TransAlta: Top 25 Undervalued Dividend Stocks on TSX (TA)
TransAlta is now ranked among the top 10 undervalued small cap dividend-paying stocks on the Toronto Stock Exchange (TSX).
- A stock is considered undervalued if it trades at a discount to its valuation – a calculation used to determine the intrinsic (true) worth of a company
- Valuation methodology provided by Stockcalc (see below).
- Small, micro and nano group market capitalization (<10B)
Stocks in this category are held primarily for potential income and capital appreciation. Dividend stocks showing a higher valuation than their current price have both potential upside and ability to sustain or grow their dividend.
| Symbol | Name | Close Price ($) | Valuation ($) | Difference | Average Vol (30D) | Market Cap ($M) | Yield (%) | P/E Ratio |
|---|---|---|---|---|---|---|---|---|
| LUN | Lundin Mining | 9.10 | 10.06 | 0.96 (10.5%) | 2393545 | 7035.6 | 4.0 | 14.8 |
| TA | TransAlta | 11.61 | 13.58 | 1.97 (17.0%) | 736479 | 3053.4 | 1.9 | 5.4 |
| HBM | Hudbay Minerals | 6.03 | 6.24 | 0.21 (3.5%) | 1383146 | 2092.3 | 0.3 | 88.0 |
| MRU | Metro | 70.43 | 74.16 | 3.73 (5.3%) | 393289 | 16375.0 | 1.7 | 17.2 |
| CPX | Capital Power | 39.37 | 47.27 | 7.90 (20.1%) | 334678 | 4620.4 | 6.0 | 8.9 |
| CIA | Champion Iron | 6.92 | 7.02 | 0.10 (1.4%) | 606660 | 3641.1 | 2.9 | 16.5 |
| SES | Secure Energy Services | 8.02 | 8.57 | 0.55 (6.9%) | 615002 | 2365.3 | 5.0 | 14.6 |
| GEI | Gibson Energy | 20.91 | 21.31 | 0.40 (1.9%) | 881857 | 3263.0 | 7.4 | 13.8 |
| FM | First Quantum Minerals | 15.84 | 22.84 | 7.00 (44.2%) | 3867715 | 10991.6 | 1.3 | 13.1 |
| EMA | Emera | 48.34 | 57.11 | 8.77 (18.1%) | 1498217 | 13225.8 | 5.8 | 11.1 |
All data provided as of September 30, 2023.
The list is sorted by stocks with the greatest percentage difference between valuation and price.
Companies included above paid a dividend in the last 12-months.
TransAlta
TransAlta is an independent power producer based in Alberta, Canada. The company operates a diverse and growing fleet of electrical power generation assets in Canada, the United States, and Australia consisting of hydro, wind, solar, battery storage, gas and energy transition facilities. The majority of the company's revenues are derived from the sale of generation capacity, electricity, thermal energy, environmental attributes, and byproducts of power generation.
TransAlta is listed under TA on the Toronto Stock Exchange.
StockCalc
StockCalc is a Canadian fintech company specializing in fundamental valuations for North American stocks and ETFs.
Stockcalc valuations (https://www.stockcalc.com/Resources) can help determine if a stock is undervalued. Stockcalc’s Weighted Average Valuation (WAV) is based on a proprietary calculation using model and analyst inputs, including:
- Discounted Cash Flow (DCF)
- Price & Other Comparables
- Multiples
- Adjusted Book Value (ABV)
- Analyst Consensus
Artificial Intelligence at Report on Business
Report on Business scans market data using algorithms to process large quantities of information. The results are specialized reports produced through automation. Ongoing ROB project experiments that leverage artificial intelligence include valuation screens across 14 categories and end-of-day Closing Summary reports for all North American securities.
