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RNW

TransAlta Renewables TSX:RNW Stock Report

Last Price

CA$15.23

Market Cap

CA$4.1b

7D

-6.2%

1Y

-20.9%

Updated

27 Sep, 2022

Data

Company Financials +
RNW fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance2/6
Financial Health4/6
Dividends2/6

RNW Stock 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$15.23
52 Week HighCA$19.78
52 Week LowCA$15.17
Beta0.64
1 Month Change-12.82%
3 Month Change-8.75%
1 Year Change-20.88%
3 Year Change10.68%
5 Year Change9.73%
Change since IPO52.61%

Recent News & Updates

Sep 15
TransAlta Renewables (TSE:RNW) Has A Pretty Healthy Balance Sheet

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...

Shareholder Returns

RNWCA Renewable EnergyCA Market
7D-6.2%-9.1%-5.5%
1Y-20.9%-3.0%-7.3%

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.

Price Volatility

Is RNW's price volatile compared to industry and market?
RNW volatility
RNW Average Weekly Movement2.1%
Renewable Energy Industry Average Movement3.9%
Market Average Movement9.8%
10% most volatile stocks in CA Market18.1%
10% least volatile stocks in CA Market3.8%

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

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

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

How do TransAlta Renewables's earnings and revenue compare to its market cap?
RNW fundamental statistics
Market CapCA$4.06b
Earnings (TTM)CA$117.00m
Revenue (TTM)CA$534.00m

34.7x

P/E Ratio

7.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RNW income statement (TTM)
RevenueCA$534.00m
Cost of RevenueCA$272.00m
Gross ProfitCA$262.00m
Other ExpensesCA$145.00m
EarningsCA$117.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.44
Gross Margin49.06%
Net Profit Margin21.91%
Debt/Equity Ratio48.0%

How did RNW perform over the long term?

See historical performance and comparison

Dividends

6.2%

Current Dividend Yield

215%

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 13 2022
Dividend Pay DateOct 31 2022
Days until Ex dividend14 days
Days until Dividend pay date32 days

Does RNW pay a reliable dividends?

See RNW dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is RNW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

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

  • Analyst Forecast

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.

RNW key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue9x
Enterprise Value/EBITDA17.6x
PEG Ratio1.2x

Price to Earnings Ratio vs Peers

How does RNW's PE Ratio compare to its peers?

RNW PE Ratio vs Peers
The above table shows the PE ratio for RNW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average57.7x
BLX Boralex
79.6x3.2%CA$4.5b
NPI Northland Power
17.9x-17.9%CA$10.0b
BEPC Brookfield Renewable
29.6x-69.7%CA$16.9b
PIF Polaris Renewable Energy
103.7x136.4%CA$319.9m
RNW TransAlta Renewables
34.7x27.8%CA$4.1b

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.

RNW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio34.7x
Fair PE Ratio39.4x

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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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


27.8%

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%).


Discover growth companies

Past Performance

How has TransAlta Renewables performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


7.2%

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.


Discover strong past performing companies

Financial Health

How is TransAlta Renewables's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

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.


Balance Sheet


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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


6.17%

Current Dividend Yield

Upcoming Dividend Payment

TodaySep 28 2022Ex Dividend DateOct 13 2022Dividend Pay DateOct 31 202218 days from Ex DividendBuy in the next 14 days to receive the upcoming dividend

Dividend Yield vs Market

TransAlta Renewables Dividend Yield vs Market
How does TransAlta Renewables dividend yield compare to the market?
SegmentDividend Yield
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.


Discover strong dividend paying companies

Management

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

3.3yrs

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 (3.3 years average tenure).


Board Members

Experienced Board: RNW's board of directors are not considered experienced ( 1.6 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.


Ownership Breakdown

What is the ownership structure of RNW?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders40,0000.01%
Institutions27,693,31010.4%
General Public78,729,71429.5%
Public Companies160,398,21760.1%

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


Top Shareholders

Top 25 shareholders own 69.64% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
60.11%
TransAlta Corporation
160,398,217CA$2.4b0%no data
1.41%
The Vanguard Group, Inc.
3,773,490CA$57.5m0.43%no data
1.39%
BMO Asset Management Corp.
3,721,110CA$56.7m3.23%0.03%
0.96%
Guinness Asset Management Limited
2,554,500CA$38.9m0%0.73%
0.7%
Gravis Advisory Limited
1,855,470CA$28.3m0%1.61%
0.67%
Tortoise Capital Advisors, L.L.C.
1,776,056CA$27.0m3.88%0.3%
0.58%
BlackRock, Inc.
1,537,602CA$23.4m0.45%no data
0.51%
Dimensional Fund Advisors LP
1,351,360CA$20.6m0.36%no data
0.45%
Accrued Equities Inc.
1,200,000CA$18.3m0%3.95%
0.44%
Norges Bank Investment Management
1,182,781CA$18.0m0%no data
0.32%
TD Asset Management, Inc.
846,336CA$12.9m-1.17%0.01%
0.27%
J.P. Morgan Asset Management, Inc.
722,467CA$11.0m-0.02%no data
0.26%
ALPS Advisors, Inc.
699,856CA$10.7m1.74%0.06%
0.2%
Northwest & Ethical Investments L.P.
521,300CA$7.9m0%0.49%
0.18%
Tortoise Advisors UK Limited
481,854CA$7.3m-3%2.15%
0.17%
FMR LLC
446,000CA$6.8m0%no data
0.16%
RBC Global Asset Management Inc.
420,584CA$6.4m-2.73%no data
0.16%
CBRE Investment Management Listed Real Assets LLC
413,800CA$6.3m-17.86%0.06%
0.15%
First Trust Advisors LP
398,302CA$6.1m0%0.01%
0.14%
CIBC Asset Management Inc.
365,709CA$5.6m-5.63%0.01%
0.11%
Nuveen Investments, Inc.
280,389CA$4.3m-5.57%0.01%
0.1%
Mackenzie Financial Corporation
266,738CA$4.1m-1.53%no data
0.084%
Middlefield Limited
225,000CA$3.4m0%1.2%
0.084%
Charles Schwab Investment Management, Inc.
224,234CA$3.4m1.97%no data
0.063%
Goldman Sachs Asset Management, L.P.
168,239CA$2.6m0%no data

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
  • Implied Market Cap: CA$4.064b
  • Shares outstanding: 266.86m
  • Website: https://www.transaltarenewables.com

Location

  • TransAlta Renewables Inc.
  • 110 - 12th Avenue SW
  • 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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/27 00:00
End of Day Share Price2022/09/27 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.