TRANSALTA CORP - TACN 5.46 PERP (TA-PR-G.CA) Stock Fundamental Analysis
Canada - TSX:TA-PR-G - CA89346D7430
22.01 CAD
-0.59 (-2.61%)
We assign a fundamental rating of 4 out of 10 to TA-PR-G. TA-PR-G 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-G while its profitability can be described as average. TA-PR-G does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
TA-PR-G had negative earnings in the past year.
TA-PR-G had a positive operating cash flow in the past year.
In multiple years TA-PR-G reported negative net income over the last 5 years.
Each year in the past 5 years TA-PR-G had a positive operating cash flow.
1.2 Ratios
TA-PR-G's Return On Assets of -1.87% is in line compared to the rest of the industry. TA-PR-G outperforms 45.45% of its industry peers.
The Return On Equity of TA-PR-G (-10.58%) is comparable to the rest of the industry.
TA-PR-G has a Return On Invested Capital of 3.34%. This is in the better half of the industry: TA-PR-G outperforms 72.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TA-PR-G is above the industry average of 4.60%.
The 3 year average ROIC (8.64%) for TA-PR-G 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-G's Profit Margin has improved in the last couple of years.
TA-PR-G's Operating Margin of 11.45% is in line compared to the rest of the industry. TA-PR-G outperforms 42.42% of its industry peers.
In the last couple of years the Operating Margin of TA-PR-G has grown nicely.
Looking at the Gross Margin, with a value of 83.61%, TA-PR-G belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
TA-PR-G'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-G is still creating some value.
Compared to 1 year ago, TA-PR-G has less shares outstanding
TA-PR-G has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TA-PR-G has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.47, we must say that TA-PR-G is in the distress zone and has some risk of bankruptcy.
TA-PR-G has a Altman-Z score of 0.47. This is comparable to the rest of the industry: TA-PR-G outperforms 54.55% of its industry peers.
TA-PR-G has a debt to FCF ratio of 14.89. This is a negative value and a sign of low solvency as TA-PR-G would need 14.89 years to pay back of all of its debts.
TA-PR-G has a better Debt to FCF ratio (14.89) than 72.73% of its industry peers.
A Debt/Equity ratio of 2.28 is on the high side and indicates that TA-PR-G has dependencies on debt financing.
The Debt to Equity ratio of TA-PR-G (2.28) is better than 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 14.89 | ||
| Altman-Z | 0.47 |
ROIC/WACC0.5
WACC6.74%
2.3 Liquidity
TA-PR-G has a Current Ratio of 0.79. This is a bad value and indicates that TA-PR-G is not financially healthy enough and could expect problems in meeting its short term obligations.
TA-PR-G has a Current ratio (0.79) which is in line with its industry peers.
A Quick Ratio of 0.72 indicates that TA-PR-G may have some problems paying its short term obligations.
The Quick ratio of TA-PR-G (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
The earnings per share for TA-PR-G have decreased strongly by -102.94% in the last year.
TA-PR-G shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.80% yearly.
TA-PR-G 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
TA-PR-G 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-G 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
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
TA-PR-G reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 69.16, TA-PR-G can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, TA-PR-G is valued a bit cheaper than 63.64% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.18. TA-PR-G is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 69.16 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TA-PR-G is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, TA-PR-G is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.53 | ||
| EV/EBITDA | 12.34 |
4.3 Compensation for Growth
The decent profitability rating of TA-PR-G may justify a higher PE ratio.
A cheap valuation may be justified as TA-PR-G'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-G has a Yearly Dividend Yield of 1.09%.
Compared to an average industry Dividend Yield of 4.77, TA-PR-G is paying slightly less dividend.
With a Dividend Yield of 1.09, TA-PR-G pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
5.2 History
The dividend of TA-PR-G is nicely growing with an annual growth rate of 6.10%!
TA-PR-G has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)6.1%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
The earnings of TA-PR-G are negative and hence is the payout ratio. TA-PR-G will probably not be able to sustain this dividend level.
TA-PR-G'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 5.46 PERP
TSX:TA-PR-G (10/17/2025, 7:00:00 PM)
22.01
-0.59 (-2.61%)
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 Cap6.52B
Analysts78.95
Price Target26.7 (21.31%)
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 Years2
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)0%
PT rev (3m)13.19%
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 | 69.16 | ||
| P/S | 2.6 | ||
| P/FCF | 21.53 | ||
| P/OCF | 10.73 | ||
| P/B | 4.13 | ||
| P/tB | 8.18 | ||
| EV/EBITDA | 12.34 |
EPS(TTM)-0.06
EYN/A
EPS(NY)0.32
Fwd EY1.45%
FCF(TTM)1.02
FCFY4.64%
OCF(TTM)2.05
OCFY9.32%
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 | 0.47 |
F-Score4
WACC6.74%
ROIC/WACC0.5
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%