Last Updated: 19 Sep 2024
Executive Summary
TransAlta Corp (TAC) is a leading North American power generation company with a diverse portfolio of assets in Canada, the United States, and Australia. The company's stock has underperformed the broader market in recent years, but its fundamentals remain strong. With a forward PE ratio of 28.09 and a dividend yield of 0.0191%, TAC offers investors a compelling value proposition.
Company Overview
TransAlta Corp is a vertically integrated power company that owns and operates a diverse fleet of generation assets, including coal, natural gas, hydro, wind, and solar. The company's operations are geographically diversified, with a presence in three major markets. TransAlta has a long history of providing reliable and affordable electricity to its customers.
Fundamental Analysis
TransAlta's financial performance has been mixed in recent years. The company's revenue has declined slightly in recent quarters, but its earnings per share have remained relatively stable. TransAlta's profit margin and return on equity are both above industry averages. The company has a strong balance sheet with low debt levels.
Technical Analysis
TAC's stock price has been trading in a range between $5.87 and $9.54 over the past 52 weeks. The stock is currently trading at $9.3, near the middle of its range. The 50-day moving average is $8.2, and the 200-day moving average is $7.39.
Short Term Outlook
TAC's stock price is likely to remain range-bound in the short term. The company's fundamentals are strong, but the broader market is facing headwinds. Investors should consider buying TAC on dips towards the lower end of its range.
Long Term Outlook
TAC's long-term outlook is positive. The company's diverse portfolio of assets and strong financial position position it well to benefit from the growing demand for electricity. Investors should consider holding TAC for the long term.
Analyst Recommendations
Analysts are generally positive on TAC. Five analysts have a "buy" rating on the stock, one has a "hold" rating, and one has a "sell" rating. The average analyst target price is $10.85.
