TransAlta Story

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TAC -- USA Stock  

USD 6.12  0.26  4.44%

As many baby boomers are still indifferent towards utilities space, it makes sense to go over TransAlta. Why are we still confident in hope for a quick recovery. In this post, I will also go over a few different drivers affecting TransAlta's products and services, and explain how it may impact TransAlta investors.
Published over a month ago
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Another strong showing for TransAlta
We provide advice to complement the current expert consensus on TransAlta. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the firm's potential to grow using all technical and fundamental data available at the time.

And What about dividends?

A dividend is the distribution of a portion of TransAlta earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. TransAlta dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. TransAlta one year expected dividend income is about $0.11 per share.
Investing in dividend-paying stocks, such as TransAlta is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in TransAlta must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for TransAlta. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is TransAlta's Liquidity

TransAlta financial leverage refers to using borrowed capital as a funding source to finance TransAlta ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. TransAlta financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between TransAlta's total debt and its cash.

How TransAlta utilizes its cash?

To perform a cash flow analysis of TransAlta, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash TransAlta is receiving and how much cash it distributes out in a given period. The TransAlta cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Another Deeper Perspective

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. TransAlta has an asset utilization ratio of 21.57 percent. This suggests that the company is making $0.22 for each dollar of assets. An increasing asset utilization means that TransAlta is more efficient with each dollar of assets it utilizes for everyday operations.

Another 3 percent build-up for TransAlta

Current Information Ratio is up to 0.02. Price may slip again. As of the 31st of July, TransAlta has the Semi Deviation of 2.88, coefficient of variation of 1339.35, and Risk Adjusted Performance of 0.1277. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of TransAlta, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We are able to interpolate and collect nineteen technical drivers for TransAlta, which can be compared to its competition. Please validate TransAlta coefficient of variation, maximum drawdown, skewness, as well as the relationship between the information ratio and downside variance to decide if TransAlta is priced more or less accurately, providing market reflects its prevalent price of 6.51 per share. Given that TransAlta has jensen alpha of 0.0266, we advise you to double-check TransAlta's current market performance to make sure the company can sustain itself at a future point.

Our Final Take On TransAlta

Whereas other entities within the utilities?independent power producers industry are still a little expensive, even after the recent corrections, TransAlta may offer a potential longer-term growth to investors. The bottom line, as of the 31st of July 2020, our primary 30 days buy-or-sell advice on the company is Cautious Hold. We believe TransAlta is overvalued with below average odds of financial distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of TransAlta. Please refer to our Terms of Use for any information regarding our disclosure principles.

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