ScoreWhy 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%
Real-Time Research ReportHow 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.
21.07%
5.19
42.68%
S&P/TSX 60
19.1%
1.54
14.62%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.23%
EBIT Growth (5y)
24.87%
EBIT to Interest (avg)
2.40
Debt to EBITDA (avg)
3.03
Net Debt to Equity (avg)
2.50
Sales to Capital Employed (avg)
0.52
Tax Ratio
61.05%
Dividend Payout Ratio
40.91%
Pledged Shares
0
Institutional Holding
87.27%
ROCE (avg)
12.34%
ROE (avg)
15.96%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
4.51
EV to EBIT
391.57
EV to EBITDA
17.31
EV to Capital Employed
1.95
EV to Sales
4.53
PEG Ratio
NA
Dividend Yield
0.07%
ROCE (Latest)
0.50%
ROE (Latest)
-11.98%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend0What is working for the Company
NO KEY POSITIVE TRIGGERS
-36What is not working for the Company
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%
INTEREST COVERAGE RATIO(Q)
Lowest at 74.32
RAW MATERIAL COST(Y)
Grown by 22.46% (YoY
CASH AND EQV(HY)
Lowest at CAD 563 MM
DEBT-EQUITY RATIO
(HY)
Highest at 268.33 %
NET SALES(Q)
Lowest at CAD 433 MM
OPERATING PROFIT(Q)
Lowest at CAD 55 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 12.7 %
PRE-TAX PROFIT(Q)
Lowest at CAD -182 MM
NET PROFIT(Q)
Lowest at CAD -185 MM
EPS(Q)
Lowest at CAD -0.38
Here's what is working for TransAlta Corp.
Depreciation
Highest at CAD 164 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (CAD MM)
Here's what is not working for TransAlta Corp.
Pre-Tax Profit
At CAD -182 MM has Fallen at -271.7%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CAD MM)
Net Profit
At CAD -185 MM has Fallen at -333.04%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CAD MM)
Interest Coverage Ratio
Lowest at 74.32
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
At CAD 152 MM has Grown at 21.6%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CAD MM)
Operating Cash Flow
Lowest at CAD 608 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CAD MM)
Net Sales
Lowest at CAD 433 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (CAD MM)
Net Sales
Fallen at -25.6%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (CAD MM)
Operating Profit
Lowest at CAD 55 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CAD MM)
Operating Profit Margin
Lowest at 12.7 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at CAD -182 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CAD MM)
Net Profit
Lowest at CAD -185 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (CAD MM)
EPS
Lowest at CAD -0.38
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (CAD)
Cash and Eqv
Lowest at CAD 563 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at 268.33 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Raw Material Cost
Grown by 22.46% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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