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TRANSALTA CORP (TAC) Stock Fundamental Analysis

USA - NYSE:TAC - CA89346D1078 - Common Stock

17.655 USD
+0.02 (+0.09%)
Last: 10/31/2025, 3:58:58 PM
Fundamental Rating

4

Taking everything into account, TAC scores 4 out of 10 in our fundamental rating. TAC was compared to 20 industry peers in the Independent Power and Renewable Electricity Producers industry. TAC has a medium profitability rating, but doesn't score so well on its financial health evaluation. TAC has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

TAC had negative earnings in the past year.
In the past year TAC had a positive cash flow from operations.
In multiple years TAC reported negative net income over the last 5 years.
In the past 5 years TAC always reported a positive cash flow from operatings.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B

1.2 Ratios

TAC has a worse Return On Assets (-1.87%) than 65.00% of its industry peers.
Looking at the Return On Equity, with a value of -10.58%, TAC is doing worse than 65.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.34%, TAC is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
TAC had an Average Return On Invested Capital over the past 3 years of 8.64%. This is above the industry average of 4.08%.
The 3 year average ROIC (8.64%) for TAC is well above the current ROIC(3.34%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA -1.87%
ROE -10.58%
ROIC 3.34%
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40

1.3 Margins

TAC's Profit Margin has improved in the last couple of years.
TAC has a Operating Margin of 11.45%. This is comparable to the rest of the industry: TAC outperforms 50.00% of its industry peers.
In the last couple of years the Operating Margin of TAC has grown nicely.
TAC has a better Gross Margin (83.61%) than 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 11.45%
PM (TTM) N/A
GM 83.61%
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60 80

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.
The number of shares outstanding for TAC has been reduced compared to 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 2015 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

Based on the Altman-Z score of 0.53, we must say that TAC is in the distress zone and has some risk of bankruptcy.
TAC has a Altman-Z score of 0.53. This is comparable to the rest of the industry: TAC outperforms 60.00% of its industry peers.
The Debt to FCF ratio of TAC is 14.89, which is on the high side as it means it would take TAC, 14.89 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TAC (14.89) is better than 85.00% of its industry peers.
A Debt/Equity ratio of 2.28 is on the high side and indicates that TAC has dependencies on debt financing.
TAC has a Debt to Equity ratio (2.28) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 2.28
Debt/FCF 14.89
Altman-Z 0.53
ROIC/WACC0.51
WACC6.59%
TAC Yearly LT Debt VS Equity VS FCFTAC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 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 TAC may have some problems paying its short term obligations.
TAC has a Current ratio (0.79) which is in line with its industry peers.
A Quick Ratio of 0.72 indicates that TAC may have some problems paying its short term obligations.
The Quick ratio of TAC (0.72) is worse than 65.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.79
Quick Ratio 0.72
TAC Yearly Current Assets VS Current LiabilitesTAC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

3

3. Growth

3.1 Past

The earnings per share for TAC have decreased strongly by -102.94% in the last year.
TAC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.80% yearly.
TAC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -20.91%.
The Revenue has been growing slightly by 3.92% on average over the past years.
EPS 1Y (TTM)-102.94%
EPS 3YN/A
EPS 5Y26.8%
EPS Q2Q%0%
Revenue 1Y (TTM)-20.91%
Revenue growth 3Y1.5%
Revenue growth 5Y3.92%
Sales Q2Q%-26.19%

3.2 Future

The Earnings Per Share is expected to grow by 22.27% 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 -2.75% yearly.
EPS Next Y-72.18%
EPS Next 2Y-25.75%
EPS Next 3Y-13.76%
EPS Next 5Y22.27%
Revenue Next Year-6.21%
Revenue Next 2Y-12.92%
Revenue Next 3Y-6.56%
Revenue Next 5Y-2.75%

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.
TAC Yearly Revenue VS EstimatesTAC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 1 -1 2

2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for TAC. In the last year negative earnings were reported.
TAC is valuated quite expensively with a Price/Forward Earnings ratio of 80.10.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TAC is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.50. TAC is valued rather expensively when compared to this.
Industry RankSector Rank
PE N/A
Fwd PE 80.1
TAC Price Earnings VS Forward Price EarningsTAC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 -200 -400

4.2 Price Multiples

TAC's Enterprise Value to EBITDA ratio is in line with the industry average.
TAC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TAC is cheaper than 90.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 24.2
EV/EBITDA 13.27
TAC Per share dataTAC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6

4.3 Compensation for Growth

A cheap valuation may be justified as TAC's earnings are expected to decrease with -13.76% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-25.75%
EPS Next 3Y-13.76%

5

5. Dividend

5.1 Amount

TAC has a Yearly Dividend Yield of 3.91%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.71, TAC pays a bit more dividend than its industry peers.
TAC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
Industry RankSector Rank
Dividend Yield 3.91%

