Public and private sector leaders in the developed world have made a strong push to convert their economies to “green” energy. Precedence Research recently estimated that the global renewable energy market was worth US$952 billion in 2021. It expects this to grow to $1.99 trillion by 2030. That would represent a compound annual growth rate (CAGR) of 8.6% over the forecast period.
TransAlta Renewables (TSX:RNW) is a Calgary-based company that develops, owns, and operates renewable power generation facilities. Shares of this renewable energy stock have dropped nearly 18% in 2022 as of close on September 26. The stock is down 19% year over year.
The company unveiled its second quarter fiscal 2022 earnings on August 4. It posted free cash flow growth of 23% to $87 million. Meanwhile, adjusted EBITDA climbed 30% year-over-year to $126 million. Total revenues in the first six months of fiscal 2022 rose to $282 million over $218 million in the year-to-date period in fiscal 2021. Moreover, adjusted EBITDA was reported at $265 million – up from $220 million in the first six months of the previous year. Overall, it was a strong quarter for TransAlta in the face of challenging market conditions.
Shares of this green energy stock are trading in favourable value territory compared to its industry peers. TransAlta last paid out a monthly dividend of $0.078 per share. That represents a tasty 6.1% yield. This is a dividend stock that is worth snatching up on the dip in late September.