P/S	0.6×	0.53×	0.3×	0.46×	0.65×	0.53×	0.43×	0.68×
EV / EBITDA	5.04×	5.49×	4.61×	5.48×	5.81×	4.79×	4.69×	5.88×
Gross margin	50.1%	49.0%	46.1%	44.8%	47.3%	48.7%	46.4%	50.3%
Operating margin	9.6%	7.4%	5.6%	7.4%	8.8%	9.4%	10.2%	14.0%
Net margin	6.2%	4.3%	2.9%	4.8%	4.9%	5.1%	5.5%	8.1%
Current ratio	1.29×	1.59×	2.09×	2.07×	1.63×	1.51×	2.26×	1.31×
Debt / equity	0.41×	0.52×	0.56×	0.61×	0.64×	0.68×	0.82×	0.89×
Interest coverage	6.6×	4.06×	2.97×	5.9×	6.04×	5.13×	5.1×	9.03×
Dividend yield	9.6%	5.2%	8.8%	5.8%	4.6%	5.7%	5.8%	3.8%
Payout ratio	93.0%	63.8%	90.9%	55.3%	60.0%	59.1%	45.8%	32.1%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	8.9%	6.4%	4.5%	7.5%	7.4%	7.6%	9.8%	13.1%
Return on invested capital	7.0%	5.5%	4.5%	5.2%	5.1%	5.1%	6.4%	7.1%
Return on assets	5.1%	3.3%	2.3%	3.7%	3.6%	3.7%	4.4%	5.6%
Free cash flow yield	14.9%	18.6%	31.4%	5.1%	9.8%	22.2%	20.1%	12.4%
Earnings yield	10.4%	8.2%	9.7%	10.5%	7.6%	9.6%	12.7%	11.9%
Enterprise value	CA$2.4B	CA$2.3B	CA$1.8B	CA$2.5B	CA$2.6B	CA$2.3B	CA$2.5B	CA$3.2B
Net debt / EBITDA	1.56×	1.93×	2.35×	2.47×	1.99×	1.94×	2.21×	2.6×
Cash conversion cycle (days)	100	89	96	116	98	85	74	90