TA:CA:TSX-TransAlta Corporation (CAD)

EQUITY | Utilities - Independent Power Producers | Toronto Stock Exchange

Last Closing

CAD 8.75

Change

+0.07 (+0.81)%

Market Cap

CAD 1.62B

Volume

0.90M

Analyst Target

CAD 10.56
Analyst Rating

Verdict

ducovest Verdict

Verdict

About

TransAlta Corp is engaged in the production and sale of electric energy. The Company's business segments are Canadian Coal, U.S. Coal, Gas, Wind and Solar, and Hydro.

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

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Relative Returns (From:    To: 2024-03-27 )

Largest Industry Peers for Utilities - Independent Power Producers

Symbol Name Price(Change) Market Cap
CPX:CA Capital Power Corporation

-0.08 (-0.23%)

CAD 4.46B
CPX-PK:CA Capital Power Corp

+0.04 (+0.16%)

CAD 3.28B
TA-PD:CA Transalta A Cum Red Rat Rst Pr..

+0.05 (+0.37%)

CAD 3.20B
TA-PJ:CA TransAlta Corp Pref J

-0.22 (-0.94%)

CAD 3.19B
MXG:CA Maxim Power Corp.

N/A

CAD 0.23B
BRF-PE:CA Brookfield Renewable Power Pre..

-0.04 (-0.24%)

N/A
BRF-PF:CA Brookfield Renewable Power Pre..

-0.02 (-0.12%)

N/A
BRF-PB:CA Brookfield Renewable Power Pre..

N/A

N/A
BRF-PA:CA Brookfield Renewable Power Pre..

N/A

N/A
CPX-PA:CA Capital Power Corporation Pref..

+0.10 (+0.67%)

N/A

ETFs Containing TA:CA

N/A

Market Performance

  Market Performance vs. Industry/Classification (Utilities - Independent Power Producers) Market Performance vs. Exchange (Toronto Stock Exchange)
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain -20.60% 9% A- 3% F
Dividend Return 0.54% 10% F 22% F
Total Return -20.05% 9% A- 3% F
Trailing 12 Months  
Capital Gain -22.77% 9% A- 11% F
Dividend Return 1.50% 20% F 31% F
Total Return -21.27% 9% A- 11% F
Trailing 5 Years  
Capital Gain -10.90% 33% F 27% F
Dividend Return 8.32% 50% F 44% F
Total Return -2.57% 33% F 27% F
Average Annual (5 Year Horizon)  
Capital Gain 9.71% 82% B 76% C+
Dividend Return 11.20% 55% F 76% C+
Total Return 1.49% 10% F 45% F
Risk Return Profile  
Volatility (Standard Deviation) 25.87% 55% F 36% F
Risk Adjusted Return 43.29% 73% C 72% C
Market Capitalization 1.62B 33% F 81% B-

Key Financial Ratios

  Ratio vs. Industry/Classification (Utilities - Independent Power Producers) Ratio vs. Market (Toronto Stock Exchange)
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 32.80 100% 88%
Price/Book Ratio 4.40 33% 13%
Price / Cash Flow Ratio 1.79 100% 69%
Price/Free Cash Flow Ratio 4.22 100% 55%
Management Effectiveness  
Return on Equity 43.58% 71% 97%
Return on Invested Capital 18.93% 82% 88%
Return on Assets 6.92% 71% 87%
Debt to Equity Ratio 230.38% 14% 9%

Annual Financials (CAD)

Quarterly Financials (CAD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Underpriced on cashflow basis

The stock is trading low compared to its peers on a price to cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Underpriced on free cash flow basis

The stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

What to not like:
Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector