TransAlta Corporation
Find Ratings ReportsTRANSALTA CORP's gross profit margin for the fourth quarter of its fiscal year 2023 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. TRANSALTA CORP has weak liquidity. Currently, the Quick Ratio is 0.70 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 38.46% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 624.0 | 854.0 |
EBITDA ($mil) | 166.0 | 216.0 |
EBIT ($mil) | 23.0 | 14.0 |
Net Income ($mil) | -59.0 | -138.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 417.0 | 1204.0 |
Total Assets ($mil) | 8659.0 | 10741.0 |
Total Debt ($mil) | 4213.0 | 4408.0 |
Equity ($mil) | 1537.0 | 1110.0 |
Profitability | Q4 FY23 | Q4 FY22 |
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Gross Profit Margin | 50.64 | 43.68 |
EBITDA Margin | 26.6 | 25.29 |
Operating Margin | 3.69 | 1.64 |
Sales Turnover | 0.39 | 0.28 |
Return on Assets | 8.02 | 0.46 |
Return on Equity | 41.9 | 0.36 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 0.91 | 1.29 |
Debt/Capital | 0.73 | 0.8 |
Interest Expense | 71.0 | 69.0 |
Interest Coverage | 0.32 | 0.2 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 306.93 | 268.1 |
Div / share | 0.04 | 0.04 |
EPS | -0.27 | -0.61 |
Book value / share | 5.01 | 4.14 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 592841.0 | 541497.0 |
HOLD. TRANSALTA CORP's P/E ratio indicates a significant discount compared to an average of 18.74 for the Utilities subsector and a significant discount compared to the S&P 500 average of 27.95. Conducting a second comparison, its price-to-book ratio of 1.30 indicates a significant discount versus the S&P 500 average of 4.68 and a discount versus the subsector average of 1.98. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, TRANSALTA CORP proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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TAC 2.64 | Peers 18.74 | TAC 1.37 | Peers 8.50 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. TAC is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. TAC is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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TAC NA | Peers 14.78 | TAC NA | Peers 1.44 | |||||||||||||||||||||
Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential. Ratio not available. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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Price/Book |
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Earnings Growth |
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TAC 1.30 | Peers 1.98 | TAC 24600.00 | Peers 132.20 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. TAC is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. TAC is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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TAC 0.60 | Peers 2.49 | TAC 12.73 | Peers 1.95 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. TAC is trading at a significant discount to its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. TAC has a sales growth rate that significantly exceeds its peers. |
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