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TRANSALTA CORP - TACN 2.877 PERP (TA-PR-D.CA) Stock Fundamental Analysis

TSX:TA-PR-D - CA89346D7687

18.29 CAD
-0.19 (-1.03%)
Last: 8/29/2025, 7:00:00 PM
Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to TA-PR-D. TA-PR-D was compared to 31 industry peers in the Independent Power and Renewable Electricity Producers industry. TA-PR-D has a medium profitability rating, but doesn't score so well on its financial health evaluation. TA-PR-D does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

TA-PR-D had negative earnings in the past year.
TA-PR-D had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: TA-PR-D reported negative net income in multiple years.
TA-PR-D had a positive operating cash flow in each of the past 5 years.
TA-PR-D.CA Yearly Net Income VS EBIT VS OCF VS FCFTA-PR-D.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B

1.2 Ratios

TA-PR-D's Return On Assets of -1.87% is in line compared to the rest of the industry. TA-PR-D outperforms 46.88% of its industry peers.
The Return On Equity of TA-PR-D (-10.58%) is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 3.34%, TA-PR-D is doing good in the industry, outperforming 75.00% of the companies in the same industry.
TA-PR-D had an Average Return On Invested Capital over the past 3 years of 8.64%. This is above the industry average of 4.61%.
The 3 year average ROIC (8.64%) for TA-PR-D is well above the current ROIC(3.34%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA -1.87%
ROE -10.58%
ROIC 3.34%
ROA(3y)3.11%
ROA(5y)-0.07%
ROE(3y)17.47%
ROE(5y)0.34%
ROIC(3y)8.64%
ROIC(5y)N/A
TA-PR-D.CA Yearly ROA, ROE, ROICTA-PR-D.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40

1.3 Margins

TA-PR-D's Profit Margin has improved in the last couple of years.
TA-PR-D's Operating Margin of 11.45% is in line compared to the rest of the industry. TA-PR-D outperforms 43.75% of its industry peers.
TA-PR-D's Operating Margin has improved in the last couple of years.
TA-PR-D has a Gross Margin of 83.61%. This is amongst the best in the industry. TA-PR-D outperforms 81.25% of its industry peers.
TA-PR-D's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 11.45%
PM (TTM) N/A
GM 83.61%
OM growth 3Y15.27%
OM growth 5Y8.46%
PM growth 3YN/A
PM growth 5Y22.94%
GM growth 3Y3.39%
GM growth 5Y-0.46%
TA-PR-D.CA Yearly Profit, Operating, Gross MarginsTA-PR-D.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60 80

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3

2. Health

2.1 Basic Checks

TA-PR-D has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, TA-PR-D has less shares outstanding
TA-PR-D has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TA-PR-D has an improved debt to assets ratio.
TA-PR-D.CA Yearly Shares OutstandingTA-PR-D.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
TA-PR-D.CA Yearly Total Debt VS Total AssetsTA-PR-D.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

TA-PR-D has an Altman-Z score of 0.38. This is a bad value and indicates that TA-PR-D is not financially healthy and even has some risk of bankruptcy.
TA-PR-D has a Altman-Z score of 0.38. This is comparable to the rest of the industry: TA-PR-D outperforms 53.13% of its industry peers.
TA-PR-D has a debt to FCF ratio of 14.89. This is a negative value and a sign of low solvency as TA-PR-D would need 14.89 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 14.89, TA-PR-D is doing good in the industry, outperforming 75.00% of the companies in the same industry.
TA-PR-D has a Debt/Equity ratio of 2.28. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.28, TA-PR-D perfoms like the industry average, outperforming 59.38% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 2.28
Debt/FCF 14.89
Altman-Z 0.38
ROIC/WACC0.49
WACC6.76%
TA-PR-D.CA Yearly LT Debt VS Equity VS FCFTA-PR-D.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B 4B

2.3 Liquidity

A Current Ratio of 0.79 indicates that TA-PR-D may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.79, TA-PR-D is in line with its industry, outperforming 46.88% of the companies in the same industry.
TA-PR-D has a Quick Ratio of 0.79. This is a bad value and indicates that TA-PR-D is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.72, TA-PR-D is in line with its industry, outperforming 50.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.79
Quick Ratio 0.72
TA-PR-D.CA Yearly Current Assets VS Current LiabilitesTA-PR-D.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

