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TransAlta TSX:TA Stock Report

Last Price

CA$19.73

Market Cap

CA$5.6b

7D

3.6%

1Y

95.2%

Updated

16 Jan, 2025

Data

Company Financials +

TransAlta Corporation

TSX:TA Stock Report

Market Cap: CA$5.6b

TA Stock Overview

Engages in the development, production, and sale of electric energy. More details

TA fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance2/6
Financial Health1/6
Dividends2/6

Rewards

Trading at 74.3% below our estimate of its fair value

Risk Analysis

Interest payments are not well covered by earnings

Earnings are forecast to decline by an average of 26.3% per year for the next 3 years

Profit margins (5.7%) are lower than last year (15.8%)

Significant insider selling over the past 3 months


My Notes

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Community Narratives

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WA
Analyst Price Target
Consensus Narrative from 10 Analysts

Despite Data Center Ambitions In Alberta, Regulatory Hurdles And Oversupply Threaten Earnings

Key Takeaways Regulatory hurdles and Alberta market conditions could delay synergies and compress margins, impacting earnings despite mitigation strategies. Growth depends on redeveloping assets and data centers, with risks of insufficient returns and unmet expectations.
View narrative
CA$17.98
FV
9.8% overvalued intrinsic discount
-4.62%
Revenue growth p.a.
0users have liked this narrative
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0users have followed this narrative
15 days ago author updated this narrative

TransAlta Corporation Competitors

Capital Power

TSX:CPX

CA$8.2b

Maxim Power

TSX:MXG

CA$381.5m

TransAlta Renewables

TSX:RNW

CA$3.3b

Boralex

TSX:BLX

CA$2.7b

Price History & Performance

Summary of share price highs, lows and changes for TransAlta
Historical stock prices
Current Share PriceCA$19.73
52 Week HighCA$20.98
52 Week LowCA$8.22
Beta0.80
1 Month Change-3.99%
3 Month Change36.54%
1 Year Change95.15%
3 Year Change46.47%
5 Year Change105.52%
Change since IPO43.49%

Recent News & Updates

Recent updates

TransAlta Corporation's (TSE:TA) Shares Climb 31% But Its Business Is Yet to Catch Up

Dec 07
TransAlta Corporation's (TSE:TA) Shares Climb 31% But Its Business Is Yet to Catch Up

What Does TransAlta Corporation's (TSE:TA) Share Price Indicate?

Oct 31
What Does TransAlta Corporation's (TSE:TA) Share Price Indicate?

If EPS Growth Is Important To You, TransAlta (TSE:TA) Presents An Opportunity

Oct 12
If EPS Growth Is Important To You, TransAlta (TSE:TA) Presents An Opportunity

Little Excitement Around TransAlta Corporation's (TSE:TA) Earnings

Sep 26
Little Excitement Around TransAlta Corporation's (TSE:TA) Earnings

Is TransAlta Corporation (TSE:TA) Potentially Undervalued?

Jul 30
Is TransAlta Corporation (TSE:TA) Potentially Undervalued?

Little Excitement Around TransAlta Corporation's (TSE:TA) Earnings

Jun 06
Little Excitement Around TransAlta Corporation's (TSE:TA) Earnings

Is It Time To Consider Buying TransAlta Corporation (TSE:TA)?

Apr 12
Is It Time To Consider Buying TransAlta Corporation (TSE:TA)?

TransAlta (TSE:TA) Takes On Some Risk With Its Use Of Debt

Jan 11
TransAlta (TSE:TA) Takes On Some Risk With Its Use Of Debt

TransAlta Corporation's (TSE:TA) Low P/S No Reason For Excitement

Dec 27
TransAlta Corporation's (TSE:TA) Low P/S No Reason For Excitement

These 4 Measures Indicate That TransAlta (TSE:TA) Is Using Debt Extensively

Oct 05
These 4 Measures Indicate That TransAlta (TSE:TA) Is Using Debt Extensively

Is Now The Time To Look At Buying TransAlta Corporation (TSE:TA)?

Sep 15
Is Now The Time To Look At Buying TransAlta Corporation (TSE:TA)?

We Think TransAlta (TSE:TA) Is Taking Some Risk With Its Debt

Jun 24
We Think TransAlta (TSE:TA) Is Taking Some Risk With Its Debt

What Does TransAlta Corporation's (TSE:TA) Share Price Indicate?

Jun 05
What Does TransAlta Corporation's (TSE:TA) Share Price Indicate?

Revenue Downgrade: Here's What Analysts Forecast For TransAlta Corporation (TSE:TA)

May 06
Revenue Downgrade: Here's What Analysts Forecast For TransAlta Corporation (TSE:TA)

Here's Why TransAlta (TSE:TA) Has A Meaningful Debt Burden

Feb 08
Here's Why TransAlta (TSE:TA) Has A Meaningful Debt Burden

Why TransAlta Corporation (TSE:TA) Could Be Worth Watching

Dec 28
Why TransAlta Corporation (TSE:TA) Could Be Worth Watching

Shareholder Returns

TACA Renewable EnergyCA Market
7D3.6%-4.6%-1.0%
1Y95.2%3.6%16.9%

Return vs Industry: TA exceeded the Canadian Renewable Energy industry which returned 3.6% over the past year.

Return vs Market: TA exceeded the Canadian Market which returned 16.9% over the past year.

Price Volatility

Is TA's price volatile compared to industry and market?
TA volatility
TA Average Weekly Movement5.5%
Renewable Energy Industry Average Movement5.0%
Market Average Movement8.3%
10% most volatile stocks in CA Market18.2%
10% least volatile stocks in CA Market2.9%

Stable Share Price: TA has not had significant price volatility in the past 3 months compared to the Canadian market.

Volatility Over Time: TA's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19091,257John Kousinioriswww.transalta.com

TransAlta Corporation engages in the development, production, and sale of electric energy. It operates through Hydro, Wind and Solar, Gas, Energy Transition, and Energy Marketing segments. The Hydro segment holds interest of approximately 922 megawatts (MW) of owned hydroelectric generating capacity located in Alberta, British Columbia, and Ontario.

TransAlta Corporation Fundamentals Summary

How do TransAlta's earnings and revenue compare to its market cap?
TA fundamental statistics
Market capCA$5.65b
Earnings (TTM)CA$158.00m
Revenue (TTM)CA$2.79b

37.3x

P/E Ratio

2.1x

P/S Ratio

Is TA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
TA income statement (TTM)
RevenueCA$2.79b
Cost of RevenueCA$1.64b
Gross ProfitCA$1.15b
Other ExpensesCA$994.00m
EarningsCA$158.00m

Last Reported Earnings

Sep 30, 2024

Next Earnings Date

n/a

Earnings per share (EPS)0.53
Gross Margin41.28%
Net Profit Margin5.66%
Debt/Equity Ratio209.4%

How did TA perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

45%

Payout Ratio

Does TA pay a reliable dividends?

See TA dividend history and benchmarks
When do you need to buy TA by to receive an upcoming dividend?
TransAlta dividend dates
Ex Dividend DateFeb 28 2025
Dividend Pay DateApr 01 2025
Days until Ex dividend42 days
Days until Dividend pay date74 days

Does TA pay a reliable dividends?

See TA dividend history and benchmarks

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/16 22:34
End of Day Share Price 2025/01/16 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

TransAlta Corporation is covered by 22 analysts. 5 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Nathan HeywoodATB Capital Markets
Benjamin PhamBMO Capital Markets Equity Research
Julien Dumoulin-SmithBofA Global Research