TSX:RNW

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TransAlta Renewables

Executive Summary

TransAlta Renewables Inc. develops, owns, and operates renewable power generation facilities. More Details


Snowflake Analysis

Excellent balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has TransAlta Renewables's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RNW is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: RNW's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-6.2%

RNW

-3.4%

CA Renewable Energy

-0.8%

CA Market


1 Year Return

7.1%

RNW

21.0%

CA Renewable Energy

12.5%

CA Market

Return vs Industry: RNW underperformed the Canadian Renewable Energy industry which returned 21% over the past year.

Return vs Market: RNW underperformed the Canadian Market which returned 12.5% over the past year.


Shareholder returns

RNWIndustryMarket
7 Day-6.2%-3.4%-0.8%
30 Day-14.5%-16.3%2.1%
90 Day5.5%-3.4%5.8%
1 Year13.5%7.1%25.5%21.0%16.6%12.5%
3 Year96.1%60.9%122.7%93.8%23.1%11.4%
5 Year113.2%53.8%167.8%110.1%56.4%32.8%

Long-Term Price Volatility Vs. Market

How volatile is TransAlta Renewables's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is TransAlta Renewables undervalued compared to its fair value and its price relative to the market?

46.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RNW (CA$18.65) is trading below our estimate of fair value (CA$34.75)

Significantly Below Fair Value: RNW is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RNW is poor value based on its PE Ratio (53.9x) compared to the CA Renewable Energy industry average (30.3x).

PE vs Market: RNW is poor value based on its PE Ratio (53.9x) compared to the Canadian market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: RNW is poor value based on its PEG Ratio (4.1x)


Price to Book Ratio

PB vs Industry: RNW's PB Ratio (2.2x) is in line with the CA Renewable Energy industry average.


Next Steps

Future Growth

How is TransAlta Renewables forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

13.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RNW's forecast earnings growth (13.2% per year) is above the savings rate (1.5%).

Earnings vs Market: RNW's earnings (13.2% per year) are forecast to grow slower than the Canadian market (26.2% per year).

High Growth Earnings: RNW's earnings are forecast to grow, but not significantly.

Revenue vs Market: RNW's revenue (7.5% per year) is forecast to grow slower than the Canadian market (7.8% per year).

High Growth Revenue: RNW's revenue (7.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RNW's Return on Equity is forecast to be low in 3 years time (10.8%).


Next Steps

Past Performance

How has TransAlta Renewables performed over the past 5 years?

9.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RNW has a large one-off loss of CA$61.0M impacting its December 31 2020 financial results.

Growing Profit Margin: RNW's current net profit margins (21.1%) are lower than last year (40.7%).


Past Earnings Growth Analysis

Earnings Trend: RNW's earnings have grown by 9.9% per year over the past 5 years.

Accelerating Growth: RNW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RNW had negative earnings growth (-48.4%) over the past year, making it difficult to compare to the Renewable Energy industry average (8.9%).


Return on Equity

High ROE: RNW's Return on Equity (4.2%) is considered low.


Next Steps

Financial Health

How is TransAlta Renewables's financial position?


Financial Position Analysis

Short Term Liabilities: RNW's short term assets (CA$743.0M) exceed its short term liabilities (CA$364.0M).

Long Term Liabilities: RNW's short term assets (CA$743.0M) do not cover its long term liabilities (CA$987.0M).


Debt to Equity History and Analysis

Debt Level: RNW's debt to equity ratio (37.5%) is considered satisfactory.

Reducing Debt: RNW's debt to equity ratio has reduced from 39.4% to 37.5% over the past 5 years.

Debt Coverage: RNW's debt is well covered by operating cash flow (30.9%).

Interest Coverage: RNW's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet


Next Steps

Dividend

What is TransAlta Renewables's current dividend yield, its reliability and sustainability?

5.04%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: RNW's dividend (5.04%) is higher than the bottom 25% of dividend payers in the Canadian market (1.57%).

High Dividend: RNW's dividend (5.04%) is in the top 25% of dividend payers in the Canadian market (4.97%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, RNW has been paying a dividend for less than 10 years.

Growing Dividend: RNW's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (271.8%), RNW's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RNW's dividends in 3 years are not forecast to be well covered by earnings (108% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

TransAlta Renewables has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Todd Stack
President & Director0.083yrCA$225.00k0.0015%
CA$ 74.7k
Brent Ward
Chief Financial Officer1.83yrsCA$129.07kno data
Aron Willis
Senior Vice President of Growth & Commercial4.17yrsCA$331.90kno data
Scott Jeffers
Corporate Secretary3.33yrsCA$117.77kno data
Kathryn Higgins
MD & Corporate Controller1.83yrsCA$102.43kno data
Sally Taylor
Manager of Investor Relationsno datano datano data

1.8yrs

Average Tenure

Experienced Management: RNW's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Todd Stack
President & Director0.083yrCA$225.00k0.0015%
CA$ 74.7k
Kathryn A. McQuade
Independent Corporate Director7.75yrsCA$149.50k0.0019%
CA$ 93.1k
Allen Hagerman
Corporate Independent Director7.75yrsCA$160.54k0.0019%
CA$ 93.1k
David Drinkwater
Independent Chairman1.58yrsCA$165.46k0.00094%
CA$ 46.8k
Paul H. Taylor
Corporate Director7.75yrsCA$107.50k0.0028%
CA$ 139.8k
Brett Gellner
Corporate Director7.83yrsno data0.013%
CA$ 624.6k

7.8yrs

Average Tenure

65yo

Average Age

Experienced Board: RNW's board of directors are considered experienced (7.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

TransAlta Renewables Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TransAlta Renewables Inc.
  • Ticker: RNW
  • Exchange: TSX
  • Founded: 2013
  • Industry: Renewable Electricity
  • Sector: Utilities
  • Market Cap: CA$4.977b
  • Shares outstanding: 266.85m
  • Website: https://www.transaltarenewables.com

Location

  • TransAlta Renewables Inc.
  • 110 12th Avenue Southwest
  • PO Box 1900
  • Calgary
  • Alberta
  • T2P 2M1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RNWTSX (The Toronto Stock Exchange)YesCommon SharesCACADAug 2013
0TADB (Deutsche Boerse AG)YesCommon SharesDEEURAug 2013
TRSW.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 2013

Biography

TransAlta Renewables Inc. develops, owns, and operates renewable power generation facilities. As of February 28, 2020, it owned and operated 23 wind facilities, 13 hydroelectric facilities, seven natural g...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/05 00:06
End of Day Share Price2021/03/04 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.