TRANSALTA CORP - TACN 5.854 PERP (TA-PR-F.CA) Stock Fundamental Analysis
Canada - TSX:TA-PR-F - CA89346D7356
23.3 CAD
+0.05 (+0.22%)
We assign a fundamental rating of 4 out of 10 to TA-PR-F. TA-PR-F was compared to 33 industry peers in the Independent Power and Renewable Electricity Producers industry. There are concerns on the financial health of TA-PR-F while its profitability can be described as average. TA-PR-F is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
TA-PR-F had negative earnings in the past year.
In the past year TA-PR-F had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: TA-PR-F reported negative net income in multiple years.
TA-PR-F had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TA-PR-F (-1.87%) is worse than 60.61% of its industry peers.
The Return On Equity of TA-PR-F (-10.58%) is worse than 63.64% of its industry peers.
With a decent Return On Invested Capital value of 3.34%, TA-PR-F is doing good in the industry, outperforming 66.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TA-PR-F is above the industry average of 4.60%.
The 3 year average ROIC (8.64%) for TA-PR-F 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
In the last couple of years the Profit Margin of TA-PR-F has grown nicely.
The Operating Margin of TA-PR-F (11.45%) is worse than 63.64% of its industry peers.
TA-PR-F's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 83.61%, TA-PR-F is doing good in the industry, outperforming 75.76% of the companies in the same industry.
In the last couple of years the Gross Margin of TA-PR-F 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TA-PR-F is creating some value.
The number of shares outstanding for TA-PR-F has been reduced compared to 1 year ago.
Compared to 5 years ago, TA-PR-F has more shares outstanding
TA-PR-F has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.50, we must say that TA-PR-F is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of TA-PR-F (0.50) is better than 63.64% of its industry peers.
The Debt to FCF ratio of TA-PR-F is 14.89, which is on the high side as it means it would take TA-PR-F, 14.89 years of fcf income to pay off all of its debts.
TA-PR-F has a better Debt to FCF ratio (14.89) than 66.67% of its industry peers.
A Debt/Equity ratio of 2.28 is on the high side and indicates that TA-PR-F has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.28, TA-PR-F is in line with its industry, outperforming 54.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 14.89 | ||
| Altman-Z | 0.5 |
ROIC/WACC0.49
WACC6.78%
2.3 Liquidity
A Current Ratio of 0.79 indicates that TA-PR-F may have some problems paying its short term obligations.
The Current ratio of TA-PR-F (0.79) is comparable to the rest of the industry.
TA-PR-F has a Quick Ratio of 0.79. This is a bad value and indicates that TA-PR-F is not financially healthy enough and could expect problems in meeting its short term obligations.
TA-PR-F has a Quick ratio (0.72) which 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
The earnings per share for TA-PR-F have decreased strongly by -102.94% in the last year.
TA-PR-F shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.80% yearly.
Looking at the last year, TA-PR-F shows a very negative growth in Revenue. The Revenue has decreased by -20.91% in the last year.
Measured over the past years, TA-PR-F 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
TA-PR-F is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.27% yearly.
TA-PR-F is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.75% yearly.
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
TA-PR-F reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 73.21, which means the current valuation is very expensive for TA-PR-F.
The rest of the industry has a similar Price/Forward Earnings ratio as TA-PR-F.
TA-PR-F 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 | 73.21 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TA-PR-F.
Based on the Price/Free Cash Flow ratio, TA-PR-F is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.8 | ||
| EV/EBITDA | 12.78 |
4.3 Compensation for Growth
A cheap valuation may be justified as TA-PR-F'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
TA-PR-F has a Yearly Dividend Yield of 1.09%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.77, TA-PR-F is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.36, TA-PR-F'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-F grows each year by 6.10%, which is quite nice.
TA-PR-F has paid a dividend for at least 10 years, which is a reliable track record.
As TA-PR-F did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)6.1%
Div Incr Years2
Div Non Decr Years6
5.3 Sustainability
TA-PR-F has negative earnings and hence a negative payout ratio. The dividend may be in danger.
TA-PR-F'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 5.854 PERP
TSX:TA-PR-F (10/17/2025, 7:00:00 PM)
23.3
+0.05 (+0.22%)
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 Cap6.91B
Analysts78.95
Price Target22.56 (-3.18%)
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 Years2
Div Non Decr Years6
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)-8.21%
PT rev (3m)-8.29%
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 | 73.21 | ||
| P/S | 2.76 | ||
| P/FCF | 22.8 | ||
| P/OCF | 11.36 | ||
| P/B | 4.37 | ||
| P/tB | 8.66 | ||
| EV/EBITDA | 12.78 |
EPS(TTM)-0.06
EYN/A
EPS(NY)0.32
Fwd EY1.37%
FCF(TTM)1.02
FCFY4.39%
OCF(TTM)2.05
OCFY8.8%
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 | 0.5 |
F-Score4
WACC6.78%
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%