TransAlta Corporation
TransAlta Corporation is an independent power producer focused on the development, ownership, operation, and sale of electric energy. The company manages a diversified portfolio of power generation and energy-related activities across hydro, wind, solar, gas, energy transition, and energy marketing segments. Its operations support electricity supply for municipalities, businesses, industrial customers, and utility partners through renewable and thermal generation assets, battery storage, and commercial optimization services. TransAlta Corporation serves markets in Canada, the United States, and Western Australia, making it a significant participant in North American and Australian power generation. Headquartered in Calgary, Canada, TransAlta Corporation plays a central role in providing reliable electricity and balancing conventional and renewable energy sources within the broader utilities sector.
$13.34
+$0.37 (+2.85%)
Price from 2 days ago
Operating margin is thin at 2.91%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue declined 15.5% YoY. Margins deteriorated 17.5pp alongside, both lines moving the wrong way.
Free cash flow declined 19% versus the prior year, cash generation momentum has weakened. ROIC dropped from 7.33% to 0.91%, capital efficiency is deteriorating.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
C$2.27B
▼ -15.5% YoY
Net Income (TTM)
-C$25M
▼ -166.1% YoY
Op. Margin
8.34%
▼ -17.5pp YoY
ROIC
0.91%
▼ -6.4pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
C$444M
▼ -19.2% YoY
Op. Cash Flow (TTM)
C$667M
▼ -1.4% YoY
Net Debt
C$4.14B
Cash & Equiv.
C$205M
3Y CAGR: -6.9%
Continue Research
Is TransAlta (TAC) overvalued?
TransAlta (TAC) trades above a two-stage DCF intrinsic value of about C$11.78 per share, so at C$13.34 the stock looks overvalued (11.7% above estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, TransAlta scores 24/100 on Intrinsiqq's quality scorecard (a lower-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 0.8%; see dividend safety for coverage and history. All figures are computed from company filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is TransAlta's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about C$11.78 per share for TAC, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around C$8.83. At today's C$13.34, that puts the stock about 11.7% above estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is TransAlta a high-quality business?+
TransAlta scores 24 out of 100 on Intrinsiqq's quality score, a weighted blend of 7 metrics each scored 0 to 100, which makes it a lower-quality business on these measures. Recent fundamentals include a 8.3% operating margin and a 0.9% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from company filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Does TransAlta (TAC) pay a dividend, and how much?+
Yes, TransAlta pays a regular dividend of about C$0.14 per share per year (typically in quarterly installments), a yield of roughly 0.8% at the current price. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For TAC's full payout history, growth streak and dividend-safety score, see the dividends tab.
Is TransAlta a good stock to buy right now?+
That depends on valuation and quality together, not either alone. TAC currently trades above its estimated intrinsic value and scores 24/100 on quality (lower-quality). It also yields about 0.8%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from company filings, not investment advice.
Related stocks: Utilities - Independent Power Producers
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Data sourced from company filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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