5.2 History

On average, the dividend of TAC grows each year by 6.10%, which is quite nice.
TAC has been paying a dividend for at least 10 years, so it has a reliable track record.
TAC has decreased its dividend 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6

5.3 Sustainability

The earnings of TAC are negative and hence is the payout ratio. TAC will probably not be able to sustain this dividend level.
TAC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-74.25%
EPS Next 2Y-25.75%
EPS Next 3Y-13.76%
TAC Yearly Income VS Free CF VS DividendTAC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M -400M 600M

TRANSALTA CORP

NYSE:TAC (10/31/2025, 3:58:58 PM)

17.655

+0.02 (+0.09%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)08-01 2025-08-01/bmo
Earnings (Next)11-06 2025-11-06
Inst Owners71.21%
Inst Owner Change-0.01%
Ins Owners0.44%
Ins Owner ChangeN/A
Market Cap5.23B
Revenue(TTM)2.51B
Net Income(TTM)-167000000
Analysts78.95
Price Target13.54 (-23.31%)
Short Float %1.91%
Short Ratio3.2
Dividend
Industry RankSector Rank
Dividend Yield 3.91%
Yearly Dividend0.29
Dividend Growth(5Y)6.1%
DP-74.25%
Div Incr Years2
Div Non Decr Years2
Ex-Date08-29 2025-08-29 (0.065)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)17.25%
Min EPS beat(2)-21.18%
Max EPS beat(2)55.69%
EPS beat(4)1
Avg EPS beat(4)-176.87%
Min EPS beat(4)-564.33%
Max EPS beat(4)55.69%
EPS beat(8)4
Avg EPS beat(8)-7.79%
EPS beat(12)6
Avg EPS beat(12)9.91%
EPS beat(16)7
Avg EPS beat(16)-93.68%
Revenue beat(2)1
Avg Revenue beat(2)3.34%
Min Revenue beat(2)-14.2%
Max Revenue beat(2)20.88%
Revenue beat(4)3
Avg Revenue beat(4)12.25%
Min Revenue beat(4)-14.2%
Max Revenue beat(4)24.1%
Revenue beat(8)6
Avg Revenue beat(8)27.41%
Revenue beat(12)10
Avg Revenue beat(12)34.69%
Revenue beat(16)14
Avg Revenue beat(16)33.54%
PT rev (1m)-1.12%
PT rev (3m)5.26%
EPS NQ rev (1m)-5.31%
EPS NQ rev (3m)-28.83%
EPS NY rev (1m)-5.76%
EPS NY rev (3m)-64.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-1.56%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 80.1
P/S 2.92
P/FCF 24.2
P/OCF 12.06
P/B 4.64
P/tB 9.19
EV/EBITDA 13.27
EPS(TTM)-0.04
EYN/A
EPS(NY)0.22
Fwd EY1.25%
FCF(TTM)0.73
FCFY4.13%
OCF(TTM)1.46
OCFY8.29%
SpS6.04
BVpS3.8
TBVpS1.92
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA -1.87%
ROE -10.58%
ROCE 4.04%
ROIC 3.34%
ROICexc 3.5%
ROICexgc 3.96%
OM 11.45%
PM (TTM) N/A
GM 83.61%
FCFM 12.09%
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-Score4
Asset Turnover0.28
Health
Industry RankSector Rank
Debt/Equity 2.28
Debt/FCF 14.89
Debt/EBITDA 4.18
Cap/Depr 53.32%
Cap/Sales 12.17%
Interest Coverage 1.05
Cash Conversion 70.78%
Profit Quality N/A
Current Ratio 0.79
Quick Ratio 0.72
Altman-Z 0.53
F-Score4
WACC6.59%
ROIC/WACC0.51
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)-102.94%
EPS 3YN/A
EPS 5Y26.8%
EPS Q2Q%0%
EPS Next Y-72.18%
EPS Next 2Y-25.75%
EPS Next 3Y-13.76%
EPS Next 5Y22.27%
Revenue 1Y (TTM)-20.91%
Revenue growth 3Y1.5%
Revenue growth 5Y3.92%
Sales Q2Q%-26.19%
Revenue Next Year-6.21%
Revenue Next 2Y-12.92%
Revenue Next 3Y-6.56%
Revenue Next 5Y-2.75%
EBIT growth 1Y-71.1%
EBIT growth 3Y17%
EBIT growth 5Y12.72%
EBIT Next Year63.68%
EBIT Next 3Y15.38%
EBIT Next 5Y19.44%
FCF growth 1Y269.27%
FCF growth 3Y-2.47%
FCF growth 5Y2.59%
OCF growth 1Y-40.86%
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 for TAC stock?

ChartMill assigns a valuation rating of 2 / 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 expected EPS growth for TAC stock?

The Earnings per Share (EPS) of TRANSALTA CORP (TAC) is expected to decline by -72.18% in the next year.


Is the dividend of TRANSALTA CORP sustainable?

The dividend rating of TRANSALTA CORP (TAC) is 5 / 10 and the dividend payout ratio is -74.25%.