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TransAlta Renewables

TSX:RNW
Snowflake Description

Excellent balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RNW
TSX
CA$4B
Market Cap
  1. Home
  2. CA
  3. Utilities
Company description

TransAlta Renewables Inc. develops, owns, and operates renewable power generation facilities. The last earnings update was 35 days ago. More info.


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RNW Share Price and Events
7 Day Returns
0.1%
TSX:RNW
0.1%
CA Renewable Energy
0.1%
CA Market
1 Year Returns
11%
TSX:RNW
8.9%
CA Renewable Energy
-2.9%
CA Market
RNW Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
TransAlta Renewables (RNW) 0.1% 2% 5.7% 11% 9.7% 19.8%
CA Renewable Energy 0.1% 0.8% 0.3% 8.9% 19.1% 7.9%
CA Market 0.1% -1.4% -0.6% -2.9% 11.5% 0.9%
1 Year Return vs Industry and Market
  • RNW outperformed the Renewable Energy industry which returned 8.9% over the past year.
  • RNW outperformed the Market in Canada which returned -2.9% over the past year.
Price Volatility
RNW
Industry
5yr Volatility vs Market

Value

 Is TransAlta Renewables undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of TransAlta Renewables to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for TransAlta Renewables.

TSX:RNW Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.7%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:RNW
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Renewable Energy Unlevered Beta Simply Wall St/ S&P Global 0.49
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.49 (1 + (1- 26.5%) (26.34%))
0.721
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (0.8 * 5.96%)
6.72%

Discounted Cash Flow Calculation for TSX:RNW using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for TransAlta Renewables is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:RNW DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 6.72%)
2019 313.50 Analyst x2 293.77
2020 338.00 Analyst x2 296.80
2021 312.00 Analyst x1 256.73
2022 310.18 Est @ -0.58% 239.18
2023 310.73 Est @ 0.18% 224.52
2024 312.93 Est @ 0.71% 211.88
2025 316.31 Est @ 1.08% 200.69
2026 320.55 Est @ 1.34% 190.58
2027 325.42 Est @ 1.52% 181.31
2028 330.79 Est @ 1.65% 172.70
Present value of next 10 years cash flows CA$2,268.17
TSX:RNW DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CA$330.79 × (1 + 1.95%) ÷ (6.72% – 1.95%)
CA$7,072.82
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$7,072.82 ÷ (1 + 6.72%)10
CA$3,692.65
TSX:RNW Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$2,268.17 + CA$3,692.65
CA$5,960.82
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$5,960.82 / 264.01
CA$22.58
TSX:RNW Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$22.58
Current discount Discount to share price of CA$13.85
= -1 x (CA$13.85 - CA$22.58) / CA$22.58
38.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price TransAlta Renewables is available for.
Intrinsic value
39%
Share price is CA$13.85 vs Future cash flow value of CA$22.58
Current Discount Checks
For TransAlta Renewables to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • TransAlta Renewables's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • TransAlta Renewables's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for TransAlta Renewables's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are TransAlta Renewables's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:RNW PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CAD CA$0.94
TSX:RNW Share Price ** TSX (2019-06-14) in CAD CA$13.85
Canada Renewable Energy Industry PE Ratio Median Figure of 8 Publicly-Listed Renewable Energy Companies 13.53x
Canada Market PE Ratio Median Figure of 545 Publicly-Listed Companies 15.07x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of TransAlta Renewables.

TSX:RNW PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:RNW Share Price ÷ EPS (both in CAD)

= 13.85 ÷ 0.94

14.67x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TransAlta Renewables is overvalued based on earnings compared to the CA Renewable Energy industry average.
  • TransAlta Renewables is good value based on earnings compared to the Canada market.
Price based on expected Growth
Does TransAlta Renewables's expected growth come at a high price?
Raw Data
TSX:RNW PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.67x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
-2.5%per year
Canada Renewable Energy Industry PEG Ratio Median Figure of 5 Publicly-Listed Renewable Energy Companies -0.06x
Canada Market PEG Ratio Median Figure of 247 Publicly-Listed Companies 1.15x

*Line of best fit is calculated by linear regression .

