TRANSALTA CORP (TAC) Fundamental Analysis & Valuation

NYSE:TAC • CA89346D1078

Current stock price

14 USD
+0.17 (+1.23%)
At close:
14 USD
0 (0%)
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This TAC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. TAC Profitability Analysis

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 2025 0 500M -500M 1B

1.2 Ratios

  • Looking at the Return On Assets, with a value of -2.19%, TAC is doing worse than 75.00% of the companies in the same industry.
  • The Return On Equity of TAC (-13.58%) is worse than 70.00% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 1.39%, TAC is in line with its industry, outperforming 50.00% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for TAC is above the industry average of 3.44%.
  • The last Return On Invested Capital (1.39%) for TAC is well below the 3 year average (6.58%), which needs to be investigated, but indicates that TAC had better years and this may not be a problem.
Industry RankSector Rank
ROA -2.19%
ROE -13.58%
ROIC 1.39%
ROA(3y)2.37%
ROA(5y)0.18%
ROE(3y)12.82%
ROE(5y)0.48%
ROIC(3y)6.58%
ROIC(5y)5.82%
TAC Yearly ROA, ROE, ROICTAC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40

1.3 Margins

  • The Operating Margin of TAC (5.28%) is worse than 60.00% of its industry peers.
  • TAC's Operating Margin has declined in the last couple of years.
  • TAC's Gross Margin of 83.91% is amongst the best of the industry. TAC outperforms 95.00% 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 5.28%
PM (TTM) N/A
GM 83.91%
OM growth 3Y-33.73%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.63%
GM growth 5Y0.65%
TAC Yearly Profit, Operating, Gross MarginsTAC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. TAC Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TAC is destroying value.
  • The number of shares outstanding for TAC has been reduced compared to 1 year ago.
  • The number of shares outstanding for TAC has been increased compared to 5 years ago.
  • TAC has a worse debt/assets ratio than last year.
TAC Yearly Shares OutstandingTAC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • TAC has an Altman-Z score of 0.29. This is a bad value and indicates that TAC is not financially healthy and even has some risk of bankruptcy.
  • TAC's Altman-Z score of 0.29 is on the low side compared to the rest of the industry. TAC is outperformed by 60.00% of its industry peers.
  • The Debt to FCF ratio of TAC is 11.31, which is on the high side as it means it would take TAC, 11.31 years of fcf income to pay off all of its debts.
  • TAC has a Debt to FCF ratio of 11.31. This is in the better half of the industry: TAC outperforms 75.00% of its industry peers.
  • TAC has a Debt/Equity ratio of 2.44. This is a high value indicating a heavy dependency on external financing.
  • TAC has a Debt to Equity ratio (2.44) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 2.44
Debt/FCF 11.31
Altman-Z 0.29
ROIC/WACC0.2
WACC6.85%
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 2025 0 1B 2B 3B 4B

2.3 Liquidity

  • A Current Ratio of 0.73 indicates that TAC may have some problems paying its short term obligations.
  • TAC's Current ratio of 0.73 is on the low side compared to the rest of the industry. TAC is outperformed by 70.00% of its industry peers.
  • A Quick Ratio of 0.67 indicates that TAC may have some problems paying its short term obligations.
  • TAC's Quick ratio of 0.67 is on the low side compared to the rest of the industry. TAC is outperformed by 70.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.73
Quick Ratio 0.67
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 2025 1B 2B 3B

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

3

3. TAC Growth Analysis

3.1 Past

  • TAC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -64.29%.
  • Measured over the past years, TAC shows a very strong growth in Earnings Per Share. The EPS has been growing by 171.44% on average per year.
  • The Revenue for TAC has decreased by -15.47% in the past year. This is quite bad
  • Measured over the past years, TAC shows a small growth in Revenue. The Revenue has been growing by 2.74% on average per year.
EPS 1Y (TTM)-64.29%
EPS 3Y171.44%
EPS 5YN/A
EPS Q2Q%72.73%
Revenue 1Y (TTM)-15.47%
Revenue growth 3Y-6.85%
Revenue growth 5Y2.74%
Sales Q2Q%-14.71%

