TRANSALTA CORP (TA.CA) Stock Fundamental Analysis

TSX:TA • CA89346D1078

18.17 CAD
-0.73 (-3.86%)
Last: Mar 3, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

TA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 32 industry peers in the Independent Power and Renewable Electricity Producers industry. TA has only an average score on both its financial health and profitability. TA has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • In the past year TA was profitable.
  • TA had a positive operating cash flow in the past year.
  • The reported net income has been mixed in the past 5 years: TA reported negative net income in multiple years.
  • TA had a positive operating cash flow in 4 of the past 5 years.
TA.CA Yearly Net Income VS EBIT VS OCF VS FCFTA.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B

1.2 Ratios

  • The Return On Assets of TA (-2.17%) is comparable to the rest of the industry.
  • The Return On Equity of TA (-12.58%) is comparable to the rest of the industry.
  • TA has a better Return On Invested Capital (2.51%) than 78.13% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for TA is above the industry average of 3.78%.
  • The last Return On Invested Capital (2.51%) for TA is well below the 3 year average (8.64%), which needs to be investigated, but indicates that TA had better years and this may not be a problem.
Industry RankSector 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
TA.CA Yearly ROA, ROE, ROICTA.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40

1.3 Margins

  • TA's Profit Margin has improved in the last couple of years.
  • The Operating Margin of TA (8.62%) is comparable to the rest of the industry.
  • TA's Operating Margin has improved in the last couple of years.
  • TA has a better Gross Margin (83.57%) than 90.63% of its industry peers.
  • TA's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
TA.CA Yearly Profit, Operating, Gross MarginsTA.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TA is still creating some value.
  • There is no outstanding debt for TA. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
TA.CA Yearly Shares OutstandingTA.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
TA.CA Yearly Total Debt VS Total AssetsTA.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

  • TA has an Altman-Z score of 0.35. This is a bad value and indicates that TA is not financially healthy and even has some risk of bankruptcy.
  • The Altman-Z score of TA (0.35) is comparable to the rest of the industry.
  • TA has a debt to FCF ratio of 12.69. This is a negative value and a sign of low solvency as TA would need 12.69 years to pay back of all of its debts.
  • TA has a better Debt to FCF ratio (12.69) than 81.25% of its industry peers.
  • TA has a Debt/Equity ratio of 2.28. This is a high value indicating a heavy dependency on external financing.
  • TA's Debt to Equity ratio of 2.28 is fine compared to the rest of the industry. TA outperforms 62.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.28
Debt/FCF 12.69
Altman-Z 0.35
ROIC/WACC0.36
WACC7.05%
TA.CA Yearly LT Debt VS Equity VS FCFTA.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B 4B

2.3 Liquidity

  • TA has a Current Ratio of 0.79. This is a bad value and indicates that TA is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Current ratio of TA (0.79) is better than 65.63% of its industry peers.
  • A Quick Ratio of 0.71 indicates that TA may have some problems paying its short term obligations.
  • TA has a better Quick ratio (0.71) than 68.75% of its industry peers.
Industry RankSector Rank
Current Ratio 0.79
Quick Ratio 0.71
TA.CA Yearly Current Assets VS Current LiabilitesTA.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. Growth

3.1 Past

  • The earnings per share for TA have decreased strongly by -63.34% in the last year.
  • Measured over the past years, TA shows a very strong growth in Earnings Per Share. The EPS has been growing by 173.82% on average per year.
EPS 1Y (TTM)-63.34%
EPS 3Y173.82%
EPS 5YN/A
EPS Q2Q%75.14%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-14.71%

3.2 Future

  • Based on estimates for the next years, TA will show a very strong growth in Earnings Per Share. The EPS will grow by 64.21% on average per year.
  • The Revenue is expected to grow by 0.31% on average over the next years.
EPS Next Y120.62%
EPS Next 2Y48.43%
EPS Next 3Y64.21%
EPS Next 5YN/A
Revenue Next Year-16.25%
Revenue Next 2Y-7.43%
Revenue Next 3Y0.31%
Revenue Next 5YN/A

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
TA.CA Yearly Revenue VS EstimatesTA.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B
TA.CA Yearly EPS VS EstimatesTA.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 1 -1 2

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Find the best growth stocksShow best growing peers

6

4. Valuation

4.1 Price/Earnings Ratio

  • TA is valuated quite expensively with a Price/Earnings ratio of 86.52.
  • Based on the Price/Earnings ratio, TA is valued a bit cheaper than the industry average as 65.63% of the companies are valued more expensively.
  • TA is valuated expensively when we compare the Price/Earnings ratio to 26.83, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 40.12, the valuation of TA can be described as expensive.
  • TA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TA is cheaper than 68.75% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.95, TA is valued quite expensively.
Industry RankSector Rank
PE 86.52
Fwd PE 40.12
TA.CA Price Earnings VS Forward Price EarningsTA.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • 62.50% of the companies in the same industry are more expensive than TA, based on the Enterprise Value to EBITDA ratio.
  • 81.25% of the companies in the same industry are more expensive than TA, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 15.49
EV/EBITDA 12.05
TA.CA Per share dataTA.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