TSX:RNW PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.67x ÷ -2.5%

-5.86x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TransAlta Renewables earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on TransAlta Renewables's assets?
Raw Data
TSX:RNW PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CAD CA$9.01
TSX:RNW Share Price * TSX (2019-06-14) in CAD CA$13.85
Canada Renewable Energy Industry PB Ratio Median Figure of 15 Publicly-Listed Renewable Energy Companies 2.11x
Canada Market PB Ratio Median Figure of 2,417 Publicly-Listed Companies 1.4x
TSX:RNW PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:RNW Share Price ÷ Book Value per Share (both in CAD)

= 13.85 ÷ 9.01

1.54x

* Primary Listing of TransAlta Renewables.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TransAlta Renewables is good value based on assets compared to the CA Renewable Energy industry average.
X
Value checks
We assess TransAlta Renewables's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Renewable Energy industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Renewable Energy industry average (and greater than 0)? (1 check)
  5. TransAlta Renewables has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is TransAlta Renewables expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-2.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is TransAlta Renewables expected to grow at an attractive rate?
  • TransAlta Renewables's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.9%.
Growth vs Market Checks
  • TransAlta Renewables's earnings are expected to decrease over the next 1-3 years, this is below the Canada market average.
  • TransAlta Renewables's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:RNW Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:RNW Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts -2.5%
TSX:RNW Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 3.1%
Canada Renewable Energy Industry Earnings Growth Rate Market Cap Weighted Average 24.1%
Canada Renewable Energy Industry Revenue Growth Rate Market Cap Weighted Average 3.1%
Canada Market Earnings Growth Rate Market Cap Weighted Average 14.6%
Canada Market Revenue Growth Rate Market Cap Weighted Average 5.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:RNW Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:RNW Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 529 1
2022-12-31 524 1
2021-12-31 508 410 231 2
2020-12-31 490 386 210 5
2019-12-31 476 386 221 5
TSX:RNW Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-03-31 451 384 246
2018-12-31 446 385 236
2018-09-30 438 312 176
2018-06-30 438 321 91
2018-03-31 442 322 48
2017-12-31 441 290 9
2017-09-30 402 329 2
2017-06-30 355 304 98
2017-03-31 298 301 61
2016-12-31 240 282 -2
2016-09-30 220 272 79
2016-06-30 217 250 117

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • TransAlta Renewables's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • TransAlta Renewables's revenue is expected to grow by 3.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:RNW Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from TransAlta Renewables Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:RNW Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.88 0.88 0.88 1.00
2020-12-31 0.80 0.86 0.73 3.00
2019-12-31 0.84 0.88 0.79 3.00
TSX:RNW Past Financials Data
Date (Data in CAD Millions) EPS *
2019-03-31 0.94
2018-12-31 0.92
2018-09-30 0.69
2018-06-30 0.37
2018-03-31 0.20
2017-12-31 0.04
2017-09-30 0.01
2017-06-30 0.44
2017-03-31 0.27
2016-12-31 -0.01
2016-09-30 0.37
2016-06-30 0.56

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • TransAlta Renewables is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess TransAlta Renewables's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
TransAlta Renewables has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has TransAlta Renewables performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare TransAlta Renewables's growth in the last year to its industry (Renewable Energy).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • TransAlta Renewables has delivered over 20% year on year earnings growth in the past 5 years.
  • TransAlta Renewables's 1-year earnings growth exceeds its 5-year average (412.5% vs 21.8%)
  • TransAlta Renewables's earnings growth has exceeded the CA Renewable Energy industry average in the past year (412.5% vs 158.8%).
Earnings and Revenue History
TransAlta Renewables's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from TransAlta Renewables Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:RNW Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 451.00 246.00
2018-12-31 446.00 236.00
2018-09-30 438.00 176.00
2018-06-30 438.00 91.00
2018-03-31 442.00 48.00
2017-12-31 441.00 9.00
2017-09-30 402.00 2.00
2017-06-30 355.00 98.00
2017-03-31 298.00 61.00
2016-12-31 240.00 -2.00
2016-09-30 220.00 79.00
2016-06-30 217.00 117.00
2016-03-31 215.00 139.00
2015-12-31 216.00 195.00
2015-09-30 213.79 109.67
2015-06-30 214.50 48.63
2015-03-31 212.89 47.52
2014-12-31 212.31 48.66
2014-09-30 209.00 42.53
2014-06-30 210.28 43.77
2014-03-31 230.56 57.39
2013-12-31 223.32 50.26
2013-09-30 220.40 53.25
2013-06-30 218.41 54.85
2013-03-31 195.41 28.49
2012-12-31 196.45 32.09

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • TransAlta Renewables has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • TransAlta Renewables used its assets less efficiently than the CA Renewable Energy industry average last year based on Return on Assets.
  • TransAlta Renewables has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess TransAlta Renewables's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Renewable Energy industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
TransAlta Renewables has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is TransAlta Renewables's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up TransAlta Renewables's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • TransAlta Renewables is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • TransAlta Renewables's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of TransAlta Renewables's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from TransAlta Renewables Company Filings, last reported 2 months ago.

