RNW Stock Overview
TransAlta Renewables Inc. develops, owns, and operates renewable power generation facilities.
TransAlta Renewables Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||CA$15.23|
|52 Week High||CA$19.78|
|52 Week Low||CA$15.17|
|1 Month Change||-12.82%|
|3 Month Change||-8.75%|
|1 Year Change||-20.88%|
|3 Year Change||10.68%|
|5 Year Change||9.73%|
|Change since IPO||52.61%|
Recent News & Updates
TransAlta Renewables (TSE:RNW) Has A Pretty Healthy Balance Sheet
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
|RNW||CA Renewable Energy||CA Market|
Return vs Industry: RNW underperformed the Canadian Renewable Energy industry which returned -3.6% over the past year.
Return vs Market: RNW underperformed the Canadian Market which returned -8.4% over the past year.
|RNW Average Weekly Movement||2.1%|
|Renewable Energy Industry Average Movement||3.9%|
|Market Average Movement||9.8%|
|10% most volatile stocks in CA Market||18.1%|
|10% least volatile stocks in CA Market||3.8%|
Stable Share Price: RNW is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: RNW's weekly volatility (2%) has been stable over the past year.
About the Company
TransAlta Renewables Inc. develops, owns, and operates renewable power generation facilities. The company operates through Canadian Wind, Canadian Hydro, Canadian Gas, US Wind and Solar, US Gas, and Australian Gas segments. As of February 24, 2022, it owned and operated 26 wind facilities, 13 hydroelectric facilities, 8 natural gas generation facilities, 2 solar facilities, 1 natural gas pipeline, and 1 battery storage project comprising 2,968 megawatts of net generating capacity located in the provinces of British Columbia, Alberta, Ontario, Québec, New Brunswick, the States of Pennsylvania, New Hampshire, Wyoming, Massachusetts, Michigan, Minnesota, Washington, North Carolina, and the State of Western Australia.
TransAlta Renewables Fundamentals Summary
|RNW fundamental statistics|
Is RNW overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|RNW income statement (TTM)|
|Cost of Revenue||CA$272.00m|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||0.44|
|Net Profit Margin||21.91%|
How did RNW perform over the long term?See historical performance and comparison
6.2%Current Dividend Yield
Does RNW pay a reliable dividends?See RNW dividend history and benchmarks
|TransAlta Renewables dividend dates|
|Ex Dividend Date||Oct 13 2022|
|Dividend Pay Date||Oct 31 2022|
|Days until Ex dividend||14 days|
|Days until Dividend pay date||32 days|
Does RNW pay a reliable dividends?See RNW dividend history and benchmarks
Is RNW undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 4/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for RNW?
Other financial metrics that can be useful for relative valuation.
|What is RNW's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does RNW's PE Ratio compare to its peers?
|RNW PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
NPI Northland Power
BEPC Brookfield Renewable
PIF Polaris Renewable Energy
RNW TransAlta Renewables
Price-To-Earnings vs Peers: RNW is good value based on its Price-To-Earnings Ratio (34.7x) compared to the peer average (57.7x).
Price to Earnings Ratio vs Industry
How does RNW's PE Ratio compare vs other companies in the Global Renewable Energy Industry?
Price-To-Earnings vs Industry: RNW is expensive based on its Price-To-Earnings Ratio (34.7x) compared to the Global Renewable Energy industry average (16.7x)
Price to Earnings Ratio vs Fair Ratio
What is RNW's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||34.7x|
|Fair PE Ratio||39.4x|
Price-To-Earnings vs Fair Ratio: RNW is good value based on its Price-To-Earnings Ratio (34.7x) compared to the estimated Fair Price-To-Earnings Ratio (39.4x).
Share Price vs Fair Value
What is the Fair Price of RNW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: RNW (CA$15.23) is trading below our estimate of fair value (CA$60.08)
Significantly Below Fair Value: RNW is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is less than 20% higher than the current share price.
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How is TransAlta Renewables forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Future Growth Score3/6
Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RNW's forecast earnings growth (27.8% per year) is above the savings rate (1.6%).
Earnings vs Market: RNW's earnings (27.8% per year) are forecast to grow faster than the Canadian market (7.6% per year).
High Growth Earnings: RNW's earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: RNW's revenue (0.5% per year) is forecast to grow slower than the Canadian market (5.8% per year).
High Growth Revenue: RNW's revenue (0.5% 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 (13.2%).
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How has TransAlta Renewables performed over the past 5 years?
Past Performance Score2/6
Past Performance Score 2/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RNW has high quality earnings.
Growing Profit Margin: RNW's current net profit margins (21.9%) are lower than last year (31%).
Past Earnings Growth Analysis
Earnings Trend: RNW's earnings have grown by 7.2% 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 (-14%) over the past year, making it difficult to compare to the Renewable Energy industry average (-26.7%).
Return on Equity
High ROE: RNW's Return on Equity (6.1%) is considered low.
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How is TransAlta Renewables's financial position?
Financial Health Score4/6
Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: RNW's short term assets (CA$383.0M) do not cover its short term liabilities (CA$399.0M).
Long Term Liabilities: RNW's short term assets (CA$383.0M) do not cover its long term liabilities (CA$1.1B).
Debt to Equity History and Analysis
Debt Level: RNW's net debt to equity ratio (36.4%) is considered satisfactory.
Reducing Debt: RNW's debt to equity ratio has reduced from 48.4% to 48% over the past 5 years.
Debt Coverage: RNW's debt is well covered by operating cash flow (31.6%).
Interest Coverage: RNW earns more interest than it pays, so coverage of interest payments is not a concern.
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What is TransAlta Renewables's current dividend yield, its reliability and sustainability?
Dividend Score 2/6
Cash Flow Coverage
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
|TransAlta Renewables Dividend Yield vs Market|
|Company (TransAlta Renewables)||6.2%|
|Market Bottom 25% (CA)||2.1%|
|Market Top 25% (CA)||6.1%|
|Industry Average (Renewable Energy)||3.7%|
|Analyst forecast in 3 Years (TransAlta Renewables)||6.2%|
Notable Dividend: RNW's dividend (6.17%) is higher than the bottom 25% of dividend payers in the Canadian market (2.07%).
High Dividend: RNW's dividend (6.17%) is in the top 25% of dividend payers in the Canadian market (6.12%)
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 9 years.
Earnings Payout to Shareholders
Earnings Coverage: With its high payout ratio (214.5%), RNW's dividend payments are not well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its high cash payout ratio (121.8%), RNW's dividend payments are not well covered by cash flows.
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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 (3.3 years average tenure).
Experienced Board: RNW's board of directors are not considered experienced ( 1.6 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
|Owner Type||Number of Shares||Ownership Percentage|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
TransAlta Renewables Inc.'s employee growth, exchange listings and data sources
- Name: TransAlta Renewables Inc.
- Ticker: RNW
- Exchange: TSX
- Founded: 2013
- Industry: Renewable Electricity
- Sector: Utilities
- Implied Market Cap: CA$4.064b
- Shares outstanding: 266.86m
- Website: https://www.transaltarenewables.com
- TransAlta Renewables Inc.
- 110 - 12th Avenue SW
- 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|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/27 00:00|
|End of Day Share Price||2022/09/27 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.