TransAlta Corporation operates as non-regulated electricity generation and energy marketing company in Canada, the United States, and Western Australia.
Fair value with moderate growth potential.
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's share price has been volatile over the past 3 months.
7 Day Return
CA Renewable Energy
1 Year Return
CA Renewable Energy
Return vs Industry: TA underperformed the Canadian Renewable Energy industry which returned 3.1% over the past year.
Return vs Market: TA underperformed the Canadian Market which returned -23.7% over the past year.
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
6 days ago | Simply Wall StIs It Too Late To Consider Buying TransAlta Corporation (TSE:TA)?
3 weeks ago | Simply Wall StOne Thing To Remember About The TransAlta Corporation (TSE:TA) Share Price
1 month ago | Simply Wall StDoes TransAlta Corporation's (TSE:TA) CEO Pay Reflect Performance?
Is TransAlta undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TA (CA$7.36) is trading below our estimate of fair value (CA$44.45)
Significantly Below Fair Value: TA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: TA is poor value based on its PE Ratio (40.1x) compared to the Renewable Energy industry average (28x).
PE vs Market: TA is poor value based on its PE Ratio (40.1x) compared to the Canadian market (10.4x).
Price to Earnings Growth Ratio
PEG Ratio: TA is poor value based on its PEG Ratio (1.9x)
Price to Book Ratio
PB vs Industry: TA is good value based on its PB Ratio (1x) compared to the CA Renewable Energy industry average (1.6x).
How is TransAlta forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TA's forecast earnings growth (20.6% per year) is above the savings rate (1.4%).
Earnings vs Market: TA's earnings (20.6% per year) are forecast to grow faster than the Canadian market (7.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: TA's revenue is expected to decline over the next 3 years (-3.2% per year).
High Growth Revenue: TA's revenue is forecast to decline over the next 3 years (-3.2% 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 (2.9%).
How has TransAlta performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TA has a large one-off gain of CA$176.0M impacting its December 31 2019 financial results.
Growing Profit Margin: TA became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: TA has become profitable over the past 5 years, growing earnings by -54.4% per year.
Accelerating Growth: TA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: TA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Renewable Energy industry (-19.9%).
Return on Equity
High ROE: TA's Return on Equity (4.3%) is considered low.
How is TransAlta's financial position?
Financial Position Analysis
Short Term Liabilities: TA's short term assets (CA$1.3B) exceed its short term liabilities (CA$1.1B).
Long Term Liabilities: TA's short term assets (CA$1.3B) do not cover its long term liabilities (CA$4.3B).
Debt to Equity History and Analysis
Debt Level: TA's debt to equity ratio (83.6%) is considered high.
Reducing Debt: TA's debt to equity ratio has reduced from 102.7% to 83.6% over the past 5 years.
Inventory Level: TA has a high level of physical assets or inventory.
Debt Coverage by Assets: TA's debt is not covered by short term assets (assets are 0.4x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: TA is profitable, therefore cash runway is not a concern.
Forecast Cash Runway: TA is profitable, therefore cash runway is not a concern.
What is TransAlta's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TA's dividend (2.31%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.69%).
High Dividend: TA's dividend (2.31%) is low compared to the top 25% of dividend payers in the Canadian market (8.66%).
Stability and Growth of Payments
Stable Dividend: TA's dividend payments have been volatile in the past 10 years.
Growing Dividend: TA's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (87.1%), TA's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: TA's dividends in 3 years are forecast to be covered by earnings (73.4% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Dawn Farrell (59yo)
Ms. Dawn Lorraine Farrell has been the Chief Executive Officer and President at TransAlta Corporation since January 2, 2012. Ms. Farrell served as the Chief Operating Officer of TransAlta Corporation from ...
CEO Compensation Analysis
Compensation vs Market: Dawn's total compensation ($USD4.77M) is above average for companies of similar size in the Canadian market ($USD2.48M).
Compensation vs Earnings: Dawn's compensation has been consistent with company performance over the past year.
|Chief Financial Officer||0.92yr||CA$1.56m||0.0099% CA$200.9k|
|Chief Operating Officer||0.75yr||CA$2.77m||0.051% CA$1.0m|
|Chief Shared Services Officer||2.25yrs||CA$1.94m||0.031% CA$621.7k|
|Chief Development Officer||no data||CA$2.63m||0.060% CA$1.2m|
|Manager of Investor Relations||no data||no data||no data|
|Chief Officer of Legal||1.25yrs||no data||no data|
|Manager of Communications||5.83yrs||no data||no data|
|Executive Vice-President of Generation||5.92yrs||CA$1.79m||0.024% CA$479.1k|
|Senior Vice-President of Growth||3.25yrs||no data||0.015% CA$299.5k|
Experienced Management: TA's management team is considered experienced (2.8 years average tenure).
|Independent Director||1yr||CA$163.00k||no data|
|Independent Director||6yrs||CA$267.40k||0.0018% CA$36.9k|
|Independent Director||7yrs||CA$278.23k||0.0023% CA$47.1k|
|Independent Chairman of the Board||9yrs||CA$533.82k||0.069% CA$1.4m|
|Independent Chair of the Board||5.5yrs||CA$182.50k||0.0011% CA$23.4k|
|Independent Director||5yrs||CA$246.50k||0.0068% CA$137.9k|
|Independent Director||9.25yrs||CA$232.23k||0.0019% CA$38.5k|
|Independent Director||2yrs||CA$169.00k||0.0074% CA$150.3k|
|Independent Director||2.75yrs||CA$166.00k||0.0032% CA$65.4k|
Experienced Board: TA's board of directors are considered experienced (5.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: TA insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
TransAlta Corporation's company bio, employee growth, exchange listings and data sources
- Name: TransAlta Corporation
- Ticker: TA
- Exchange: TSX
- Founded: 1909
- Industry: Independent Power Producers and Energy Traders
- Sector: Utilities
- Market Cap: CA$2.037b
- Shares outstanding: 276.79m
- Website: https://www.transalta.com
Number of Employees
- TransAlta Corporation
- 110-12th Avenue SW
- PO Box 1900
- T2P 2M1
|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||CAD||Dec 2010|
|TA.PRJ||TSX (The Toronto Stock Exchange)||1ST PFD SER G %||CA||CAD||Aug 2014|
TransAlta Corporation operates as non-regulated electricity generation and energy marketing company in Canada, the United States, and Western Australia. It operates through eight segments: Canadian Coal, U.S. Coal, Canadian Gas, Australian Gas, Wind and Solar, Hydro, Energy Marketing, and Corporate. The company generates and markets electricity through various generation fuels, such as coal, natural gas, water, solar, and wind. It also engages in wholesale trading of electricity and other energy-related commodities and derivatives. The company operates facilities with approximately 9,331 megawatts of aggregate generating capacity. TransAlta Corporation was founded in 1909 and is headquartered in Calgary, Canada.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/01 07:05|
|End of Day Share Price||2020/03/31 00:00|
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.