TransAlta Corp.: A Superior Choice To TransAlta Renewables

Feb. 27, 2022 9:20 PM ETTransAlta Corporation (TAC), TRSWF, TA:CA, RNW:CA18 Comments


  • TransAlta Corporation has delivered superb results in 2021.
  • The stock is getting zero credit for the deleveraged balance sheet and its large ownership of TransAlta Renewables.
  • A direct sale of the company at a 50% premium is highly probable.
  • Alternatively, buybacks should start scaling up soon to create value.
  • I do much more than just articles at Conservative Income Portfolio: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

Seebe Dam on the Bow River in Alberta, Canada

James_Gabbert/iStock via Getty Images

Note: All amounts shown and discussed are in Canadian Dollars and refer to shares trading on TSX.

We have covered TransAlta Corporation (NYSE:TAC) and its controlled subsidiary TransAlta Renewables (OTCPK:TRSWF) previously. When we last

Data by YCharts


2021 Results (TAC


Free Cash Flow (TAC Presentation )


TAC Debt (TAC Presentation )

Data by YCharts


TAC 2021 Accomplishments (TAC Presentation )


Sustaining Capex (TAC Presentation )


Total Capex (TAC Presentation )

Data by YCharts


TRSWF Payout Ratio (TAC Presentation )


Kenny Loggins Scale (Trapping Value)

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Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in TAC over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: We also have a small long position in TRSWF.

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