TRANSALTA CORP (TAC) Stock Fundamental Analysis

NYSE:TAC • CA89346D1078

13.39 USD
-0.04 (-0.3%)
At close: Feb 18, 2026
13.35 USD
-0.04 (-0.3%)
After Hours: 2/18/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to TAC. TAC was compared to 20 industry peers in the Independent Power and Renewable Electricity Producers industry. There are concerns on the financial health of TAC while its profitability can be described as average. TAC is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

  • TAC had positive earnings in the past year.
  • TAC had a positive operating cash flow in the past year.
  • The reported net income has been mixed in the past 5 years: TAC reported negative net income in multiple years.
  • TAC had a positive operating cash flow in each of the past 5 years.
TAC Yearly Net Income VS EBIT VS OCF VS FCFTAC 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

  • Looking at the Return On Assets, with a value of -2.17%, TAC is doing worse than 60.00% of the companies in the same industry.
  • TAC has a Return On Equity of -12.58%. This is in the lower half of the industry: TAC underperforms 65.00% of its industry peers.
  • TAC has a Return On Invested Capital (2.51%) which is comparable to the rest of the industry.
  • TAC had an Average Return On Invested Capital over the past 3 years of 8.64%. This is above the industry average of 3.99%.
  • The 3 year average ROIC (8.64%) for TAC 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
TAC Yearly ROA, ROE, ROICTAC 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 TAC has grown nicely.
  • Looking at the Operating Margin, with a value of 8.62%, TAC is in line with its industry, outperforming 45.00% of the companies in the same industry.
  • TAC's Operating Margin has improved in the last couple of years.
  • The Gross Margin of TAC (83.57%) is better than 100.00% of its industry peers.
  • In the last couple of years the Gross Margin of TAC has remained more or less at the same level.
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%
TAC Yearly Profit, Operating, Gross MarginsTAC 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

3

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TAC is still creating some value.
  • TAC has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, TAC has more shares outstanding
  • TAC has a better debt/assets ratio than last year.
TAC Yearly Shares OutstandingTAC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
TAC Yearly Total Debt VS Total AssetsTAC 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

  • TAC has an Altman-Z score of 0.34. This is a bad value and indicates that TAC is not financially healthy and even has some risk of bankruptcy.
  • TAC has a Altman-Z score (0.34) which is comparable to the rest of the industry.
  • The Debt to FCF ratio of TAC is 12.69, which is on the high side as it means it would take TAC, 12.69 years of fcf income to pay off all of its debts.
  • With an excellent Debt to FCF ratio value of 12.69, TAC belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
  • A Debt/Equity ratio of 2.28 is on the high side and indicates that TAC has dependencies on debt financing.
  • The Debt to Equity ratio of TAC (2.28) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 2.28
Debt/FCF 12.69
Altman-Z 0.34
ROIC/WACC0.36
WACC6.99%
TAC Yearly LT Debt VS Equity VS FCFTAC 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

  • TAC has a Current Ratio of 0.79. This is a bad value and indicates that TAC is not financially healthy enough and could expect problems in meeting its short term obligations.
  • TAC has a worse Current ratio (0.79) than 60.00% of its industry peers.
  • TAC has a Quick Ratio of 0.79. This is a bad value and indicates that TAC is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Quick ratio of TAC (0.71) is worse than 65.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.79
Quick Ratio 0.71
TAC Yearly Current Assets VS Current LiabilitesTAC 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 TAC 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
  • Looking at the last year, TAC shows a very negative growth in Revenue. The Revenue has decreased by -11.00% in the last year.
  • TAC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.92% yearly.
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

  • TAC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.88% yearly.
  • Based on estimates for the next years, TAC will show a decrease in Revenue. The Revenue will decrease by -2.91% on average per year.
EPS Next Y-71.25%
EPS Next 2Y-34.2%
EPS Next 3Y-10.96%
EPS Next 5Y12.88%
Revenue Next Year-9.45%
Revenue Next 2Y-15.68%
Revenue Next 3Y-9.7%
Revenue Next 5Y-2.91%

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.
  • 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.
TAC Yearly Revenue VS EstimatesTAC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B
TAC Yearly EPS VS EstimatesTAC 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

3

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 446.33 indicates a quite expensive valuation of TAC.
  • Compared to the rest of the industry, the Price/Earnings ratio of TAC is on the same level as its industry peers.
  • When comparing the Price/Earnings ratio of TAC to the average of the S&P500 Index (27.27), we can say TAC is valued expensively.
  • A Price/Forward Earnings ratio of 75.41 indicates a quite expensive valuation of TAC.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of TAC is on the same level as its industry peers.
  • TAC is valuated expensively when we compare the Price/Forward Earnings ratio to 28.16, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 446.33
Fwd PE 75.41
TAC Price Earnings VS Forward Price EarningsTAC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 100 200 300 400

