TRANSALTA CORP (TAC)
CA89346D1078 - Common Stock
Overall TAC gets a fundamental rating of 3 out of 10. We evaluated TAC against 21 industry peers in the Independent Power and Renewable Electricity Producers industry. TAC may be in some trouble as it scores bad on both profitability and health. TAC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
TAC had positive earnings in the past year.
The reported net income has been mixed in the past 5 years: TAC reported negative net income in multiple years.
Of the past 5 years TAC 4 years had a positive operating cash flow.
1.2 Ratios
TAC has negative profitability rations, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROIC | N/A |
ROA(3y)-3.22%
ROA(5y)-2.35%
ROE(3y)-16.78%
ROE(5y)-11.37%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
TAC has a Profit Margin (0.13%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of TAC has declined.
TAC has a Operating Margin (18.15%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TAC has grown nicely.
With an excellent Gross Margin value of 79.94%, TAC belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
In the last couple of years the Gross Margin of TAC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.15% | ||
| PM (TTM) | 0.13% | ||
| GM | 79.94% |
OM growth 3Y5.76%
OM growth 5Y21.52%
PM growth 3Y-60.71%
PM growth 5YN/A
GM growth 3Y-0.94%
GM growth 5Y-2.25%
2. Health
2.1 Basic Checks
TAC does not have a ROIC to compare to the WACC, probably because it is not profitable.
TAC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC5.88%
2.3 Liquidity
TAC has a Current Ratio of 1.29. This is a normal value and indicates that TAC is financially healthy and should not expect problems in meeting its short term obligations.
TAC has a Current ratio (1.29) which is in line with its industry peers.
TAC has a Quick Ratio of 1.23. This is a normal value and indicates that TAC is financially healthy and should not expect problems in meeting its short term obligations.
TAC has a Quick ratio of 1.23. This is comparable to the rest of the industry: TAC outperforms 52.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 354.43% over the past year.
TAC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -56.56% yearly.
TAC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.37%.
TAC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.22% yearly.
EPS 1Y (TTM)354.43%
EPS 3Y-56.56%
EPS 5YN/A
EPS growth Q2Q-34.17%
Revenue 1Y (TTM)9.37%
Revenue growth 3Y8.24%
Revenue growth 5Y5.22%
Revenue growth Q2QN/A
3.2 Future
TAC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.73% yearly.
Based on estimates for the next years, TAC will show a decrease in Revenue. The Revenue will decrease by -8.83% on average per year.
EPS Next Y29289.3%
EPS Next 2Y575.11%
EPS Next 3Y181.9%
EPS Next 5Y32.73%
Revenue Next Year19.03%
Revenue Next 2Y-2.09%
Revenue Next 3Y-4.47%
Revenue Next 5Y-8.83%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
Based on the Price/Earnings ratio of 5.11, the valuation of TAC can be described as very cheap.
TAC's Price/Earnings ratio is rather cheap when compared to the industry. TAC is cheaper than 95.24% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.91. TAC is valued rather cheaply when compared to this.
TAC is valuated rather expensively with a Price/Forward Earnings ratio of 21.44.
76.19% of the companies in the same industry are more expensive than TAC, based on the Price/Forward Earnings ratio.
TAC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.11 | ||
| Fwd PE | 21.44 |
4.2 Price Multiples
TAC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TAC is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.57 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TAC's earnings are expected to grow with 181.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)0
PEG (5Y)N/A
EPS Next 2Y575.11%
EPS Next 3Y181.9%
5. Dividend
5.1 Amount
TAC has a Yearly Dividend Yield of 2.43%. Purely for dividend investing, there may be better candidates out there.
TAC's Dividend Yield is a higher than the industry average which is at 5.13.
Compared to an average S&P500 Dividend Yield of 2.34, TAC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
5.2 History
The dividend of TAC has a limited annual growth rate of 4.78%.
TAC has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of TAC decreased recently.
Dividend Growth(5Y)4.78%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
The earnings of TAC are negative and hence is the payout ratio. TAC will probably not be able to sustain this dividend level.
The dividend of TAC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-700%
EPS Next 2Y575.11%
EPS Next 3Y181.9%
TRANSALTA CORP
NYSE:TAC (5/15/2024, 7:11:09 PM)
After market: 7.15 0 (0%)7.15
+0.19 (+2.73%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.20B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.11 | ||
| Fwd PE | 21.44 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.15% | ||
| PM (TTM) | 0.13% | ||
| GM | 79.94% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset TurnoverN/A
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)354.43%
EPS 3Y-56.56%
EPS 5Y
EPS growth Q2Q
EPS Next Y29289.3%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.37%
Revenue growth 3Y8.24%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y