TRANSALTA CORP (TA.CA) Stock Fundamental Analysis

Canada • Toronto Stock Exchange • TSX:TA • CA89346D1078

18.44 CAD
+0.35 (+1.93%)
Last: Feb 9, 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. Both the profitability and the financial health of TA get a neutral evaluation. Nothing too spectacular is happening here. TA is valued correctly, but it does not seem to be growing. Finally TA also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • TA had positive earnings in the past year.
  • In the past year TA had a positive cash flow from operations.
  • The reported net income has been mixed in the past 5 years: TA reported negative net income in multiple years.
  • In the past 5 years TA always reported a positive cash flow from operatings.
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

  • TA's Return On Assets of -2.17% is in line compared to the rest of the industry. TA outperforms 53.13% of its industry peers.
  • TA's Return On Equity of -12.58% is in line compared to the rest of the industry. TA outperforms 53.13% of its industry peers.
  • TA has a better Return On Invested Capital (2.51%) than 78.13% of its industry peers.
  • TA had an Average Return On Invested Capital over the past 3 years of 8.64%. This is above the industry average of 3.78%.
  • The 3 year average ROIC (8.64%) for TA is well above the current ROIC(2.51%). The reason for the recent decline needs to be investigated.
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

  • In the last couple of years the Profit Margin of TA has grown nicely.
  • TA has a Operating Margin (8.62%) which is comparable to the rest of the industry.
  • TA's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 83.57%, TA belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
  • 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.
  • The number of shares outstanding for TA has been reduced compared to 1 year ago.
  • TA has more shares outstanding than it did 5 years ago.
  • TA has a better debt/assets ratio than last year.
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 0.34. This is a bad value and indicates that TA is not financially healthy and even has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 0.34, TA is in line with its industry, outperforming 50.00% of the companies in the same industry.
  • The Debt to FCF ratio of TA is 12.69, which is on the high side as it means it would take TA, 12.69 years of fcf income to pay off all of its debts.
  • TA has a Debt to FCF ratio of 12.69. This is amongst the best in the industry. TA outperforms 81.25% of its industry peers.
  • A Debt/Equity ratio of 2.28 is on the high side and indicates that TA has dependencies on debt financing.
  • TA has a Debt to Equity ratio of 2.28. This is in the better half of the industry: TA outperforms 62.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.28
Debt/FCF 12.69
Altman-Z 0.34
ROIC/WACC0.37
WACC6.71%
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

  • A Current Ratio of 0.79 indicates that TA may have some problems paying its short term obligations.
  • TA has a better Current ratio (0.79) than 65.63% of its industry peers.
  • TA has a Quick 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.
  • With a decent Quick ratio value of 0.71, TA is doing good in the industry, outperforming 68.75% of the companies in the same industry.
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 -92.16% in the last year.
  • The Earnings Per Share has been growing by 26.80% on average over the past years. This is a very strong growth
  • TA 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

  • Based on estimates for the next years, TA will show a very strong growth in Earnings Per Share. The EPS will grow by 22.27% on average per year.
  • TA is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.63% yearly.
EPS Next Y-97.24%
EPS Next 2Y-10.07%
EPS Next 3Y-6.87%
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.
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

4

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 461.00, TA can be considered very expensive at the moment.
  • Based on the Price/Earnings ratio, TA is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 28.06. TA is valued rather expensively when compared to this.
  • TA is valuated quite expensively with a Price/Forward Earnings ratio of 40.71.
  • Based on the Price/Forward Earnings ratio, TA is valued a bit cheaper than 68.75% of the companies in the same industry.
  • TA's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.86.
Industry RankSector Rank
PE 461
Fwd PE 40.71
TA.CA Price Earnings VS Forward Price EarningsTA.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 100 200 300 400

4.2 Price Multiples

  • TA's Enterprise Value to EBITDA is on the same level as the industry average.
  • Based on the Price/Free Cash Flow ratio, TA is valued cheaply inside the industry as 84.38% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 15.72
EV/EBITDA 11.87
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

  • The decent profitability rating of TA may justify a higher PE ratio.
  • A cheap valuation may be justified as TA's earnings are expected to decrease with -6.87% in the coming years.
PEG (NY)N/A
PEG (5Y)17.2
EPS Next 2Y-10.07%
EPS Next 3Y-6.87%

More info and screens

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

7

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 6.75%, TA is a good candidate for dividend investing.
  • TA's Dividend Yield is a higher than the industry average which is at 4.76.
  • Compared to an average S&P500 Dividend Yield of 1.80, TA pays a better dividend.
Industry RankSector Rank
Dividend Yield 6.75%

5.2 History

  • On average, the dividend of TA grows each year by 6.10%, which is quite nice.
  • TA has paid a dividend for at least 10 years, which is a reliable track record.
  • TA has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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.
  • The dividend of TA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-64.77%
EPS Next 2Y-10.07%
EPS Next 3Y-6.87%
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 (2/9/2026, 7:00:00 PM)

18.44

+0.35 (+1.93%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)11-06
Earnings (Next)02-27
Inst Owners75.64%
Inst Owner ChangeN/A
Ins Owners0.25%
Ins Owner ChangeN/A
Market Cap5.47B
Revenue(TTM)2.48B
Net Income(TTM)-193.00M
Analysts78.89
Price Target23.18 (25.7%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 6.75%
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)-2.34%
PT rev (3m)9.65%
EPS NQ rev (1m)-50.05%
EPS NQ rev (3m)-47.92%
EPS NY rev (1m)105.33%
EPS NY rev (3m)-95.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)-5.27%
Valuation
Industry RankSector Rank
PE 461
Fwd PE 40.71
P/S 2.2
P/FCF 15.72
P/OCF 8.68
P/B 3.57
P/tB 7.17
EV/EBITDA 11.87
EPS(TTM)0.04
EY0.22%
EPS(NY)0.45
Fwd EY2.46%
FCF(TTM)1.17
FCFY6.36%
OCF(TTM)2.12
OCFY11.51%
SpS8.37
BVpS5.17
TBVpS2.57
PEG (NY)N/A
PEG (5Y)17.2
Graham Number2.16
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 0.34
F-Score5
WACC6.71%
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-97.24%
EPS Next 2Y-10.07%
EPS Next 3Y-6.87%
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 5Y13.41%
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 4 / 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 decline by -97.24% in the next year.