TAC

HoldHot Air

TransAlta Corporation · Utilities · Canada · $3.8B · Avg Vol: $23M/d

Hot Air: Rising on momentum alone: weak business, rich price.

35
StockRank
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Quality
38
Value
33
Momentum
54
P/E (TTM)
—
peers 22.5x
ROE
-1.4%
peers 2.5%
D/E
2.3x
peers 1.4x
Dividend %
1.2%
trailing yield

ABOUT TRANSALTA CORPORATION

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TransAlta Corporation is a Canadian independent power producer that owns and operates a diversified portfolio of wind, hydro, solar, and natural gas power generation facilities. The company's competitive position is secured by long-term power purchase agreements (PPAs) that provide stable, predictable cash flows. TransAlta is a key player in the clean energy transition, having successfully phased out coal generation in Canada to focus on expanding its renewable energy footprint.

FINANCIAL SUMMARY (USD)

Year2022202320242025CAGRTTM2026E2027EFwd CAGR
Revenue2.1B2.4B2.0B1.7B-6.9%1.6B1.5B1.6B-1.7%
EPS0.011.650.42-0.45668.1%-0.22———
Shares268.3M306.9M297.5M296.7M+10.6%316.3M———
Debt2.8B2.7B3.2B3.1B2.7%3.0B———
Equity785.0M1.1B1.2B989.4M8.0%————
Op CF620.2M1.0B563.0M456.9M-9.7%476.3M———
Inv CF-524.1M-575.7M-367.8M-295.6M—————
Fin CF31.8M-1.0B-205.8M-256.0M—————
Loading 1Y...
PRICE (1Y)-6.7%
11.5011.8212.1412.4712.7913 Aug3 Sep24 Sep
SMA 50SMA 200

Close
$11.77
RSI (14)
49.3
52-Week Range-33.4% from high
Low $11.29High $17.68

SCORE BREAKDOWN

Quality
38
ROIC
3.9%24.3
ROE
-1.4%11.2
GP/Assets
8.8%48.4
Op. Margin
33.3%85.7
FCF/Assets
7.4%90.3
Piotroski
413.2
Int. Cover
1.0x12.7
D/E Ratio
2.29x10.7
Current Ratio
0.84x32.3
Value
33
P/E (TTM)
—N/A
EV/EBITDA
14.5x30.2
P/FCF
7.9x72.5
P/B
8.9x2.9
P/S
2.4x38.2
Div Yield
1.2%13.9
Momentum
54
52W High %
67%31.9
RS 6M
-27%41.4
SMA 50/200
0.97x40.2
EPS Rev 4W
+5.9%92.2
EPS Rev 12W
+3.7%90.0
EPS Improve
+292%92.2
Q Growth
—N/A

FUNDAMENTALS

Market Cap
$3.8B
P/E (Forward)
28.9x
Gross Margin
34.8%

SECTOR PEERS

Closest peers in Utilities, ranked by industry match, size, and score similarity. Cross-listings of TAC are excluded.

TickerCompanyMkt CapStockRankSignal
TACTransAlta Corporation(you)$3.8B35Hold
CPX.TOCapital Power Corporation$7.0B20Sell
MXG.TOMaxim Power Corp.$188M26Sell
AQNAlgonquin Power & Utilities Corp.$3.9B32Sell
CU.TOCanadian Utilities Limited$9.8B45Hold
EMA.TOEmera Incorporated$14.8B38Hold
H.TOHydro One Limited$21.8B32Sell
FTSFortis Inc.$27.2B34Sell
ACO-X.TOATCO Ltd.$5.9B67Buy
NPI.TONorthland Power Inc.$4.3B75Buy

Peer medians: ROE 2.5% · P/E 22.5x · Gross margin 45.4%

Company Deep Dive

Business segments breakdown, earnings transcript analysis, management credibility scoring, competitive landscape, and scenario modelling.

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TransAlta Corporation (TAC): Stock Score Summary

TransAlta Corporation (TAC) has a MoatMap StockRank of 35/100 based on Quality (38/100), Value (33/100), and Momentum (54/100) factor scores. The current signal is HOLD.

TransAlta Corporation is a Canadian independent power producer that owns and operates a diversified portfolio of wind, hydro, solar, and natural gas power generation facilities. The company's competitive position is secured by long-term power purchase agreements (PPAs) that provide stable, predictable cash flows. TransAlta is a key player in the clean energy transition, having successfully phased out coal generation in Canada to focus on expanding its renewable energy footprint.

Key Financial Metrics

Price$11.77
Market Cap$3.8B
P/E (Forward)28.89
Price/Book8.94
Return on Equity-1.4%
Return on Invested Capital3.9%
Debt/Equity2.29x
Gross Margin34.8%
Operating Margin33.3%
Revenue Growth12.5%
Dividend Yield1.2%
Free Cash Flow$477M

TransAlta Corporation operates in the Utilities - Independent Power Producers industry, part of the Utilities sector (Canada).

Frequently Asked Questions

What is TransAlta Corporation’s (TAC) StockRank?
MoatMap’s StockRank for TransAlta Corporation (TAC) is 35/100, with a Hold signal. It is a composite of Quality (38), Value (33), and Momentum (54) factor ranks across MoatMap’s universe of 25,000+ stocks.
Does TransAlta Corporation have an economic moat?
TransAlta Corporation (TAC) has a Quality factor score of 38/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage: the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is TransAlta Corporation a buy, hold, or sell?
MoatMap’s current signal for TransAlta Corporation (TAC) is Hold, based on a StockRank of 35/100. Signals are derived mechanically from the StockRank composite and should be one input among many; combine with your own thesis on management, competitive position, and valuation.
What sector is TransAlta Corporation in?
TransAlta Corporation (TAC) operates in the Utilities sector, specifically the Utilities - Independent Power Producers industry (Canada).