Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on TRANSALTA CORP. We currently have 5 research reports from 1 professional analysts.
Frequency of research reports
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Reports 2Q16 Results
10 Aug 16
The Company reported a solid quarter with comparable EBITDA of $248 mm, beating both FCC’s estimate of $235 mm and the Street at $233 mm. TransAlta’s funding situation was also improved over the quarter with a $159 mm bond issue and credit facility extensions. The construction of the South Hedland (Australia) power project continues to advance, with the bulk of all major equipment having arrived at site. We have increased our 12-MTP to $5.75/share and maintain a Market Perform ranking.
REPORTS 2Q16 RESULTS
09 Aug 16
The Company reported a solid quarter with comparable EBITDA of $248 mm, beating both FCC's estimate of $235 mm and the Street at $233 mm. Every segment's comparable EBITDA outperformed y/y, and total EBITDA is up 36%. Power generation on the quarter was 7,899 GWh, below our estimate of 10,773 GWh. Funds from operations were $175 mm, in line with our estimate of $176 mm and up $15 mm from 2Q15. Despite the Company realizing lower prices from its coal facilities, performance was augmented by contracting and price hedges in place. To counter low power prices in Alberta, TransAlta has focused on cost reduction initiatives and benefited from contributions from renewable assets acquired last year.
Reports 1Q16 Results
04 May 16
The Company reported a stronger quarter with comparable EBITDA of $279 mm, beating both FCC’s estimate of $271 mm and the Street at $268 mm. Quarterly earnings benefited from TransAlta’s cost reducing initiatives and EBITDA increased due to renewable assets acquired in 2015. The 150 MW South Hedland project in Western Australia continues to advance, with most of the major equipment having arrived on site. Management commented that it remains confident it will achieve its guidance for FY2016 of FFO from $755-$835 mm (FCC $783 mm) and FCF of $250-$300 mm (FCC $299 mm). The quarter’s results had a minimal impact on our valuation; our DCF-NAV is near unchanged at $5.18/share. We have retained our Market Perform ranking and our 12-month target price of $5.25/share.
1Q16 CONFERENCE CALL UPDATE
04 May 16
Our biggest concern about any company is whether it understands its situation; how it deals with that situation will largely be determined by its previous decisions, and by input from its shareholders and other capital providers. In our view, in difficult situations, companies should respond by providing more clarity and detail to the market. TransAlta appears to understand the situation it is in, and is removing what difficulties it can (such as cutting the dividend), and is detailing the steps it intends to make in the future, so we view this as a positive update.
SIGNS AGREEMENT TO MANAGE WATER AT GHOST RESERVOIR, AB
27 Apr 16
Management believes that the agreement is structured so that TransAlta will break-even, despite times of low water flow and decreased power generation. The TransAlta facility at Ghost reservoir is a 54 MW hydro plant that has been in service since 1929. We expect that the Company can reasonably predict lost revenues from managing water levels at this location from its historic operating experience and knowledge gained during the 2014 and 2015 pilot programs. With that being said, there is always risk when betting on nature, TransAlta will benefit from normal and predictable water flows with limited power generation interruption.
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
N+1 Singer - Small-cap quantitative research - New quality style screen + 11 quality focus stocks
09 Feb 17
We introduce our fourth and final style screen representing “quality”. This screens for stocks with the best combination of high returns on capital/equity, EBIT margins and operating cash-flow conversion rates. These criteria should help us monitor how strong underlying returns translate into share price performance over time and under varying market conditions. The screen selects the “best” 25 stocks from our universe of just over 500 stocks and, as usual, we focus on a shorter list of stocks we cover or otherwise know and believe to be particularly interesting. We provide brief investment summaries on these focus stocks on pages 4 – 9. We will monitor performance and refresh the screen in approximately 3-4 months time.
Emerging from the clouds
16 Feb 17
Rolls-Royce’s underlying performance in FY16 was ahead of both its own and market expectations. Media focus on the non-cash £4.4bn headline FX loss is missing what looks to be the basis for optimism. As the civil model starts to move from investment in engines for the A350 and A330neo into the aftermarket delivery phase over the remainder of the decade, we think cash flow is likely to improve, particularly if supported by an eventual recovery in Marine.
15 Feb 17
At the current market capitalisation of £29m, we believe the shares are significantly undervalued. We estimate that the highly profitable Maritime business is alone worth at least £40m. With net cash of £9m at end-2016, this implies that the market is currently ascribing a combined negative value of £17m to the rest of the group, which together account for c.54% of group revenues. This is very harsh given the management actions to transform TP Group to a profit-driven Tier 2 specialist services and engineering company are bearing fruits across the divisions. TPG Managed Solutions is expected to more than double its profits in 2017, while TPG Engineering and Design & Technology are on course to deliver sustainable profits from 2019. Even if we ascribe zero value to Engineering, Design & Technology and Managed Solutions, the shares are worth 9.5p a share, a 38% upside from the current share price. BUY.
Small Cap Breakfast
16 Feb 17
Saffron Energy—Schedule One update. Raising £2.5m, expected Mkt Cap £7.7m. Admission due 24 Feb. Italian Oil & Gas Play Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb. Arix Bioscience — Intention to float on the main market from the global healthcare and life science Company supporting medical innovation. Raised £52m in Feb 16 with investors including Woodford Investment Management