3.2 Future

  • The Earnings Per Share is expected to grow by 62.38% on average over the next years. This is a very strong growth
  • TAC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.09% yearly.
EPS Next Y-17.5%
EPS Next 2Y40.76%
EPS Next 3Y62.38%
EPS Next 5YN/A
Revenue Next Year-22.98%
Revenue Next 2Y-10.09%
Revenue Next 3Y-3.09%
Revenue Next 5YN/A

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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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4

4. TAC Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 100.00 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.
  • TAC is valuated expensively when we compare the Price/Earnings ratio to 26.78, which is the current average of the S&P500 Index.
  • TAC is valuated quite expensively with a Price/Forward Earnings ratio of 117.45.
  • TAC's Price/Forward Earnings is on the same level as the industry average.
  • TAC is valuated expensively when we compare the Price/Forward Earnings ratio to 23.54, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 100
Fwd PE 117.45
TAC Price Earnings VS Forward Price EarningsTAC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100

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 65.00% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, TAC is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 14.98
EV/EBITDA 13.45
TAC Per share dataTAC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4 5

4.3 Compensation for Growth

  • TAC's earnings are expected to grow with 62.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y40.76%
EPS Next 3Y62.38%

More info and screens

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

5

5. TAC Dividend Analysis

5.1 Amount

  • TAC has a Yearly Dividend Yield of 1.56%. Purely for dividend investing, there may be better candidates out there.
  • TAC's Dividend Yield is a higher than the industry average which is at 1.32.
  • TAC's Dividend Yield is comparable with the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 1.56%

5.2 History

  • On average, the dividend of TAC grows each year by 6.16%, which is quite nice.
  • TAC has paid a dividend for at least 10 years, which is a reliable track record.
  • TAC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)6.16%
Div Incr Years3
Div Non Decr Years3
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-66.32%
EPS Next 2Y40.76%
EPS Next 3Y62.38%
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 2025 0 200M -200M 400M -400M 600M

More info and screens

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TAC Fundamentals: All Metrics, Ratios and Statistics

TRANSALTA CORP

NYSE:TAC (4/10/2026, 8:04:00 PM)

After market: 14 0 (0%)

