TRANSALTA CORP - TACN 6.773 PERP (TA-PR-J.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TA-PR-J - CA89346D6770
26.07 CAD
+0.23 (+0.89%)
TA-PR-J gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 32 industry peers in the Independent Power and Renewable Electricity Producers industry. TA-PR-J has a medium profitability rating, but doesn't score so well on its financial health evaluation. TA-PR-J has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
TA-PR-J had positive earnings in the past year.
TA-PR-J had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: TA-PR-J reported negative net income in multiple years.
In the past 5 years TA-PR-J always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -2.17%, TA-PR-J is doing worse than 65.63% of the companies in the same industry.
TA-PR-J has a Return On Equity of -12.58%. This is in the lower half of the industry: TA-PR-J underperforms 62.50% of its industry peers.
TA-PR-J has a Return On Invested Capital of 2.51%. This is in the better half of the industry: TA-PR-J outperforms 62.50% of its industry peers.
TA-PR-J had an Average Return On Invested Capital over the past 3 years of 8.64%. This is significantly above the industry average of 2.79%.
The 3 year average ROIC (8.64%) for TA-PR-J is well above the current ROIC(2.51%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.17% | ||
| ROE | -12.58% | ||
| ROIC | 2.51% |
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
In the last couple of years the Profit Margin of TA-PR-J has grown nicely.
TA-PR-J has a worse Operating Margin (8.62%) than 65.63% of its industry peers.
In the last couple of years the Operating Margin of TA-PR-J has grown nicely.
TA-PR-J's Gross Margin of 83.57% is fine compared to the rest of the industry. TA-PR-J outperforms 75.00% 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 | 8.62% | ||
| PM (TTM) | N/A | ||
| GM | 83.57% |
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.
Compared to 5 years ago, TA-PR-J has more shares outstanding
TA-PR-J has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.52, we must say that TA-PR-J is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 0.52, TA-PR-J belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
TA-PR-J has a debt to FCF ratio of 12.69. This is a negative value and a sign of low solvency as TA-PR-J would need 12.69 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 12.69, TA-PR-J is doing good in the industry, outperforming 68.75% of the companies in the same industry.
TA-PR-J 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-J perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 12.69 | ||
| Altman-Z | 0.52 |
ROIC/WACC0.37
WACC6.82%
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 comparable to the rest of the industry.
A Quick Ratio of 0.71 indicates that TA-PR-J may have some problems paying its short term obligations.
The Quick ratio of TA-PR-J (0.71) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The earnings per share for TA-PR-J have decreased strongly by -92.16% 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.
TA-PR-J shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.00%.
The Revenue has been growing slightly by 3.92% on average over the past years.
EPS 1Y (TTM)-92.16%
EPS 3YN/A
EPS 5Y26.8%
EPS Q2Q%83.33%
Revenue 1Y (TTM)-11%
Revenue growth 3Y1.5%
Revenue growth 5Y3.92%
Sales Q2Q%-3.04%
3.2 Future
TA-PR-J is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.27% yearly.
The Revenue is expected to decrease by -1.63% on average over the next years.
EPS Next Y-76.78%
EPS Next 2Y-14.26%
EPS Next 3Y-9.5%
EPS Next 5Y22.27%
Revenue Next Year-7.03%
Revenue Next 2Y-11.68%
Revenue Next 3Y-7.04%
Revenue Next 5Y-1.63%
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
A Price/Earnings ratio of 651.75 indicates a quite expensive valuation of TA-PR-J.
TA-PR-J's Price/Earnings ratio is in line with the industry average.
TA-PR-J's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.60.
TA-PR-J is valuated quite expensively with a Price/Forward Earnings ratio of 63.33.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TA-PR-J is on the same level as its industry peers.
TA-PR-J is valuated expensively when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 651.75 | ||
| Fwd PE | 63.33 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as TA-PR-J.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.23 | ||
| EV/EBITDA | 14.75 |
4.3 Compensation for Growth
TA-PR-J's earnings are expected to decrease with -9.50% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)24.32
EPS Next 2Y-14.26%
EPS Next 3Y-9.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.49%, TA-PR-J has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.02, TA-PR-J is paying slightly less dividend.
