(TAC) TransAlta - Overview

Sector: Utilities | Industry: Utilities - Independent Power Producers | Exchange: NYSE (USA) | Market Cap: 4.019m USD | Total Return: 59.1% in 12m

Electricity, Energy, Renewables, Gas, Marketing
Total Rating 37
Safety 41
Buy Signal -0.58
Utilities - Independent Power Producers
Industry Rotation: -10.8
Market Cap: 4.02B
Avg Turnover: 16.7M USD
ATR: 3.44%
Peers RS (IBD): 38.9
Risk 5d forecast
Volatility40.4%
Rel. Tail Risk-15.4%
Reward TTM
Sharpe Ratio1.46
Alpha43.24
Character TTM
Beta0.658
Beta Downside0.322
Drawdowns 3y
Max DD43.26%
CAGR/Max DD0.38
EPS (Earnings per Share) EPS (Earnings per Share) of TAC over the last years for every Quarter: "2021-03": -0.11, "2021-06": 0.05, "2021-09": -1.68, "2021-12": -0.29, "2022-03": 0.69, "2022-06": -0.3, "2022-09": 0.23, "2022-12": -0.61, "2023-03": 1.1, "2023-06": 0.23, "2023-09": 1.41, "2023-12": -0.27, "2024-03": 0.72, "2024-06": 0.18, "2024-09": -0.0892, "2024-12": -0.3271, "2025-03": 0.1, "2025-06": 0.18, "2025-09": -0.2, "2025-12": -0.06, "2026-03": 0,
EPS CAGR: 18.68%
EPS Trend: -15.4%
Last SUE: -0.13
Qual. Beats: 0
Revenue Revenue of TAC over the last years for every Quarter: 2021-03: 642, 2021-06: 619, 2021-09: 850, 2021-12: 610, 2022-03: 735, 2022-06: 458, 2022-09: 929, 2022-12: 854, 2023-03: 1089, 2023-06: 625, 2023-09: 1017, 2023-12: 624, 2024-03: 947, 2024-06: 582, 2024-09: 638, 2024-12: 678, 2025-03: 758, 2025-06: 433, 2025-09: 615, 2025-12: 598.511854, 2026-03: null,
Rev. CAGR: -5.33%
Rev. Trend: -34.0%
Last SUE: -0.71
Qual. Beats: 0

Warnings

High Debt/EBITDA (6.6) with thin interest coverage (0.1)

Interest Coverage Ratio 0.1 is critical

Altman Z'' -1.32 < 1.0 - financial distress zone

Tailwinds

No distinct edge detected

Description: TAC TransAlta

TransAlta Corporation (TAC) develops, produces, and sells electric energy. The company operates across various segments, reflecting a diversified power generation business model.

Its Hydro segment manages 922 MW of hydroelectric capacity in Canada. The Wind and Solar segment includes 2,057 MW of renewable generation and battery storage across Canada, the United States, and Australia. The Gas segment contributes 2,775 MW of gas-fired generation in Canada, the US, and Australia. The Energy Transition segment focuses on 671 MW of coal-fired generation and mine reclamation. The Energy Marketing segment trades power, natural gas, and environmental products, a common practice for independent power producers to optimize asset utilization and revenue.

TransAlta serves diverse industries, including commercial real estate, manufacturing, and oil and gas. The company, founded in 1909 and headquartered in Calgary, Canada, operates within the Independent Power Producers & Energy Traders sub-industry.

To deepen your understanding of TACs financial health and market position, consider exploring its detailed financials on ValueRay.

