TA:CA:TSX-TransAlta Corporation (CAD)

COMMON STOCK | Utilities-Independent Power Producers | TSX

Last Closing Price

CAD 12.91

Change

+0.01 (+0.08)%

Market Cap

CAD 3.49B

Volume

0.20M

Avg Analyst Target

CAD 15.91 (+23.24%)

Avg User Target

CAD
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict


TransAlta Corporation (TA) Stock Analysis:
Based on the TransAlta Corporation stock forecasts from 9 analysts, the average analyst target price for TransAlta Corporation is CAD 15.91 over the next 12 months. TransAlta Corporation’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of TransAlta Corporation is Bearish, which is based on 3 positive signals and 12 negative signals. At the last closing, TransAlta Corporation’s stock price was CAD 12.91. TransAlta Corporation’s stock price has changed by -0.77% over the past week, -0.80% over the past month and +17.58% over the last year.

About

TransAlta Corporation owns, operates, and develops a diverse fleet of electrical power generation assets in Canada, the United States, and Australia. It operates through six segments: Hydro, Wind and Solar, North American Gas, Australian Gas, Alberta Thermal, and Centralia. The c ...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-Independent Power Producers

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
CPX:CA Capital Power Corporation

+0.26 (+0.67%)

CAD4.43B 38.33 8.05
TA-PD:CA TransAlta Corporation

-0.20 (-1.19%)

CAD3.96B 40.54 N/A
TA-PJ:CA TransAlta Corporation

N/A

CAD3.64B 70.71 N/A
CPX-PK:CA Capital Power Corporation

+0.13 (+0.50%)

CAD3.43B 25.90 N/A
CPX-PI:CA Capital Power Corporation

+0.07 (+0.27%)

CAD3.37B 25.39 N/A
CPX-PG:CA Capital Power Corporation

N/A

CAD3.20B 24.80 N/A
ATP:CA Atlantic Power Corporation

N/A

CAD0.32B 7.12 7.38
MXG:CA Maxim Power Corp

+0.06 (+1.54%)

CAD0.20B 2.75 1.94
BRF-PA:CA Brookfield Renewable Power Pre..

N/A

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

-0.04 (-0.16%)

N/A N/A N/A

ETFs Containing TA:CA

Symbol Name Weight Mer Price(Change) Market Cap

N/A

Market Performance

  Market Performance vs.
Industry/Classification (Utilities-Independent Power Producers)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain -8.11% 8% F 9% F
Dividend Return N/A N/A N/A N/A N/A
Total Return -8.11% 8% F 9% F
Trailing 12 Months  
Capital Gain 17.58% 44% F 64% D
Dividend Return 1.28% 13% F 22% F
Total Return 18.85% 44% F 62% D-
Trailing 5 Years  
Capital Gain 61.58% 100% A+ 77% C+
Dividend Return 8.35% 50% F 27% F
Total Return 69.93% 67% D+ 76% C
Average Annual (5 Year Horizon)  
Capital Gain 15.92% 56% F 76% C
Dividend Return 1.64% 13% F 41% F
Total Return 17.56% 44% F 76% C
Risk Return Profile  
Volatility (Standard Deviation) 26.28% 67% D+ 41% F
Risk Adjusted Return 66.80% 44% F 72% C-
Market Capitalization 3.49B 63% D 79% C+
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-Independent Power Producers)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 27.90 44% F 19% F
Price/Book Ratio 5.31 33% F 14% F
Price / Cash Flow Ratio 4.98 100% A+ 63% D
EV/EBITDA 13.22 33% F 38% F
Management Effectiveness  
Return on Equity -16.60% 22% F 16% F
Return on Invested Capital 0.08% 8% F 43% F
Return on Assets 1.91% 22% F 44% F
Debt to Equity Ratio 133.08% 22% F 21% F
Technical Ratios  
Short Ratio 22.67 23% F 4% F
Short Percent 3.37% 17% F 44% F
Beta 1.31 9% F 32% F
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:
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.

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.

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.

Below median total returns

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

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.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

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

Poor capital utilization

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

Poor return on assets

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

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 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

Low Dividend Growth

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