Talen Energy Corporation

Talen Energy Corporation

TLNยทNASDAQ

$378.08

-0.40%
UtilitiesIndependent Power Producers

Talen Energy Corporation, an independent power producer and infrastructure company, produces and sells electricity, capacity, and ancillary services into wholesale power markets in the United States. The company operates nuclear, fossil, solar, and coal power plants. It is also developing battery storage projects. The company owns and operates approximately 10.7 GW of power infrastructure. Talen Energy Corporation is headquartered in Houston, Texas.

At a Glance

Live Snapshot
Market Cap$17.28B
EPS-4.7900
P/E Ratio-78.93
Earnings Date08/06/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

Medium confidence

Valuation multiple is compressed (P/E -78.9).

Valuation inputs: P/E -78.9, earnings yield N/A, momentum -0.4%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE -20.0%, ROIC -0.7%).

Profitability stack: net margin -8.7%, ROE -20.0%, ROIC -0.7%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Downside profile is elevated and scenario stress-testing is essential.

Risk factors: liabilities/assets +90.0%, momentum -0.4%, net margin -8.7%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

tln

Talen Energy Corporation Market vs Earnings Trajectory

TLN ยท NASDAQ

Loading price and EPS data...

Talen Energy Corporation

Talen Energy Corporation Fair Value Envelope

TLN ยท NASDAQ

Our analysis suggests that TLN has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $378.08, this represents a potential HIDDEN relative to our calculated worth for Talen Energy Corporation.

Intrinsic Value
Current Price: $378.08
3Y-83.0%
5Y-7.0%
10Y-544.0%
3Y+5.0%
5Y+41.0%
10Y-41.0%
3Y-83.0%
5Y-67.0%
10Y-258.0%
3Y+229.0%
5Y+503.0%
10Y-20.0%
3Y-427.0%
5Y-793.0%
10Y+66.0%
3Y+2.0%
5Y-15.0%
10Y-22.0%
Talen Energy Corporation

Talen Energy Corporation Profit Bridge

TLN ยท NASDAQ
Revenue2.52B
Cost of Goods Sold (1.27B)
Gross Profit1.25B
Operating Expenses (1.33B)
Operating Income-71.00M
Interest Expense (302.00M)
Other Income/Expense-95.00M
Pretax Income-166.00M
Income Tax (53.00M)
Net Income-219.00M
Net Income
-219.00M

Profitability Analysis

Gross Margin

49.7%

Strong gross margins indicate healthy pricing and efficient production or service delivery.

Operating Margin

-2.8%

Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.

Net Profit Margin

-8.7%

Net losses indicate the company is burning cash. Sustainability depends on path to profitability.

Profitability Insight

Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.

49.70%
Gross Profit Margin
55%
3Y+56.0%
5Y+98.0%
10Y+336.0%
-2.81%
Operating Profit Margin
-126%
3Y-128.0%
5Y-93.0%
10Y-129.0%
-8.67%
Net Profit Margin
-118%
3Y-84.0%
5Y-77.0%
10Y-367.0%
-20.04%
Return on Equity
-128%
3Y-109.0%
5Y-
10Y-875.0%
-2.01%
Return on Assets
-112%
3Y-83.0%
5Y-
10Y-301.0%
-0.72%
Return on Invested Capital
-120%
3Y-124.0%
5Y-
10Y-134.0%
TLN

Talen Energy Corporation Cash Conversion Engine

TLN ยท NASDAQ
Net Income-219.00M
Depreciation & Amortization279.00M
Stock-Based Compensation526.00M
Change in Working Capital-103.00M
Others12.00M
Capital Expenditures-206.00M
Free Cash Flow409.00M

Cash Flow Quality Analysis

FCF Conversion Rate

-186.8%

Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.

CapEx Intensity

33.5%

Moderate capital requirements typical of many stable businesses. Healthy balance between reinvestment and cash generation.

FCF Growth Trend

+657.4%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

-$103.00M

Moderate working capital outflow. Typical for growing businesses, but ensure it's supporting revenue growth, not inefficiency.

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Talen Energy Corporation Funding & Solvency Profile

TLN ยท NASDAQ
Cash & Cash Equivalents1.03B
Net Receivables158.00M
Inventory244.00M
Other Current Assets80.00M
Total Current Assets2 B
Property, Plant & Equipment7.50B
Goodwill & Intangible Assets0.00
Long-Term Investments0.00
Other Non-Current Assets1.99B
Total Non-Current Assets9 B
Total Assets
10.99B

Financial Health Analysis

Current Ratio

1.25x

Acceptable liquidity, but monitor closely. Current assets just barely cover current liabilities.

Debt-to-Equity Ratio

9.25x

High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.

Working Capital

299 M

Positive working capital, but relatively tight. The company should monitor cash flow carefully.

Asset Composition

14% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

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Talen Energy Corporation Street Expectations Map

TLN ยท NASDAQ

Wall Street analysts project that TLN stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 476.60, with estimates ranging from a low of 411.00 to a high of 510.00.

Lowest Target
411.00
8.71%
Consensus Target
476.60
26.06%
Highest Target
510.00
34.89%

The consensus 1-year price target stands at 476.60, with estimates ranging from a low of 411.00 to a high of 510.00.

Analyst Consensus Analysis

Upside Potential

+26.1%

Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.

Analyst Agreement

20.8% spread

Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.

Analyst Conviction

Very High

Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.

Market Sentiment Insight

Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.

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Talen Energy Corporation Insider Positioning

TLN ยท NASDAQ

During the last 12 months, insiders have sold $398K worth of TLN shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

6-9 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

9-12 Months

Bought

0

0.00

Sold

1.3K

398.10K

Net Activity

-398K

-$398K

Top Buyers

No buying activity

Top Sellers

1
RCML

Rubric Capital Management Lp

10 Percent Owner

1.3K sharesโ€ข3 transactions

$398K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $398K net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Insider Participation

High Selling

1 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

0.00%
Dividend Yield
3Y-
5Y-
10Y-
ย 

tln Dividend History

TLN
10Y CAGR +0%
Latest $0
Annual $0
Stable dividend payments
Last Period: +0%