Want to see TSE:TCL.B full AI Analyst Report?
Top Page
Transcontinental Inc. Class B
(TSX:TCL.B)
Select Model
Select Model
Rating:61Neutral
Price Target:
C$7.00
▲(1.45% Upside)
Action:Reiterated
Date:09/12/26
The score is held back primarily by mixed financial quality and near-term momentum (TTM revenue decline, potentially non-recurring profitability, higher TTM leverage, and softer cash flow trends). Valuation screens as cheap on P/E but is tempered by an unusually high dividend-yield reading. The latest earnings call supports a steadier outlook for FY2026 with growth in ISM and continued deleveraging, while technicals remain neutral-to-weak.
Positive Factors
ISM growth and integration
Strong ISM and Specialty growth, combined with organic expansion and ahead-of-plan integration, indicates successful diversification and execution. Procurement and operating synergies are already lifting margins, creating a foundation for continued growth and improved profitability over the next several quarters.
Negative Factors
Weak TTM revenue quality
A sharp TTM revenue decline signals weaker current demand and reduced operating scale, while the unusually high net margin appears inconsistent with operating profitability. This suggests reported earnings may include significant one-time items, reducing confidence in near-term earnings durability.
Read all positive and negative factors
Positive Factors
Negative Factors
ISM growth and integration
Strong ISM and Specialty growth, combined with organic expansion and ahead-of-plan integration, indicates successful diversification and execution. Procurement and operating synergies are already lifting margins, creating a foundation for continued growth and improved profitability over the next several quarters.
Read all positive factors
Transcontinental Inc. Class B (TCL.B) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$455.45M
Dividend Yield300.37%
Average Volume (3M)637.00
Price to Earnings (P/E)1.2
Beta (1Y)-0.38
Revenue Growth-43.09%
EPS Growth91.71%
CountryCA
Employees7,600
SectorConsumer Cyclical
Sector Strength84
IndustryPackaging & Containers
Share Statistics
EPS (TTM)4.01
Shares Outstanding9,506,272
10 Day Avg. Volume260
30 Day Avg. Volume637
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)0.86
Price to Sales (P/S)0.60
P/FCF Ratio6.72
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.04
Revenue Forecast (FY)C$1.16B
Transcontinental Inc. Class B Business Overview & Revenue Model
Company Description
Transcontinental Inc., established in 1976 and headquartered in Montreal, Canada, is primarily engaged in the flexible packaging industry. The company boasts a global presence, with operations spanning Canada, the United States, Latin America, the...
How the Company Makes Money
Transcontinental makes money primarily by selling packaging products and related services to business customers. Its core revenue stream comes from producing and converting flexible packaging (e.g., printed and engineered film-based packaging) and...
Transcontinental Inc. Class B Earnings Call Summary
Earnings Call Date:Sep 09, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Dec 09, 2026
Earnings Call Sentiment Positive
The call was broadly constructive. Highlights included improved consolidated revenue, adjusted EBITDA and EPS, strong ISM growth, ahead-of-plan integration, the completed raddar rollout, debt reduction and confidence in the fiscal 2026 outlook. These positives were partially tempered by lower traditional volumes, a Books and Education decline, lower operating cash flow, higher reported financial expense and taxes, printing margin pressure, uncertainty around raddar profitability and limited visibility into fiscal 2027.Positive Updates
Improved Third-Quarter Consolidated Performance
Third-quarter revenue increased 3.8% year over year, mainly due to acquisitions in ISM, while consolidated adjusted EBITDA rose 4.1% to $60.9 million, driven by acquisitions and cost-reduction initiatives. Management remains confident that fiscal 2026 adjusted EBITDA will be in line with the previous year and that the company can close fiscal 2026 in line with its financial outlook.
Negative Updates
Lower Traditional Activity Volumes
Consolidated revenue and adjusted EBITDA growth were partially offset by lower volume in traditional activities, particularly traditional flyer printing.
