# TransAlta Corporation (TAC) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Utilities / Independent Power and Renewable Electricity Producers. Price $11.96, market value $3.8 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: 11.3×**. Enterprise value is 11.3× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 8.5%** (5-yr avg 13.1%). Free cash flow equals 8.5% of the market value, below its five-year average of 13.1%, so the shares are pricier on cash than usual. Above 5% is generally attractive.

## Profitability
- **Gross margin: 63.9%**. TransAlta Corporation keeps 63.9% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 8.3%**. 8.3% of revenue is left after running the business.
- **Net margin: -6.6%**. The company reported a net loss over the last twelve months.
- **Return on equity: -10.8%**. Return on equity is negative because earnings are negative.
- **Return on invested capital: 1.9%**. Return on all capital, debt included, is 1.9%: 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): -15.5%** (3-yr -6.9%/yr, 5-yr 2.7%/yr). Revenue fell 15.5% 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: 2.45**. Debt is 2.45 times equity, a leveraged balance sheet, which is normal for utilities.
- **Net debt / EBITDA: 4.4×**. It would take 4.4 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Interest coverage: 0.7×**. Operating profit covers interest only 0.7×: fragile.
- **Altman Z-score: 0.88**. A Z-score of 0.88 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 3/9**. 3 of 9 checks pass: weak or deteriorating financials.

## Dividends
- **Dividend yield: 1.68%** ($0.20 per share, trailing). TransAlta Corporation yields 1.68%, a modest yield more typical of a growth-oriented payer.
- **Consecutive years of increases: 7**. 7 straight years of increases.
- **Dividend growth (5 yr): 6.6%/yr** (1-yr 0.7%). The dividend has grown 6.6% a year over five years.

## Analyst view
- **Analyst consensus: buy** (2 analysts). 2 analysts cover TransAlta Corporation; the consensus is buy, with an average price target of $13.37 (+12% 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): -1.0%** (YTD -5.0%, 3-mo -5.7%). The shares are down 1.0% over twelve months including dividends.
- **From 52-week high: -33.1%** (5.1% above the low). Trading 33% 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): 41**. An RSI of 41 is neutral.
- **Beta (1 yr): 1.11** (volatility 41%). Beta of 1.11 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=TAC · Page: https://foliofundamentals.com/stocks/tac

Not investment advice.