TRANSALTA CORP - TACN 2.877 PERP (TA-PR-D.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TA-PR-D - CA89346D7687
20.3 CAD
0 (0%)
Overall TA-PR-D gets a fundamental rating of 4 out of 10. We evaluated TA-PR-D against 33 industry peers in the Independent Power and Renewable Electricity Producers industry. TA-PR-D has only an average score on both its financial health and profitability. TA-PR-D is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- TA-PR-D had positive earnings in the past year.
- TA-PR-D had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: TA-PR-D reported negative net income in multiple years.
- TA-PR-D had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- TA-PR-D has a Return On Assets of -2.17%. This is comparable to the rest of the industry: TA-PR-D outperforms 42.42% of its industry peers.
- TA-PR-D has a Return On Equity (-12.58%) which is in line with its industry peers.
- TA-PR-D's Return On Invested Capital of 2.51% is fine compared to the rest of the industry. TA-PR-D outperforms 69.70% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for TA-PR-D is above the industry average of 3.83%.
- The 3 year average ROIC (8.64%) for TA-PR-D is well above the current ROIC(2.51%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.17% | ||
| ROE | -12.58% | ||
| ROIC | 2.51% |
ROA(3y)3.11%
ROA(5y)-0.07%
ROE(3y)17.47%
ROE(5y)0.34%
ROIC(3y)8.64%
ROIC(5y)N/A
1.3 Margins
- In the last couple of years the Profit Margin of TA-PR-D has grown nicely.
- TA-PR-D has a Operating Margin of 8.62%. This is comparable to the rest of the industry: TA-PR-D outperforms 45.45% of its industry peers.
- In the last couple of years the Operating Margin of TA-PR-D has grown nicely.
- TA-PR-D has a better Gross Margin (83.57%) than 84.85% of its industry peers.
- In the last couple of years the Gross Margin of TA-PR-D has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.62% | ||
| PM (TTM) | N/A | ||
| GM | 83.57% |
OM growth 3Y15.27%
OM growth 5Y8.46%
PM growth 3YN/A
PM growth 5Y22.94%
GM growth 3Y3.39%
GM growth 5Y-0.46%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TA-PR-D is still creating some value.
- The number of shares outstanding for TA-PR-D has been reduced compared to 1 year ago.
- The number of shares outstanding for TA-PR-D has been increased compared to 5 years ago.
- Compared to 1 year ago, TA-PR-D has an improved debt to assets ratio.
2.2 Solvency
- TA-PR-D has an Altman-Z score of 0.38. This is a bad value and indicates that TA-PR-D is not financially healthy and even has some risk of bankruptcy.
- TA-PR-D has a better Altman-Z score (0.38) than 60.61% of its industry peers.
- The Debt to FCF ratio of TA-PR-D is 12.69, which is on the high side as it means it would take TA-PR-D, 12.69 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of TA-PR-D (12.69) is better than 75.76% of its industry peers.
- TA-PR-D has a Debt/Equity ratio of 2.28. This is a high value indicating a heavy dependency on external financing.
- TA-PR-D has a Debt to Equity ratio (2.28) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 12.69 | ||
| Altman-Z | 0.38 |
ROIC/WACC0.36
WACC6.93%
2.3 Liquidity
- A Current Ratio of 0.79 indicates that TA-PR-D may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.79, TA-PR-D is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
- A Quick Ratio of 0.71 indicates that TA-PR-D may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.71, TA-PR-D is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
- TA-PR-D shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -92.16%.
- TA-PR-D shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.80% yearly.
- Looking at the last year, TA-PR-D shows a very negative growth in Revenue. The Revenue has decreased by -11.00% in the last year.
- Measured over the past years, TA-PR-D shows a small growth in Revenue. The Revenue has been growing by 3.92% on average per year.
EPS 1Y (TTM)-92.16%
EPS 3YN/A
EPS 5Y26.8%
EPS Q2Q%83.33%
Revenue 1Y (TTM)-11%
Revenue growth 3Y1.5%
Revenue growth 5Y3.92%
Sales Q2Q%-3.04%
3.2 Future
- TA-PR-D is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.27% yearly.
- Based on estimates for the next years, TA-PR-D will show a decrease in Revenue. The Revenue will decrease by -1.63% on average per year.
EPS Next Y-97.24%
EPS Next 2Y-10.07%
EPS Next 3Y-6.87%
EPS Next 5Y22.27%
Revenue Next Year-7.03%
Revenue Next 2Y-11.68%
Revenue Next 3Y-7.04%
Revenue Next 5Y-1.63%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 507.50, which means the current valuation is very expensive for TA-PR-D.
- TA-PR-D's Price/Earnings ratio is in line with the industry average.
- TA-PR-D's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.25.
- The Price/Forward Earnings ratio is 44.82, which means the current valuation is very expensive for TA-PR-D.
- Based on the Price/Forward Earnings ratio, TA-PR-D is valued a bit cheaper than 63.64% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, TA-PR-D is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 507.5 | ||
| Fwd PE | 44.82 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TA-PR-D is on the same level as its industry peers.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TA-PR-D indicates a somewhat cheap valuation: TA-PR-D is cheaper than 75.76% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.31 | ||
| EV/EBITDA | 12.57 |
4.3 Compensation for Growth
- The decent profitability rating of TA-PR-D may justify a higher PE ratio.
- TA-PR-D's earnings are expected to decrease with -6.87% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)18.94
EPS Next 2Y-10.07%
EPS Next 3Y-6.87%
5. Dividend
5.1 Amount
- TA-PR-D has a Yearly Dividend Yield of 1.51%.
- Compared to an average industry Dividend Yield of 3.52, TA-PR-D is paying slightly less dividend.
- TA-PR-D's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
5.2 History
- On average, the dividend of TA-PR-D grows each year by 6.10%, which is quite nice.
- TA-PR-D has been paying a dividend for at least 10 years, so it has a reliable track record.
- As TA-PR-D did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)6.1%
Div Incr Years0
Div Non Decr Years7
5.3 Sustainability
- The earnings of TA-PR-D are negative and hence is the payout ratio. TA-PR-D will probably not be able to sustain this dividend level.
- TA-PR-D's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-64.77%
EPS Next 2Y-10.07%
EPS Next 3Y-6.87%
TRANSALTA CORP - TACN 2.877 PERP / TA-PR-D.CA FAQ
Can you provide the ChartMill fundamental rating for TRANSALTA CORP - TACN 2.877 PERP?
ChartMill assigns a fundamental rating of 4 / 10 to TA-PR-D.CA.
What is the valuation status of TRANSALTA CORP - TACN 2.877 PERP (TA-PR-D.CA) stock?
ChartMill assigns a valuation rating of 3 / 10 to TRANSALTA CORP - TACN 2.877 PERP (TA-PR-D.CA). This can be considered as Overvalued.
Can you provide the profitability details for TRANSALTA CORP - TACN 2.877 PERP?
TRANSALTA CORP - TACN 2.877 PERP (TA-PR-D.CA) has a profitability rating of 6 / 10.
What are the PE and PB ratios of TRANSALTA CORP - TACN 2.877 PERP (TA-PR-D.CA) stock?
The Price/Earnings (PE) ratio for TRANSALTA CORP - TACN 2.877 PERP (TA-PR-D.CA) is 507.5 and the Price/Book (PB) ratio is 3.93.
Can you provide the financial health for TA-PR-D stock?
The financial health rating of TRANSALTA CORP - TACN 2.877 PERP (TA-PR-D.CA) is 4 / 10.