What Does TransAlta Corporation's (TSE:TA) Share Price Indicate?
Oct 31
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Canadian (TSX) Renewable Energy Industry Analysis
UpdatedOct 31, 2024
DataAggregated Company Financials
Companies14
- 7D-5.4%
- 3M8.9%
- 1Y25.2%
- YTD8.6%
Over the last 7 days, the Renewable Energy industry has dropped 5.4%, driven by Brookfield Renewable declining 9.7%. In contrast, Capital Power has gained 6.5%. Over the past 12 months, the industry was up 25%. Looking forward, earnings are forecast to decline by 15% per year.
Industry Valuation and Performance
Has the Canadian Renewable Energy Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 31 Oct 2024 | CA$56.1b | CA$25.9b | CA$2.0b | 13.6x | 28.3x | 2.2x |
| Sat, 28 Sep 2024 | CA$58.1b | CA$25.5b | CA$2.0b | 13.6x | 29.6x | 2.3x |
| Mon, 26 Aug 2024 | CA$51.3b | CA$25.5b | CA$2.0b | 11.9x | 26.3x | 2x |
| Wed, 24 Jul 2024 | CA$51.8b | CA$25.3b | CA$2.8b | 7.8x | 18.5x | 2x |
| Fri, 21 Jun 2024 | CA$53.0b | CA$25.2b | CA$2.8b | 8x | 19x | 2.1x |
| Sun, 19 May 2024 | CA$54.3b | CA$25.1b | CA$2.8b | 7.9x | 19.6x | 2.2x |
| Tue, 16 Apr 2024 | CA$44.0b | CA$25.1b | CA$894.1m | 11.5x | 49.2x | 1.7x |
| Thu, 14 Mar 2024 | CA$46.8b | CA$24.8b | CA$872.6m | 26.2x | 53.7x | 1.9x |
| Sat, 10 Feb 2024 | CA$47.3b | CA$24.8b | CA$1.1b | 15.4x | 41.7x | 1.9x |
| Mon, 08 Jan 2024 | CA$55.2b | CA$24.7b | CA$3.4b | 16.1x | 16x | 2.2x |
| Wed, 06 Dec 2023 | CA$53.7b | CA$24.9b | CA$3.5b | 14.8x | 15.5x | 2.2x |
| Fri, 03 Nov 2023 | CA$48.1b | CA$24.7b | CA$2.0b | 14.7x | 24.5x | 1.9x |
| Sun, 01 Oct 2023 | CA$49.1b | CA$24.1b | CA$1.7b | 18.2x | 28.7x | 2x |
| Tue, 29 Aug 2023 | CA$57.4b | CA$24.2b | CA$1.7b | 17.3x | 33.6x | 2.4x |
| Thu, 27 Jul 2023 | CA$60.9b | CA$23.7b | CA$2.8b | 24.7x | 22x | 2.6x |
| Sat, 24 Jun 2023 | CA$59.8b | CA$23.7b | CA$2.8b | 23.8x | 21.6x | 2.5x |
| Mon, 22 May 2023 | CA$65.0b | CA$24.0b | CA$2.8b | 20.4x | 23.3x | 2.7x |
| Wed, 19 Apr 2023 | CA$63.9b | CA$22.5b | CA$2.7b | 44.7x | 23.9x | 2.8x |
| Fri, 17 Mar 2023 | CA$61.8b | CA$22.8b | CA$2.7b | 43.4x | 22.8x | 2.7x |
| Sun, 12 Feb 2023 | CA$58.3b | CA$21.8b | CA$2.6b | 25x | 22.8x | 2.7x |
| Tue, 10 Jan 2023 | CA$60.0b | CA$21.6b | CA$1.6b | 26.1x | 37.8x | 2.8x |
| Thu, 08 Dec 2022 | CA$63.5b | CA$21.8b | CA$1.6b | 41.7x | 39.7x | 2.9x |
| Sat, 05 Nov 2022 | CA$63.9b | CA$21.1b | CA$670.3m | 27.4x | 95.3x | 3x |
| Mon, 03 Oct 2022 | CA$68.2b | CA$20.9b | CA$689.7m | 31x | 98.9x | 3.3x |
| Wed, 31 Aug 2022 | CA$76.0b | CA$20.4b | CA$673.4m | 36.5x | 112.8x | 3.7x |
| Fri, 29 Jul 2022 | CA$72.7b | CA$19.2b | -CA$141,202,102.00 | 36.1x | -515.1x | 3.8x |
| Sun, 26 Jun 2022 | CA$70.0b | CA$19.2b | -CA$137,650,878.00 | 34.8x | -508.4x | 3.6x |
