TRANSALTA CORP - TACN 6.773 PERP (TA-PR-J.CA) Stock Fundamental Analysis
Canada - TSX:TA-PR-J - CA89346D6770
25.6 CAD
-0.07 (-0.27%)
We assign a fundamental rating of 3 out of 10 to TA-PR-J. TA-PR-J 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-J while its profitability can be described as average. TA-PR-J does not seem to be growing, but still is valued expensively.
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.
Each year in the past 5 years TA-PR-J had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TA-PR-J (-1.87%) is worse than 66.67% of its industry peers.
TA-PR-J has a Return On Equity of -10.58%. This is in the lower half of the industry: TA-PR-J underperforms 69.70% of its industry peers.
TA-PR-J's Return On Invested Capital of 3.34% is fine compared to the rest of the industry. TA-PR-J outperforms 60.61% 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 4.60%.
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 Operating Margin of 11.45%. This is in the lower half of the industry: TA-PR-J underperforms 69.70% of its industry peers.
TA-PR-J's Operating Margin has improved in the last couple of years.
TA-PR-J has a Gross Margin of 83.61%. This is in the better half of the industry: TA-PR-J outperforms 69.70% of its industry peers.
TA-PR-J'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
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.
TA-PR-J has less shares outstanding than it did 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
TA-PR-J has an Altman-Z score of 0.56. This is a bad value and indicates that TA-PR-J is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of TA-PR-J (0.56) is better than 81.82% 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.
With a decent Debt to FCF ratio value of 14.89, TA-PR-J is doing good in the industry, outperforming 60.61% of the companies in the same industry.
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 (2.28) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 14.89 | ||
| Altman-Z | 0.56 |
ROIC/WACC0.49
WACC6.84%
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.
The Current ratio of TA-PR-J (0.79) is worse than 63.64% of its industry peers.
TA-PR-J has a Quick 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 Quick ratio, with a value of 0.72, TA-PR-J is doing worse than 60.61% of the companies in the same 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-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.
Looking at the last year, TA-PR-J shows a very negative growth in Revenue. The Revenue has decreased by -20.91% in the last year.
TA-PR-J 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-J will show a very strong growth in Earnings Per Share. The EPS will grow by 22.27% on average per year.
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.
The Price/Forward Earnings ratio is 80.43, 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, TA-PR-J is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 80.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TA-PR-J is valued a bit more expensive than the industry average as 63.64% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, TA-PR-J is valued a bit cheaper than the industry average as 60.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.05 | ||
| EV/EBITDA | 13.6 |
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%.
Compared to an average industry Dividend Yield of 4.77, TA-PR-J is paying slightly less dividend.
With a Dividend Yield of 1.09, TA-PR-J pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
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-24.61%
EPS Next 3Y-13.57%
TRANSALTA CORP - TACN 6.773 PERP
TSX:TA-PR-J (10/21/2025, 7:00:00 PM)
25.6
-0.07 (-0.27%)
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 Cap7.59B
Analysts78.95
Price Target25.25 (-1.37%)
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)-7.4%
PT rev (3m)-9.32%
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 | 80.43 | ||
| P/S | 3.03 | ||
| P/FCF | 25.05 | ||
| P/OCF | 12.48 | ||
| P/B | 4.81 | ||
| P/tB | 9.51 | ||
| EV/EBITDA | 13.6 |
EPS(TTM)-0.06
EYN/A
EPS(NY)0.32
Fwd EY1.24%
FCF(TTM)1.02
FCFY3.99%
OCF(TTM)2.05
OCFY8.01%
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 | 0.56 |
F-Score4
WACC6.84%
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%