TransAlta Renewables Inc. develops, owns, and operates renewable power generation facilities.
Excellent balance sheet and good value.
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 has not had significant price volatility in the past 3 months.
7 Day Return
CA Renewable Energy
1 Year Return
CA Renewable Energy
Return vs Industry: RNW exceeded the Canadian Renewable Energy industry which returned 41.5% over the past year.
Return vs Market: RNW exceeded the Canadian Market which returned 4.9% over the past year.
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
1 week ago | Simply Wall StDo Institutions Own TransAlta Renewables Inc. (TSE:RNW) Shares?
2 weeks ago | Simply Wall StHere's What TransAlta Renewables Inc.'s (TSE:RNW) P/E Ratio Is Telling Us
1 month ago | Simply Wall StIs There Now An Opportunity In TransAlta Renewables Inc. (TSE:RNW)?
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$17.78) is trading below our estimate of fair value (CA$26.35)
Significantly Below Fair Value: RNW is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RNW is good value based on its PE Ratio (20.9x) compared to the Renewable Energy industry average (48.9x).
PE vs Market: RNW is poor value based on its PE Ratio (20.9x) compared to the Canadian market (16x).
Price to Earnings Growth Ratio
PEG Ratio: RNW is poor value based on its PEG Ratio (11.5x)
Price to Book Ratio
PB vs Industry: RNW is good value based on its PB Ratio (2.1x) compared to the CA Renewable Energy industry average (2.4x).
How is TransAlta Renewables forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RNW's forecast earnings growth (1.8% per year) is above the savings rate (1.4%).
Earnings vs Market: RNW's earnings (1.8% per year) are forecast to grow slower than the Canadian market (10.7% per year).
High Growth Earnings: RNW's earnings are forecast to grow, but not significantly.
Revenue vs Market: RNW's revenue (3.1% per year) is forecast to grow slower than the Canadian market (4.9% per year).
High Growth Revenue: RNW's revenue (3.1% 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 (10.1%).
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 gain of CA$67.0M impacting its September 30 2019 financial results.
Growing Profit Margin: RNW's current net profit margins (49%) are higher than last year (40.2%).
Past Earnings Growth Analysis
Earnings Trend: RNW's earnings have grown significantly by 26% per year over the past 5 years.
Accelerating Growth: RNW's earnings growth over the past year (27.3%) exceeds its 5-year average (26% per year).
Earnings vs Industry: RNW earnings growth over the past year (27.3%) exceeded the Renewable Energy industry -28.4%.
Return on Equity
High ROE: RNW's Return on Equity (9.8%) is considered low.
Return on Assets
Return on Capital Employed
How is TransAlta Renewables's financial position?
Financial Position Analysis
Short Term Liabilities: RNW's short term assets (CA$282.0M) exceed its short term liabilities (CA$158.0M).
Long Term Liabilities: RNW's short term assets (CA$282.0M) do not cover its long term liabilities (CA$1.2B).
Debt to Equity History and Analysis
Debt Level: RNW's debt to equity ratio (38.6%) is considered satisfactory.
Reducing Debt: RNW's debt to equity ratio has reduced from 62.7% to 38.6% over the past 5 years.
Debt Coverage: RNW's debt is well covered by operating cash flow (40.2%).
Interest Coverage: RNW earns more interest than it pays, so coverage of interest payments is not a concern.
Inventory Level: RNW has a high level of physical assets or inventory.
Debt Coverage by Assets: RNW's debt is not covered by short term assets (assets are 0.3x debt).
What is TransAlta Renewables's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Purchase TransAlta Renewables before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: RNW's dividend (5.29%) is higher than the bottom 25% of dividend payers in the Canadian market (1.89%).
High Dividend: RNW's dividend (5.29%) is low compared to the top 25% of dividend payers in the Canadian market (5.31%).
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 6 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (110.7%), 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 (102.7% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
John Kousinioris (53yo)
Mr. John Harry Kousinioris has been the Chief Growth Officer at TransAlta Corporation since 2018 and Chief Operating Officer since August 2019. Mr. Kousinioris has been President and Director of TransAlta ...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($USD509.41K) is below average for companies of similar size in the Canadian market ($USD2.81M).
Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.
|President & Corporate Director||2.3yrs||CA$675.47k||0.00096% CA$45.3k|
|Chief Financial Officer||1.1yrs||CA$114.51k||no data|
|Senior Vice President of Growth||3.1yrs||CA$323.01k||no data|
|Corporate Secretary||2.3yrs||CA$86.96k||0.00038% CA$17.9k|
|Manager of Investor Relations||0yrs||no data||no data|
|MD & Corporate Controller||1.1yrs||no data||no data|
Experienced Management: RNW's management team is considered experienced (2.3 years average tenure).
|President & Corporate Director||2.3yrs||CA$675.47k||0.00096% CA$45.3k|
|Corporate Director||6.7yrs||CA$154.00k||0.0019% CA$88.8k|
|Chairman of the Board||7.1yrs||CA$184.50k||0.0019% CA$88.8k|
|Corporate Director||6.7yrs||CA$149.00k||0.00094% CA$44.4k|
|Corporate Director||6.7yrs||CA$116.50k||0.0028% CA$133.2k|
|Corporate Director||6.8yrs||no data||0.013% CA$595.4k|
Experienced Board: RNW's board of directors are considered experienced (6.7 years average tenure).
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.9%.
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$4.722b
- Shares outstanding: 265.57m
- Website: https://www.transaltarenewables.com
- TransAlta Renewables Inc.
- 110 12th Avenue Southwest
- PO Box 1900
- T2P 2M1
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|RNW||TSX (The Toronto Stock Exchange)||Yes||Common Shares||CA||CAD||Aug 2013|
|0TA||DB (Deutsche Boerse AG)||Yes||Common Shares||DE||EUR||Aug 2013|
|TRSW.F||OTCPK (Pink Sheets LLC)||Yes||Common Shares||US||USD||Aug 2013|
TransAlta Renewables Inc. develops, owns, and operates renewable power generation facilities. As of March 6, 2019, it owned and operated 21 wind facilities, 13 hydroelectric facilities, 7 natural gas generation facilities, 1 solar facility, and 1 natural gas pipeline comprising an ownership interest of 2,414 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 founded in 2013 and is headquartered in Calgary, Canada. TransAlta Renewables Inc. is a subsidiary of TransAlta Corporation.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/19 02:10|
|End of Day Share Price||2020/02/18 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.