(TLN) Talen Energy - NASDAQ
Sector: Utilities | Industry: Utilities - Independent Power Producers | Exchange: NASDAQ (USA) | Market Cap: 16.475m USD | Total Return: 37.5% in 12m
Avg Turnover: 266M
Qual. Beats: 0
Rev. Trend: 16.5%
Qual. Beats: 1
Warnings
High Debt/EBITDA (7.2) with thin interest coverage (1.3)
Altman Z'' 0.46 < 1.0 - financial distress zone
Extended 3d Volatile
Tailwinds
No distinct edge detected
Talen Energy Corporation (TLN) is a Houston-based independent power producer (IPP) operating approximately 13.1 GW of generating capacity across the United States. The company functions as a merchant power provider, selling electricity, capacity, and ancillary services into competitive wholesale markets rather than through traditional regulated utility frameworks. Its diversified generation portfolio includes nuclear, natural gas, coal, and oil-fired assets.
As an IPP, Talen’s revenue is primarily driven by market clearing prices in regional transmission organizations, such as PJM Interconnection, where pricing is influenced by fuel costs and grid demand. The company’s nuclear segment provides significant baseload power, which has become increasingly relevant for providing carbon-free energy to high-load infrastructure like data centers. For a deeper look at how these market dynamics impact valuation, explore the data on ValueRay. Talen’s business model requires managing significant commodity price risk and operational availability across its fleet of power plants.
- Susquehanna nuclear plant data center deal drives premium power valuation
- FERC regulatory rulings impact colocation pricing and interconnection agreements
- Wholesale power price volatility affects merchant generation margins
- Free cash flow allocation prioritizes aggressive share repurchases and debt reduction
| Net Income: -21.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA 8.08 > 1.0 |
| NWC/Revenue: 6.36% < 20% (prev 15.52%; Δ -9.17% < -1%) |
| CFO/TA 0.09 > 3% & CFO 1.03b > Net Income -21.0m |
| Net Debt (5.78b) to EBITDA (808.0m): 7.15 < 3 |
| Current Ratio: 1.25 > 1.5 & < 3 |
| Outstanding Shares: last quarter (47.4m) vs 12m ago 3.45% < -2% |
| Gross Margin: 59.17% > 18% (prev 27.65%; Δ 31.53% > 0.5%) |
| Asset Turnover: 55.80% > 50% (prev 35.58%; Δ 20.21% > 0%) |
| Interest Coverage Ratio: 1.29 > 6 (EBIT TTM 449.0m / Interest Expense TTM 347.0m) |
| A: 0.03 (Total Current Assets 1.51b - Total Current Liabilities 1.21b) / Total Assets 11.0b |
| B: -0.06 (Retained Earnings -638.0m / Total Assets 11.0b) |
| C: 0.05 (EBIT TTM 449.0m / Avg Total Assets 8.43b) |
| D: 0.11 (Book Value of Equity 1.07b / Total Liabilities 9.92b) |
| Altman-Z'' = 0.46 = B |
| DSRI: 0.70 (Receivables 158.0m/100.0m, Revenue 4.70b/2.09b) |
| GMI: 0.47 (GM 27.65% / 59.17%) |
| AQI: 0.56 (AQ_t 0.18 / AQ_t-1 0.32) |
| SGI: 2.25 (Revenue 4.70b / 2.09b) |
| TATA: -0.10 (NI -21.0m - CFO 1.03b) / TA 11.0b) |
| Beneish M = -3.13 (Cap -4..+1) = AA |
As of June 17, 2026, the stock is trading at USD 386.21 with a total of 1,012,198 shares traded.
Over the past week, the price has changed by +5.87%,
over one month by +15.55%,
over three months by +21.60% and
over the past year by +37.48%.
Talen Energy has received a consensus analysts rating of 4.67. Therefore, it is recommended to buy TLN.
- StrongBuy: 6
- Buy: 3
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 472.2 | 22.3% |
P/E Forward = 15.3374
P/S = 5.0911
P/B = 15.2532
Revenue TTM = 4.70b USD
EBIT TTM = 449.0m USD
EBITDA TTM = 808.0m USD
Long Term Debt = 6.78b USD (from longTermDebt, last quarter)
Short Term Debt = 29.0m USD (from shortTermDebt, last quarter)
Debt = 6.81b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 5.78b USD (calculated: Debt 6.81b - CCE 1.03b)
Enterprise Value = 22.3b USD (16.5b + Debt 6.81b - CCE 1.03b)
Interest Coverage Ratio = 1.29 (Ebit TTM 449.0m / Interest Expense TTM 347.0m)
EV/FCF = 24.30x (Enterprise Value 22.3b / FCF TTM 916.0m)
FCF Yield = 4.12% (FCF TTM 916.0m / Enterprise Value 22.3b)
FCF Margin = 19.48% (FCF TTM 916.0m / Revenue TTM 4.70b)
Net Margin = -0.45% (Net Income TTM -21.0m / Revenue TTM 4.70b)
Gross Margin = 59.17% ((Revenue TTM 4.70b - Cost of Revenue TTM 1.92b) / Revenue TTM)
Gross Margin QoQ = 61.20% (prev 92.09%)
Tobins Q-Ratio = 2.02 (Enterprise Value 22.3b / Total Assets 11.0b)
Interest Expense / Debt = 5.10% (Interest Expense 347.0m / Debt 6.81b)
Taxrate = 22.22% (18.0m / 81.0m)
NOPAT = 349.2m (EBIT 449.0m * (1 - 22.22%))
Current Ratio = 1.25 (Total Current Assets 1.51b / Total Current Liabilities 1.21b)
Debt / Equity = 6.34 (Debt 6.81b / totalStockholderEquity, last quarter 1.07b)
Debt / EBITDA = 7.15 (Net Debt 5.78b / EBITDA 808.0m)
Debt / FCF = 6.31 (Net Debt 5.78b / FCF TTM 916.0m)
Total Stockholder Equity = 1.22b (last 4 quarters mean from totalStockholderEquity)
RoA = -0.25% (Net Income -21.0m / Total Assets 11.0b)
RoE = -1.72% (Net Income TTM -21.0m / Total Stockholder Equity 1.22b)
RoCE = 5.61% (EBIT 449.0m / Capital Employed (Equity 1.22b + L.T.Debt 6.78b))
RoIC = 3.65% (NOPAT 349.2m / Invested Capital 9.58b)
WACC = 9.91% (E(16.5b)/V(23.3b) * Re(12.36%) + D(6.81b)/V(23.3b) * Rd(5.10%) * (1-Tc(0.22)))
Discount Rate = 12.36% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -46.67 | Cagr: -9.26%
[DCF] Terminal Value 73.11% ; FCFF base≈555.6m ; Y1≈636.9m ; Y5≈937.4m
[DCF] Fair Price = 116.5 (EV 11.1b - Net Debt 5.78b = Equity 5.29b / Shares 45.4m; r=9.91% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.03 | # QB: 0
Revenue Correlation: 16.45 | Revenue CAGR: 1.75% | SUE: 4.0 | # QB: 1
EPS current Quarter (2026-06-30): EPS=3.57 | Chg30d=-5.93% | Revisions=-20% | Analysts=2
EPS next Quarter (2026-09-30): EPS=8.94 | Chg30d=-5.70% | Revisions=-20% | Analysts=1
EPS current Year (2026-12-31): EPS=23.79 | Chg30d=+16.47% | Revisions=+0% | GrowthEPS=+162.6% | GrowthRev=+64.2%
EPS next Year (2027-12-31): EPS=35.55 | Chg30d=+11.32% | Revisions=+0% | GrowthEPS=+49.4% | GrowthRev=+10.8%
[Analyst] Revisions Ratio: -20%