TSE:TCL.A

Transcontinental Inc. (A) (TCL.A.TO)

4.97
+0.02 (0.40%)
as of Jun 9, 2026, 8:00:00 pm Market Open.
129 watching
0
Investor Insights
star iconJun 9, 2026, 12:00 am

This summary was created by AI, based on 1 opinions in the last 12 months.

Transcontinental Inc. (TCL.A-T) is currently facing significant scrutiny from experts due to its high dividend yield of 16%, which raises concerns about its sustainability amidst recent market volatility. The steep decline observed in the stock's chart suggests troubling developments that may have prompted investor apprehension regarding the possibility of a dividend cut. Such fears could be indicative of underlying financial issues within the company that necessitate careful evaluation before considering any investments. Given the current market sentiment and expert warnings, potential investors are advised to proceed with caution, as the risk factors appear to outweigh potential returns.

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Consensus
Avoid
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Valuation
Overvalued
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TOP PICK
Canada's largest commercial printing company, and increasingly a force to be reckoned with in flexible packaging. Printing business is fairly mature, which is the cash cow. Free cashflow is used to grow organically and make acquisitions in flexible packaging, especially in food and beverages. Secularly a good growth industry. Expects a re-rating on the shares. 14% ROE. Steady dividend grower. Exemplifies quality, industry leadership, value, cyclicality. Yield is 3.62%. (Analysts’ price target is $27.00)
BUY
Represents value and cyclicality, which have been rewarded. Stable printing business, depressed volumes are coming back. New direction in flexible packaging is exciting and a growth business. Have made some specialty printing acquisitions. Consistent dividend grower, which should return this year. Potential for a multiple re-rating is significant. Lots of upside.
BUY
Likes it. A cyclical business. Commercial business has rationalized costs for base business and made some acquisitions. Good cashflow. There is a lack of growth but they are solving it with m&a. Valuation is cheap at 6x cashflow and enterprise value. Could be choppy around earnings releases. Overall trend is in a good direction. A long.
TOP PICK

It is a recent addition to his portfolios. It is Canada's largest commercial printing operation and unnoticed by the majority of investors. They are going to be a big player in the flexible packaging industry. It will be more like CCL industries. They are best known for their fliers. They have been shrinking that footprint. The shares are inexpensive. They have a long history of growing the dividend. The stock should turn up dramatically this year as it was depressed last year. (Analysts’ price target is $25.25)

HOLD
Very cheap, trading below book value. Balance sheet is a little heavy. Great yield. Historically miss earnings. Consolidate a declining industry and try to rationalize it by cutting costs. He holds if for the yield and the valuation. Have to be patient.
DON'T BUY
It's failed to execute, though it has stopped falling. Hasn't created a meaningful rally.
DON'T BUY
A printing company that's grown by acquiring. But printing is cyclical and a declining industry, and TCL won't perform well in the coming downturn. TCL has good managers, though. They've missed their numbers in recent quarters.
PAST TOP PICK
(A Top Pick Jul 25/18, Down 49%) You have to have a sell-side discipline, and sold out before making devastating losses.
DON'T BUY
It pays a good dividend, but growth will be difficult. They need acquisitions to grow and this sector, magazines, is sluggish. Advertising has gone online, not in print.
COMMENT
A big drop at the end of February, perhaps due to earnings. Will it hold the current low of $14? So far it is. The market is currently evaluating this stock and falling to $7 is possible. Consider tax-loss selling if this drifts down.
PAST TOP PICK
(A Top Pick May 24/18, Down 44%) They are transforming from a printing company to a packing company. They made an acquisition that still has not created traction. They spin off a lot of free cash flow -- about 17%. The valuation is only 5 times earnings -- very cheap. You could hold or wait to see some upside momentum to add new cash.
HOLD
This is a very strong management team. They made a decision to go into packaging, and there was a huge learning curve. Take a long term view on this one. It will take years to learn this new business.
PAST TOP PICK
(A Top Pick Apr 05/18, Down 44%) A bad pick he admits. Commercial print business that tries to drive down costs in their acquisitions. A stretched balance sheet matched with an earnings miss. Trades 6 times cash flow and 7 times PE. The stock is too volatile and the balance sheet is at risk.
HOLD
He has exposure to them, but is taking a wait and see approach in light of the recent sell off. It appears cheap at 6 times earnings and a 5.5% dividend. He will not add to his position yet. Be cautious.
DON'T BUY
It's come off its price in 2018, nearly half its 2018 peak. His target price is $31.21, nearly double the current price. If this continues to fall, he will sell.
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