Transalta Corp Stock Debt To Equity
| TA Stock | CAD 15.65 0.10 0.64% |
TransAlta Corp fundamentals help investors to digest information that contributes to TransAlta Corp's financial success or failures. It also enables traders to predict the movement of TransAlta Stock. The fundamental analysis module provides a way to measure TransAlta Corp's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to TransAlta Corp stock.
| Last Reported | Projected for Next Year | ||
| Debt To Equity | 2.65 | 2.78 |
TransAlta | Debt To Equity |
TransAlta Corp Company Debt To Equity Analysis
TransAlta Corp's Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company, then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.
Current TransAlta Corp Debt To Equity | 85.20 % |
Most of TransAlta Corp's fundamental indicators, such as Debt To Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, TransAlta Corp is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
TransAlta Debt To Equity Driver Correlations
Understanding the fundamental principles of building solid financial models for TransAlta Corp is extremely important. It helps to project a fair market value of TransAlta Stock properly, considering its historical fundamentals such as Debt To Equity. Since TransAlta Corp's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of TransAlta Corp's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of TransAlta Corp's interrelated accounts and indicators.
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High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand a small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging borrowing against the capital invested by the owners.
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TransAlta Total Stockholder Equity
Total Stockholder Equity |
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According to the company disclosure, TransAlta Corp has a Debt To Equity of 85%. This is 9.48% lower than that of the Independent Power and Renewable Electricity Producers sector and 62.9% lower than that of the Utilities industry. The debt to equity for all Canada stocks is 74.95% lower than that of the firm.
TransAlta Debt To Equity Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses TransAlta Corp's direct or indirect competition against its Debt To Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of TransAlta Corp could also be used in its relative valuation, which is a method of valuing TransAlta Corp by comparing valuation metrics of similar companies.TransAlta Corp is currently under evaluation in debt to equity category among its peers.
TransAlta Fundamentals
| Return On Equity | 0.0995 | ||||
| Return On Asset | 0.042 | ||||
| Profit Margin | 0.07 % | ||||
| Operating Margin | 0.15 % | ||||
| Current Valuation | 9.35 B | ||||
| Shares Outstanding | 298.5 M | ||||
| Shares Owned By Insiders | 0.21 % | ||||
| Shares Owned By Institutions | 71.23 % | ||||
| Number Of Shares Shorted | 5.25 M | ||||
| Price To Earning | 114.11 X | ||||
| Price To Book | 5.32 X | ||||
| Price To Sales | 1.67 X | ||||
| Revenue | 3.35 B | ||||
| Gross Profit | 1.11 B | ||||
| EBITDA | 1.71 B | ||||
| Net Income | 695 M | ||||
| Cash And Equivalents | 1.13 B | ||||
| Cash Per Share | 0.74 X | ||||
| Total Debt | 4.21 B | ||||
| Debt To Equity | 85.20 % | ||||
| Current Ratio | 1.74 X | ||||
| Book Value Per Share | 2.92 X | ||||
| Cash Flow From Operations | 1.46 B | ||||
| Short Ratio | 4.21 X | ||||
| Earnings Per Share | 0.38 X | ||||
| Price To Earnings To Growth | (1.68) X | ||||
| Target Price | 15.92 | ||||
| Number Of Employees | 1.26 K | ||||
| Beta | 0.92 | ||||
| Market Capitalization | 4.67 B | ||||
| Total Asset | 8.66 B | ||||
| Retained Earnings | (2.57 B) | ||||
| Working Capital | (162 M) | ||||
| Annual Yield | 0.02 % | ||||
| Five Year Return | 4.90 % | ||||
| Net Asset | 8.66 B | ||||
| Last Dividend Paid | 0.24 |
About TransAlta Corp Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze TransAlta Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of TransAlta Corp using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of TransAlta Corp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with TransAlta Corp
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if TransAlta Corp position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in TransAlta Corp will appreciate offsetting losses from the drop in the long position's value.The ability to find closely correlated positions to TransAlta Corp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace TransAlta Corp when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back TransAlta Corp - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling TransAlta Corp to buy it.
The correlation of TransAlta Corp is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as TransAlta Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if TransAlta Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for TransAlta Corp can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out World Market Map to better understand how to build diversified portfolios, which includes a position in 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. To learn how to invest in TransAlta Stock, please use our How to Invest in TransAlta Corp guide.You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.