Executive Summary
TransAlta Corporation operates as non-regulated electricity generation and energy marketing company in Canada, the United States, and Western Australia. More Details
Rewards
Risk Analysis
Dividend of 1.9% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
Adequate balance sheet and fair value.
Similar Companies
Share Price & News
How has TransAlta's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: TA is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: TA's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
0.1%
TA
-3.4%
CA Renewable Energy
0.04%
CA Market
1 Year Return
-1.1%
TA
42.5%
CA Renewable Energy
1.3%
CA Market
Return vs Industry: TA underperformed the Canadian Renewable Energy industry which returned 47.2% over the past year.
Return vs Market: TA underperformed the Canadian Market which returned 0.7% over the past year.
Shareholder returns
| TA | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.1% | -3.4% | 0.04% |
| 30 Day | 10.0% | 3.5% | 10.9% |
| 90 Day | 6.8% | 27.3% | 7.2% |
| 1 Year | 0.8%-1.1% | 48.3%42.5% | 5.0%1.3% |
| 3 Year | 19.6%12.6% | 111.3%82.9% | 13.5%2.4% |
| 5 Year | 132.3%108.6% | 227.5%155.1% | 54.2%30.5% |
Long-Term Price Volatility Vs. Market
How volatile is TransAlta's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall St
Earnings Beat: TransAlta Corporation (TSE:TA) Just Beat Analyst Forecasts, And Analysts Have Been Lifting Their Forecasts4 weeks ago | Simply Wall St
We Think TransAlta (TSE:TA) Is Taking Some Risk With Its Debt1 month ago | Simply Wall St
Should TransAlta (TSE:TA) Be Disappointed With Their 23% Profit?Valuation
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$8.95) is trading below our estimate of fair value (CA$48.04)
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 CA 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 good value based on its PB Ratio (1.4x) compared to the CA Renewable Energy industry average (2x).
Next Steps
Future Growth
How is TransAlta forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
78.1%
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 (1.7%).
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 is expected to decline over the next 3 years (-1% per year).
High Growth Revenue: TA's revenue is forecast to decline over the next 3 years (-1% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if TA's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has TransAlta performed over the past 5 years?
-30.5%
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 30.5% 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 (20.7%).
Return on Equity
High ROE: TA has a negative Return on Equity (-0.19%), as it is currently unprofitable.
Next Steps
Financial Health
How is TransAlta's financial position?
Financial Position Analysis
Short Term Liabilities: TA's short term assets (CA$1.4B) exceed its short term liabilities (CA$1.2B).
Long Term Liabilities: TA's short term assets (CA$1.4B) do not cover its long term liabilities (CA$4.2B).
Debt to Equity History and Analysis
Debt Level: TA's debt to equity ratio (86.1%) is considered high.
Reducing Debt: TA's debt to equity ratio has reduced from 102.6% to 86.1% 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 20.5% per year.
Next Steps
Dividend
What is TransAlta current dividend yield, its reliability and sustainability?
1.90%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TA's dividend (1.9%) is higher than the bottom 25% of dividend payers in the Canadian market (1.61%).
High Dividend: TA's dividend (1.9%) is low compared to the top 25% of dividend payers in the Canadian market (5.31%).
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?
1.9yrs
Average management tenure
CEO
Dawn Farrell (60 yo)
8.92yrs
Tenure
CA$6,760,014
Compensation
Ms. Dawn Lorraine Farrell has been the Chief Executive Officer and President at TransAlta Corporation since January 2, 2012. Ms. Farrell served as the Chief Operating Officer of TransAlta Corporation from ...
CEO Compensation Analysis
Compensation vs Market: Dawn's total compensation ($USD5.23M) is above average for companies of similar size in the Canadian market ($USD2.05M).
Compensation vs Earnings: Dawn's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 8.92yrs | CA$6.76m | 0.16% CA$ 4.0m | |
| Chief Financial Officer | 1.58yrs | CA$1.56m | 0.010% CA$ 246.4k | |
| Chief Operating Officer | 1.42yrs | CA$2.77m | 0.052% CA$ 1.3m | |
| Chief Shared Services Officer | 2.92yrs | CA$1.94m | 0.031% CA$ 764.6k | |
| Chief Development Officer | no data | CA$2.63m | 0.061% CA$ 1.5m | |
| Manager of Investor Relations | no data | no data | no data | |
| Chief Officer of Legal | 1.92yrs | no data | no data | |
| Manager of Communications | 6.5yrs | no data | no data | |
| Senior Vice-President of Growth | 3.92yrs | no data | 0.015% CA$ 368.1k | |
| Chief Talent & Transformation Officer | 1.92yrs | no data | 0.0039% CA$ 94.6k | |
| Senior Vice President of Trading & Commercial | 1.92yrs | no data | 0.024% CA$ 579.9k | |
| Executive Vice-President of Generation | 0.92yr | no data | no data |
1.9yrs
Average Tenure
55.5yo
Average Age
Experienced Management: TA's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 8.92yrs | CA$6.76m | 0.16% CA$ 4.0m | |
| Independent Director | 1.67yrs | CA$109.01k | no data | |
| Independent Director | 6.67yrs | CA$267.40k | 0.0018% CA$ 44.7k | |
| Independent Director | 7.67yrs | CA$278.23k | 0.0023% CA$ 57.2k | |
| Independent Chair of the Board | 0.67yr | CA$182.50k | 0.0046% CA$ 113.5k | |
| Independent Director | 5.67yrs | CA$246.50k | 0.0068% CA$ 167.8k | |
| Independent Director | 1.67yrs | CA$109.01k | no data | |
| Independent Director | 9.92yrs | CA$232.23k | 0.0019% CA$ 46.9k | |
| Independent Director | 0.67yr | no data | no data | |
| Independent Director | 2.67yrs | CA$169.00k | 0.0075% CA$ 183.1k | |
| Independent Director | 3.42yrs | CA$166.00k | 0.0032% CA$ 79.6k |
3.4yrs
Average Tenure
64yo
Average Age
Experienced Board: TA's board of directors are considered experienced (3.4 years average tenure).
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 company bio, 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$2.457b
- Shares outstanding: 274.23m
- Website: https://www.transalta.com
Number of Employees
Location
- TransAlta Corporation
- 110-12th Avenue SW
- PO Box 1900
- Calgary
- Alberta
- T2P 2M1
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| TAC | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Jan 1988 |
| TA | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Jan 1988 |
| TZ1 | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jan 1988 |
| TA.PRD | TSX (The Toronto Stock Exchange) | CUML RED PFD-A | CA | CAD | Dec 2010 | |
| TNSS.F | OTCPK (Pink Sheets LLC) | CUML RED PFD-A | US | USD | Dec 2010 | |
| TA.PRJ | TSX (The Toronto Stock Exchange) | 5.3% CUM PFD G | CA | CAD | Aug 2014 |
Biography
TransAlta Corporation operates as non-regulated electricity generation and energy marketing company in Canada, the United States, and Western Australia. It operates through Canadian Coal, U.S. Coal, Canadi...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/12/02 23:01 |
| End of Day Share Price | 2020/12/02 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.