TSX:RNW Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 2,421.00 963.00 69.00
2018-12-31 2,396.00 932.00 73.00
2018-09-30 2,313.00 1,021.00 24.00
2018-06-30 2,364.00 1,021.00 24.00
2018-03-31 2,212.00 1,018.00 59.00
2017-12-31 2,197.00 1,043.00 21.00
2017-09-30 2,244.00 1,145.00 12.00
2017-06-30 2,081.00 1,006.00 15.00
2017-03-31 2,059.00 1,054.00 51.00
2016-12-31 2,061.00 1,042.00 15.00
2016-09-30 2,180.00 1,029.00 20.00
2016-06-30 2,157.00 1,034.00 12.00
2016-03-31 2,252.00 988.00
2015-12-31 2,026.00 797.00 2.00
2015-09-30 1,960.06 761.82 13.94
2015-06-30 1,948.21 666.17 50.58
2015-03-31 1,038.01 669.11 37.29
2014-12-31 1,040.76 658.46 23.73
2014-09-30 1,041.25 653.20 4.53
2014-06-30 1,063.41 658.73 22.09
2014-03-31 1,080.59 662.52 11.95
2013-12-31 1,067.06 685.11 19.26
2013-09-30 1,088.06 574.61 6.60
2013-06-30 1,695.84 375.99 2.09
2013-03-31 1,693.01 376.07 1.97
2012-12-31 1,699.61 373.63 3.21
  • TransAlta Renewables's level of debt (39.1%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (61.3% vs 39.1% today).
  • Debt is well covered by operating cash flow (40.5%, greater than 20% of total debt).
  • TransAlta Renewables earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess TransAlta Renewables's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. TransAlta Renewables has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.79%
Current annual income from TransAlta Renewables dividends. Estimated to be 6.74% next year.
If you bought CA$2,000 of TransAlta Renewables shares you are expected to receive CA$136 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • TransAlta Renewables's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.14%).
  • TransAlta Renewables's dividend is above the markets top 25% of dividend payers in Canada (5.78%).
Upcoming dividend payment

Purchase TransAlta Renewables before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:RNW Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
Canada Renewable Energy Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 4.9%
Canada Market Average Dividend Yield Market Cap Weighted Average of 335 Stocks 3.6%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
Canada Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:RNW Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.94 1.00
2022-12-31 0.94 1.00
2021-12-31 0.96 2.00
2020-12-31 0.93 8.00
2019-12-31 0.93 8.00
TSX:RNW Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-04-25 0.940 6.861
2019-03-05 0.940 6.985
2018-10-31 0.940 8.347
2018-08-02 0.940 8.139
2018-05-31 0.940 7.560
2018-02-23 0.940 7.982
2017-11-02 0.940 7.323
2017-07-28 0.940 6.650
2017-05-03 0.880 5.678
2017-03-08 0.880 5.618
2016-10-31 0.880 6.154
2016-08-09 0.880 6.066
2016-02-11 0.880 6.971
2015-10-30 0.880 8.745
2015-07-30 0.840 7.675
2015-05-07 0.840 6.738
2015-02-12 0.770 6.046
2014-10-31 0.770 6.411
2014-07-28 0.770 6.637
2014-05-02 0.770 6.682
2014-02-13 0.770 6.807
2013-12-20 0.770 6.940
2013-10-30 0.750 7.037

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, TransAlta Renewables has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but TransAlta Renewables only paid a dividend in the past 6 years.
Current Payout to shareholders
What portion of TransAlta Renewables's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (1x coverage).
X
Income/ dividend checks
We assess TransAlta Renewables's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can TransAlta Renewables afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. TransAlta Renewables has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of TransAlta Renewables's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Kousinioris
COMPENSATION CA$675,466
AGE 53
TENURE AS CEO 1.6 years
CEO Bio

