TRANSALTA CORP - TACN 4.4 PERP (TA-PR-E.CA) Stock Fundamental Analysis
Canada - TSX:TA-PR-E - CA89346D7505
18.85 CAD
+0.2 (+1.07%)
We assign a fundamental rating of 4 out of 10 to TA-PR-E. TA-PR-E was compared to 34 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 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year TA-PR-E has reported negative net income.
In the past year TA-PR-E had a positive cash flow from operations.
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
TA-PR-E has a Return On Assets of -1.87%. This is comparable to the rest of the industry: TA-PR-E outperforms 47.06% of its industry peers.
The Return On Equity of TA-PR-E (-10.58%) is comparable to the rest of the industry.
TA-PR-E's Return On Invested Capital of 3.34% is fine compared to the rest of the industry. TA-PR-E outperforms 76.47% of its industry peers.
TA-PR-E had an Average Return On Invested Capital over the past 3 years of 8.64%. This is above the industry average of 4.60%.
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
TA-PR-E's Profit Margin has improved in the last couple of years.
TA-PR-E's Operating Margin of 11.45% is in line compared to the rest of the industry. TA-PR-E outperforms 47.06% of its industry peers.
TA-PR-E's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 83.61%, TA-PR-E belongs to the best of the industry, outperforming 85.29% of the companies in the same industry.
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.
Compared to 1 year ago, TA-PR-E has less shares outstanding
TA-PR-E has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TA-PR-E has been reduced compared to a year ago.
2.2 Solvency
TA-PR-E has an Altman-Z score of 0.39. This is a bad value and indicates that TA-PR-E is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.39, TA-PR-E perfoms like the industry average, outperforming 52.94% 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.
TA-PR-E's Debt to FCF ratio of 14.89 is fine compared to the rest of the industry. TA-PR-E outperforms 76.47% of its industry peers.
TA-PR-E has a Debt/Equity ratio of 2.28. This is a high value indicating a heavy dependency on external financing.
With a decent Debt to Equity ratio value of 2.28, TA-PR-E is doing good in the industry, outperforming 61.76% 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
WACC6.75%
2.3 Liquidity
A Current Ratio of 0.79 indicates that TA-PR-E may have some problems paying its short term obligations.
The Current ratio of TA-PR-E (0.79) is comparable to the rest of the industry.
TA-PR-E has a Quick Ratio of 0.79. This is a bad value and indicates that TA-PR-E is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of TA-PR-E (0.72) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
TA-PR-E shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -102.94%.
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.
TA-PR-E shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -20.91%.
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-E 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
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
The Price/Earnings Ratio is negative for TA-PR-E. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 59.23 indicates a quite expensive valuation of TA-PR-E.
Based on the Price/Forward Earnings ratio, TA-PR-E is valued a bit cheaper than 67.65% of the companies in the same industry.
TA-PR-E's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 59.23 |
4.2 Price Multiples
TA-PR-E's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TA-PR-E indicates a somewhat cheap valuation: TA-PR-E is cheaper than 76.47% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.44 | ||
| EV/EBITDA | 11.25 |
4.3 Compensation for Growth
TA-PR-E has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as TA-PR-E'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 1.19%, TA-PR-E has a reasonable but not impressive dividend return.
TA-PR-E's Dividend Yield is slightly below the industry average, which is at 4.28.
Compared to an average S&P500 Dividend Yield of 2.38, TA-PR-E's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
5.2 History
The dividend of TA-PR-E is nicely growing with an annual growth rate of 6.10%!
TA-PR-E has paid a dividend for at least 10 years, which is 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-24.61%
EPS Next 3Y-13.57%
TRANSALTA CORP - TACN 4.4 PERP
TSX:TA-PR-E (10/16/2025, 7:00:00 PM)
18.85
+0.2 (+1.07%)
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 Cap5.59B
Analysts78.95
Price Target20.02 (6.21%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
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)-3.21%
PT rev (3m)2.82%
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 | 59.23 | ||
| P/S | 2.23 | ||
| P/FCF | 18.44 | ||
| P/OCF | 9.19 | ||
| P/B | 3.54 | ||
| P/tB | 7 | ||
| EV/EBITDA | 11.25 |
EPS(TTM)-0.06
EYN/A
EPS(NY)0.32
Fwd EY1.69%
FCF(TTM)1.02
FCFY5.42%
OCF(TTM)2.05
OCFY10.88%
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
WACC6.75%
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%