Headlines to Watch Out For
  • Renewable energy project development drives future revenue growth
  • Natural gas prices impact generation costs and profitability
  • Regulatory changes affect carbon emission costs and compliance
  • Wholesale power prices dictate electricity sales revenue
  • Hydro generation levels depend on precipitation and water availability
Piotroski VR‑10 (Strict) 2.0
Net Income: -138.0m TTM > 0 and > 6% of Revenue
FCF/TA: 0.05 > 0.02 and ΔFCF/TA -0.41 > 1.0
NWC/Revenue: -20.53% < 20% (prev -27.98%; Δ 7.45% < -1%)
CFO/TA 0.08 > 3% & CFO 652.8m > Net Income -138.0m
Net Debt (4.20b) to EBITDA (632.9m): 6.63 < 3
Current Ratio: 0.73 > 1.5 & < 3
Outstanding Shares: last quarter (297.0m) vs 12m ago 0.34% < -2%
Gross Margin: 44.83% > 18% (prev 0.63%; Δ 4.42k% > 0.5%)
Asset Turnover: 26.49% > 50% (prev 29.95%; Δ -3.46% > 0%)
Interest Coverage Ratio: 0.10 > 6 (EBITDA TTM 632.9m / Interest Expense TTM 269.9m)
Altman Z'' -1.32
A: -0.06 (Total Current Assets 1.33b - Total Current Liabilities 1.83b) / Total Assets 8.65b
B: -0.32 (Retained Earnings -2.73b / Total Assets 8.65b)
C: 0.00 (EBIT TTM 26.1m / Avg Total Assets 9.08b)
D: 0.06 (Book Value of Equity 414.7m / Total Liabilities 7.19b)
Altman-Z'' Score: -1.32 = CCC
Beneish M -2.57
DSRI: 1.29 (Receivables 698.4m/643.0m, Revenue 2.40b/2.85b)
GMI: 1.41 (GM 44.83% / 63.06%)
AQI: 1.09 (AQ_t 0.18 / AQ_t-1 0.16)
SGI: 0.85 (Revenue 2.40b / 2.85b)
TATA: -0.09 (NI -138.0m - CFO 652.8m) / TA 8.65b)
Beneish M-Score: -2.57 (Cap -4..+1) = A
What is the price of TAC shares? As of April 10, 2026, the stock is trading at USD 13.83 with a total of 881,567 shares traded.
Over the past week, the price has changed by +2.60%, over one month by +9.33%, over three months by +12.22% and over the past year by +59.07%.
Is TAC a buy, sell or hold? TransAlta has received a consensus analysts rating of 3.73. Therefor, it is recommend to hold TAC.
  • StrongBuy: 3
  • Buy: 3
  • Hold: 4
  • Sell: 1
  • StrongSell: 0
What are the forecasts/targets for the TAC price?
Analysts Target Price 13.4 -3.3%
TransAlta (TAC) - Fundamental Data Overview as of 09 April 2026
Market Cap CAD = 5.56b (4.02b USD * 1.3823 USD.CAD)
P/E Forward = 125.0
P/S = 1.6712
P/B = 12.3577
P/EG = 6.9786
Revenue TTM = 2.40b CAD
EBIT TTM = 26.1m CAD
EBITDA TTM = 632.9m CAD
Long Term Debt = 3.28b CAD (from longTermDebt, last quarter)
Short Term Debt = 924.2m CAD (from shortTermDebt, last quarter)
Debt = 4.48b CAD (from shortLongTermDebtTotal, last quarter)
Net Debt = 4.20b CAD (from netDebt column, last quarter)
Enterprise Value = 9.75b CAD (5.56b + Debt 4.48b - CCE 282.8m)
Interest Coverage Ratio = 0.10 (Ebit TTM 26.1m / Interest Expense TTM 269.9m)
EV/FCF = 24.57x (Enterprise Value 9.75b / FCF TTM 396.9m)
FCF Yield = 4.07% (FCF TTM 396.9m / Enterprise Value 9.75b)
FCF Margin = 16.51% (FCF TTM 396.9m / Revenue TTM 2.40b)
Net Margin = -5.74% (Net Income TTM -138.0m / Revenue TTM 2.40b)
Gross Margin = 44.83% ((Revenue TTM 2.40b - Cost of Revenue TTM 1.33b) / Revenue TTM)
Gross Margin QoQ = 23.04% (prev 28.29%)
Tobins Q-Ratio = 1.13 (Enterprise Value 9.75b / Total Assets 8.65b)
Interest Expense / Debt = 1.47% (Interest Expense 65.9m / Debt 4.48b)
Taxrate = 21.0% (US default 21%)
NOPAT = 20.6m (EBIT 26.1m * (1 - 21.00%))
Current Ratio = 0.73 (Total Current Assets 1.33b / Total Current Liabilities 1.83b)
Debt / Equity = 3.21 (Debt 4.48b / totalStockholderEquity, last quarter 1.40b)
Debt / EBITDA = 6.63 (Net Debt 4.20b / EBITDA 632.9m)
Debt / FCF = 10.58 (Net Debt 4.20b / FCF TTM 396.9m)
Total Stockholder Equity = 1.56b (last 4 quarters mean from totalStockholderEquity)
RoA = -1.52% (Net Income -138.0m / Total Assets 8.65b)
RoE = -8.84% (Net Income TTM -138.0m / Total Stockholder Equity 1.56b)
RoCE = 0.54% (EBIT 26.1m / Capital Employed (Equity 1.56b + L.T.Debt 3.28b))
RoIC = 0.41% (NOPAT 20.6m / Invested Capital 5.06b)
WACC = 5.11% (E(5.56b)/V(10.04b) * Re(8.30%) + D(4.48b)/V(10.04b) * Rd(1.47%) * (1-Tc(0.21)))
Discount Rate = 8.30% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -1.80%
[DCF] Terminal Value 80.82% ; FCFF base≈428.1m ; Y1≈281.1m ; Y5≈128.5m
 [DCF] Fair Price = N/A (negative equity: EV 4.08b - Net Debt 4.20b = -117.3m; debt exceeds intrinsic value)
 EPS Correlation: -15.40 | EPS CAGR: 18.68% | SUE: -0.13 | # QB: 0
Revenue Correlation: -34.03 | Revenue CAGR: -5.33% | SUE: -0.71 | # QB: 0
EPS next Quarter (2026-06-30): EPS=0.15 | Chg7d=-0.008 | Chg30d=+0.008 | Revisions Net=+0 | Analysts=4
EPS current Year (2026-12-31): EPS=0.24 | Chg7d=+0.010 | Chg30d=+0.012 | Revisions Net=+0 | Growth EPS=+27.6% | Growth Revenue=-13.4%
EPS next Year (2027-12-31): EPS=0.56 | Chg7d=+0.061 | Chg30d=+0.085 | Revisions Net=+0 | Growth EPS=+133.0% | Growth Revenue=+6.5%
[Analyst] Revisions Ratio: +0.00 (1 Up / 1 Down within 30d for Current Year)
External Resources
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