TransAlta Corporation (NYSE: TAC) shares currently have a dividend yield of 8.40%. Transalta is Canada's largest non-regulated electricity generation company. They produce independent power in Canada, and supplies electricity within Alberta, Canada, and operates in Ontario, Canada, as well as New Zealand, Australia, and the US. The company has a P/E ratio of 25.35. The average volume for TransAlta Corporation has been 109,500 shares per day over the past 30 days. TransAlta Corporation has a market cap of $3.5 billion and is part of the utilities industry. Shares are down 14.9% year to date as of the close of trading on Thursday. TheStreet Ratings rates TransAlta Corporation as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and generally high debt management risk. Highlights from the ratings report include:
- TAC has underperformed the S&P 500 Index, declining 8.87% from its price level of one year ago. 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.
- Despite the current debt-to-equity ratio of 1.51, 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 0.49 is very low and demonstrates very weak liquidity.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Independent Power Producers & Energy Traders industry and the overall market, TRANSALTA CORP's return on equity is below that of both the industry average and the S&P 500.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Independent Power Producers & Energy Traders industry average, but is greater than that of the S&P 500. The net income increased by 103.2% when compared to the same quarter one year prior, rising from -$791.00 million to $25.00 million.
- TRANSALTA CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, TRANSALTA CORP swung to a loss, reporting -$2.72 versus $1.30 in the prior year.
- You can view the full TransAlta Corporation Ratings Report.
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