Mr. John Harry Kousinioris has been the Chief Growth Officer at TransAlta Corporation since 2018. Mr. Kousinioris has been President and Director of TransAlta Renewables Inc. since November 2, 2017. He served as Corporate Secretary at TransAlta Renewables Inc. since October 2, 2015 until November 2, 2017. Mr. Kousinioris was responsible for directing TransAlta’s legal affairs, government relations, regulatory compliance and corporate secretarial matters. Mr. Kousinioris had been the Chief Legal and Compliance Officer of TransAlta Corporation since December 3, 2012 until July 2018 and served as its Corporate Secretary until July 2018. Mr. Kousinioris was responsible for directing TransAlta’s legal affairs, regulatory compliance and corporate secretarial matters, government and aboriginal affairs and sustainable development. He was a Partner and co-head of the corporate commercial department of Bennett Jones, LLP and a Member of the Public Markets Practice Group. His practice focuses on securities law, structured finance and mergers and acquisitions. He has experience in many aspects of corporate financing including public and private offerings of equity, near equity and debt securities particularly in the energy sector. He has over 25 years of experience in securities law, mergers and acquisitions and corporate governance matters and has represented clients in some of Canada’s largest public offerings and merger transactions. He has an extensive experience with financing and acquisition transactions in the royalty trust and income fund sector and acted in transactions involving NAL Oil & Gas Trust, Ultima Energy Trust and Pengrowth Energy Trust among others. He also acted in connection with the recent trust conversions of Foremost Industries Income Fund, Carfinco Income Fund and Newalta Income Fund. He also has considerable experience with domestic and international takeover bid transactions, asset and share purchase and sale transactions, corporate reorganizations, debt restructuring, joint ventures and general implementation of commercial transactions. He returned to Bennett Jones LLP in 1998 after spending almost two years practising with a leading law firm in London, England. He is a Member of the Law Society of Alberta and the Calgary Bar Association. He has a Bachelor of Arts degree from the University of Western Ontario, a Masters of Business Administration degree from York University and a Bachelor of Laws degree from Osgoode Hall Law.

CEO Compensation
  • John's compensation has been consistent with company performance over the past year, both up more than 20%.
  • John's remuneration is lower than average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the TransAlta Renewables management team in years:

1.6
Average Tenure
  • The average tenure for the TransAlta Renewables management team is less than 2 years, this suggests a new team.
Management Team

John Kousinioris

TITLE
President & Corporate Director
COMPENSATION
CA$675K
AGE
53
TENURE
1.6 yrs

Todd Stack

TITLE
Chief Financial Officer
COMPENSATION
CA$172K
TENURE
1.1 yrs

Aron Willis

TITLE
Senior Vice President of Growth & Commercial
COMPENSATION
CA$323K
AGE
43
TENURE
2.4 yrs

Brent Ward

TITLE
MD & Treasurer
COMPENSATION
CA$115K
TENURE
2.1 yrs

Scott Jeffers

TITLE
Corporate Secretary
COMPENSATION
CA$87K
TENURE
1.6 yrs

Sally Taylor

TITLE
Manager of Investor Relations
Board of Directors Tenure

Average tenure and age of the TransAlta Renewables board of directors in years:

6
Average Tenure
62.5
Average Age
  • The tenure for the TransAlta Renewables board of directors is about average.
Board of Directors

Allen Hagerman

TITLE
Chairman of the Board
COMPENSATION
CA$185K
AGE
67
TENURE
6.4 yrs

John Kousinioris

TITLE
President & Corporate Director
COMPENSATION
CA$675K
AGE
53
TENURE
1.6 yrs

Kathryn A. McQuade

TITLE
Corporate Director
COMPENSATION
CA$154K
AGE
62
TENURE
6 yrs

David Drinkwater

TITLE
Corporate Director
COMPENSATION
CA$149K
AGE
69
TENURE
6 yrs

Brett Gellner

TITLE
Corporate Director
AGE
54
TENURE
6.1 yrs

Paul H. Taylor

TITLE
Corporate Director
COMPENSATION
CA$117K
AGE
63
TENURE
6 yrs
Who owns this company?
Recent Insider Trading
  • TransAlta Renewables insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
12. Jun 19 Sell Todd Stack Individual 12. Jun 19 12. Jun 19 -2,000 CA$13.90 CA$-27,800
07. Jun 19 Sell Allen Hagerman Individual 07. Jun 19 07. Jun 19 -10,000 CA$13.74 CA$-137,400
16. May 19 Sell Allen Hagerman Individual 16. May 19 16. May 19 -15,000 CA$13.69 CA$-205,350
X
Management checks
We assess TransAlta Renewables's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. TransAlta Renewables has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

How Did TransAlta Renewables Inc.'s (TSE:RNW) 10% ROE Fare Against The Industry?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for TransAlta Renewables: 10% = CA$246m ÷ CA$2.4b (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Does TransAlta Renewables Have A Good Return On Equity? … Combining TransAlta Renewables's Debt And Its 10% Return On Equity TransAlta Renewables has a debt to equity ratio of 0.39, which is far from excessive.