TA-PR-J's Dividend Yield is slightly below the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
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-64.77%
EPS Next 2Y-14.26%
EPS Next 3Y-9.5%
TRANSALTA CORP - TACN 6.773 PERP
TSX:TA-PR-J (12/31/2025, 7:00:00 PM)
26.07
+0.23 (+0.89%)
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 Cap7.73B
Revenue(TTM)2.48B
Net Income(TTM)-193.00M
Analysts77.89
Price Target35.5 (36.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
Yearly Dividend0.41
Dividend Growth(5Y)6.1%
DP-64.77%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-30.35%
Min EPS beat(2)-116.39%
Max EPS beat(2)55.69%
EPS beat(4)1
Avg EPS beat(4)-161.55%
Min EPS beat(4)-564.33%
Max EPS beat(4)55.69%
EPS beat(8)3
Avg EPS beat(8)-60.42%
EPS beat(12)6
Avg EPS beat(12)2.11%
EPS beat(16)7
Avg EPS beat(16)-18.99%
Revenue beat(2)1
Avg Revenue beat(2)-1.63%
Min Revenue beat(2)-14.2%
Max Revenue beat(2)10.93%
Revenue beat(4)3
Avg Revenue beat(4)10.43%
Min Revenue beat(4)-14.2%
Max Revenue beat(4)24.1%
Revenue beat(8)6
Avg Revenue beat(8)16.4%
Revenue beat(12)10
Avg Revenue beat(12)30.69%
Revenue beat(16)14
Avg Revenue beat(16)30.68%
PT rev (1m)22.17%
PT rev (3m)30.19%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.28%
EPS NY rev (1m)144.3%
EPS NY rev (3m)-21.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)1.32%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 651.75 | ||
| Fwd PE | 63.33 | ||
| P/S | 3.11 | ||
| P/FCF | 22.23 | ||
| P/OCF | 12.28 | ||
| P/B | 5.04 | ||
| P/tB | 10.14 | ||
| EV/EBITDA | 14.75 |
EPS(TTM)0.04
EY0.15%
EPS(NY)0.41
Fwd EY1.58%
FCF(TTM)1.17
FCFY4.5%
OCF(TTM)2.12
OCFY8.14%
SpS8.37
BVpS5.17
TBVpS2.57
PEG (NY)N/A
PEG (5Y)24.32
Graham Number2.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.17% | ||
| ROE | -12.58% | ||
| ROCE | 3.04% | ||
| ROIC | 2.51% | ||
| ROICexc | 2.65% | ||
| ROICexgc | 3% | ||
| OM | 8.62% | ||
| PM (TTM) | N/A | ||
| GM | 83.57% | ||
| FCFM | 14.01% |
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
ROICexgc growth 3Y15.81%
ROICexgc 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-Score5
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 12.69 | ||
| Debt/EBITDA | 4.44 | ||
| Cap/Depr | 49.13% | ||
| Cap/Sales | 11.35% | ||
| Interest Coverage | 0.75 | ||
| Cash Conversion | 79.95% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 0.52 |
F-Score5
WACC6.82%
ROIC/WACC0.37
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)-92.16%
EPS 3YN/A
EPS 5Y26.8%
EPS Q2Q%83.33%
EPS Next Y-76.78%
EPS Next 2Y-14.26%
EPS Next 3Y-9.5%
EPS Next 5Y22.27%
Revenue 1Y (TTM)-11%
Revenue growth 3Y1.5%
Revenue growth 5Y3.92%
Sales Q2Q%-3.04%
Revenue Next Year-7.03%
Revenue Next 2Y-11.68%
Revenue Next 3Y-7.04%
Revenue Next 5Y-1.63%
EBIT growth 1Y-67.18%
EBIT growth 3Y17%
EBIT growth 5Y12.72%
EBIT Next Year58.24%
EBIT Next 3Y14.67%
EBIT Next 5Y18.16%
FCF growth 1Y-15.94%
FCF growth 3Y-2.47%
FCF growth 5Y2.59%
OCF growth 1Y-58.14%
OCF growth 3Y-7.35%
OCF growth 5Y-1.28%
TRANSALTA CORP - TACN 6.773 PERP / TA-PR-J.CA FAQ
What is the fundamental rating for TA-PR-J stock?
ChartMill assigns a fundamental rating of 3 / 10 to TA-PR-J.CA.
Can you provide the valuation status for TRANSALTA CORP - TACN 6.773 PERP?
ChartMill assigns a valuation rating of 1 / 10 to TRANSALTA CORP - TACN 6.773 PERP (TA-PR-J.CA). This can be considered as Overvalued.
What is the profitability of TA-PR-J stock?
TRANSALTA CORP - TACN 6.773 PERP (TA-PR-J.CA) has a profitability rating of 5 / 10.
What is the expected EPS growth for TRANSALTA CORP - TACN 6.773 PERP (TA-PR-J.CA) stock?
The Earnings per Share (EPS) of TRANSALTA CORP - TACN 6.773 PERP (TA-PR-J.CA) is expected to decline by -76.78% in the next year.
Is the dividend of TRANSALTA CORP - TACN 6.773 PERP sustainable?
The dividend rating of TRANSALTA CORP - TACN 6.773 PERP (TA-PR-J.CA) is 4 / 10 and the dividend payout ratio is -64.77%.