Transalta Story

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TAC -- USA Stock  

USD 9.70  0.05  0.51%

Transalta Corp is generating 0.399% of daily returns assuming volatility of 1.6019% on return distribution over 60 days investment horizon. While some risk-loving traders are indifferent towards current market volatility, it is reasonable to go over the risk of investing in Transalta Corp. We will go over odds for Transalta Corp to generate above-average margins in two-three weeks. Transalta Corp's very low volatility may have no significant impact on the stock's value as we estimate Transalta Corp as currently overvalued. The real value, based on our calculations, is getting close to 7.85 per share.
Published over a month ago
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How risky is to double down on Transalta Corp in April?
The entity runs under Utilities sector within Utilities?Independent Power Producers industry.
Volatility is a rate at which the price of Transalta Corp or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Transalta Corp may increase or decrease. In other words, similar to Transalta's beta indicator, it measures the risk of Transalta Corp and helps estimate the fluctuations that may happen in a short period of time. So if prices of Transalta Corp fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.

How important is Transalta Corp's Liquidity

Transalta Corp financial leverage refers to using borrowed capital as a funding source to finance Transalta Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Transalta Corp 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 Corp's total debt and its cash.

How Transalta utilizes its cash?

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

Breaking down Transalta Corp Indicators

The firm reported the last year's revenue of 1.7 B. Reported Net Loss for the year was (203.72 M) with profit before taxes, overhead, and interest of 786 M.

Possible April throwback of Transalta?

Semi variance is down to 1.07. It may suggest a possible volatility slip. Transalta Corp has relatively low volatility with skewness of 0.15 and kurtosis of 0.64. However, we advise all investors to independently investigate Transalta Corp to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Transalta Corp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Transalta Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Whereas some firms under the utilities?independent power producers industry are still a bit expensive, Transalta Corp may offer a potential longer-term growth to investors. The inconsistency in the assessment between current Transalta valuation and our trade advice on Transalta Corp is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Transalta Corp.

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 Ellen Johnson do not own shares of Transalta Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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