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RNW

TransAlta RenewablesTSX:RNW Stock Report

Market Cap

CA$5.2b

7D

-2.0%

1Y

18.4%

Updated

25 Sep, 2021

Data

Company Financials +
RNW fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance5/6
Financial Health4/6
Dividends2/6

RNW Overview

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

TransAlta Renewables Competitors

Price History & Performance

Summary of all time highs, changes and price drops for TransAlta Renewables
Historical stock prices
Current Share PriceCA$19.40
52 Week HighCA$16.31
52 Week LowCA$24.47
Beta0.62
1 Month Change-2.81%
3 Month Change-6.37%
1 Year Change18.37%
3 Year Change68.70%
5 Year Change31.70%
Change since IPO94.39%

Recent News & Updates

Shareholder Returns

RNWCA Renewable EnergyCA Market
7D-2.0%-2.5%-0.3%
1Y18.4%11.6%30.8%

Return vs Industry: RNW exceeded the Canadian Renewable Energy industry which returned 11.6% over the past year.

Return vs Market: RNW underperformed the Canadian Market which returned 30.8% over the past year.

Price Volatility

Is RNW's price volatile compared to industry and market?
RNW volatility
RNW Beta0.62
Industry Beta0.62
Market Beta1

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

Volatility Over Time: RNW's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2013n/an/ahttps://www.transaltarenewables.com

TransAlta Renewables Inc. develops, owns, and operates renewable power generation facilities. As of March 3, 2021, it owned and operated 23 wind facilities, 13 hydroelectric facilities, 7 natural gas generation facilities, 1 solar facility, 1 natural gas pipeline, and 1 battery storage comprising an ownership interest of 2,537 megawatts of generating capacity located in the provinces of British Columbia, Alberta, Ontario, Québec, and New Brunswick; and the States of Wyoming, Massachusetts, and Minnesota, as well as the State of Western Australia. The company was incorporated in 2013 and is headquartered in Calgary, Canada.

TransAlta Renewables Fundamentals Summary

How do TransAlta Renewables's earnings and revenue compare to its market cap?
RNW fundamental statistics
Market CapCA$5.18b
Earnings (TTM)CA$136.00m
Revenue (TTM)CA$439.00m

38.1x

P/E Ratio

11.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RNW income statement (TTM)
RevenueCA$439.00m
Cost of RevenueCA$187.00m
Gross ProfitCA$252.00m
ExpensesCA$116.00m
EarningsCA$136.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.51
Gross Margin57.40%
Net Profit Margin30.98%
Debt/Equity Ratio38.4%

How did RNW perform over the long term?

See historical performance and comparison

Dividends

4.8%

Current Dividend Yield

184%

Payout Ratio

Does RNW pay a reliable dividends?

See RNW dividend history and benchmarks
When do you need to buy RNW by to receive an upcoming dividend?
TransAlta Renewables dividend dates
Ex Dividend DateOct 14 2021
Dividend Pay DateOct 29 2021
Days until Ex dividend18 days
Days until Dividend pay date33 days

Does RNW pay a reliable dividends?

See RNW dividend history and benchmarks

Valuation

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

38.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RNW (CA$19.4) is trading below our estimate of fair value (CA$31.59)

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 (38.1x) compared to the Canadian Renewable Energy industry average (10.9x).

PE vs Market: RNW is poor value based on its PE Ratio (38.1x) compared to the Canadian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: RNW is poor value based on its PEG Ratio (4.9x)


Price to Book Ratio

PB vs Industry: RNW is overvalued based on its PB Ratio (2.5x) compared to the CA Renewable Energy industry average (2.3x).


Future Growth

How is TransAlta Renewables forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

7.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RNW's forecast earnings growth (7.7% per year) is above the savings rate (1.5%).

Earnings vs Market: RNW's earnings (7.7% per year) are forecast to grow slower than the Canadian market (11.9% per year).

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

Revenue vs Market: RNW's revenue (2.9% per year) is forecast to grow slower than the Canadian market (6% per year).

High Growth Revenue: RNW's revenue (2.9% 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 (11%).


Past Performance

How has TransAlta Renewables performed over the past 5 years?

16.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RNW has high quality earnings.

Growing Profit Margin: RNW's current net profit margins (31%) are higher than last year (25.3%).


Past Earnings Growth Analysis

Earnings Trend: RNW's earnings have grown by 16.8% per year over the past 5 years.

Accelerating Growth: RNW's earnings growth over the past year (29.5%) exceeds its 5-year average (16.8% per year).

Earnings vs Industry: RNW earnings growth over the past year (29.5%) exceeded the Renewable Energy industry -25.1%.


Return on Equity

High ROE: RNW's Return on Equity (6.5%) is considered low.


Financial Health

How is TransAlta Renewables's financial position?


Financial Position Analysis

Short Term Liabilities: RNW's short term assets (CA$381.0M) do not cover its short term liabilities (CA$398.0M).

Long Term Liabilities: RNW's short term assets (CA$381.0M) do not cover its long term liabilities (CA$970.0M).


Debt to Equity History and Analysis

Debt Level: RNW's debt to equity ratio (38.4%) is considered satisfactory.

Reducing Debt: RNW's debt to equity ratio has reduced from 47.9% to 38.4% over the past 5 years.

Debt Coverage: RNW's debt is well covered by operating cash flow (35.6%).

Interest Coverage: RNW earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

4.85%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 26 2021Ex Dividend DateOct 14 2021Dividend Pay DateOct 29 202115 days from Ex DividendBuy in the next 18 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: RNW's dividend (4.85%) is higher than the bottom 25% of dividend payers in the Canadian market (1.66%).

High Dividend: RNW's dividend (4.85%) is in the top 25% of dividend payers in the Canadian market (4.57%)


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 8 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (184.2%), 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 (125.6% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

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


Leadership Team

Experienced Management: RNW's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: RNW's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


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 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$5.177b
  • Shares outstanding: 266.86m
  • Website: https://www.transaltarenewables.com

Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/25 22:17
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
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.