TRANSALTA CORP - TACN 5.52 PERP (TA-PR-G.CA) Stock Fundamental Analysis
Canada - TSX:TA-PR-G - CA89346D7430
23 CAD
-0.57 (-2.42%)
Taking everything into account, TA-PR-G scores 3 out of 10 in our fundamental rating. TA-PR-G was compared to 33 industry peers in the Independent Power and Renewable Electricity Producers industry. TA-PR-G has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
TA-PR-G had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TA-PR-G's Return On Assets of -1.87% is on the low side compared to the rest of the industry. TA-PR-G is outperformed by 60.61% of its industry peers.
The Return On Equity of TA-PR-G (-10.58%) is worse than 63.64% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.34%, TA-PR-G is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
TA-PR-G had an Average Return On Invested Capital over the past 3 years of 8.64%. This is above the industry average of 4.55%.
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 has a Operating Margin of 11.45%. This is in the lower half of the industry: TA-PR-G underperforms 63.64% of its industry peers.
In the last couple of years the Operating Margin of TA-PR-G has grown nicely.
TA-PR-G's Gross Margin of 83.61% is fine compared to the rest of the industry. TA-PR-G outperforms 75.76% of its industry peers.
In the last couple of years the Gross Margin of TA-PR-G 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-G is still creating some value.
TA-PR-G has less shares outstanding than it did 1 year ago.
The number of shares outstanding for TA-PR-G has been increased compared to 5 years ago.
TA-PR-G has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.49, we must say that TA-PR-G is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of TA-PR-G (0.49) is better than 63.64% 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 66.67% of its industry peers.
TA-PR-G has a Debt/Equity ratio of 2.28. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.28, TA-PR-G perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 14.89 | ||
| Altman-Z | 0.49 |
ROIC/WACC0.48
WACC6.9%
2.3 Liquidity
A Current Ratio of 0.79 indicates that TA-PR-G may have some problems paying its short term obligations.
TA-PR-G has a Current ratio (0.79) which is in line with its industry peers.
TA-PR-G has a Quick 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 Quick ratio (0.72) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
TA-PR-G shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -102.94%.
The Earnings Per Share has been growing by 26.80% on average over the past years. This is a very strong growth
Looking at the last year, TA-PR-G shows a very negative growth in Revenue. The Revenue has decreased by -20.91% in the last year.
TA-PR-G shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.92% yearly.
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-G will show a very strong growth in Earnings Per Share. The EPS will grow by 22.27% on average per year.
Based on estimates for the next years, TA-PR-G will show a decrease in Revenue. The Revenue will decrease by -2.75% on average per year.
EPS Next Y-56.89%
EPS Next 2Y-25.82%
EPS Next 3Y-13.75%
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.
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-G. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 74.63, TA-PR-G can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TA-PR-G is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.87, TA-PR-G is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 74.63 |
4.2 Price Multiples
TA-PR-G's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, TA-PR-G is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.5 | ||
| EV/EBITDA | 12.68 |
4.3 Compensation for Growth
TA-PR-G's earnings are expected to decrease with -13.75% in the coming years. This may justify a cheaper valuation.
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-G has a Yearly Dividend Yield of 1.40%.
TA-PR-G's Dividend Yield is slightly below the industry average, which is at 4.52.
Compared to an average S&P500 Dividend Yield of 2.38, TA-PR-G's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
5.2 History
On average, the dividend of TA-PR-G grows each year by 6.10%, which is quite nice.
TA-PR-G has been paying a dividend for less than 5 years, so it still needs to build a track record.
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-25.82%
EPS Next 3Y-13.75%
TRANSALTA CORP - TACN 5.52 PERP
TSX:TA-PR-G (9/19/2025, 7:00:00 PM)
23
-0.57 (-2.42%)
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 Cap6.82B
Analysts78.95
Price Target26.7 (16.09%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
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)-13.73%
EPS NQ rev (3m)-46.74%
EPS NY rev (1m)0%
EPS NY rev (3m)-44.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.93%
Revenue NY rev (3m)-1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 74.63 | ||
| P/S | 2.72 | ||
| P/FCF | 22.5 | ||
| P/OCF | 11.21 | ||
| P/B | 4.32 | ||
| P/tB | 8.54 | ||
| EV/EBITDA | 12.68 |
EPS(TTM)-0.06
EYN/A
EPS(NY)0.31
Fwd EY1.34%
FCF(TTM)1.02
FCFY4.44%
OCF(TTM)2.05
OCFY8.92%
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 | 0.49 |
F-Score4
WACC6.9%
ROIC/WACC0.48
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-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 Year56.24%
EBIT Next 3Y14.64%
EBIT Next 5Y18.95%
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%