| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 3/6 |
| Past Performance | 0/6 |
| Financial Health | 3/6 |
| Dividends | 0/6 |
TA Overview
TransAlta Corporation owns, operates, and develops a diverse fleet of electrical power generation assets in Canada, the United States, and Australia.
Rewards
Risk Analysis
No risks detected for TA from our risk checks.
TransAlta Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | CA$13.08 |
| 52 Week High | CA$7.85 |
| 52 Week Low | CA$13.50 |
| Beta | 1.37 |
| 1 Month Change | 4.22% |
| 3 Month Change | 5.15% |
| 1 Year Change | 62.48% |
| 3 Year Change | 82.43% |
| 5 Year Change | 126.30% |
| Change since IPO | -6.57% |
Recent News & Updates
Shareholder Returns
| TA | CA Renewable Energy | CA Market | |
|---|---|---|---|
| 7D | 1.9% | -2.5% | 1.8% |
| 1Y | 62.5% | 8.1% | 29.7% |
Return vs Industry: TA exceeded the Canadian Renewable Energy industry which returned 8.1% over the past year.
Return vs Market: TA exceeded the Canadian Market which returned 29.7% over the past year.
Price Volatility
| TA volatility | |
|---|---|
| TA Beta | 1.37 |
| Industry Beta | 0.63 |
| Market Beta | 1 |
Stable Share Price: TA is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: TA's weekly volatility (2%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1909 | 1,476 | John Kousinioris | https://www.transalta.com |
TransAlta Corporation owns, operates, and develops a diverse fleet of electrical power generation assets in Canada, the United States, and Australia. It operates through six segments: Hydro, Wind and Solar, North American Gas, Australian Gas, Alberta Thermal, and Centralia. The company owns and operates hydro, wind and solar, natural gas-fired, and coal-fired facilities.
TransAlta Fundamentals Summary
| TA fundamental statistics | |
|---|---|
| Market Cap | CA$3.54b |
| Earnings (TTM) | -CA$345.00m |
| Revenue (TTM) | CA$2.32b |
1.5x
P/S Ratio-10.3x
P/E RatioIs TA overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| TA income statement (TTM) | |
|---|---|
| Revenue | CA$2.32b |
| Cost of Revenue | CA$1.62b |
| Gross Profit | CA$697.00m |
| Expenses | CA$1.04b |
| Earnings | -CA$345.00m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | -1.27 |
| Gross Margin | 30.06% |
| Net Profit Margin | -14.88% |
| Debt/Equity Ratio | 115.7% |
How did TA perform over the long term?
See historical performance and comparisonDividends
1.4%
Current Dividend Yield-14%
Payout RatioValuation
Is TransAlta undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TA (CA$13.08) is trading below our estimate of fair value (CA$53.11)
Significantly Below Fair Value: TA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: TA is unprofitable, so we can't compare its PE Ratio to the Canadian Renewable Energy industry average.
PE vs Market: TA is unprofitable, so we can't compare its PE Ratio to the Canadian market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate TA's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: TA is overvalued based on its PB Ratio (2.8x) compared to the CA Renewable Energy industry average (2.3x).
Future Growth
How is TransAlta forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
26.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).
Earnings vs Market: TA is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: TA's is expected to become profitable in the next 3 years.
Revenue vs Market: TA's revenue (3.4% per year) is forecast to grow slower than the Canadian market (6.1% per year).
High Growth Revenue: TA's revenue (3.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TA's Return on Equity is forecast to be low in 3 years time (16.9%).
Past Performance
How has TransAlta performed over the past 5 years?
-36.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TA is currently unprofitable.
Growing Profit Margin: TA is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: TA is unprofitable, and losses have increased over the past 5 years at a rate of 36.6% per year.
Accelerating Growth: Unable to compare TA's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: TA is unprofitable, making it difficult to compare its past year earnings growth to the Renewable Energy industry (-25.1%).
Return on Equity
High ROE: TA has a negative Return on Equity (-7.21%), as it is currently unprofitable.
Financial Health
How is TransAlta's financial position?
Financial Position Analysis
Short Term Liabilities: TA's short term assets (CA$1.9B) exceed its short term liabilities (CA$1.1B).
Long Term Liabilities: TA's short term assets (CA$1.9B) do not cover its long term liabilities (CA$5.1B).
Debt to Equity History and Analysis
Debt Level: TA's debt to equity ratio (115.7%) is considered high.
Reducing Debt: TA's debt to equity ratio has increased from 88.8% to 115.7% over the past 5 years.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable TA has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: TA is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 12.8% per year.
Dividend
What is TransAlta current dividend yield, its reliability and sustainability?
1.38%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TA's dividend (1.38%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.66%).
High Dividend: TA's dividend (1.38%) is low compared to the top 25% of dividend payers in the Canadian market (4.54%).
Stability and Growth of Payments
Stable Dividend: TA's dividend payments have been volatile in the past 10 years.
Growing Dividend: TA's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: TA is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: TA is forecast to pay a dividend in 3 years whilst incurring a loss, therefore the dividend is not forecast to be well covered.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.7yrs
Average management tenure
CEO
John Kousinioris (56 yo)
0.42
Tenure
CA$2,962,460
Compensation
Mr. John Harry Kousinioris has been President, Chief Executive Officer and Director at TransAlta Corporation since April 1, 2021. Mr. Kousinioris served as Chief Operating Officer at TransAlta Corporation...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($USD2.34M) is about average for companies of similar size in the Canadian market ($USD3.01M).
Compensation vs Earnings: John's compensation has increased whilst the company is unprofitable.
Leadership Team
Experienced Management: TA's management team is considered experienced (2.7 years average tenure).
Board Members
Experienced Board: TA's board of directors are not considered experienced ( 1.4 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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
TransAlta Corporation's employee growth, exchange listings and data sources
Key Information
- Name: TransAlta Corporation
- Ticker: TA
- Exchange: TSX
- Founded: 1909
- Industry: Independent Power Producers and Energy Traders
- Sector: Utilities
- Market Cap: CA$3.544b
- Shares outstanding: 270.98m
- Website: https://www.transalta.com
Number of Employees
Location
- TransAlta Corporation
- 110-12th Avenue SW
- PO Box 1900
- Calgary
- Alberta
- T2P 2M1
- Canada
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/27 22:59 |
| End of Day Share Price | 2021/09/27 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.