4.3 Compensation for Growth

  • TA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The decent profitability rating of TA may justify a higher PE ratio.
  • A more expensive valuation may be justified as TA's earnings are expected to grow with 64.21% in the coming years.
PEG (NY)0.72
PEG (5Y)N/A
EPS Next 2Y48.43%
EPS Next 3Y64.21%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. Dividend

5.1 Amount

  • TA has a Yearly Dividend Yield of 1.46%. Purely for dividend investing, there may be better candidates out there.
  • With a Dividend Yield of 1.46, TA pays less dividend than the industry average, which is at 3.44. 81.25% of the companies listed in the same industry pay a better dividend than TA!
  • TA's Dividend Yield is comparable with the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.46%

5.2 History

  • The dividend of TA is nicely growing with an annual growth rate of 6.10%!
  • TA has paid a dividend for at least 10 years, which is a reliable track record.
  • As TA did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)6.1%
Div Incr Years5
Div Non Decr Years8
TA.CA Yearly Dividends per shareTA.CA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.05 0.1 0.15 0.2 0.25

5.3 Sustainability

  • TA has negative earnings and hence a negative payout ratio. The dividend may be in danger.
  • TA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-64.77%
EPS Next 2Y48.43%
EPS Next 3Y64.21%
TA.CA Yearly Income VS Free CF VS DividendTA.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M -400M 600M

More info and screens

Find the best dividend stocksShow peers with best dividend

TRANSALTA CORP

TSX:TA (3/3/2026, 7:00:00 PM)

18.17

-0.73 (-3.86%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)02-27
Earnings (Next)05-05
Inst Owners75.64%
Inst Owner ChangeN/A
Ins Owners0.25%
Ins Owner ChangeN/A
Market Cap5.39B
Revenue(TTM)N/A
Net Income(TTM)-193.00M
Analysts78.89
Price Target23.09 (27.08%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.46%
Yearly Dividend0.41
Dividend Growth(5Y)6.1%
DP-64.77%
Div Incr Years5
Div Non Decr Years8
Ex-Date02-27
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)-2.73%
PT rev (3m)-0.2%
EPS NQ rev (1m)-50.05%
EPS NQ rev (3m)-50.05%
EPS NY rev (1m)0%
EPS NY rev (3m)105.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)1.09%
Valuation
Industry RankSector Rank
PE 86.52
Fwd PE 40.12
P/S 2.17
P/FCF 15.49
P/OCF 8.56
P/B 3.51
P/tB 7.07
EV/EBITDA 12.05
EPS(TTM)0.21
EY1.16%
EPS(NY)0.45
Fwd EY2.49%
FCF(TTM)1.17
FCFY6.46%
OCF(TTM)2.12
OCFY11.69%
SpS8.37
BVpS5.17
TBVpS2.57
PEG (NY)0.72
PEG (5Y)N/A
Graham Number4.94
Profitability
Industry RankSector 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 RankSector 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 0.35
F-Score5
WACC7.05%
ROIC/WACC0.36
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)-63.34%
EPS 3Y173.82%
EPS 5YN/A
EPS Q2Q%75.14%
EPS Next Y120.62%
EPS Next 2Y48.43%
EPS Next 3Y64.21%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-14.71%
Revenue Next Year-16.25%
Revenue Next 2Y-7.43%
Revenue Next 3Y0.31%
Revenue Next 5YN/A
EBIT growth 1Y-67.18%
EBIT growth 3Y17%
EBIT growth 5Y12.72%
EBIT Next Year53.72%
EBIT Next 3Y13.86%
EBIT Next 5Y13.87%
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 / TA.CA FAQ

Can you provide the ChartMill fundamental rating for TRANSALTA CORP?

ChartMill assigns a fundamental rating of 5 / 10 to TA.CA.


What is the valuation status of TRANSALTA CORP (TA.CA) stock?

ChartMill assigns a valuation rating of 6 / 10 to TRANSALTA CORP (TA.CA). This can be considered as Fairly Valued.


Can you provide the profitability details for TRANSALTA CORP?

TRANSALTA CORP (TA.CA) has a profitability rating of 6 / 10.


Can you provide the financial health for TA stock?

The financial health rating of TRANSALTA CORP (TA.CA) is 4 / 10.


What is the expected EPS growth for TRANSALTA CORP (TA.CA) stock?

The Earnings per Share (EPS) of TRANSALTA CORP (TA.CA) is expected to grow by 120.62% in the next year.