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3

3. Growth

3.1 Past

TA-PR-D shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -102.94%.
The Earnings Per Share has been growing by 26.80% on average over the past years. This is a very strong growth
The Revenue for TA-PR-D has decreased by -20.91% in the past year. This is quite bad
The Revenue has been growing slightly by 3.92% on average over the past years.
EPS 1Y (TTM)-102.94%
EPS 3YN/A
EPS 5Y26.8%
EPS Q2Q%0%
Revenue 1Y (TTM)-20.91%
Revenue growth 3Y1.5%
Revenue growth 5Y3.92%
Sales Q2Q%-26.19%

3.2 Future

Based on estimates for the next years, TA-PR-D will show a very strong growth in Earnings Per Share. The EPS will grow by 22.27% on average per year.
Based on estimates for the next years, TA-PR-D will show a decrease in Revenue. The Revenue will decrease by -2.75% on average per year.
EPS Next Y-56.89%
EPS Next 2Y-25.82%
EPS Next 3Y-13.75%
EPS Next 5Y22.27%
Revenue Next Year-7.1%
Revenue Next 2Y-12.9%
Revenue Next 3Y-6.51%
Revenue Next 5Y-2.75%

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
TA-PR-D.CA Yearly Revenue VS EstimatesTA-PR-D.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B
TA-PR-D.CA Yearly EPS VS EstimatesTA-PR-D.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 1 -1 2

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2

4. Valuation

4.1 Price/Earnings Ratio

TA-PR-D reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 59.35, TA-PR-D can be considered very expensive at the moment.
TA-PR-D's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TA-PR-D is cheaper than 65.63% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.76. TA-PR-D is valued rather expensively when compared to this.
Industry RankSector Rank
PE N/A
Fwd PE 59.35
TA-PR-D.CA Price Earnings VS Forward Price EarningsTA-PR-D.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 -100 -200 -300

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as TA-PR-D.
Based on the Price/Free Cash Flow ratio, TA-PR-D is valued a bit cheaper than 75.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 17.89
EV/EBITDA 11.05
TA-PR-D.CA Per share dataTA-PR-D.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8

4.3 Compensation for Growth

The decent profitability rating of TA-PR-D may justify a higher PE ratio.
TA-PR-D's earnings are expected to decrease with -13.75% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-25.82%
EPS Next 3Y-13.75%

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4

5. Dividend

5.1 Amount

TA-PR-D has a Yearly Dividend Yield of 1.50%.
TA-PR-D's Dividend Yield is slightly below the industry average, which is at 4.66.
Compared to the average S&P500 Dividend Yield of 2.32, TA-PR-D is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.5%

5.2 History

The dividend of TA-PR-D is nicely growing with an annual growth rate of 6.10%!
TA-PR-D has been paying a dividend for at least 10 years, so it has a reliable track record.
As TA-PR-D did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)6.1%
Div Incr Years0
Div Non Decr Years7
TA-PR-D.CA Yearly Dividends per shareTA-PR-D.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

The earnings of TA-PR-D are negative and hence is the payout ratio. TA-PR-D will probably not be able to sustain this dividend level.
TA-PR-D's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-74.25%
EPS Next 2Y-25.82%
EPS Next 3Y-13.75%
TA-PR-D.CA Yearly Income VS Free CF VS DividendTA-PR-D.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M -400M 600M

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TRANSALTA CORP - TACN 2.877 PERP

TSX:TA-PR-D (8/29/2025, 7:00:00 PM)

