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Talen Energy (TLN) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Talen Energy
NasdaqGS•Utilities•Utilities - Independent Power Producers
$292.30-1.01(<0.01%)After hours
Market Cap
$13.42B
P/S
3.9x
P/B
8.3x

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's plants generate power using a variety of fuels, such as nuclear, fossil, oil, natural gas, and coal power plants. It owns and operates approximately 13.1 GW of power infrastructure. Talen Energy Corporation was incorporated in 2014 and is headquartered in Houston, Texas.

D

How this company scores

WeakMetricSide Score: 37/100

Grade capped at D — Interest coverage below 1× (0.1x) — earnings cannot cover interest. Strongest: Growth (17/25); weakest: Balance Sheet & Red Flags (2/25).

Profitability6/25
Growth17/25
Balance Sheet & Red Flags2/25
Cash & Earnings Quality12/25
Strengths
Growing revenueConsistent growthNo share dilution
Grade capped at D
  • Interest coverage below 1× (0.1x) — earnings cannot cover interest.

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 36.2x5y range 9.2x – 36.2x
P/E 36.2x · above its 7-quarter median

Currently above its 7-quarter median.

P/S · 3.9x5y range 3.7x – 11.6x
P/S 3.9x · below its 13-quarter median

Currently below its 13-quarter median.

P/B · 8.3x5y range 0.9x – 15.8x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

Operating margins dropped 103.7% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.

Earnings Quality

Red Flag

FCF consistently trails net income (avg 1.4x) — earnings may be inflated by non-cash items or aggressive accounting.

Price & Volume
Market Cap $13.42B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$3.44B
2Q
Q. Revenue
$747.00M
19%
TTM EBITDA
$418.00M
21%
TTM Op. Income
$88.00M
45%
Q. Op. Income
$-72.00M
209%
TTM Net Income
$-185.00M
138%
Q. Net Income
$-92.00M
228%
EPS
$-2
227%
Shares Out.
$45.90M
1%
$3.44B in TTM revenue grew 29.9% YoY, reaching $747.00M last quarter. TTM EBITDA of $418.00M and TTM operating income of $88.00M show growth is flowing through to the bottom line. However, net income is negative at $185.00M — growth is not yet reaching the bottom line. Across the last 8 quarters, TTM revenue has risen for 2 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin
4.1%
81%
Op. Margin
-9.6%
192%
Net Margin
-12.3%
208%
Op. margin of -9.6% is down 20.1% YoY — costs are rising relative to revenue. Net margin at -12.3% Over the past year, operating margin is down 192% — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
N/A
3Q
P/S Ratio
3.9x
3Q
P/B Ratio
8.3x
2Q
P/S of 3.9x and P/B of 8.3x. Across the last 5 quarters, P/E has risen for 3 consecutive quarters — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$15.07B
4Q
Cash
$231.00M
89%
Long-Term Debt
$9.54B
221%
Book Value
$1.62B
30%
D/E Ratio
5.9
148%
Debt/EBITDA
307.8
2Q
With $15.07B in assets and $9.54B in long-term debt, D/E is 5.9and book value is $1.62B — elevated leverage, meaning significant financial risk in a downturn. Over the past year, debt/equity is up 148% — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$-434.00M
136%
TTM Free Cash Flow
$568.00M
1236%
FCF Margin
16.5%
975%
FCF / Net Income
-3.1
2921%
TTM FCF of $568.00M on $-434.00M in operating cash flow. The FCF / Net Income ratio of -3.1x means the business consumes cash — it is not yet self-funding. Over the past year, free cash flow is up 1236% — a weakening trend.

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P/B 8.3x
· above its 15-quarter median

Currently above its 15-quarter median.

Leverage Risk

Red Flag

D/E ratio is 5.9 — heavily leveraged and vulnerable to rising rates or cash flow dips.

Cash Burn

Watch

FCF turned negative in 3 of the last 8 quarters — occasional cash consumption.