TransAlta Corp
TSX:TA

Watchlist Manager
TransAlta Corp Logo
TransAlta Corp
TSX:TA
Watchlist
Price: 15.02 CAD -1.31% Market Closed
Market Cap: 4.5B CAD
Have any thoughts about
TransAlta Corp?
Write Note

Intrinsic Value

The intrinsic value of one TA stock under the Base Case scenario is 21.64 CAD. Compared to the current market price of 15.02 CAD, TransAlta Corp is Undervalued by 31%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

TA Intrinsic Value
21.64 CAD
Undervaluation 31%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation Backtest
TransAlta Corp

Backtest Intrinsic Value
Dive into the past to invest in the future

Uncover deeper insights with the Valuation Backtest. Learn how current stock valuations stack up against historical averages to gauge true investment potential.

Start backtest now and learn if your stock is truly undervalued or overvalued!

Run Backtest
Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

Backtest Example
Register to View Results
Register to View Results

To access the results of this valuation backtest, please register an account with us. Registration is quick and gives you instant access to insights on 3 stocks per week for free.

Backtest Unavailable

The backtest for TA cannot be conducted due to limitations such as insufficient data or other constraints. Please select a different stock or adjust your settings.

Backtest In Progress...
Backtest In Progress...
How do you feel about TA?
Bearish
Neutral
Bullish

Fundamental Analysis

Company Quality
No Indicators Selected
Select Indicators

Select up to 3 indicators:

Insider Trading
0-3
Months
0-6
Months
0-12
Months
0-36
Months
No Periods Selected
Select Periods

Select up to 2 periods:

Investment Journal
AI Assistant
AI Assistant
Ask me anything about TransAlta Corp

Provide an overview of the primary business activities
of TransAlta Corp.

What unique competitive advantages
does TransAlta Corp hold over its rivals?

What risks and challenges
does TransAlta Corp face in the near future?

Summarize the latest earnings call
of TransAlta Corp.

Is it considered overvalued or undervalued
based on the latest financial data?

Show all valuation multiples
for TransAlta Corp.

Provide P/S
for TransAlta Corp.

Provide P/E
for TransAlta Corp.

Provide P/OCF
for TransAlta Corp.

Provide P/FCFE
for TransAlta Corp.

Provide P/B
for TransAlta Corp.

Provide EV/S
for TransAlta Corp.

Provide EV/GP
for TransAlta Corp.

Provide EV/EBITDA
for TransAlta Corp.

Provide EV/EBIT
for TransAlta Corp.

Provide EV/OCF
for TransAlta Corp.

Provide EV/FCFF
for TransAlta Corp.

Provide EV/IC
for TransAlta Corp.

Show me price targets
for TransAlta Corp made by professional analysts.

What are the Revenue projections
for TransAlta Corp?

How accurate were the past Revenue estimates
for TransAlta Corp?

What are the Net Income projections
for TransAlta Corp?

How accurate were the past Net Income estimates
for TransAlta Corp?

What are the EPS projections
for TransAlta Corp?

How accurate were the past EPS estimates
for TransAlta Corp?

What are the EBIT projections
for TransAlta Corp?

How accurate were the past EBIT estimates
for TransAlta Corp?

Compare the revenue forecasts
for TransAlta Corp with those of its competitors based on recent analyst estimates.

Compare the intrinsic valuations
of TransAlta Corp and its key competitors using the latest financial data.

Compare historical revenue growth rates
of TransAlta Corp against its competitors.

Analyze the profit margins
(gross, operating, and net) of TransAlta Corp compared to its peers.

Compare the P/E ratios
of TransAlta Corp against its peers.

Discuss the investment returns and shareholder value creation
comparing TransAlta Corp with its peers.

Analyze the financial leverage
of TransAlta Corp compared to its main competitors.

Show all profitability ratios
for TransAlta Corp.

Provide ROE
for TransAlta Corp.

Provide ROA
for TransAlta Corp.

Provide ROIC
for TransAlta Corp.

Provide ROCE
for TransAlta Corp.

Provide Gross Margin
for TransAlta Corp.

Provide Operating Margin
for TransAlta Corp.

Provide Net Margin
for TransAlta Corp.

Provide FCF Margin
for TransAlta Corp.

Show all solvency ratios
for TransAlta Corp.

Provide D/E Ratio
for TransAlta Corp.

Provide D/A Ratio
for TransAlta Corp.

Provide Interest Coverage Ratio
for TransAlta Corp.

Provide Altman Z-Score Ratio
for TransAlta Corp.

Provide Quick Ratio
for TransAlta Corp.

Provide Current Ratio
for TransAlta Corp.

Provide Cash Ratio
for TransAlta Corp.

What is the historical Revenue growth
over the last 5 years for TransAlta Corp?

What is the historical Net Income growth
over the last 5 years for TransAlta Corp?

What is the current Free Cash Flow
of TransAlta Corp?

Discuss the annual earnings per share (EPS)
trend over the past five years for TransAlta Corp.

Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
TransAlta Corp

Current Assets 2.6B
Cash & Short-Term Investments 1.2B
Receivables 1.1B
Other Current Assets 302m
Non-Current Assets 7B
Long-Term Investments 138m
PP&E 5.8B
Intangibles 699m
Other Non-Current Assets 377m
Current Liabilities 1.6B
Accounts Payable 661m
Short-Term Debt 5m
Other Current Liabilities 884m
Non-Current Liabilities 6.6B
Long-Term Debt 4.2B
Other Non-Current Liabilities 2.4B
Efficiency

Earnings Waterfall
TransAlta Corp

Revenue
3.5B CAD
Cost of Revenue
-713m CAD
Gross Profit
2.8B CAD
Operating Expenses
-2B CAD
Operating Income
827m CAD
Other Expenses
-573m CAD
Net Income
254m CAD

Free Cash Flow Analysis
TransAlta Corp

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

In Q3 2024, TransAlta achieved solid financial performance, reporting adjusted EBITDA of $325 million and free cash flow of $140 million ($0.47 per share). Their hedging strategy helped mitigate lower merchant power prices, leading to a realized price of $90 per megawatt hour. Despite softer Alberta spot prices averaging $55, the company is well-prepared with $1.8 billion in liquidity for further investments. Looking ahead, they aim to maintain free cash flow at the top of their guidance range and are optimistic about closing the Heartland Generation acquisition. The Sundance Unit 6 will be mothballed to conserve resources until market conditions improve.

What is Earnings Call?
Fundamental Scores

TA Profitability Score
Profitability Due Diligence

TransAlta Corp's profitability score is 50/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
ROE is Increasing
Negative Free Cash Flow
Positive 3-Years Revenue Growth
50/100
Profitability
Score

TransAlta Corp's profitability score is 50/100. The higher the profitability score, the more profitable the company is.

TA Solvency Score
Solvency Due Diligence

TransAlta Corp's solvency score is 28/100. The higher the solvency score, the more solvent the company is.

Short-Term Solvency
Long-Term Solvency
Positive Net Debt
High D/E
28/100
Solvency
Score

TransAlta Corp's solvency score is 28/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

TA Price Targets Summary
TransAlta Corp

Wall Street analysts forecast TA stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for TA is 16.29 CAD with a low forecast of 10.35 CAD and a high forecast of 18.9 CAD.

Lowest
Price Target
10.35 CAD
31% Downside
Average
Price Target
16.29 CAD
8% Upside
Highest
Price Target
18.9 CAD
26% Upside
View Analyst Estimates
View Analyst Estimates
Want to learn more about Wall St estimates for TA?

Click here to dive deeper.

Dividends

Dividend Yield
Lowest
Average
Highest
Dividend Per Share
N/A
Growth 3Y
Growth 5Y
Growth 10Y
Dividend Safety Score
Very
Unsafe
Unsafe
Safe
Very
Safe
0
25
50
75
100
Previous Payment
-
Today
Next Payment
-
Today
Nov 23, 2024
Previous Payment
-
Next Payment
-
Ex-Dividend Date
-
Shareholder Yield

Current shareholder yield for TA is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
Lowest
Average
Highest
Buyback Yield
Lowest
Average
Highest
Debt Paydown Yield
Lowest
Average
Highest

TA News

Other Videos

Profile

TransAlta Corp Logo
TransAlta Corp

Country

Canada

Industry

Utilities

Market Cap

4.5B CAD

Dividend Yield

2%

Description

TransAlta Corp. engages in the generation and distribution of electricity through wind, hydro, gas and coal power plants. The company is headquartered in Calgary, Alberta and currently employs 1,282 full-time employees. The company went IPO on 2001-07-31. The firm owns, operates and manages a portfolio of assets representing approximately 8,128 megawatts (MW) of capacity and uses a range of fuels comprised of water, wind and solar, natural gas, and thermal coal. Its segments include Generation Segments and Energy Marketing Segment. Generation Segments include six segments: Hydro, Wind and Solar, North American Gas, Australian Gas, Alberta Thermal, and Centralia. Its Energy Marketing segment is engaged in the wholesale trading of electricity and other energy-related commodities and derivatives. Energy Marketing manages available generating capacity as well as the fuel and transmission needs of the generation segments by utilizing contracts of various durations for the forward sales of electricity and for the purchase of natural gas and transmission capacity.

Contact

ALBERTA
Calgary
Calgary Alberta T2p 2mi, 110 12th Ave SW Station, PO Box 1900 Stn M
+14032674724.0
www.transalta.com

IPO

2001-07-31

Employees

1 282

Officers

President, CEO & Director
Mr. John Harry Kousinioris
Executive VP of People & Culture and Chief Administrative Officer
Ms. Jane Nyla Fedoretz
Executive Vice President of Growth & Energy Marketing
Ms. Kerry O'Reilly Wilks
Executive Vice President of Generation
Mr. Chris Fralick
Executive VP of Finance & CFO
Mr. Joel E. Hunter
Manager of Investor Relations
Chiara Valentini
Show More
Executive Vice President of Legal
Ms. Nancy L. Brennan
Manager of Communications
Ms. Stacey Hatcher
MD of People & Talent
Ms. Maria Perry
Managing Director of Gas & Renewables
Mr. Gary Woods
Show Less

See Also

Discover More
What is the Intrinsic Value of one TA stock?

The intrinsic value of one TA stock under the Base Case scenario is 21.64 CAD.

Is TA stock undervalued or overvalued?

Compared to the current market price of 15.02 CAD, TransAlta Corp is Undervalued by 31%.

Back to Top