Latest news with #TranscontinentalInc
Yahoo
30-03-2025
- Business
- Yahoo
Those who invested in Transcontinental (TSE:TCL.A) five years ago are up 102%
When you buy and hold a stock for the long term, you definitely want it to provide a positive return. Better yet, you'd like to see the share price move up more than the market average. Unfortunately for shareholders, while the Transcontinental Inc. (TSE:TCL.A) share price is up 55% in the last five years, that's less than the market return. Some buyers are laughing, though, with an increase of 25% in the last year. With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies. The end of cancer? These 15 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's. While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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. During five years of share price growth, Transcontinental achieved compound earnings per share (EPS) growth of 3.3% per year. This EPS growth is lower than the 9% average annual increase in the share price. So it's fair to assume the market has a higher opinion of the business than it did five years ago. And that's hardly shocking given the track record of growth. You can see how EPS has changed over time in the image below (click on the chart to see the exact values). We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. It might be well worthwhile taking a look at our free report on Transcontinental's earnings, revenue and cash flow. When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Transcontinental the TSR over the last 5 years was 102%, which is better than the share price return mentioned above. This is largely a result of its dividend payments! It's nice to see that Transcontinental shareholders have received a total shareholder return of 32% over the last year. Of course, that includes the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 15% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - Transcontinental has 1 warning sign we think you should be aware of. Transcontinental is not the only stock that insiders are buying. For those who like to find lesser know companies this free list of growing companies with recent insider purchasing, could be just the ticket. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Canadian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
12-03-2025
- Business
- Yahoo
Transcontinental Inc (TCLAF) Q1 2025 Earnings Call Highlights: Navigating Revenue Declines with ...
Revenue: Decreased by 5.5% compared to the same quarter last year. Adjusted EBITDA: Increased by $1.4 million to $97.5 million. Financial Expense: Decreased by $4.6 million to $9.3 million. Adjusted Earnings Per Share (EPS): Improved by 14% from $0.43 to $0.49. Packaging Revenue: Decreased by 2.2% to $389.4 million. Packaging Adjusted EBITDA: Decreased by 2.3% to $59 million with a 15.2% EBITDA margin. Retail Services and Printing Revenue: Decreased by 9.2% to $240.7 million. Retail Services and Printing Adjusted EBITDA: Increased by 6.1% to $41.9 million. Cash Flow from Operating Activities: Generated $23.6 million despite $60 million in working capital usage. Capital Expenditures (CapEx): $22.1 million, $14.5 million lower than last year. Net Debt Ratio: Improved to 1.53 times from 1.71 times three months ago. Warning! GuruFocus has detected 6 Warning Sign with TCLAF. Release Date: March 11, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Transcontinental Inc (TCLAF) reported a strong quarter with consolidated adjusted EBITDA of $97.5 million, showing growth despite challenges. The company successfully reduced its net debt ratio to 1.53 times, the lowest since the acquisition of Coveris America in 2018. The retail services and printing sector recorded an increase in profit for the third consecutive quarter, driven by increased book printing and specialized solutions activities. Cost reduction initiatives and operational efficiencies have helped maintain profitability in the packaging sector despite revenue declines. Transcontinental Inc (TCLAF) announced a special dividend of $1 per share, reflecting confidence in its strong financial position and cash flow generation. Revenues decreased by 5.5% compared to the same quarter last year, primarily due to lower volume and the sale of industrial packaging activities. The packaging sector experienced a 2.2% revenue decrease, impacted by lower volumes in Latin America and the medical market. The labor conflict at Canada Post negatively affected the retail services and printing sector, contributing to a 9.2% revenue decline. The company faces potential impacts from tariffs, with approximately 10% of its sales exposed to cross-border tariffs. Challenges in the Latin American market, including a drought in Mexico and energy shortages in Ecuador, contributed to a decline in packaging volumes. Q: The 2% organic decline in packaging in Q1, how much of that was price versus volume? And how do you see volumes trending over the balance of the year? A: The price was about 1%. The reduction was mainly due to temporary issues in Latin America, such as a drought in Mexico, energy shortages in Ecuador, and currency devaluation in Colombia. In the medical sector, we had a low quarter in sales, but we have a strong backlog and pipeline, so we're confident for the rest of the year. - Thomas Morin, President, Chief Executive Officer Q: On the non-core assets side, what are the expected proceeds from the sale of two buildings this fiscal year? A: We initially estimated $100 million from the program. So far, we've concluded $20 million, and the two buildings expected to close this year represent a large part of what's remaining, estimated between $60 million and $80 million. - Donald Lecavalier, Chief Financial Officer, Executive Vice President Q: Are you seeing any changes in customer behavior with flyers due to potential recession concerns? A: Flyers are a good tool during high inflation or recession. We haven't seen an uptick yet, but we would expect it should recession or high inflation rates materialize. - Thomas Morin, President, Chief Executive Officer Q: Can you give us a sense of the scale of book exports exempt from tariffs relative to the 10% of sales exposed to tariffs? A: Approximately 10% of our combined sales are exposed to tariffs, with less than 40% of that impact coming from retail services and printing, a major part of which is book exports that are exempted. - Donald Lecavalier, Chief Financial Officer, Executive Vice President Q: What is the rationale for choosing a special dividend over faster buybacks? A: We have a strong balance sheet and have returned about $125 million to investors over the last year. The special dividend follows a good transaction where we cashed more than $130 million. We still have the NCIB in place and look at total returns to investors. - Donald Lecavalier, Chief Financial Officer, Executive Vice President For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
