TAC:NYE-TransAlta Corporation (USD)

EQUITY | Utilities - Independent Power Producers | New York Stock Exchange

Last Closing

USD 6.1

Change

+0.04 (+0.66)%

Market Cap

USD 1.20B

Volume

1.05M

Analyst Target

USD 6.80
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: 2024-04-15 )

Largest Industry Peers for Utilities - Independent Power Producers

Symbol Name Price(Change) Market Cap
VST Vistra Energy Corp

+5.26 (+7.24%)

USD 25.36B
NRG NRG Energy Inc.

+1.14 (+1.57%)

USD 15.63B
PAM Pampa Energia SA ADR

+0.80 (+1.82%)

USD 3.22B
KEN Kenon Holdings

+0.10 (+0.45%)

USD 1.11B

ETFs Containing TAC

N/A

Market Performance

  Market Performance vs. Industry/Classification (Utilities - Independent Power Producers) Market Performance vs. Exchange (New York Stock Exchange)
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain -26.59% 20% F 5% F
Dividend Return 0.53% 25% F 31% F
Total Return -26.07% 20% F 5% F
Trailing 12 Months  
Capital Gain -32.82% 20% F 8% B-
Dividend Return 1.82% 25% F 27% F
Total Return -31.00% 20% F 8% B-
Trailing 5 Years  
Capital Gain -15.98% 20% F 31% F
Dividend Return 9.82% 25% F 38% F
Total Return -6.16% 20% F 25% F
Average Annual (5 Year Horizon)  
Capital Gain 10.49% 40% F 73% C
Dividend Return 12.19% 40% F 72% C
Total Return 1.70% 25% F 41% F
Risk Return Profile  
Volatility (Standard Deviation) 31.57% 80% B- 35% F
Risk Adjusted Return 38.63% 20% F 63% D
Market Capitalization 1.20B 40% F 64% D

Key Financial Ratios

  Ratio vs. Industry/Classification (Utilities - Independent Power Producers) Ratio vs. Market (New York Stock Exchange)
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 32.80 100% 94%
Price/Book Ratio 4.43 60% 20%
Price / Cash Flow Ratio 1.33 60% 77%
Price/Free Cash Flow Ratio 3.13 60% 69%
Management Effectiveness  
Return on Equity 43.58% 100% 96%
Return on Invested Capital 36.02% 80% 95%
Return on Assets 6.92% 100% 82%
Debt to Equity Ratio 230.38% 40% 14%

Annual Financials (USD)

Quarterly Financials (USD)

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 return on assets

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

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.

Superior return on equity

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

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.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

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.

Superior Earnings Growth

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

Superior Revenue Growth

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

Superior Dividend Growth

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

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

What to not like:
Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

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.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

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.