TRANSALTA CORP - TACN 2.877 PERP (TA-PR-D.CA) Stock Fundamental Analysis
Canada - TSX:TA-PR-D - CA89346D7687
18.6 CAD
+0.03 (+0.16%)
Overall TA-PR-D gets a fundamental rating of 4 out of 10. We evaluated TA-PR-D against 34 industry peers in the Independent Power and Renewable Electricity Producers industry. There are concerns on the financial health of TA-PR-D while its profitability can be described as average. TA-PR-D has a expensive valuation and it also scores bad on growth.
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.
In the past 5 years TA-PR-D always reported a positive cash flow from operatings.
1.2 Ratios
TA-PR-D has a Return On Assets (-1.87%) which is comparable to the rest of the industry.
The Return On Equity of TA-PR-D (-10.58%) is comparable to the rest of the industry.
TA-PR-D has a Return On Invested Capital of 3.34%. This is in the better half of the industry: TA-PR-D outperforms 79.41% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TA-PR-D is above the industry average of 4.60%.
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 Rank | Sector 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
1.3 Margins
TA-PR-D's Profit Margin has improved in the last couple of years.
TA-PR-D has a Operating Margin of 11.45%. This is comparable to the rest of the industry: TA-PR-D outperforms 50.00% of its industry peers.
In the last couple of years the Operating Margin of TA-PR-D has grown nicely.
Looking at the Gross Margin, with a value of 83.61%, TA-PR-D belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
TA-PR-D's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TA-PR-D is still creating some value.
Compared to 1 year ago, TA-PR-D has less shares outstanding
Compared to 5 years ago, TA-PR-D has more shares outstanding
TA-PR-D has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.38, we must say that TA-PR-D is in the distress zone and has some risk of bankruptcy.
TA-PR-D has a Altman-Z score (0.38) which is in line with its industry peers.
The Debt to FCF ratio of TA-PR-D is 14.89, which is on the high side as it means it would take TA-PR-D, 14.89 years of fcf income to pay off all of its debts.
TA-PR-D's Debt to FCF ratio of 14.89 is fine compared to the rest of the industry. TA-PR-D outperforms 79.41% of its industry peers.
TA-PR-D has a Debt/Equity ratio of 2.28. This is a high value indicating a heavy dependency on external financing.
TA-PR-D has a better Debt to Equity ratio (2.28) than 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 14.89 | ||
| Altman-Z | 0.38 |
ROIC/WACC0.49
WACC6.76%
2.3 Liquidity
A Current Ratio of 0.79 indicates that TA-PR-D may have some problems paying its short term obligations.
TA-PR-D's Current ratio of 0.79 is in line compared to the rest of the industry. TA-PR-D outperforms 52.94% of its industry peers.
A Quick Ratio of 0.72 indicates that TA-PR-D may have some problems paying its short term obligations.
TA-PR-D's Quick ratio of 0.72 is in line compared to the rest of the industry. TA-PR-D outperforms 55.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The earnings per share for TA-PR-D have decreased strongly by -102.94% in the last year.
Measured over the past years, TA-PR-D shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.80% on average per year.
The Revenue for TA-PR-D has decreased by -20.91% in the past year. This is quite bad
Measured over the past years, TA-PR-D shows a small growth in Revenue. The Revenue has been growing by 3.92% on average per year.
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.
The Revenue is expected to decrease by -2.75% on average over the next years.
EPS Next Y-70.48%
EPS Next 2Y-24.61%
EPS Next 3Y-13.57%
EPS Next 5Y22.27%
Revenue Next Year-6.24%
Revenue Next 2Y-12.9%
Revenue Next 3Y-6.51%
Revenue Next 5Y-2.75%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for TA-PR-D. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 58.44 indicates a quite expensive valuation of TA-PR-D.
Based on the Price/Forward Earnings ratio, TA-PR-D is valued a bit cheaper than 70.59% of the companies in the same industry.
TA-PR-D is valuated expensively when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 58.44 |
4.2 Price Multiples
64.71% of the companies in the same industry are more expensive than TA-PR-D, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TA-PR-D is valued a bit cheaper than 79.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.2 | ||
| EV/EBITDA | 11.15 |
4.3 Compensation for Growth
TA-PR-D has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as TA-PR-D's earnings are expected to decrease with -13.57% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-24.61%
EPS Next 3Y-13.57%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.09%, TA-PR-D has a reasonable but not impressive dividend return.
With a Dividend Yield of 1.09, TA-PR-D pays less dividend than the industry average, which is at 4.28. 82.35% of the companies listed in the same industry pay a better dividend than TA-PR-D!
Compared to an average S&P500 Dividend Yield of 2.38, TA-PR-D's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
5.2 History
On average, the dividend of TA-PR-D grows each year by 6.10%, which is quite nice.
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
5.3 Sustainability
TA-PR-D has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of TA-PR-D is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-74.25%
EPS Next 2Y-24.61%
EPS Next 3Y-13.57%
TRANSALTA CORP - TACN 2.877 PERP
TSX:TA-PR-D (10/17/2025, 7:00:00 PM)
18.6
+0.03 (+0.16%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners71.21%
Inst Owner ChangeN/A
Ins Owners0.44%
Ins Owner ChangeN/A
Market Cap5.51B
Analysts78.95
Price Target18.15 (-2.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
Yearly Dividend0.41
Dividend Growth(5Y)6.1%
DP-74.25%
Div Incr Years0
Div Non Decr Years7
Ex-Date
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)-11.26%
PT rev (3m)-2.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-24.85%
EPS NY rev (1m)-31.53%
EPS NY rev (3m)-62.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 58.44 | ||
| P/S | 2.2 | ||
| P/FCF | 18.2 | ||
| P/OCF | 9.07 | ||
| P/B | 3.49 | ||
| P/tB | 6.91 | ||
| EV/EBITDA | 11.15 |
EPS(TTM)-0.06
EYN/A
EPS(NY)0.32
Fwd EY1.71%
FCF(TTM)1.02
FCFY5.5%
OCF(TTM)2.05
OCFY11.03%
SpS8.46
BVpS5.33
TBVpS2.69
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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-70.48%
EPS Next 2Y-24.61%
EPS Next 3Y-13.57%
EPS Next 5Y22.27%
Revenue 1Y (TTM)-20.91%
Revenue growth 3Y1.5%
Revenue growth 5Y3.92%
Sales Q2Q%-26.19%
Revenue Next Year-6.24%
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 Year64.35%
EBIT Next 3Y15.21%
EBIT Next 5Y19.44%
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%