TransAlta Corporation (TAC) 10-Year Financial Performance & Capital Metrics

TAC • • Utilities

UtilitiesIndependent PowerIntegrated Power ProducersRegional Integrated Operators

AboutTransAlta Corporation owns, operates, and develops a diverse fleet of electrical power generation assets in Canada, the United States, and Australia. It operates through four segments: Hydro, Wind and Solar, Gas, and Energy Transition. owns and operates hydro, wind and solar, natural gas-fired, and coal-fired facilities. The company also engages in wholesale trading of electricity and other energy-related commodities and derivatives; and related mining operations and natural gas pipeline operations. It serves municipalities, medium and large industries, businesses, and utility customers. The company was founded in 1909 and is headquartered in Calgary, Canada.Show more

Revenue $2.85B -15.2%
EBITDA $1.12B -34.7%
Net Income $229M -67.1%
Free Cash Flow $276M -52.1%
EBITDA Margin 39.23% -23.0%
Net Margin 8.05% -61.1%
ROE 13.06% -65.7%
Interest Coverage 2.34 -54.4%
Debt/Equity 2.47 +8.0%
Net Debt/EBITDA 3.78 +86.7%
CapEx / Revenue 18.28% -29.9%
CapEx Coverage 1.53 -8.5%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Strong 5Y profit CAGR of 22.8%
✓Good 3Y average ROE of 17.8%

✗Weaknesses

✗High debt to equity ratio of 2.5x
✗Weak Piotroski F-Score: 3/9
✗Trading more than 30% below 52-week high

Price & Volume

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Growth Metrics

Revenue CAGR

10Y0.82%

5Y3.92%

3Y1.5%

TTM-20.91%

Profit (Net Income) CAGR

10Y2.32%

5Y22.8%

3Y-

TTM-118.61%

EPS CAGR

10Y1.44%

5Y-0.65%

3Y-

TTM-126.89%

ROCE

10Y Avg3.98%

5Y Avg5.22%

3Y Avg10.07%

Latest8.45%

Peer Comparison

Regional Integrated Operators

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
TLNTalen Energy Corporation	19.15B	419.07	23.72	-15.01%	9.65%	15.38%	6.73%	2.17
TACTransAlta Corporation	3.66B	12.35	20.58	-15.2%	-4.59%	-6.92%	7.53%	2.47

