# TransAlta Corporation (TA.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Utilities / Independent Power and Renewable Electricity Producers. Price C$16.55, market value C$5.2 billion.

## Valuation
- **P/E (trailing): n/a** (negative earnings). TransAlta Corporation reported negative earnings over the last twelve months, so the P/E is not meaningful; use price-to-sales, EV/EBITDA and free-cash-flow yield instead.
- **Price / sales: 2.3×**. Each dollar of revenue is priced at 2.3×.
- **Price / book: 6.2×**. The shares trade at 6.2× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 11.5×**. Enterprise value is 11.5× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 8.7%** (5-yr avg 9.5%). Free cash flow equals 8.7% of the market value, in line with its five-year average of 9.5%. Above 5% is generally attractive.

## Profitability
- **Gross margin: 43.6%**. TransAlta Corporation keeps 43.6% of revenue after the direct cost of what it sells.
- **Operating margin: 3.9%**. 3.9% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: -5.7%**. The company reported a net loss over the last twelve months.
- **Return on equity: -9.9%**. Return on equity is negative because earnings are negative.
- **Return on invested capital: 0.8%**. Return on all capital, debt included, is 0.8%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: -0.3%**. Each dollar of assets produces -0.3% of profit.

## Growth
- **Revenue growth (1 yr): -15.4%** (3-yr -6.8%/yr, 5-yr 2.7%/yr). Revenue fell 15.4% over the last year, against 2.7% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -208.5%**. Earnings per share fell 208.5%, slower than revenue, so margins compressed.

## Financial health
- **Debt to equity: 3.21**. Debt is 3.21 times equity, a leveraged balance sheet, which is normal for utilities.
- **Net debt / EBITDA: 5.1×**. It would take 5.1 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Interest coverage: 0.3×**. Operating profit covers interest only 0.3×: fragile.
- **Current ratio: 0.73** (quick 0.67). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 0.79**. A Z-score of 0.79 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 1.69%** (C$0.27 per share, trailing). TransAlta Corporation yields 1.69%, a modest yield more typical of a growth-oriented payer.
- **Consecutive years of increases: 5**. 5 straight years of increases.
- **Dividend growth (5 yr): 14.6%/yr** (1-yr 6.3%). The dividend has compounded at 14.6% a year over five years, doubling roughly every 5 years at that pace.
- **Shareholder yield: -4.8%**. Dividends plus net buybacks return -4.8% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (11 analysts). 11 analysts cover TransAlta Corporation; the consensus is buy, with an average price target of C$23.82 (+44% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -0.2%** (YTD -4.0%, 3-mo -6.4%). The shares are down 0.2% over twelve months including dividends.
- **From 52-week high: -33.9%** (6.0% above the low). Trading 34% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 40**. An RSI of 40 is neutral.
- **Beta (1 yr): 1.02** (volatility 39%). Beta of 1.02 against the S&P/TSX Composite: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=TA.TO · Page: https://foliofundamentals.com/stocks/ta.to

Not investment advice.