TransAlta Corporation Stock Price and Value Analysis

Should you buy TransAlta Corporation stock? (NYSE:TAC). Let's see how it does in our automated value investing analysis system.

TAC Free Cash Flow Trend

Free Cash Flow trendline for TAC
Free Cash Flow trendline for TransAlta Corporation

Based on historical returns, we believe that TransAlta Corporation can grow its free cash at a rate of about 2%. That's positive!

AdvantagesDisadvantages
  • This company has fluctuating growth.
  • This stock is available at a great discount!
  • This company has a low dividend yield.
  • This company is less known than others.
  • This company is making money at a modest rate.

Inside the TAC Numbers

TAC Price
(TransAlta Corporation stock price per share)
$9.04
[?] TAC Fair Price
(based on intrinsic value)
$19.83
[?] TAC Safety Price (based on a variable margin of safety) $11.90
[?] PE Ratio versus Sector 330% higher than other Utilities stocks
[?] PE Ratio versus Industry 376% higher than other Unknown stocks
[?] Cash Yield 21.67%
[?] Free Cash Flow Jitter 33%
[?] Dividend Yield 2%
Shares Shorted 1,078,641

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 1,078,641 shares shorted. With 272,894,808 shares available for purchase and an average trading volume over the past 10 trading days of 436,833, it would take at least 2.469 days for all of the short holders to cover their shorts.

Is TransAlta Corporation Stock on Sale?

We believe that TransAlta Corporation may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Even better, TransAlta Corporation looks like a stock on sale. Based on our analysis—if the company keeps making money the way it has been—you may be looking at a bargain. Keep this stock in mind as you put together your portfolio! See Before You Buy for your next steps (and read our disclaimer about investing risk).

Should You Buy TAC Stock?

Does TransAlta Corporation have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.