14

+0.17 (+1.23%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)02-27
Earnings (Next)05-01
Inst Owners70.88%
Inst Owner Change0%
Ins Owners0.22%
Ins Owner ChangeN/A
Market Cap4.16B
Revenue(TTM)2.40B
Net Income(TTM)-190.00M
Analysts80
Price Target16.85 (20.36%)
Short Float %2.74%
Short Ratio4.26
Dividend
Industry RankSector Rank
Dividend Yield 1.56%
Yearly Dividend0.3
Dividend Growth(5Y)6.16%
DP-66.32%
Div Incr Years3
Div Non Decr Years3
Ex-Date06-01
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-144.04%
Min EPS beat(2)-171.69%
Max EPS beat(2)-116.39%
EPS beat(4)1
Avg EPS beat(4)-63.39%
Min EPS beat(4)-171.69%
Max EPS beat(4)55.69%
EPS beat(8)3
Avg EPS beat(8)-52.36%
EPS beat(12)6
Avg EPS beat(12)6.8%
EPS beat(16)7
Avg EPS beat(16)1.32%
Revenue beat(2)2
Avg Revenue beat(2)6.32%
Min Revenue beat(2)1.71%
Max Revenue beat(2)10.93%
Revenue beat(4)3
Avg Revenue beat(4)4.83%
Min Revenue beat(4)-14.2%
Max Revenue beat(4)20.88%
Revenue beat(8)6
Avg Revenue beat(8)11.02%
Revenue beat(12)10
Avg Revenue beat(12)25.98%
Revenue beat(16)14
Avg Revenue beat(16)29.09%
PT rev (1m)0%
PT rev (3m)-2.3%
EPS NQ rev (1m)-27.68%
EPS NQ rev (3m)-14.01%
EPS NY rev (1m)0%
EPS NY rev (3m)-59.92%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.55%
Valuation
Industry RankSector Rank
PE 100
Fwd PE 117.45
P/S 2.39
P/FCF 14.98
P/OCF 8.9
P/B 4.11
P/tB 8.99
EV/EBITDA 13.45
EPS(TTM)0.14
EY1%
EPS(NY)0.12
Fwd EY0.85%
FCF(TTM)0.93
FCFY6.68%
OCF(TTM)1.57
OCFY11.23%
SpS5.85
BVpS3.41
TBVpS1.56
PEG (NY)N/A
PEG (5Y)N/A
Graham Number3.28
Profitability
Industry RankSector Rank
ROA -2.19%
ROE -13.58%
ROCE 1.86%
ROIC 1.39%
ROICexc 1.47%
ROICexgc 1.67%
OM 5.28%
PM (TTM) N/A
GM 83.91%
FCFM 15.97%
ROA(3y)2.37%
ROA(5y)0.18%
ROE(3y)12.82%
ROE(5y)0.48%
ROIC(3y)6.58%
ROIC(5y)5.82%
ROICexc(3y)7.13%
ROICexc(5y)6.63%
ROICexgc(3y)8.05%
ROICexgc(5y)7.5%
ROCE(3y)8.79%
ROCE(5y)7.77%
ROICexgc growth 3Y-39.73%
ROICexgc growth 5YN/A
ROICexc growth 3Y-39.7%
ROICexc growth 5YN/A
OM growth 3Y-33.73%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.63%
GM growth 5Y0.65%
F-Score5
Asset Turnover0.28
Health
Industry RankSector Rank
Debt/Equity 2.44
Debt/FCF 11.31
Debt/EBITDA 4.84
Cap/Depr 45.25%
Cap/Sales 10.89%
Interest Coverage 0.45
Cash Conversion 91.5%
Profit Quality N/A
Current Ratio 0.73
Quick Ratio 0.67
Altman-Z 0.29
F-Score5
WACC6.85%
ROIC/WACC0.2
Cap/Depr(3y)82.9%
Cap/Depr(5y)95.03%
Cap/Sales(3y)16.22%
Cap/Sales(5y)19.7%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-64.29%
EPS 3Y171.44%
EPS 5YN/A
EPS Q2Q%72.73%
EPS Next Y-17.5%
EPS Next 2Y40.76%
EPS Next 3Y62.38%
EPS Next 5YN/A
Revenue 1Y (TTM)-15.47%
Revenue growth 3Y-6.85%
Revenue growth 5Y2.74%
Sales Q2Q%-14.71%
Revenue Next Year-22.98%
Revenue Next 2Y-10.09%
Revenue Next 3Y-3.09%
Revenue Next 5YN/A
EBIT growth 1Y-80.61%
EBIT growth 3Y-38.27%
EBIT growth 5YN/A
EBIT Next Year76.05%
EBIT Next 3Y29.89%
EBIT Next 5Y25.56%
FCF growth 1Y-19.16%
FCF growth 3YN/A
FCF growth 5Y13.71%
OCF growth 1Y-18.84%
OCF growth 3Y-9.69%
OCF growth 5Y-1.65%

TRANSALTA CORP / TAC Fundamental Analysis FAQ

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

ChartMill assigns a fundamental rating of 3 / 10 to TAC.


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

ChartMill assigns a valuation rating of 4 / 10 to TRANSALTA CORP (TAC). This can be considered as Fairly Valued.


How profitable is TRANSALTA CORP (TAC) stock?

TRANSALTA CORP (TAC) has a profitability rating of 4 / 10.


Can you provide the PE and PB ratios for TAC stock?

The Price/Earnings (PE) ratio for TRANSALTA CORP (TAC) is 100 and the Price/Book (PB) ratio is 4.11.


What is the expected EPS growth for TRANSALTA CORP (TAC) stock?

The Earnings per Share (EPS) of TRANSALTA CORP (TAC) is expected to decline by -17.5% in the next year.