Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Transcontinental Inc. (TCL-A.TO)

Company Dividend Discount ModelIndustry: Specialty Business ServicesSector: Industrials

Valuation Snapshot

Stable Growth$17.03 - $25.36$21.00
Multi-Stage$32.09 - $35.15$33.59
Blended Fair Value$27.30
Current Price$19.27
Upside41.65%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.37%4.72%0.920.920.920.930.920.900.810.720.670.62
YoY Growth---0.77%-0.13%-0.26%0.51%2.50%10.79%12.64%8.36%7.46%7.17%
Dividend Yield--5.01%6.83%6.22%4.39%4.33%5.78%3.88%2.90%3.07%3.39%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)176.00
(-) Cash Dividends Paid (M)159.20
(=) Cash Retained (M)16.80
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)35.2022.0013.20
Cash Retained (M)16.8016.8016.80
(-) Cash Required (M)-35.20-22.00-13.20
(=) Excess Retained (M)-18.40-5.203.60
(/) Shares Outstanding (M)84.4584.4584.45
(=) Excess Retained per Share-0.22-0.060.04
LTM Dividend per Share1.891.891.89
(+) Excess Retained per Share-0.22-0.060.04
(=) Adjusted Dividend1.671.821.93
WACC / Discount Rate7.99%7.99%7.99%
Growth Rate-1.63%-0.63%0.37%
Fair Value$17.03$21.00$25.36
Upside / Downside-11.61%8.98%31.62%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)176.00174.88173.77172.67171.58170.49175.60
Payout Ratio90.45%90.36%90.27%90.18%90.09%90.00%92.50%
Projected Dividends (M)159.20158.03156.87155.72154.58153.44162.43

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.99%7.99%7.99%
Growth Rate-1.63%-0.63%0.37%
Year 1 PV (M)144.86146.33147.81
Year 2 PV (M)131.81134.51137.23
Year 3 PV (M)119.94123.63127.41
Year 4 PV (M)109.14113.64118.29
Year 5 PV (M)99.31104.46109.82
PV of Terminal Value (M)2,104.992,214.182,327.87
Equity Value (M)2,710.042,836.762,968.41
Shares Outstanding (M)84.4584.4584.45
Fair Value$32.09$33.59$35.15
Upside / Downside66.53%74.32%82.41%

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