TRANSALTA CORP (TA.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TA - CA89346D1078 - Common Stock
17.44 CAD
+0.02 (+0.11%)
TA gets a fundamental rating of 4 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
TA had positive earnings in the past year.
TA had a positive operating cash flow in the past year.
In multiple years TA reported negative net income over the last 5 years.
Each year in the past 5 years TA had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TA (-2.17%) is comparable to the rest of the industry.
With a Return On Equity value of -12.58%, TA perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
TA has a Return On Invested Capital of 2.51%. This is in the better half of the industry: TA outperforms 76.47% of its industry peers.
TA 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 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
TA's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 8.62%, TA perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
TA's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 83.57%, TA belongs to the best of the industry, outperforming 91.18% of the companies in the same industry.
TA's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TA is still creating some value.
TA has less shares outstanding than it did 1 year ago.
The number of shares outstanding for TA has been increased compared to 5 years ago.
Compared to 1 year ago, TA has an improved debt to assets ratio.
2.2 Solvency
TA has an Altman-Z score of 0.31. This is a bad value and indicates that TA is not financially healthy and even has some risk of bankruptcy.
TA's Altman-Z score of 0.31 is in line compared to the rest of the industry. TA outperforms 52.94% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 12.69, TA belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
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 61.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 12.69 | ||
| Altman-Z | 0.31 |
ROIC/WACC0.36
WACC7.01%
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.
TA has a Current ratio of 0.79. This is in the better half of the industry: TA outperforms 67.65% of its industry peers.
A Quick Ratio of 0.71 indicates that TA may have some problems paying its short term obligations.
TA's Quick ratio of 0.71 is fine compared to the rest of the industry. TA outperforms 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
TA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -92.16%.
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
TA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.27% yearly.
TA is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.63% yearly.
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
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 is valuated quite expensively with a Price/Earnings ratio of 436.00.
Compared to the rest of the industry, the Price/Earnings ratio of TA indicates a somewhat cheap valuation: TA is cheaper than 61.76% of the companies listed in the same industry.
TA's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.92.
With a Price/Forward Earnings ratio of 42.37, TA can be considered very expensive at the moment.
TA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TA is cheaper than 70.59% of the companies in the same industry.
TA is valuated expensively when we compare the Price/Forward Earnings ratio to 23.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 436 | ||
| Fwd PE | 42.37 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TA is on the same level as its industry peers.
TA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TA is cheaper than 85.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.87 | ||
| EV/EBITDA | 11.5 |
4.3 Compensation for Growth
TA has a very decent profitability rating, which may justify a higher PE ratio.
TA'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)16.27
EPS Next 2Y-14.26%
EPS Next 3Y-9.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.49%, TA has a reasonable but not impressive dividend return.
TA's Dividend Yield is slightly below the industry average, which is at 4.02.
TA'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
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.
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
5.3 Sustainability
The earnings of TA are negative and hence is the payout ratio. TA will probably not be able to sustain this dividend level.
The dividend of TA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-64.77%
EPS Next 2Y-14.26%
EPS Next 3Y-9.5%
TSX:TA (12/24/2025, 7:00:00 PM)
17.44
+0.02 (+0.11%)
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 Cap5.17B
Revenue(TTM)2.48B
Net Income(TTM)-193.00M
Analysts77.89
Price Target23.74 (36.12%)
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 Years5
Div Non Decr Years8
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)2.61%
PT rev (3m)25.8%
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 | 436 | ||
| Fwd PE | 42.37 | ||
| P/S | 2.08 | ||
| P/FCF | 14.87 | ||
| P/OCF | 8.21 | ||
| P/B | 3.37 | ||
| P/tB | 6.78 | ||
| EV/EBITDA | 11.5 |
EPS(TTM)0.04
EY0.23%
EPS(NY)0.41
Fwd EY2.36%
FCF(TTM)1.17
FCFY6.73%
OCF(TTM)2.12
OCFY12.18%
SpS8.37
BVpS5.17
TBVpS2.57
PEG (NY)N/A
PEG (5Y)16.27
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 | 0.31 |
F-Score5
WACC7.01%
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)-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 / TA.CA FAQ
Can you provide the ChartMill fundamental rating for TRANSALTA CORP?
ChartMill assigns a fundamental rating of 4 / 10 to TA.CA.
Can you provide the valuation status for TRANSALTA CORP?
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.
What are the PE and PB ratios of TRANSALTA CORP (TA.CA) stock?
The Price/Earnings (PE) ratio for TRANSALTA CORP (TA.CA) is 436 and the Price/Book (PB) ratio is 3.37.
Can you provide the financial health for TA stock?
The financial health rating of TRANSALTA CORP (TA.CA) is 4 / 10.