TRANSALTA CORP - TACN 6.773 PERP (TA-PR-J.CA) Stock Fundamental Analysis
Canada - TSX:TA-PR-J - CA89346D6770
25.54 CAD
+0.14 (+0.55%)
TA-PR-J gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 34 industry peers in the Independent Power and Renewable Electricity Producers industry. While TA-PR-J is still in line with the averages on profitability rating, there are concerns on its financial health. TA-PR-J is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
TA-PR-J had negative earnings in the past year.
TA-PR-J had a positive operating cash flow in the past year.
In multiple years TA-PR-J reported negative net income over the last 5 years.
In the past 5 years TA-PR-J always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TA-PR-J (-1.87%) is worse than 67.65% of its industry peers.
Looking at the Return On Equity, with a value of -10.58%, TA-PR-J is doing worse than 70.59% of the companies in the same industry.
With a decent Return On Invested Capital value of 3.34%, TA-PR-J is doing good in the industry, outperforming 61.76% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TA-PR-J is above the industry average of 4.60%.
The 3 year average ROIC (8.64%) for TA-PR-J 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-J's Profit Margin has improved in the last couple of years.
TA-PR-J has a worse Operating Margin (11.45%) than 67.65% of its industry peers.
In the last couple of years the Operating Margin of TA-PR-J has grown nicely.
TA-PR-J has a better Gross Margin (83.61%) than 70.59% of its industry peers.
In the last couple of years the Gross Margin of TA-PR-J 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-J is creating some value.
The number of shares outstanding for TA-PR-J has been reduced compared to 1 year ago.
TA-PR-J has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TA-PR-J has been reduced compared to a year ago.
2.2 Solvency
TA-PR-J has an Altman-Z score of 0.55. This is a bad value and indicates that TA-PR-J is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 0.55, TA-PR-J is doing good in the industry, outperforming 79.41% of the companies in the same industry.
The Debt to FCF ratio of TA-PR-J is 14.89, which is on the high side as it means it would take TA-PR-J, 14.89 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TA-PR-J (14.89) is better than 61.76% of its industry peers.
A Debt/Equity ratio of 2.28 is on the high side and indicates that TA-PR-J has dependencies on debt financing.
TA-PR-J has a Debt to Equity ratio of 2.28. This is comparable to the rest of the industry: TA-PR-J outperforms 47.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 14.89 | ||
| Altman-Z | 0.55 |
ROIC/WACC0.48
WACC6.97%
2.3 Liquidity
TA-PR-J has a Current Ratio of 0.79. This is a bad value and indicates that TA-PR-J is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.79, TA-PR-J is doing worse than 64.71% of the companies in the same industry.
A Quick Ratio of 0.72 indicates that TA-PR-J may have some problems paying its short term obligations.
The Quick ratio of TA-PR-J (0.72) is worse than 61.76% 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-J have decreased strongly by -102.94% in the last year.
TA-PR-J shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.80% yearly.
The Revenue for TA-PR-J has decreased by -20.91% in the past year. This is quite bad
Measured over the past years, TA-PR-J 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-J 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.
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-J. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 80.25, TA-PR-J can be considered very expensive at the moment.
TA-PR-J's Price/Forward Earnings ratio is in line with the industry average.
TA-PR-J 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 | 80.25 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TA-PR-J indicates a slightly more expensive valuation: TA-PR-J is more expensive than 61.76% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TA-PR-J indicates a somewhat cheap valuation: TA-PR-J is cheaper than 61.76% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.99 | ||
| EV/EBITDA | 13.51 |
4.3 Compensation for Growth
A cheap valuation may be justified as TA-PR-J'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-J 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 4.28, TA-PR-J is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.38, TA-PR-J'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-J grows each year by 6.10%, which is quite nice.
TA-PR-J has paid a dividend for at least 10 years, which is a reliable track record.
TA-PR-J has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)6.1%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
The earnings of TA-PR-J are negative and hence is the payout ratio. TA-PR-J will probably not be able to sustain this dividend level.
The dividend of TA-PR-J is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-74.25%
EPS Next 2Y-24.61%
EPS Next 3Y-13.57%
TRANSALTA CORP - TACN 6.773 PERP
TSX:TA-PR-J (10/17/2025, 7:00:00 PM)
25.54
+0.14 (+0.55%)
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 Cap7.57B
Analysts78.95
Price Target25.25 (-1.14%)
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 Years1
Div Non Decr Years4
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)-10.94%
PT rev (3m)-9.87%
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 | 80.25 | ||
| P/S | 3.02 | ||
| P/FCF | 24.99 | ||
| P/OCF | 12.45 | ||
| P/B | 4.8 | ||
| P/tB | 9.49 | ||
| EV/EBITDA | 13.51 |
EPS(TTM)-0.06
EYN/A
EPS(NY)0.32
Fwd EY1.25%
FCF(TTM)1.02
FCFY4%
OCF(TTM)2.05
OCFY8.03%
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 | 0.55 |
F-Score4
WACC6.97%
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-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%