RNW:CA:TSX-TransAlta Renewables Inc (CAD)

COMMON STOCK | Utilities-Renewable | TSX

Last Closing Price

CAD 16.67

Change

+0.13 (+0.79)%

Market Cap

CAD 4.41B

Volume

0.30M

Avg Analyst Target

CAD 20.42 (+22.50%)

Avg User Target

CAD
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict


TransAlta Renewables Inc (RNW) Stock Analysis:
Based on the TransAlta Renewables Inc stock forecasts from 8 analysts, the average analyst target price for TransAlta Renewables Inc is CAD 20.42 over the next 12 months. TransAlta Renewables Inc’s average analyst rating is Hold . Stock Target Advisor’s own stock analysis of TransAlta Renewables Inc is Neutral, which is based on 7 positive signals and 6 negative signals. At the last closing, TransAlta Renewables Inc’s stock price was CAD 16.67. TransAlta Renewables Inc’s stock price has changed by -1.33% over the past week, -1.71% over the past month and -22.50% over the last year.

About

TransAlta Renewables Inc. develops, owns, and operates renewable power generation facilities. As of March 3, 2021, it owned and operated 23 wind facilities, 13 hydroelectric facilities, 7 natural gas generation facilities, 1 solar facility, 1 natural gas pipeline, and 1 battery s ...Read More

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2022-01-17 )

Largest Industry Peers for Utilities-Renewable

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
BEP-PE:CA Brookfield Renewable Partners ..

N/A

CAD16.94B N/A N/A
BEP-PM:CA Brookfield Renewable Partners ..

-0.01 (-0.04%)

CAD16.76B N/A N/A
BEP-PK:CA Brookfield Renewable Partners ..

-0.01 (-0.04%)

CAD16.32B N/A N/A
BEP-PG:CA Brookfield Renewable Partners ..

-0.10 (-0.37%)

CAD15.53B N/A N/A
BEP-PO:CA Brookfield Renewable Partners ..

-0.06 (-0.23%)

CAD14.82B N/A N/A
BEP-PI:CA Brookfield Renewable Partners ..

N/A

CAD14.00B N/A N/A
AQN:CA Algonquin Power & Utilities Co..

+0.19 (+1.09%)

CAD11.66B 14.61 18.35
BEP-UN:CA Brookfield Renewable Partners ..

-0.07 (-0.17%)

CAD11.30B 153.53 15.92
NPI:CA Northland Power Inc

+0.32 (+0.91%)

CAD7.98B 92.04 13.18
BEPC:CA Brookfield Renewable Corporati..

+0.28 (+0.67%)

CAD7.20B 98.68 20.24

ETFs Containing RNW:CA

Symbol Name Weight Mer Price(Change) Market Cap
RIG:CA RBC Quant Global Infrastr.. 0.00 % 0.55 %

N/A

CAD0.01B
ZUT:CA BMO Equal Weight Utilitie.. 0.00 % 0.61 %

+0.07 (+0.27%)

CAD0.45B
HCLN:CA Harvest Clean Energy ETF .. 0.00 % 0.00 %

-0.09 (-0.67%)

N/A

Market Performance

  Market Performance vs.
Industry/Classification (Utilities-Renewable)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain -11.09% 13% F 4% F
Dividend Return 0.42% 17% F 17% F
Total Return -10.68% 19% F 5% F
Trailing 12 Months  
Capital Gain -22.50% 64% D 11% F
Dividend Return 4.37% 88% B+ 75% C
Total Return -18.13% 64% D 12% F
Trailing 5 Years  
Capital Gain 11.51% 29% F 45% F
Dividend Return 29.62% 100% A+ 95% A
Total Return 41.13% 29% F 58% F
Average Annual (5 Year Horizon)  
Capital Gain 10.40% 36% F 64% D
Dividend Return 6.30% 100% A+ 97% A+
Total Return 16.71% 55% F 75% C
Risk Return Profile  
Volatility (Standard Deviation) 22.85% 73% C 46% F
Risk Adjusted Return 73.13% 64% D 78% C+
Market Capitalization 4.41B 38% F 81% B-
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 87%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Utilities-Renewable)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 29.43 80% B- 18% F
Price/Book Ratio 2.39 56% F 33% F
Price / Cash Flow Ratio 16.53 19% F 15% F
EV/EBITDA 15.85 56% F 30% F
Management Effectiveness  
Return on Equity 6.96% 81% B- 46% F
Return on Invested Capital 3.22% 13% F 51% F
Return on Assets 1.92% 63% D 45% F
Debt to Equity Ratio 27.41% 90% A- 68% D+
Technical Ratios  
Short Ratio 10.64 13% F 11% F
Short Percent 1.59% 33% F 53% F
Beta 0.60 60% D- 83% B
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (CAD)

Quarterly Financials (CAD)

Analyst Ratings

Target Price Action Rating Action Analyst Rating Price Date

Discussions

User / Independent Analyst Ratings

User Name Target Rating Target Horizon (Months) Target Price User Analysis Date Comment

Fundamental Analysis Breakdown

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 total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is 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.

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.

Low debt

The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

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.

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:
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.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth

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

Low Revenue Growth

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