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TAC indicates a somewhat cheap valuation: TAC is cheaper than 75.00% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, TAC is valued cheaper than 100.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 15.59
EV/EBITDA 11.84
TAC Per share dataTAC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

  • TAC's earnings are expected to decrease with -10.96% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)16.65
EPS Next 2Y-34.2%
EPS Next 3Y-10.96%

More info and screens

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

4

5. Dividend

5.1 Amount

  • TAC has a Yearly Dividend Yield of 1.43%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 1.27, TAC pays a bit more dividend than its industry peers.
  • TAC's Dividend Yield is slightly below the S&P500 average, which is at 1.84.
Industry RankSector Rank
Dividend Yield 1.43%

5.2 History

  • On average, the dividend of TAC grows each year by 6.10%, which is quite nice.
  • TAC has paid a dividend for at least 10 years, which is a reliable track record.
  • The dividend of TAC decreased in the last 3 years.
Dividend Growth(5Y)6.1%
Div Incr Years2
Div Non Decr Years2
TAC Yearly Dividends per shareTAC 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

  • TAC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
  • The dividend of TAC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-64.77%
EPS Next 2Y-34.2%
EPS Next 3Y-10.96%
TAC Yearly Income VS Free CF VS DividendTAC 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

NYSE:TAC (2/18/2026, 8:04:00 PM)

After market: 13.35 -0.04 (-0.3%)

13.39

-0.04 (-0.3%)

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 Change2.63%
Ins Owners0.25%
Ins Owner ChangeN/A
Market Cap3.97B
Revenue(TTM)2.48B
Net Income(TTM)-193.00M
Analysts78.89
Price Target16.94 (26.51%)
Short Float %2.51%
Short Ratio4.6
Dividend
Industry RankSector Rank
Dividend Yield 1.43%
Yearly Dividend0.3
Dividend Growth(5Y)6.1%
DP-64.77%
Div Incr Years2
Div Non Decr Years2
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)-1.75%
PT rev (3m)12.48%
EPS NQ rev (1m)-50.05%
EPS NQ rev (3m)-47.92%
EPS NY rev (1m)155.5%
EPS NY rev (3m)1.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-2.2%
Revenue NY rev (3m)-3.46%
Valuation
Industry RankSector Rank
PE 446.33
Fwd PE 75.41
P/S 2.18
P/FCF 15.59
P/OCF 8.61
P/B 3.54
P/tB 7.11
EV/EBITDA 11.84
EPS(TTM)0.03
EY0.22%
EPS(NY)0.18
Fwd EY1.33%
FCF(TTM)0.86
FCFY6.41%
OCF(TTM)1.55
OCFY11.61%
SpS6.13
BVpS3.79
TBVpS1.88
PEG (NY)N/A
PEG (5Y)16.65
Graham Number1.6
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
WACC6.99%
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-71.25%
EPS Next 2Y-34.2%
EPS Next 3Y-10.96%
EPS Next 5Y12.88%
Revenue 1Y (TTM)-11%
Revenue growth 3Y1.5%
Revenue growth 5Y3.92%
Sales Q2Q%-3.04%
Revenue Next Year-9.45%
Revenue Next 2Y-15.68%
Revenue Next 3Y-9.7%
Revenue Next 5Y-2.91%
EBIT growth 1Y-67.18%
EBIT growth 3Y17%
EBIT growth 5Y12.72%
EBIT Next Year53.85%
EBIT Next 3Y14.67%
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 / TAC FAQ

What is the ChartMill fundamental rating of TRANSALTA CORP (TAC) stock?

ChartMill assigns a fundamental rating of 4 / 10 to TAC.


What is the valuation status of TRANSALTA CORP (TAC) stock?

ChartMill assigns a valuation rating of 3 / 10 to TRANSALTA CORP (TAC). This can be considered as Overvalued.


What is the profitability of TAC stock?

TRANSALTA CORP (TAC) has a profitability rating of 5 / 10.


Can you provide the financial health for TAC stock?

The financial health rating of TRANSALTA CORP (TAC) is 3 / 10.


How sustainable is the dividend of TRANSALTA CORP (TAC) stock?

The dividend rating of TRANSALTA CORP (TAC) is 4 / 10 and the dividend payout ratio is -64.77%.