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Transcontinental (TSX:TCL.B) Cyclically Adjusted FCF per Share : C$3.25 (As of Jan. 2024)


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What is Transcontinental Cyclically Adjusted FCF per Share?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years.

Transcontinental's adjusted free cash flow per share for the three months ended in Jan. 2024 was C$0.240. Add all the adjusted free cash flow per share for the past 10 years together and divide the count will get our Cyclically Adjusted FCF per Share, which is C$3.25 for the trailing ten years ended in Jan. 2024.

During the past 12 months, Transcontinental's average Cyclically Adjusted FCF Growth Rate was 5.80% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was -1.00% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 6.10% per year. During the past 10 years, the average Cyclically Adjusted FCF Growth Rate was 8.10% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Cyclically Adjusted FCF Growth Rate using Cyclically Adjusted FCF per Share data.

During the past 13 years, the highest 3-Year average Cyclically Adjusted FCF Growth Rate of Transcontinental was 58.70% per year. The lowest was -1.30% per year. And the median was 7.55% per year.

As of today (2024-05-21), Transcontinental's current stock price is C$13.41. Transcontinental's Cyclically Adjusted FCF per Share for the quarter that ended in Jan. 2024 was C$3.25. Transcontinental's Cyclically Adjusted Price-to-FCF of today is 4.13.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Transcontinental was 14.13. The lowest was 3.05. And the median was 6.87.


Transcontinental Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Transcontinental's Cyclically Adjusted FCF per Share can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Transcontinental Cyclically Adjusted FCF per Share Chart

Transcontinental Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Cyclically Adjusted FCF per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.14 3.48 3.40 3.63 3.51

Transcontinental Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Cyclically Adjusted FCF per Share Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.13 3.15 3.23 3.51 3.25

Competitive Comparison of Transcontinental's Cyclically Adjusted FCF per Share

For the Packaging & Containers subindustry, Transcontinental's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Transcontinental's Cyclically Adjusted Price-to-FCF Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Transcontinental's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Transcontinental's Cyclically Adjusted Price-to-FCF falls into.



Transcontinental Cyclically Adjusted FCF per Share Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years.

What is Cyclically Adjusted FCF per Share? How do we calculate Cyclically Adjusted FCF per Share?

Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the Cyclically Adjusted FCF per Share of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the free cash flow per share from 2001 through 2010.

We adjusted the 2001 free cash flow per share data with the total inflation from 2001 through 2010 to the equivalent free cash flow in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart's free cash flow is $1 a share in 2001, then the 2001's equivalent free cash flow in 2010 is $1.4 a share. If Wal-Mart's free cash flow is $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 free cash flow in 2010 is $1.35. So on and so forth, you get the equivalent free cash flow per share of past 10 years. Then you add them together and divided the sum by the count to get Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, Transcontinental's adjusted Free Cash Flow per Share data for the three months ended in Jan. 2024 was:

Adj_FreeCashFlowPerShare= Free Cash Flow per Share /CPI of Jan. 2024 (Change)*Current CPI (Jan. 2024)
=0.24/125.0724*125.0724
=0.240

Current CPI (Jan. 2024) = 125.0724.

Transcontinental Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201404 0.587 98.920 0.742
201407 0.434 99.315 0.547
201410 1.812 99.473 2.278
201501 0.082 98.209 0.104
201504 0.400 99.710 0.502
201507 1.029 100.579 1.280
201510 1.065 100.500 1.325
201601 0.199 100.184 0.248
201604 0.928 101.370 1.145
201607 0.796 101.844 0.978
201610 0.605 102.002 0.742
201701 0.858 102.318 1.049
201704 0.597 103.029 0.725
201707 0.794 103.029 0.964
201710 1.303 103.424 1.576
201801 0.995 104.056 1.196
201804 0.556 105.320 0.660
201807 0.554 106.110 0.653
201810 0.725 105.952 0.856
201901 0.492 105.557 0.583
201904 0.867 107.453 1.009
201907 0.733 108.243 0.847
201910 1.408 107.927 1.632
202001 0.415 108.085 0.480
202004 0.951 107.216 1.109
202007 1.479 108.401 1.706
202010 0.940 108.638 1.082
202101 0.608 109.192 0.696
202104 0.640 110.851 0.722
202107 0.107 112.431 0.119
202110 0.679 113.695 0.747
202201 -0.467 114.801 -0.509
202204 0.456 118.357 0.482
202207 0.117 120.964 0.121
202210 0.798 121.517 0.821
202301 -0.453 121.596 -0.466
202304 0.598 123.571 0.605
202307 0.751 124.914 0.752
202310 2.508 125.310 2.503
202401 0.240 125.072 0.240

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.


Transcontinental  (TSX:TCL.B) Cyclically Adjusted FCF per Share Explanation

If a company grows much fast than inflation, Cyclically Adjusted FCF per Share may underestimate the company's free cash flow. Cyclically Adjusted Price-to-FCF can seem to be too high even the actual Price-to-Free-Cash-Flow is low.

For the Cyclically Adjusted Price-to-FCF, the free cash flow per share of the past 10 years are inflation-adjusted and averaged. The result is used for P/FCF calculation. Since it looks at the average over the last 10 years, the Cyclically Adjusted Price-to-FCF is also called CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Transcontinental's Cyclically Adjusted Price-to-FCF of today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=13.41/3.25
=4.13

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Transcontinental was 14.13. The lowest was 3.05. And the median was 6.87.


Be Aware

Cyclically Adjusted Price-to-FCF works better for cyclical companies. It gives you a better idea on the company's real free cash flow value.


Transcontinental Cyclically Adjusted FCF per Share Related Terms

Thank you for viewing the detailed overview of Transcontinental's Cyclically Adjusted FCF per Share provided by GuruFocus.com. Please click on the following links to see related term pages.


Transcontinental (TSX:TCL.B) Business Description

Traded in Other Exchanges
Address
1 Place Ville Marie, Suite 3240, Affaires Juridiques,, A/s Caroline Hamel, Montreal, QC, CAN, H3B 0G1
Transcontinental Inc or TC Transcontinental, is a Canadian printer and flexible packaging provider that operates in three segments: packaging, printing, and other. Its packaging segment features the production of different plastic products geared toward consumer goods. Production plants specialize in extrusion, lamination, printing, and converting. The company offers premedia, printing, and distribution services through the printing segment. Publishers, retailers, cataloguers, and marketers are some of the customers who tap TC Transcontinental for these printing solutions. The smaller other segment focuses on the media sector, which generates revenue from print and digital publishing products.

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