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TransAlta Corp.

  • Market Cap: Mid Cap
  • Industry: Power
  • ISIN: CA89346D1078
CAD
17.04
-0.14 (-0.81%)

Mar 19

TSE

 View all stocks in this country
  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Algonquin Power & Utilities Corp.
Emera, Inc.
Capital Power Corp.
Fortis, Inc.
Hydro One Ltd.
Brookfield Renewable Partners LP
ATCO Ltd.
Northland Power, Inc.
TransAlta Corp.
Boralex, Inc.
TransAlta Renewables, Inc.

Why is TransAlta Corp. ?

1
High Debt Company with a Debt to Equity ratio (avg) at times
  • High Debt Company with a Debt to Equity ratio (avg) at times
  • The company has been able to generate a Return on Equity (avg) of 15.96% signifying low profitability per unit of shareholders funds
2
With a fall in Net Sales of -25.6%, the company declared Very Negative results in Jun 25
  • The company has declared negative results for the last 2 consecutive quarters
  • OPERATING CASH FLOW(Y) Lowest at CAD 608 MM
  • INTEREST(HY) At CAD 152 MM has Grown at 21.6%
  • ROCE(HY) Lowest at -6.82%
3
Risky -
  • The stock is trading risky as compared to its average historical valuations
  • Over the past year, while the stock has generated a return of 34.57%, its profits have fallen by -131.9%
stock-recommendationReal-Time Research Report

Verdict Report

How much should you sell?

  1. All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is TransAlta Corp. for you?

High Risk, High Return

Absolute
Risk Adjusted
Volatility
TransAlta Corp.
24.47%
5.19
42.68%
S&P/TSX 60
23.72%
1.54
14.62%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
2.74%
EBIT Growth (5y)
-16.93%
EBIT to Interest (avg)
2.40
Debt to EBITDA (avg)
3.03
Net Debt to Equity (avg)
2.50
Sales to Capital Employed (avg)
0.48
Tax Ratio
61.05%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
83.04%
ROCE (avg)
12.34%
ROE (avg)
15.96%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
3.64
EV to EBIT
-40.44
EV to EBITDA
21.84
EV to Capital Employed
1.70
EV to Sales
3.75
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-4.19%
ROE (Latest)
-35.11%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
Mildly Bearish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What is working for the Company
Icon
NO KEY POSITIVE TRIGGERS
-22What is not working for the Company
NET PROFIT(HY)

At CAD -279 MM has Grown at -194.26%

OPERATING CASH FLOW(Y)

Lowest at CAD 623 MM

PRE-TAX PROFIT(Q)

At CAD -97 MM has Fallen at -218.29%

INTEREST(9M)

At CAD 224 MM has Grown at 14.29%

ROCE(HY)

Lowest at -8.42%

RAW MATERIAL COST(Y)

Grown by 11.33% (YoY

CASH AND EQV(HY)

Lowest at CAD 555 MM

DEBT-EQUITY RATIO (HY)

Highest at 269.49 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.2 times

Here's what is not working for TransAlta Corp.

Net Profit
At CAD -279 MM has Grown at -194.26%
Year on Year (YoY)
MOJO Watch
Near term Net Profit trend is very negative

Net Profit (CAD MM)

Pre-Tax Profit
At CAD -97 MM has Fallen at -218.29%
Year on Year (YoY)
MOJO Watch
Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Operating Cash Flow
Lowest at CAD 623 MM and Fallen
In each year in the last three years
MOJO Watch
The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Interest
At CAD 224 MM has Grown at 14.29%
over previous Semi-Annual period
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Cash and Eqv
Lowest at CAD 555 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio
Highest at 269.49 %
in the last five Semi-Annual periods
MOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio
Lowest at 3.2 times
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost
Grown by 11.33% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

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