TransAlta Stock Analysis, Valuation (NYSE:TAC)

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$5.75 $0 (0%) TAC stock closing price Aug 16, 2018 (Closing)

Watch the robo advisor video of TransAlta stock analysis on Amigobulls. Our TAC analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

TransAlta Corporation (USA) Stock Rating 2.8/5

Amigobulls TAC stock analysis uses latest quarter 2018 Q2 financial data like TransAlta revenue growth, profit margins and cash flows. We compare TransAlta valuation with its sector peers to gauge relative attractiveness of TAC stock. Based on a company's historical fundamentals we arrive at TransAlta stock rating which is indicative of the company's financial performance.

Should you buy TAC stock?

  • The company has an operating cash flow which is 5.6673 times the net income.
  • When compared with the Utilities sector average PS ratio of 2.1, the price-to-sales ratio of 0.9 for TAC stock is attractive.
  • The company has a healthy free cash flow margin of 68.5.

Should you sell TAC stock?

  • Revenue declined at a CAGR of -3.1 over the last 5 years.
  • Over the last 12 months, TransAlta had an average Net loss of -4.5%.
  • The company has a negative Return on Invested Capital of -2, which is a red flag.
  • A negative ROE of -2.4 indicates that the company is not able to generate profits with the money shareholders have invested.

Comments on this video and TransAlta stock

Investors can make use of the Amigobulls TransAlta stock analysis to ascertain how TAC stock fares in fundamental analysis investment criteria. Fundamentals of a company give detailed information which helps in making invesment decisions.

Among the financials of the company, TransAlta revenue growth along with the profit or net income give a clear picture of the financial health. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of TransAlta stock.