TransAlta Corporation (NYSE: TAC) shares currently have a dividend yield of 8.20%. TransAlta Corporation operates as a non-regulated electricity generation and energy marketing company in Canada, the United States, and Australia. The company engages in the generation and wholesale trade of electricity and other energy-related commodities and derivatives. The average volume for TransAlta Corporation has been 103,800 shares per day over the past 30 days TransAlta Corporation has a market cap of $3.6 billion and is part of the utilities industry Shares are down 11% year to date as of the close of trading on Wednesday TheStreet Ratings rates TransAlta Corporation as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, disappointing return on equity, generally disappointing historical performance in the stock itself and generally high debt management risk. Highlights from the ratings report include:
- TRANSALTA CORP has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, TRANSALTA CORP swung to a loss, reporting -$2.72 versus $1.30 in the prior year.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Independent Power Producers & Energy Traders industry and the overall market, TRANSALTA CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- The share price of TRANSALTA CORP has not done very well: it is down 17.45% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- Even though the current debt-to-equity ratio is 1.42, it is still below the industry average, suggesting that this level of debt is acceptable within the Independent Power Producers & Energy Traders industry. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.41 is very low and demonstrates very weak liquidity.
- The change in net income from the same quarter one year ago has significantly exceeded that of the Independent Power Producers & Energy Traders industry average, but is less than that of the S&P 500. The net income has significantly decreased by 102.1% when compared to the same quarter one year ago, falling from $96.00 million to -$2.00 million.
- You can view the full TransAlta Corporation Ratings Report.
- Our dividend calendar.
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