TransAlta Renewables Inc.
TransAlta Renewables Inc. Fundamental Analysis
TransAlta Renewables Inc. (TRSWF) shows weak financial fundamentals with a PE ratio of 44.88, profit margin of 13.21%, and ROE of 3.86%. The company generates $0.6B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.5/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TRSWF's fundamental strength across five key dimensions:
Efficiency Score
WeakTRSWF struggles to generate sufficient returns from assets.
Valuation Score
ModerateTRSWF shows balanced valuation metrics.
Growth Score
ModerateTRSWF shows steady but slowing expansion.
Financial Health Score
ModerateTRSWF shows balanced financial health with some risks.
Profitability Score
WeakTRSWF struggles to sustain strong margins.
Key Financial Metrics
Is TRSWF Expensive or Cheap?
P/E Ratio
TRSWF trades at 44.88 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TRSWF's PEG of 0.33 indicates potential undervaluation.
Price to Book
The market values TransAlta Renewables Inc. at 1.89 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.29 times EBITDA. This is generally considered low.
How Well Does TRSWF Make Money?
Net Profit Margin
For every $100 in sales, TransAlta Renewables Inc. keeps $13.21 as profit after all expenses.
Operating Margin
Core operations generate 24.82 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.86 in profit for every $100 of shareholder equity.
ROA
TransAlta Renewables Inc. generates $2.29 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
TransAlta Renewables Inc. generates strong operating cash flow of $256.90M, reflecting robust business health.
Free Cash Flow
TransAlta Renewables Inc. generates strong free cash flow of $138.95M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.52 in free cash annually.
FCF Yield
TRSWF converts 4.19% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
44.88
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.33
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.89
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.93
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.45
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.78
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How TRSWF Stacks Against Its Sector Peers
| Metric | TRSWF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 44.88 | 19.71 | Worse (Expensive) |
| ROE | 3.86% | 899.00% | Weak |
| Net Margin | 13.21% | 8904.00% | Weak |
| Debt/Equity | 0.45 | 1.80 | Strong (Low Leverage) |
| Current Ratio | 0.78 | 1.52 | Weak Liquidity |
| ROA | 2.29% | -6254.00% (disorted) | Weak |
TRSWF outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews TransAlta Renewables Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Dividend, Income
EPS CAGR
N/A
Industry Style: Defensive, Dividend, Income
FCF CAGR
N/A
Industry Style: Defensive, Dividend, Income