DB:0TA

Stock Analysis Report

TransAlta Renewables

Executive Summary

TransAlta Renewables Inc. develops, owns, and operates renewable power generation facilities.

Snowflake

Fundamentals

Solid track record with adequate balance sheet.


Similar Companies

Share Price & News

How has TransAlta Renewables's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.6%

DB:0TA

0.4%

DE Renewable Energy

-1.5%

DE Market


1 Year Return

8.0%

DB:0TA

9.1%

DE Renewable Energy

-10.4%

DE Market

0TA underperformed the Renewable Energy industry which returned 9.1% over the past year.

0TA outperformed the Market in Germany which returned -10.5% over the past year.


Share holder returns

0TAIndustryMarket
7 Day-2.6%0.4%-1.5%
30 Day-8.2%-0.9%-4.3%
90 Day-4.1%5.5%-5.9%
1 Year16.5%8.0%13.0%9.1%-7.6%-10.4%
3 Year9.0%-11.7%36.5%27.1%9.4%0.03%
5 Year53.2%7.8%50.0%50.0%25.6%8.1%

Price Volatility Vs. Market

How volatile is TransAlta Renewables's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

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

38%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

TransAlta Renewables is good value based on earnings compared to the Europe Renewable Energy industry average.

TransAlta Renewables is good value based on earnings compared to the Germany market.


Price Based on Expected Growth

TransAlta Renewables is poor value based on expected growth next year.


Price Based on Value of Assets

TransAlta Renewables is overvalued based on assets compared to the Europe Renewable Energy industry average.


Next Steps

Future Growth

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

3.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

TransAlta Renewables's revenue is expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).

TransAlta Renewables's earnings are expected to grow by 3.3% yearly, however this is not considered high growth (20% yearly).

TransAlta Renewables's revenue growth is positive but not above the Germany market average.

TransAlta Renewables's earnings growth is positive but not above the Germany market average.

TransAlta Renewables's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

TransAlta Renewables is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has TransAlta Renewables performed over the past 5 years?

24.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 (133% vs 24.7%)

TransAlta Renewables's earnings growth has exceeded the Europe Renewable Energy industry average in the past year (133% vs 24.1%).


Return on Equity

TransAlta Renewables has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

TransAlta Renewables used its assets more efficiently than the Europe Renewable Energy industry average last year based on Return on Assets.


Return on Capital Employed

TransAlta Renewables has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is TransAlta Renewables's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

TransAlta Renewables's level of debt (40.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (62% vs 40.8% today).

Debt is well covered by operating cash flow (38.7%, greater than 20% of total debt).

TransAlta Renewables earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

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

7.31%

Expected Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield and Payments Analysis

TransAlta Renewables's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.59%).

TransAlta Renewables's dividend is above the markets top 25% of dividend payers in Germany (4.29%).

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

Dividends paid are not well covered by earnings (0.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are not well covered by earnings (1x coverage).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

John Kousinioris (54yo)

1.8yrs

Tenure

CA$675,466

Compensation

Mr. John Harry Kousinioris has been the Chief Growth Officer at TransAlta Corporation since 2018 and Chief Operating Officer since August 2019. Mr. Kousinioris has been President and Director of TransAlta  ...


CEO Compensation Analysis

John's remuneration is lower than average for companies of similar size in Germany.

John's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.8yrs

Average Tenure

The average tenure for the TransAlta Renewables management team is less than 2 years, this suggests a new team.


Board Age and Tenure

6.2yrs

Average Tenure

63.5yo

Average Age

The tenure for the TransAlta Renewables board of directors is about average.


Insider Trading

TransAlta Renewables individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell€18,49112 Jun 19
Todd Stack
EntityIndividual
Role
Chief Financial Officer
Shares2,000
Max Price€9.25
Sell€91,22107 Jun 19
Allen Hagerman
EntityIndividual
Role
Chairman of the Board
Shares10,000
Max Price€9.12
Sell€136,73816 May 19
Allen Hagerman
EntityIndividual
Role
Chairman of the Board
Shares15,000
Max Price€9.12

Ownership Breakdown


Management Team

  • John Kousinioris (54yo)

    President & Corporate Director

    • Tenure: 1.8yrs
    • Compensation: CA$675.47k
  • Todd Stack

    Chief Financial Officer

    • Tenure: 1.3yrs
    • Compensation: CA$171.92k
  • Brent Ward

    MD & Treasurer

    • Tenure: 2.3yrs
    • Compensation: CA$114.51k
  • Aron Willis (44yo)

    Senior Vice President of Growth & Commercial

    • Tenure: 2.6yrs
    • Compensation: CA$323.01k
  • Scott Jeffers

    Corporate Secretary

    • Tenure: 1.8yrs
    • Compensation: CA$86.96k
  • Sally Taylor

    Manager of Investor Relations


Board Members

  • Kathryn A. McQuade (63yo)

    Corporate Director

    • Tenure: 6.2yrs
    • Compensation: CA$154.00k
  • Allen Hagerman (68yo)

    Chairman of the Board

    • Tenure: 6.6yrs
    • Compensation: CA$184.50k
  • David Drinkwater (70yo)

    Corporate Director

    • Tenure: 6.2yrs
    • Compensation: CA$149.00k
  • Paul H. Taylor (64yo)

    Corporate Director

    • Tenure: 6.2yrs
    • Compensation: CA$116.50k
  • John Kousinioris (54yo)

    President & Corporate Director

    • Tenure: 1.8yrs
    • Compensation: CA$675.47k
  • Brett Gellner (55yo)

    Corporate Director

    • Tenure: 6.3yrs

Company Information

TransAlta Renewables Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TransAlta Renewables Inc.
  • Ticker: 0TA
  • Exchange: DB
  • Founded: 2013
  • Industry: renewable electricity
  • Sector: utilities
  • Market Cap: CA$3.376b
  • Listing Market Cap: CA$2.289b
  • Shares outstanding: 264.34m
  • Website: Click here

Location

  • TransAlta Renewables Inc.
  • 110 12th Avenue Southwest
  • PO Box 1900
  • Calgary
  • Alberta
  • T2P 2M1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RNWTSX (The Toronto Stock Exchange)YesCommon SharesCACADAug 2013
0TADB (Deutsche Boerse AG)YesCommon SharesDEEURAug 2013
TRSW.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 2013

Biography

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 gener ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 21:47
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.