Talen EnergyTLN -3.78%33 Return-on-Tangible-Equity is 23.27% as of Mar. 2026. GuruFocus rates TLN with a GF Score™ of 33/100. The stock has 8 warning signs investors should review. Among 426 Utilities - Independent Power Producers companies, Talen Energy ranks worse than 70.89% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Talen Energy's annualized net income for the quarter that ended in Mar. 2026 was $252 Mil. Talen Energy's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $1,083 Mil. Therefore, Talen Energy's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 23.27%.
The historical rank and industry rank for Talen Energy's Return-on-Tangible-Equity or its related term are showing as below:
TLN'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -409.21 Med: -7.4 Max: 51.93
Current: -1.73
During the past 10 years, Talen Energy's highest Return-on-Tangible-Equity was 51.93%. The lowest was -409.21%. And the median was -7.40%.
TLN's Return-on-Tangible-Equity is ranked worse than 70.89% of 426
companies
in the Utilities - Independent Power Producers industry
Industry Median: 4.745
vs TLN: -1.73
Talen Energy (NAS:TLN) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Talen Energy Return-on-Tangible-Equity Related Terms
Talen Energy Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Talen Energy's Return-on-Tangible-Equity 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.
TLN vs OKLO, NRG, KEN: Return-on-Tangible-Equity Comparison
For the Utilities - Independent Power Producers subindustry, Talen Energy's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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.
Talen Energy Return-on-Tangible-Equity vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Talen Energy's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Talen Energy's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 23.27% mean?
Talen Energy (TLN) has a Return-on-Tangible-Equity of 23.27% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Talen Energy and its competitors. According to the industry distribution chart, Talen Energy ranks #302 out of 426 companies in the Utilities - Independent Power Producers industry, placing it in the top 70.9%.
Is Talen Energy's Return-on-Tangible-Equity too high?
Talen Energy's current Return-on-Tangible-Equity is 23.27%. The Utilities - Independent Power Producers industry median Return-on-Tangible-Equity is 4.75. Talen Energy's value of 23.27% is 390.4% above this industry median. Based on the distribution chart, Talen Energy ranks #302 out of 426 companies in the Utilities - Independent Power Producers industry, which is below the industry midpoint. Overall, Talen Energy has a GF Score™ of 33/100, reflecting its overall financial health beyond just this single metric.
How does Talen Energy's Return-on-Tangible-Equity compare to OKLO and NRG?
According to the Utilities - Independent Power Producers industry distribution chart, Talen Energy ranks #302 out of 426 companies for Return-on-Tangible-Equity. This places Talen Energy in the lower half of its industry. The industry median Return-on-Tangible-Equity is 4.75. Talen Energy's value of 23.27% is 390.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Utilities - Independent Power Producers company?
The median Return-on-Tangible-Equity among Utilities - Independent Power Producers companies is 4.75, based on 426 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Talen Energy's current Return-on-Tangible-Equity of 23.27% is 390.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Talen Energy and its competitors. For the Utilities - Independent Power Producers industry, the median Return-on-Tangible-Equity is 4.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Talen Energy's current Return-on-Tangible-Equity is 23.27%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Talen Energy stock overvalued right now?
Talen Energy (TLN) has a current Return-on-Tangible-Equity of 23.27%. The current Return-on-Tangible-Equity is 23.27% and 390.4% above the Utilities - Independent Power Producers industry median of 4.75. Talen Energy's overall GF Score™ is 33/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Talen Energy (TLN), the current Return-on-Tangible-Equity is 23.27% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Talen Energy Corp is an independent power producer and energy infrastructure company based in the United States. It owns and operates several gigawatts of power infrastructure in the United States, including 2.2GW of nuclear power and a dispatchable fossil fleet. The company produces and sells electricity, capacity, and ancillary services into wholesale U.S. power markets, with its generation fleet principally located in the Mid-Atlantic, Ohio, and Montana. Talen's operating segments are: PJM and Others. The PJM segment, which generates maximum revenue, is engaged in electricity generation, marketing activities, and commodity risk and fuel management within the PJM market and is comprised of Susquehanna and Talen's natural gas and coal generation facilities in PJM.
33GF Score
Get the complete analysis for TLN
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TLN has been successfully added to your 
