TRANSALTA CORP - TACN 6.773 PERP (TA-PR-J.CA) Stock Fundamental Analysis
TSX:TA-PR-J - CA89346D6770
25.35 CAD
-0.13 (-0.51%)
We assign a fundamental rating of 3 out of 10 to TA-PR-J. TA-PR-J was compared to 32 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
In the past year TA-PR-J has reported negative net income.
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
TA-PR-J has a Return On Assets of -1.87%. This is in the lower half of the industry: TA-PR-J underperforms 65.63% of its industry peers.
The Return On Equity of TA-PR-J (-10.58%) is worse than 71.88% of its industry peers.
The Return On Invested Capital of TA-PR-J (3.34%) is better than 62.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TA-PR-J is above the industry average of 4.61%.
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.
Looking at the Operating Margin, with a value of 11.45%, TA-PR-J is doing worse than 68.75% of the companies in the same industry.
In the last couple of years the Operating Margin of TA-PR-J has grown nicely.
TA-PR-J's Gross Margin of 83.61% is fine compared to the rest of the industry. TA-PR-J outperforms 68.75% 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
TA-PR-J has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for TA-PR-J has been reduced compared to 1 year ago.
The number of shares outstanding for TA-PR-J has been increased compared to 5 years ago.
Compared to 1 year ago, TA-PR-J has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.55, we must say that TA-PR-J is in the distress zone and has some risk of bankruptcy.
TA-PR-J has a better Altman-Z score (0.55) than 78.13% of its industry peers.
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.
TA-PR-J has a better Debt to FCF ratio (14.89) than 62.50% of its industry peers.
TA-PR-J has a Debt/Equity ratio of 2.28. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.28, TA-PR-J is in line with its industry, outperforming 46.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 14.89 | ||
| Altman-Z | 0.55 |
ROIC/WACC0.48
WACC7%
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.
TA-PR-J has a Current ratio of 0.79. This is in the lower half of the industry: TA-PR-J underperforms 65.63% of its industry peers.
A Quick Ratio of 0.72 indicates that TA-PR-J may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.72, TA-PR-J is doing worse than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
TA-PR-J 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
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
The Revenue is expected to decrease by -2.75% on average over the next years.
EPS Next Y-56.89%
EPS Next 2Y-25.82%
EPS Next 3Y-13.75%
EPS Next 5Y22.27%
Revenue Next Year-7.1%
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-J reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 82.26, which means the current valuation is very expensive for TA-PR-J.
TA-PR-J's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of TA-PR-J to the average of the S&P500 Index (22.72), we can say TA-PR-J is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 82.26 |
4.2 Price Multiples
62.50% of the companies in the same industry are cheaper than TA-PR-J, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TA-PR-J is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.8 | ||
| EV/EBITDA | 13.49 |
4.3 Compensation for Growth
TA-PR-J'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-J has a Yearly Dividend Yield of 1.50%.
Compared to an average industry Dividend Yield of 4.66, TA-PR-J is paying slightly less dividend.
TA-PR-J's Dividend Yield is slightly below the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
5.2 History
The dividend of TA-PR-J is nicely growing with an annual growth rate of 6.10%!
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
TA-PR-J has negative earnings and hence a negative payout ratio. The dividend may be in danger.
TA-PR-J'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 6.773 PERP
TSX:TA-PR-J (8/29/2025, 7:00:00 PM)
25.35
-0.13 (-0.51%)
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 Cap7.52B
Analysts78.95
Price Target27.88 (9.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
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)0.11%
PT rev (3m)-20.72%
EPS NQ rev (1m)-25.15%
EPS NQ rev (3m)-46.96%
EPS NY rev (1m)-44.6%
EPS NY rev (3m)-44.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-2.74%
Revenue NY rev (3m)-2.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 82.26 | ||
| P/S | 3 | ||
| P/FCF | 24.8 | ||
| P/OCF | 12.36 | ||
| P/B | 4.76 | ||
| P/tB | 9.42 | ||
| EV/EBITDA | 13.49 |
EPS(TTM)-0.06
EYN/A
EPS(NY)0.31
Fwd EY1.22%
FCF(TTM)1.02
FCFY4.03%
OCF(TTM)2.05
OCFY8.09%
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
WACC7%
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-7.1%
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 5Y19.07%
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%