Read all updates
Q3-2026 Updates
Positive
Negative
Improved Third-Quarter Consolidated Performance
Third-quarter revenue increased 3.8% year over year, mainly due to acquisitions in ISM, while consolidated adjusted EBITDA rose 4.1% to $60.9 million, driven by acquisitions and cost-reduction initiatives. Management remains confident that fiscal 2026 adjusted EBITDA will be in line with the previous year and that the company can close fiscal 2026 in line with its financial outlook.
Read all positive updates
Company Guidance
Management said it remains confident in its outlook to generate adjusted EBITDA for fiscal 2026 in line with the previous year, expects an effective tax rate in the mid-20s, CapEx of about $60 million for the full year, and net debt leverage at around 1.75x at year-end, supported by an important portion of negative working capital reversing in the fourth quarter; Books and Education orders are expected to recover in the fourth quarter, with confidence to catch everything back and deliver year-over-year flat, the ISM pipeline remains strong with a continuing trend of Q3 into Q4, and the ISM business currently in place could double in size, not within -- that's within reach; the Saint-Hyacinthe and Montreal buildings are expected to be sold over the next 12 months, bringing total real-estate monetization to the original target of $100 million, while future CapEx should be in line, though it might increase in following years to defend the business or support raddar with technology.Transcontinental Inc. Class B Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
60
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.57B | 2.74B | 2.81B | 2.94B | 2.96B | 2.64B |
| Gross Profit | 451.20M | 1.37B | 1.38B | 1.36B | 1.32B | 1.25B |
| EBITDA | 230.20M | 474.50M | 416.30M | 391.70M | 447.50M | 450.00M |
| Net Income | 335.60M | 171.00M | 121.30M | 85.80M | 141.20M | 130.60M |
Balance Sheet | ||||||
| Total Assets | 1.24B | 3.35B | 3.64B | 3.70B | 3.80B | 3.61B |
| Cash, Cash Equivalents and Short-Term Investments | 14.70M | 47.00M | 185.20M | 137.00M | 45.70M | 231.10M |
| Total Debt | 440.50M | 787.40M | 989.00M | 1.06B | 1.15B | 1.13B |
| Total Liabilities | 817.80M | 1.43B | 1.73B | 1.79B | 1.92B | 1.85B |
| Stockholders Equity | 418.20M | 1.91B | 1.91B | 1.90B | 1.88B | 1.76B |
Cash Flow | ||||||
| Free Cash Flow | 111.80M | 245.60M | 275.30M | 277.50M | 69.00M | 168.00M |
| Operating Cash Flow | 152.10M | 314.90M | 370.40M | 422.80M | 186.10M | 283.00M |
| Investing Cash Flow | -65.90M | 11.00M | -112.60M | -165.20M | -257.40M | -181.00M |
| Financing Cash Flow | -2.15B | -470.40M | -214.70M | -166.80M | -116.20M | -117.80M |
Transcontinental Inc. Class B Technical Analysis
Neutral
6.90
Price Trends
6.94
Negative
6.78
Positive
5.93
Positive
Market Momentum
-0.02
Positive
47.99
Neutral
49.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TCL.B, the sentiment is Neutral. The current price of 6.9 is above the 20-day moving average (MA) of 6.87, below the 50-day MA of 6.94, and above the 200-day MA of 5.93, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 47.99 is Neutral, neither overbought nor oversold. The STOCH value of 49.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:TCL.B.
Transcontinental Inc. Class B Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | C$150.16M | 30.57 | 10.60% | 4.20% | -4.58% | -36.77% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | C$455.45M | 1.21 | 29.10% | 300.37% | -43.09% | 91.71% | |
42 Neutral | C$407.94K | >-0.01 | 39.87% | ― | 22.63% | -33.96% |
* Consumer Cyclical Sector Average
TSE:TCL.B
Transcontinental Inc. Class B
6.83
2.89
73.62%
TSE:DCM
Data Commun Management
2.40
0.99
70.70%
TSE:CANS
Wildpack Beverage
0.01
0.00
0.00%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.