Transcontinental Inc
TSX:TCL.A

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Transcontinental Inc
TSX:TCL.A
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Price: 5.14 CAD -0.77% Market Closed
Market Cap: CA$429.8m

EV/FCFF

3.5
Current
58%
Cheaper
vs 3-y average of 8.2

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
3.5
=
Enterprise Value
CA$2.4B
/
Free Cash Flow to Firm
CA$252.6m

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
3.5
=
Enterprise Value
CA$2.4B
/
Free Cash Flow to Firm
CA$252.6m

Valuation Scenarios

Transcontinental Inc is trading below its 3-year average

If EV/FCFF returns to its 3-Year Average (8.2), the stock would be worth CA$12.13 (136% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+490%
Average Upside
293%
Scenario EV/FCFF Value Implied Price Upside/Downside
Current Multiple 3.5 CA$5.14
0%
3-Year Average 8.2 CA$12.13
+136%
5-Year Average 9 CA$13.31
+159%
Industry Average 16.9 CA$25.07
+388%
Country Average 20.4 CA$30.32
+490%

Forward EV/FCFF
Today’s price vs future free cash flow to firm

Not enough data available to calculate forward EV/FCFF

Peer Comparison

All Multiples
EV/FCFF
P/E
All Countries
Close
Market Cap EV/FCFF P/E
CA
Transcontinental Inc
TSX:TCL.A
429.8m CAD 3.5 3
US
Ball Corp
NYSE:BALL
16.3B USD 28 17.9
US
Crown Holdings Inc
NYSE:CCK
11.4B USD 14 15.3
CA
CCL Industries Inc
TSX:CCL.B
14.9B CAD 17.9 18.6
US
Aptargroup Inc
NYSE:ATR
8.1B USD 30.3 20.6
US
Berry Global Group Inc
NYSE:BERY
7.8B USD 22.5 16.6
US
Silgan Holdings Inc
NYSE:SLGN
4.1B USD 15.9 14.2
ZA
Nampak Ltd
JSE:NPK
4.1B ZAR 7.8 1.2
CN
Jiamei Food Packaging Chuzhou Co Ltd
SZSE:002969
22.7B CNY 117.9 152.8
ES
Vidrala SA
MAD:VID
2.8B EUR 14.9 13.2
US
Greif Inc
NYSE:GEF
3B USD -47.6 3

Market Distribution

Lower than 96% of companies in Canada
Percentile
4th
Based on 1 610 companies
4th percentile
3.5
Low
0 — 13.1
Typical Range
13.1 — 33.5
High
33.5 —
Distribution Statistics
Canada
Min 0
30th Percentile 13.1
Median 20.4
70th Percentile 33.5
Max 22 577.3

Transcontinental Inc
Glance View

Market Cap
429.8m CAD
Industry
Packaging

Nestled in the heart of the Canadian business landscape, Transcontinental Inc. is a prominent player that has navigated the ever-evolving world of printing and packaging with dexterity. Founded in 1976 as a humble printing operation, the company has remarkably expanded its footprint to become one of the largest providers in North America. Transcontinental's journey has been marked by its shrewd adaptability and acute market sensitivity. Over the decades, it has transitioned its focus seamlessly, recognizing the shifts in consumer and industrial needs. Its prowess in printing, traditionally centralized around newspapers, magazines, and books, has deftly adapted to include marketing products and services, catering to a broad spectrum of clients looking to make a tangible impact in a digital age. Revenue for Transcontinental Inc. flows primarily through two robust channels: packaging and printing. The packaging segment, which has become a major pillar, caters to an array of sectors, from food and beverage to agriculture and health, providing innovative and sustainable packaging solutions. This diversification effectively captures steady streams of income as companies increasingly focus on eco-friendly and efficient packaging alternatives. Meanwhile, the printing division, although mature, remains integral, underpinned by demand for marketing materials, periodicals, and localized communications. Transcontinental distinguishes itself with its commitment to innovation, efficiency, and sustainability, allowing it to maintain a stronghold in respective markets while continuously exploring pragmatic avenues for growth in an ever-dynamic business environment.

TCL.A Intrinsic Value
19.12 CAD
Undervaluation 73%
Intrinsic Value
Price CA$5.14
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