TransAlta Renewables Inc. develops, owns, and operates renewable power generation facilities. More Details
Excellent balance sheet and slightly overvalued.
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 +/- 4% a week.
Volatility Over Time: RNW's weekly volatility (4%) has been stable over the past year.
7 Day Return
CA Renewable Energy
1 Year Return
CA Renewable Energy
Return vs Industry: RNW exceeded the Canadian Renewable Energy industry which returned 22.3% over the past year.
Return vs Market: RNW underperformed the Canadian Market which returned 36.3% over the past year.
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
2 days ago | Simply Wall StTransAlta Renewables (TSE:RNW) Seems To Use Debt Quite Sensibly
3 weeks ago | Simply Wall StWhat Kind Of Shareholders Own TransAlta Renewables Inc. (TSE:RNW)?
1 month ago | Simply Wall StShareholders Of TransAlta Renewables (TSE:RNW) Must Be Happy With Their 115% Total Return
Is TransAlta Renewables undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RNW (CA$18.48) is trading below our estimate of fair value (CA$34.39)
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 (53.4x) compared to the Canadian Renewable Energy industry average (12.8x).
PE vs Market: RNW is poor value based on its PE Ratio (53.4x) compared to the Canadian market (15.9x).
Price to Earnings Growth Ratio
PEG Ratio: RNW is poor value based on its PEG Ratio (3.7x)
Price to Book Ratio
PB vs Industry: RNW's PB Ratio (2.2x) is in line with the CA Renewable Energy industry average.
How is TransAlta Renewables forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RNW's forecast earnings growth (14.5% per year) is above the savings rate (1.5%).
Earnings vs Market: RNW's earnings (14.5% per year) are forecast to grow slower than the Canadian market (15.1% per year).
High Growth Earnings: RNW's earnings are forecast to grow, but not significantly.
Revenue vs Market: RNW's revenue (6.1% per year) is forecast to grow slower than the Canadian market (6.5% per year).
High Growth Revenue: RNW's revenue (6.1% 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 (10.4%).
How has TransAlta Renewables performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RNW has a large one-off loss of CA$61.0M impacting its March 31 2021 financial results.
Growing Profit Margin: RNW's current net profit margins (21.3%) are lower than last year (40.7%).
Past Earnings Growth Analysis
Earnings Trend: RNW's earnings have grown by 15.9% 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 (0.09%).
Return on Equity
High ROE: RNW's Return on Equity (4.2%) is considered low.
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 earns more interest than it pays, so coverage of interest payments is not a concern.
What is TransAlta Renewables's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RNW's dividend (5.09%) is higher than the bottom 25% of dividend payers in the Canadian market (1.49%).
High Dividend: RNW's dividend (5.09%) is in the top 25% of dividend payers in the Canadian market (4.54%)
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 (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 (112.2% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
TransAlta Renewables has no CEO, or we have no data on them.
Experienced Management: RNW's management team is considered experienced (2.8 years average tenure).
Experienced Board: RNW's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: RNW insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
TransAlta Renewables Inc.'s company bio, employee growth, exchange listings and data sources
- Name: TransAlta Renewables Inc.
- Ticker: RNW
- Exchange: TSX
- Founded: 2013
- Industry: Renewable Electricity
- Sector: Utilities
- Market Cap: CA$5.028b
- Shares outstanding: 266.86m
- Website: https://www.transaltarenewables.com
- TransAlta Renewables Inc.
- 110 12th Avenue Southwest
- PO Box 1900
- T2P 2M1
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 gener...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/12 22:05|
|End of Day Share Price||2021/05/12 00:00|
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.