TransAlta Corp. (TA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

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.

Capital Power Corp.

Emera, Inc.

Fortis, Inc.

Hydro One Ltd.

Northland Power, Inc.

ATCO Ltd.

TransAlta Corp.

Boralex, Inc.

Brookfield Renewable Partners LP

TransAlta Renewables, Inc.

Why is TransAlta Corp. ?

The company is Net-Debt Free

The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 15.96% signifying low profitability per unit of shareholders funds

Flat results in Mar 26

NET PROFIT(HY) At CAD -180.5 MM has Grown at -361.31%
ROCE(HY) Lowest at -10.9%
DEBTORS TURNOVER RATIO(HY) Lowest at 2.9 times

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 28.00%, its profits have fallen by -694.9%

Real-Time Research Report

Verdict Report

How much should you sell?

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.

28.0%

6.13

38.10%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.69%

EBIT Growth (5y)

-191.64%

EBIT to Interest (avg)

2.40

Debt to EBITDA (avg)

3.03

Net Debt to Equity (avg)

2.50

Sales to Capital Employed (avg)

0.46

Tax Ratio

61.05%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

82.58%

ROCE (avg)

12.34%

ROE (avg)

15.96%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

3.97

EV to EBIT

-44.77

EV to EBITDA

25.84

EV to Capital Employed

1.75

EV to Sales

4.39

PEG Ratio

Dividend Yield

ROCE (Latest)

-3.92%

ROE (Latest)

-33.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

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

10What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 148.4%

RAW MATERIAL COST(Y)

Fallen by -20.89% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 27.79 %

PRE-TAX PROFIT(Q)

Highest at CAD -5 MM

NET PROFIT(Q)

Highest at CAD -4.5 MM

-13What is not working for the Company

NET PROFIT(HY)

At CAD -180.5 MM has Grown at -361.31%

ROCE(HY)

Lowest at -10.9%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.9 times

CASH AND EQV(HY)

Lowest at CAD 617 MM

DEBT-EQUITY RATIO (HY)

Highest at 293.46 %

NET SALES(Q)

Fallen at -25.46%

Here's what is working for TransAlta Corp.

Operating Profit Margin

Highest at 27.79 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CAD -5 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Pre-Tax Profit

At CAD -5 MM has Grown at 80.77%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

Highest at CAD -4.5 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Net Profit

At CAD -4.5 MM has Grown at 72.1%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Dividend Payout Ratio

Highest at 148.4%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -20.89% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for TransAlta Corp.

Debtors Turnover Ratio

Lowest at 2.9 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Net Sales

Fallen at -25.46%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Cash and Eqv

Lowest at CAD 617 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 293.46 %

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