Talen Energy Corporation Common Stock (TLN)

FairStock Score: 26/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn durable returns, carry conservative debt, and sell at a sensible price. Talen is an independent power producer with 13.1 GW of nuclear, gas, coal, and oil generation, selling electricity and capacity into wholesale markets. That is a commodity business, and the filed numbers show why I am cautious. In fiscal 2024, the year ended 2024-12-31, Talen reported net income of $998.0M and diluted EPS of $17.67. In fiscal 2025, the year ended 2025-12-31, it swung to a net loss of $219.0M and diluted EPS of -$4.79; fiscal 2025 revenue was $2.5B versus fiscal 2024 revenue of $1.6B. In fiscal Q1 2026, the quarter ended 2026-03-31, it earned $63.0M, or $1.33 per diluted share; then in fiscal Q2 2026, the quarter ended 2026-06-30, it lost $92.0M, or $2.00 per diluted share. That is not the steady, predictable utility profile I prefer. The balance sheet is heavily leveraged: FairStock calculations show D/E of 5.84, Altman Z-Score of 0.81, and Piotroski F-Score of 0/9. Returns are weak, with ROCE of 0.92% and ROE of -12.83%. Free cash flow is $444.0M, a 2.4% FCF yield, while at the 2026-10-13 close of $382.14, FairStock lists P/B at 11.33, EV/EBITDA at 35.91, and a negative P/E of -94.82. The FairStock Score is 26/100 and the Lynch category is TURNAROUND — loss in latest year after earlier profits. The 13.1 GW fleet may have asset value, but without normalized earnings and debt reduction, I see speculation more than margin of safety.

In plain English: Talen Energy owns and runs power plants and sells electricity in wholesale markets. The business looks weak right now: in fiscal 2025, the year ended 2025-12-31, it reported a loss after a profit in fiscal 2024, the year ended 2024-12-31, and it carries a lot of debt. At the 2026-10-13 close of $382.14, the price looks expensive compared with the company's current profits and assets.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2022 10-K (period ended 2022-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer