Transalta Corp Stock Buy Hold or Sell Recommendation

TA Stock  CAD 13.69  0.10  0.74%   
Assuming the 90 days horizon and your above-average risk tolerance, our recommendation regarding TransAlta Corp is 'Strong Sell'. The recommendation algorithm takes into account all of TransAlta Corp's available fundamental, technical, and predictive indicators you will find on this site.
  
Check out TransAlta Corp Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
To learn how to invest in TransAlta Stock, please use our How to Invest in TransAlta Corp guide.
In addition, we conduct extensive research on individual companies such as TransAlta and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards TransAlta Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate.

Execute TransAlta Corp Buy or Sell Advice

The TransAlta recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on TransAlta Corp. Macroaxis does not own or have any residual interests in TransAlta Corp or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute TransAlta Corp's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell TransAlta CorpBuy TransAlta Corp
Strong Sell

Market Performance

Very WeakDetails

Volatility

Somewhat reliableDetails

Hype Condition

Under hypedDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

Below AverageDetails

Economic Sensitivity

Slowly supersedes the marketDetails

Analyst Consensus

Not AvailableDetails

Reporting Quality (M-Score)

InapplicableDetails
For the selected time horizon TransAlta Corp has a Mean Deviation of 2.17, Standard Deviation of 3.6 and Variance of 12.95
Our advice tool can cross-verify current analyst consensus on TransAlta Corp and to analyze the firm potential to grow in the current economic cycle. To make sure TransAlta Corp is not overpriced, please validate all TransAlta Corp fundamentals, including its cash per share, number of employees, and the relationship between the revenue and cash flow from operations .

TransAlta Corp Trading Alerts and Improvement Suggestions

TransAlta Corp generated a negative expected return over the last 90 days
TransAlta Corp has high historical volatility and very poor performance
TransAlta Corp has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations
About 75.0% of the company shares are owned by institutional investors
Latest headline from news.google.com: TransAlta Corporation Reports Solid 2024 Performance - TipRanks

TransAlta Corp Returns Distribution Density

The distribution of TransAlta Corp's historical returns is an attempt to chart the uncertainty of TransAlta Corp's future price movements. The chart of the probability distribution of TransAlta Corp daily returns describes the distribution of returns around its average expected value. We use TransAlta Corp price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of TransAlta Corp returns is essential to provide solid investment advice for TransAlta Corp.
Mean Return
-0.38
Value At Risk
-4.69
Potential Upside
4.83
Standard Deviation
3.60
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of TransAlta Corp historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

TransAlta Corp Cash Flow Accounts

202020212022202320242025 (projected)
Change To Inventory(13M)6M42M(2M)34M35.7M
Change In Cash292M244M187M(786M)(11M)(10.5M)
Free Cash Flow202M512M(72M)576M475M498.8M
Other Non Cash Items(3M)22M285M(58M)10M9.5M
Capital Expenditures500M489M949M888M321M473.8M
Net Income(253M)(425M)161M695M229M240.5M
End Period Cash Flow703M947M1.1B348M337M237.0M
Depreciation798M719M599M669M531M685.5M
Investments(687M)128M(741M)(814M)(520M)(494M)
Net Borrowings280M533M(41M)351M403.7M423.8M
Change To Netincome(86M)72M613M495M569.3M597.7M

TransAlta Corp Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to TransAlta Corp or Independent Power and Renewable Electricity Producers sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that TransAlta Corp's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a TransAlta stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over Dow Jones
-0.35
β
Beta against Dow Jones0.31
σ
Overall volatility
3.65
Ir
Information ratio -0.08

TransAlta Corp Volatility Alert

TransAlta Corp exhibits very low volatility with skewness of -2.49 and kurtosis of 14.6. 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 bullish 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 financial instruments as prices fall.

TransAlta Corp Fundamentals Vs Peers

Comparing TransAlta Corp's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze TransAlta Corp's direct or indirect competition across all of the common fundamentals between TransAlta Corp and the related equities. This way, we can detect undervalued stocks with similar characteristics as TransAlta Corp or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of TransAlta Corp's fundamental indicators could also be used in its relative valuation, which is a method of valuing TransAlta Corp by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare TransAlta Corp to competition
FundamentalsTransAlta CorpPeer Average
Return On Equity0.14-0.31
Return On Asset0.0418-0.14
Profit Margin0.08 %(1.27) %
Operating Margin0.02 %(5.51) %
Current Valuation9.24 B16.62 B
Shares Outstanding297.6 M571.82 M
Shares Owned By Insiders0.22 %10.09 %
Shares Owned By Institutions74.93 %39.21 %
Number Of Shares Shorted7.38 M4.71 M
Price To Earning114.11 X28.72 X
Price To Book5.07 X9.51 X
Price To Sales1.43 X11.42 X
Revenue2.85 B9.43 B
Gross Profit1.14 B27.38 B
EBITDA1.16 B3.9 B
Net Income229 M570.98 M
Cash And Equivalents1.13 B2.7 B
Cash Per Share0.74 X5.01 X
Total Debt1.32 B5.32 B
Debt To Equity85.20 %48.70 %
Current Ratio1.74 X2.16 X
Book Value Per Share2.70 X1.93 K
Cash Flow From Operations796 M971.22 M
Short Ratio3.35 X4.00 X
Earnings Per Share0.59 X3.12 X
Price To Earnings To Growth(1.68) X4.89 X
Target Price19.45
Number Of Employees1.17 K18.84 K
Beta0.8-0.15
Market Capitalization4.07 B19.03 B
Total Asset9.5 B29.47 B
Retained Earnings(2.46 B)9.33 B
Working Capital(796 M)1.48 B

TransAlta Corp Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as TransAlta . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About TransAlta Corp Buy or Sell Advice

When is the right time to buy or sell TransAlta Corp? Buying financial instruments such as TransAlta Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

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When determining whether TransAlta Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of TransAlta Corp's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Transalta Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Transalta Corp Stock:
Check out TransAlta Corp Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
To learn how to invest in TransAlta Stock, please use our How to Invest in TransAlta Corp guide.
You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Please note, there is a significant difference between TransAlta Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine if TransAlta Corp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, TransAlta Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.