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Revenue+	2.27B	2.4B	2.31B	2.25B	2.35B	2.1B	2.72B	2.98B	3.35B	2.85B
Revenue Growth %	-0.14%	0.06%	-0.04%	-0.03%	0.04%	-0.1%	0.3%	0.09%	0.13%	-0.15%
Cost of Revenue	1.01B	963M	1.02B	1.1B	1.09B	968M	1.23B	1.34B	1.17B	1.05B
Gross Profit+	1.26B	1.43B	1.29B	1.15B	1.26B	1.13B	1.49B	1.64B	2.18B	1.79B
Gross Margin %	-	-	-	-	-	-	-	-	-	-
Gross Profit Growth %	-0.18%	0.14%	-0.1%	-0.11%	0.1%	-0.1%	0.31%	0.1%	0.34%	-0.18%
Operating Expenses+	1.12B	930M	1.13B	916M	926M	1.23B	1.73B	1.1B	1.09B	1.21B
Other Operating Expenses	-	-	-	-	-	-	-	-	-	-
EBITDA+	753M	1.16B	869M	894M	1.04B	699M	480M	1.13B	1.71B	1.12B
EBITDA Margin %	-	-	-	-	-	-	-	-	-	-
EBITDA Growth %	-0.27%	0.54%	-0.25%	0.03%	0.17%	-0.33%	-0.31%	1.35%	0.51%	-0.35%
Depreciation & Amortization+	605M	683M	731M	734M	709M	798M	719M	599M	621M	531M
D&A / Revenue %	-	-	-	-	-	-	-	-	-	-
Operating Income (EBIT)+	148M	478M	138M	160M	335M	-99M	-239M	531M	1.09B	585M
Operating Margin %	-	-	-	-	-	-	-	-	-	-
Operating Income Growth %	-0.67%	2.23%	-0.71%	0.16%	1.09%	-1.3%	-1.41%	3.22%	1.05%	-0.46%
Interest Expense+	251M	243M	175.59M	224M	212M	229M	213M	212M	212M	250M
Interest Coverage	0.59x	1.97x	0.79x	0.71x	1.58x	-0.43x	-1.12x	2.50x	5.14x	2.34x
Interest / Revenue %	-	-	-	-	-	-	-	-	-	-
Non-Operating Income	1000K	-1000K	-1000K	-1000K	-1000K	-1000K	-1000K	-1000K	-1000K	-1000K
Pretax Income+	221M	314M	-54M	-96M	193M	-303M	-380M	353M	880M	319M
Pretax Margin %	-	-	-	-	-	-	-	-	-	-
Income Tax+	105M	38M	64M	-6M	17M	-50M	45M	192M	84M	80M
Effective Tax Rate %	-	-	-	-	-	-	-	-	-	-
Net Income+	22M	169M	-160M	-198M	82M	-287M	-537M	50M	695M	229M
Net Margin %	-	-	-	-	-	-	-	-	-	-
Net Income Growth %	-0.88%	6.68%	-1.95%	-0.24%	1.41%	-4.5%	-0.87%	1.09%	12.9%	-0.67%
EPS (Diluted)+	-0.09	0.41	-0.56	-0.69	0.62	-0.92	-1.57	0.59	2.33	0.60
EPS Growth %	-1.17%	5.56%	-2.37%	-0.23%	1.9%	-2.48%	-0.71%	1.38%	2.95%	-0.74%
EPS (Basic)	-0.09	0.41	-0.56	-0.69	0.62	-0.92	-1.57	0.59	2.33	0.60
Diluted Shares Outstanding	280M	288M	288M	287M	283M	275M	271M	271M	276M	296M