Simply Wall St -

What Does TransAlta Renewables Inc.’s (TSE:RNW) 4.1% ROCE Say About The Business?

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for TransAlta Renewables: 0.041 = CA$148m ÷ (CA$3.8b - CA$159m) (Based on the trailing twelve months to March 2019.) Therefore, TransAlta Renewables has an ROCE of 4.1%. … TransAlta Renewables's Current Liabilities And Their Impact On Its ROCE Short term (or current) liabilities, are things like supplier invoices, overdrafts, or tax bills that need to be paid within 12 months. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Have Insiders Been Selling TransAlta Renewables Inc. (TSE:RNW) Shares This Year?

So shareholders might well want to know whether insiders have been buying or selling shares in TransAlta Renewables Inc. … Check out our latest analysis for TransAlta Renewables The Last 12 Months Of Insider Transactions At TransAlta Renewables The Chairman of the Board, Allen Hagerman, made the biggest insider sale in the last 12 months. … Our information indicates that TransAlta Renewables insiders own about CA$911k worth of shares.

Simply Wall St -

Is Now An Opportune Moment To Examine TransAlta Renewables Inc. (TSE:RNW)?

The stock’s ratio of 14.49x is currently trading slightly above its industry peers’ ratio of 13.29x, which means if you buy TransAlta Renewables today, you’d be paying a relatively reasonable price for it. … And if you believe that TransAlta Renewables should be trading at this level in the long run, there’s only an insignificant downside when the price falls to its real value. … TSX:RNW Past and Future Earnings, May 16th 2019 Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio.

Simply Wall St -

Are Investors Undervaluing TransAlta Renewables Inc. (TSE:RNW) By 38%?

In this article we are going to estimate the intrinsic value of TransAlta Renewables Inc. … by estimating the company's future cash flows and discounting them to their present value. … If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model

Simply Wall St -

All You Need To Know About TransAlta Renewables Inc.'s (TSE:RNW) Financial Health

Stocks with market capitalization between $2B and $10B, such as TransAlta Renewables Inc. … Don’t forget that this is a general and concentrated examination of TransAlta Renewables's financial health, so you should conduct further analysis. … See our latest analysis for TransAlta Renewables

Simply Wall St -

How TransAlta Renewables Inc. (TSE:RNW) Can Impact Your Portfolio Volatility

(TSE:RNW), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

TransAlta Renewables Inc. (TSE:RNW): The Best Of Both Worlds

(TSE:RNW) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … If you're interested in understanding beyond my broad commentary,

Simply Wall St -

Could TransAlta Renewables Inc.'s (TSE:RNW) Investor Composition Influence The Stock Price?

Every investor in TransAlta Renewables Inc. … We also tend to see lower insider ownership in companies that were previously publicly owned. … Taking a look at our data on the ownership groups (below), it's seems that.

Simply Wall St -

Is TransAlta Renewables Inc. (TSE:RNW) A High Quality Stock To Own?

To keep the lesson grounded in practicality, we'll use ROE to better understand TransAlta Renewables Inc. … Another way to think of that is that for every CA$1 worth of equity in the company, it was able to earn CA$0.078. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Company Info

Description

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.

Details
Name: TransAlta Renewables Inc.
RNW
Exchange: TSX
Founded: 2013
CA$3,656,573,263
264,012,510
Website: http://www.transaltarenewables.com
Address: TransAlta Renewables Inc.
110 12th Avenue Southwest,
PO Box 1900,
Calgary,
Alberta, T2P 2M1,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX RNW Common Shares The Toronto Stock Exchange CA CAD 09. Aug 2013
OTCPK TRSW.F Common Shares Pink Sheets LLC US USD 09. Aug 2013
DB 0TA Common Shares Deutsche Boerse AG DE EUR 09. Aug 2013
Number of employees
Current staff
Staff numbers
0
TransAlta Renewables employees.
Industry
Renewable Electricity
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/17 01:07
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/06/10
Last earnings filing: 2019/05/13
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.