TransAlta Corp
TSX:TA
Intrinsic Value
TransAlta Corp. engages in the generation and distribution of electricity through wind, hydro, gas and coal power plants. [ Read More ]
The intrinsic value of one
TA
stock under the Base Case scenario is
18.872
CAD.
Compared to the current market price of 8.945 CAD,
TransAlta Corp
is
Undervalued by 53%.
TA could be a value trap.A value trap occurs when a stock looks inexpensive based on fundamental analysis but fails to reach its intrinsic valuation over time, often due to underlying issues not reflected in quantitative data.
Scrutinize beyond numbers; assess long-term potential.
TransAlta Corp's market capitalization is 2.8B CAD.
TA stock price is 8.945 CAD.
TA stock price (8.945 CAD) is 53% less than its Intrinsic Value (18.872 CAD).
TA stock price (8.945 CAD) is 56% less than its Relative Value (20.416 CAD). Open Relative Valuation
TA's ROIC (Return on Invested Capital) for the past 12 months is positive and is equal to 8%.
TA has positive Operating Income for the last twelve months.
TA's long-term assets (10B CAD) exceed its long-term liabilties (8B CAD).
TA's ROE (Return on Equity) for the past 12 months is positive and is equal to 17%.
TA's Revenue is forecast to fall at a rate of 5% per year over the next 3 years.
TA's Revenue has dropped by 11% over the past 12 months.
TA's ROIC (Return on Invested Capital) has increased in the last 3 years from 0% to 8%.
TA has positive three-year average ROIC (Return on Invested Capital): 6%. The company is efficient at using invested capital to generate operating income.
TA's Revenue has been growing by 16% per year for the last 3 years.
TA has negative Free Cash Flow for the last twelve months.
TA's short-term assets (3B CAD) exceed its short-term liabilties (2B CAD).
TA's ROE (Return on Equity) has significantly increased in the last 3 years from -15% to 17%.
TA has positive Net Income for the last twelve months.
TA has positive Net Debt. This means that the company has more debt (4B CAD) than cash and short-term investments (1B CAD).
TA has positive Gross Profit for the last twelve months.
TA's D/E (Debt to Equity) is very high and is equal to 2.85.
TA has negative three-year average ROE (Return on Equity): -9%. The company is not efficient at transforming stockholders' equity into net income.
TA's Altman Z-Score is very low and is equal to 0.6.
TA generates enough operating income (827m CAD) to cover interest payments on its debt (261m CAD).
Valuation Backtest
TransAlta Corp
Run backtest to discover the historical profit from buying and selling
TA
stocks based on their intrinsic value.
Analyze the historical link between intrinsic value and market price to make more informed investment decisions.
Fundamental Analysis
TransAlta Corp
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 |
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
What is Free Cash Flow?
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.
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.
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
According to Wall Street analysts, the average 1-year price target for
TA
is 14.45 CAD
with a low forecast of 9.595 CAD and a high forecast of 19.425 CAD.
Shareholder Return
TA Price
TransAlta Corp
| Average Annual Return | 10.18% |
| Standard Deviation of Annual Returns | 23.64% |
| Max Drawdown | -51% |
| Market Capitalization | 2.8B CAD |
| Shares Outstanding | 307 522 000 |
| Percentage of Shares Shorted | 1.34% |
Company Profile
TransAlta Corp
Country
Industry
Market Cap
Dividend Yield
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
IPO
Employees
Officers
The intrinsic value of one
TA
stock under the Base Case scenario is
18.872
CAD.
Compared to the current market price of 8.945 CAD,
TransAlta Corp
is
Undervalued by 53%.
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