TRANSALTA CORP - TACN 4.69 PERP (TA-PR-E.CA) Stock Fundamental Analysis
TSX:TA-PR-E - CA89346D7505
18.49 CAD
-0.21 (-1.12%)
Taking everything into account, TA-PR-E scores 4 out of 10 in our fundamental rating. TA-PR-E was compared to 32 industry peers in the Independent Power and Renewable Electricity Producers industry. TA-PR-E has a medium profitability rating, but doesn't score so well on its financial health evaluation. TA-PR-E is valued expensive and it does not seem to be growing. Finally TA-PR-E also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year TA-PR-E has reported negative net income.
TA-PR-E had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: TA-PR-E reported negative net income in multiple years.
TA-PR-E had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TA-PR-E (-1.87%) is comparable to the rest of the industry.
With a Return On Equity value of -10.58%, TA-PR-E is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
With a decent Return On Invested Capital value of 3.34%, TA-PR-E is doing good in the industry, outperforming 71.88% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TA-PR-E is above the industry average of 4.61%.
The last Return On Invested Capital (3.34%) for TA-PR-E is well below the 3 year average (8.64%), which needs to be investigated, but indicates that TA-PR-E had better years and this may not be a problem.
| 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
In the last couple of years the Profit Margin of TA-PR-E has grown nicely.
TA-PR-E has a Operating Margin (11.45%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TA-PR-E has grown nicely.
TA-PR-E has a Gross Margin of 83.61%. This is in the better half of the industry: TA-PR-E outperforms 78.13% of its industry peers.
In the last couple of years the Gross Margin of TA-PR-E has remained more or less at the same level.
| 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-E is still creating some value.
The number of shares outstanding for TA-PR-E has been reduced compared to 1 year ago.
The number of shares outstanding for TA-PR-E has been increased compared to 5 years ago.
Compared to 1 year ago, TA-PR-E has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.39, we must say that TA-PR-E is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.39, TA-PR-E perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
The Debt to FCF ratio of TA-PR-E is 14.89, which is on the high side as it means it would take TA-PR-E, 14.89 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 14.89, TA-PR-E is doing good in the industry, outperforming 71.88% of the companies in the same industry.
A Debt/Equity ratio of 2.28 is on the high side and indicates that TA-PR-E has dependencies on debt financing.
With a Debt to Equity ratio value of 2.28, TA-PR-E perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 14.89 | ||
| Altman-Z | 0.39 |
ROIC/WACC0.49
WACC6.76%
2.3 Liquidity
A Current Ratio of 0.79 indicates that TA-PR-E may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.79, TA-PR-E is in line with its industry, outperforming 43.75% of the companies in the same industry.
A Quick Ratio of 0.72 indicates that TA-PR-E may have some problems paying its short term obligations.
TA-PR-E has a Quick ratio of 0.72. This is comparable to the rest of the industry: TA-PR-E outperforms 46.88% 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-E have decreased strongly by -102.94% in the last year.
Measured over the past years, TA-PR-E 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-E has decreased by -20.91% in the past year. This is quite bad
Measured over the past years, TA-PR-E 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
The Earnings Per Share is expected to grow by 22.27% on average over the next years. This is a very strong growth
TA-PR-E is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.75% yearly.
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.
4. Valuation
4.1 Price/Earnings Ratio
TA-PR-E reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 60.00 indicates a quite expensive valuation of TA-PR-E.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TA-PR-E indicates a somewhat cheap valuation: TA-PR-E is cheaper than 62.50% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.72, TA-PR-E is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 60 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TA-PR-E is on the same level as its industry peers.
71.88% of the companies in the same industry are more expensive than TA-PR-E, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.09 | ||
| EV/EBITDA | 11.2 |
4.3 Compensation for Growth
A cheap valuation may be justified as TA-PR-E's earnings are expected to decrease with -13.75% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-25.82%
EPS Next 3Y-13.75%
5. Dividend
5.1 Amount
TA-PR-E has a Yearly Dividend Yield of 6.70%, which is a nice return.
Compared to an average industry Dividend Yield of 5.84, TA-PR-E pays a bit more dividend than its industry peers.
TA-PR-E's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.7% |
5.2 History
The dividend of TA-PR-E is nicely growing with an annual growth rate of 6.10%!
TA-PR-E has been paying a dividend for at least 10 years, so it has a reliable track record.
TA-PR-E has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)6.1%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
The earnings of TA-PR-E are negative and hence is the payout ratio. TA-PR-E will probably not be able to sustain this dividend level.
TA-PR-E'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%
TRANSALTA CORP - TACN 4.69 PERP
TSX:TA-PR-E (8/29/2025, 7:00:00 PM)
18.49
-0.21 (-1.12%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners72.07%
Inst Owner ChangeN/A
Ins Owners0.44%
Ins Owner ChangeN/A
Market Cap5.48B
Analysts78.95
Price Target20.02 (8.27%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.7% |
Yearly Dividend0.41
Dividend Growth(5Y)6.1%
DP-74.25%
Div Incr Years3
Div Non Decr Years3
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)3.49%
PT rev (3m)-14.25%
EPS NQ rev (1m)-12.88%
EPS NQ rev (3m)-38.26%
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)-2.5%
Revenue NY rev (3m)-2.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 60 | ||
| P/S | 2.19 | ||
| P/FCF | 18.09 | ||
| P/OCF | 9.02 | ||
| P/B | 3.47 | ||
| P/tB | 6.87 | ||
| EV/EBITDA | 11.2 |
EPS(TTM)-0.06
EYN/A
EPS(NY)0.31
Fwd EY1.67%
FCF(TTM)1.02
FCFY5.53%
OCF(TTM)2.05
OCFY11.09%
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 | 0.39 |
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%