| Tue, 24 May 2022 | CA$70.2b | CA$19.1b | -CA$134,161,208.00 | 36.3x | -523.3x | 3.7x |
| Thu, 21 Apr 2022 | CA$71.4b | CA$18.4b | CA$459.1m | 43.3x | 155.4x | 3.9x |
| Sat, 19 Mar 2022 | CA$75.3b | CA$18.5b | CA$484.1m | 44.5x | 155.5x | 4.1x |
| Mon, 14 Feb 2022 | CA$65.2b | CA$18.1b | CA$356.1m | 21.9x | 183x | 3.6x |
| Wed, 12 Jan 2022 | CA$64.4b | CA$17.8b | -CA$1,714,591,554.00 | 29.1x | -37.6x | 3.6x |
| Fri, 10 Dec 2021 | CA$66.0b | CA$17.9b | -CA$1,724,335,704.00 | 33.3x | -38.3x | 3.7x |
| Sun, 07 Nov 2021 | CA$73.4b | CA$17.6b | -CA$1,249,779,861.00 | 11.5x | -58.7x | 4.2x |
Price to Earnings Ratio
-58.7x
Current Industry PE
- Investors are pessimistic on the Canadian Renewable Energy industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 28.3x which is higher than its 3-year average PE of -2.3x.
- The 3-year average PS ratio of 2.8x is higher than the industry's current PS ratio of 2.2x.
Past Earnings Growth
- Total earnings for the Renewable Energy industry have gone up over the last three years, and the industry is now profitable. Revenues have grown 14% per year.
- This means that more sales are being generated by the industry overall, and subsequently profits are increasing too.
Industry Trends
Which industries have driven the changes within the Canadian Utilities industry?
| CA Market | -0.37% | |
| Utilities | -3.27% | |
| Renewable Energy | -5.36% | |
| Independent Power Producers and Energy Traders | 5.45% | |
| Renewable Energy | -7.66% | |
Industry PE
- Investors are most optimistic about the Renewable Energy industry even though it's trading below its 3-year average PE ratio of 85.7x.
- Analysts are expecting annual earnings decline of 17.6%, which is worse than the prior year's decline of 7.9%.
- Investors are most pessimistic about the Independent Power Producers and Energy Traders industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 1.8x.
Forecasted Growth
- Despite it being negative, analysts are least pessimistic on the Independent Power Producers and Energy Traders industry since they expect its earnings to decline by only 0.2% per year over the next 5 years, which isn't as bad as the other industries.
- This is a reversal from its past annual earnings growth rate of 122% per year.
- In contrast, the Renewable Energy industry is expected to see its earnings decline by 18% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| CPX Capital Power | CA$54.30 | 6.5% +CA$431.9m | 51.3% | PE11.6x | |
| TA TransAlta | CA$14.60 | 4.1% +CA$170.1m | 40.7% | PE7.7x | |
| RNW TransAlta Renewables | CA$12.34 | 0.4% +CA$13.3m | -9.1% | PE42.2x | |
| MXG Maxim Power | CA$4.17 | 1.5% +CA$3.0m | -5.2% | PE8.1x | |
| NUE NU E Power | CA$0.49 | 22.5% +CA$2.7m | n/a | PS21.1x |