18.29

-0.19 (-1.03%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)08-01 2025-08-01/bmo
Earnings (Next)11-03 2025-11-03
Inst Owners72.07%
Inst Owner ChangeN/A
Ins Owners0.44%
Ins Owner ChangeN/A
Market Cap5.42B
Analysts78.95
Price Target19.97 (9.19%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.5%
Yearly Dividend0.41
Dividend Growth(5Y)6.1%
DP-74.25%
Div Incr Years0
Div Non Decr Years7
Ex-Date08-29 2025-08-29 (0.17981)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)17.25%
Min EPS beat(2)-21.18%
Max EPS beat(2)55.69%
EPS beat(4)1
Avg EPS beat(4)-176.87%
Min EPS beat(4)-564.33%
Max EPS beat(4)55.69%
EPS beat(8)4
Avg EPS beat(8)-7.79%
EPS beat(12)6
Avg EPS beat(12)9.91%
EPS beat(16)7
Avg EPS beat(16)-93.68%
Revenue beat(2)1
Avg Revenue beat(2)3.34%
Min Revenue beat(2)-14.2%
Max Revenue beat(2)20.88%
Revenue beat(4)3
Avg Revenue beat(4)12.25%
Min Revenue beat(4)-14.2%
Max Revenue beat(4)24.1%
Revenue beat(8)6
Avg Revenue beat(8)27.41%
Revenue beat(12)10
Avg Revenue beat(12)34.69%
Revenue beat(16)14
Avg Revenue beat(16)33.54%
PT rev (1m)5.67%
PT rev (3m)-10.05%
EPS NQ rev (1m)-25.15%
EPS NQ rev (3m)-46.96%
EPS NY rev (1m)-44.6%
EPS NY rev (3m)-44.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-2.74%
Revenue NY rev (3m)-2.5%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 59.35
P/S 2.16
P/FCF 17.89
P/OCF 8.92
P/B 3.43
P/tB 6.79
EV/EBITDA 11.05
EPS(TTM)-0.06
EYN/A
EPS(NY)0.31
Fwd EY1.68%
FCF(TTM)1.02
FCFY5.59%
OCF(TTM)2.05
OCFY11.21%
SpS8.46
BVpS5.33
TBVpS2.69
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -1.87%
ROE -10.58%
ROCE 4.04%
ROIC 3.34%
ROICexc 3.5%
ROICexgc 3.96%
OM 11.45%
PM (TTM) N/A
GM 83.61%
FCFM 12.09%
ROA(3y)3.11%
ROA(5y)-0.07%
ROE(3y)17.47%
ROE(5y)0.34%
ROIC(3y)8.64%
ROIC(5y)N/A
ROICexc(3y)9.79%
ROICexc(5y)N/A
ROICexgc(3y)11.08%
ROICexgc(5y)N/A
ROCE(3y)10.46%
ROCE(5y)N/A
ROICexcg growth 3Y15.81%
ROICexcg growth 5Y18.53%
ROICexc growth 3Y15.46%
ROICexc growth 5Y17.81%
OM growth 3Y15.27%
OM growth 5Y8.46%
PM growth 3YN/A
PM growth 5Y22.94%
GM growth 3Y3.39%
GM growth 5Y-0.46%
F-Score4
Asset Turnover0.28
Health
Industry RankSector Rank
Debt/Equity 2.28
Debt/FCF 14.89
Debt/EBITDA 4.18
Cap/Depr 53.32%
Cap/Sales 12.17%
Interest Coverage 1.05
Cash Conversion 70.78%
Profit Quality N/A
Current Ratio 0.79
Quick Ratio 0.72
Altman-Z 0.38
F-Score4
WACC6.76%
ROIC/WACC0.49
Cap/Depr(3y)120.63%
Cap/Depr(5y)98.51%
Cap/Sales(3y)23.21%
Cap/Sales(5y)22.28%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-102.94%
EPS 3YN/A
EPS 5Y26.8%
EPS Q2Q%0%
EPS Next Y-56.89%
EPS Next 2Y-25.82%
EPS Next 3Y-13.75%
EPS Next 5Y22.27%
Revenue 1Y (TTM)-20.91%
Revenue growth 3Y1.5%
Revenue growth 5Y3.92%
Sales Q2Q%-26.19%
Revenue Next Year-7.1%
Revenue Next 2Y-12.9%
Revenue Next 3Y-6.51%
Revenue Next 5Y-2.75%
EBIT growth 1Y-71.1%
EBIT growth 3Y17%
EBIT growth 5Y12.72%
EBIT Next Year56.24%
EBIT Next 3Y14.64%
EBIT Next 5Y19.07%
FCF growth 1Y269.27%
FCF growth 3Y-2.47%
FCF growth 5Y2.59%
OCF growth 1Y-40.86%
OCF growth 3Y-7.35%
OCF growth 5Y-1.28%