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Assets+	10.95B	11B	10.3B	9.43B	9.51B	9.75B	9.23B	10.74B	8.66B	9.5B
Asset Growth %	0.11%	0%	-0.06%	-0.09%	0.01%	0.03%	-0.05%	0.16%	-0.19%	0.1%
PP&E (Net)+	7.17B	6.82B	6.58B	6.16B	6.35B	5.96B	5.42B	5.72B	5.83B	6.17B
PP&E / Total Assets %	-	-	-	-	-	-	-	-	-	-
Total Current Assets+	1.16B	1.55B	1.71B	1.31B	1.34B	1.9B	2.2B	3.71B	1.58B	1.77B
Cash & Equivalents	54M	305M	314M	89M	411M	703M	947M	1.13B	348M	337M
Receivables	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Inventory	219M	213M	219M	242M	251M	238M	167M	157M	157M	134M
Other Current Assets	372M	387M	286M	317M	240M	396M	458M	1.1B	456M	659M
Long-Term Investments	1.66B	1.7B	1.08B	1.04B	0	100M	105M	129M	138M	159M
Goodwill	465M	464M	463M	464M	464M	463M	463M	464M	464M	517M
Intangible Assets	369M	355M	364M	373M	318M	313M	256M	252M	223M	281M
Other Assets	42M	46M	83M	47M	1.01B	955M	726M	410M	402M	547M
Total Liabilities	6.56B	6.33B	5.92B	5.29B	5.45B	6.31B	6.63B	8.75B	7B	7.66B
Total Debt+	4.5B	4.36B	3.71B	3.27B	3.54B	3.69B	3.6B	4.01B	3.81B	4.56B
Net Debt	4.44B	4.06B	3.39B	3.18B	3.13B	2.99B	2.65B	2.87B	3.46B	4.22B
Long-Term Debt	4.34B	3.67B	2.91B	3.07B	2.9B	3.46B	2.67B	3.69B	3.14B	3.09B
Short-Term Borrowings	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Capital Lease Obligations	82M	73M	69M	63M	142M	134M	100M	135M	143M	151M
Total Current Liabilities+	853M	1.22B	1.61B	873M	1.12B	935M	1.93B	2.89B	1.74B	2.57B
Accounts Payable	334M	413M	595M	496M	413M	599M	654M	1.07B	772M	694M
Accrued Expenses	0	0	0	-7M	0	0	17M	17M	16M	17M
Deferred Revenue	232M	99M	165M	10M	1M	1M	19M	8M	3M	12M
Other Current Liabilities	366M	105M	168M	153M	139M	153M	309M	1.2B	349M	361M
Deferred Taxes	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Liabilities	1.3B	1.39B	1.35B	1.3B	818M	1.38B	1.58B	1.56B	1.5B	1.31B
Total Equity+	4.39B	4.66B	4.38B	4.13B	4.06B	3.44B	2.59B	1.99B	1.66B	1.84B
Equity Growth %	0.13%	0.06%	-0.06%	-0.06%	-0.02%	-0.15%	-0.25%	-0.23%	-0.16%	0.11%
Shareholders Equity	3.36B	3.51B	3.33B	3B	2.96B	2.35B	1.58B	1.11B	1.54B	1.75B
Minority Interest	1.03B	1.15B	1.06B	1.14B	1.1B	1.08B	1.01B	879M	127M	97M
Common Stock	3.08B	3.09B	3.09B	3.06B	2.98B	2.9B	2.9B	2.86B	3.29B	3.18B
Additional Paid-in Capital	9M	9M	10M	11M	42M	38M	46M	41M	41M	42M
Retained Earnings	-1.02B	-933M	-1.21B	-1.5B	-1.46B	-1.83B	-2.45B	-2.51B	-2.57B	-2.46B
Accumulated OCI	353M	399M	489M	481M	454M	302M	146M	-222M	-164M	41M
Return on Assets (ROA)	0%	0.02%	-0.02%	-0.02%	0.01%	-0.03%	-0.06%	0.01%	0.07%	0.03%
Return on Equity (ROE)	0.01%	0.04%	-0.04%	-0.05%	0.02%	-0.08%	-0.18%	0.02%	0.38%	0.13%
Debt / Equity	1.02x	0.94x	0.85x	0.79x	0.87x	1.07x	1.39x	2.02x	2.29x	2.47x
Debt / Assets	0.41%	0.4%	0.36%	0.35%	0.37%	0.38%	0.39%	0.37%	0.44%	0.48%
Net Debt / EBITDA	5.90x	3.49x	3.90x	3.55x	3.00x	4.27x	5.53x	2.54x	2.03x	3.78x
Book Value per Share	15.68	16.19	15.23	14.4	14.35	12.49	9.57	7.34	6.03	6.23

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	432M	744M	626M	820M	849M	702M	1B	877M	1.46B	796M
Operating CF Growth %	-0.46%	0.72%	-0.16%	0.31%	0.04%	-0.17%	0.43%	-0.12%	0.67%	-0.46%
Operating CF / Revenue %	-	-	-	-	-	-	-	-	-	-
Net Income	116M	276M	-118M	-90M	176M	-253M	-425M	161M	796M	239M
Depreciation & Amortization	605M	664M	708M	710M	709M	798M	719M	599M	621M	531M
Deferred Taxes	86M	15M	-15M	-34M	-18M	-85M	-11M	127M	34M	-63M
Other Non-Cash Items	-65M	-265M	156M	116M	-136M	153M	544M	285M	-111M	51M
Working Capital Changes	-242M	73M	-114M	-44M	121M	89M	174M	-316M	124M	38M
Capital Expenditures+	-502M	-379M	-389M	-297M	-431M	-500M	-489M	-949M	-888M	-520M
CapEx / Revenue %	-	-	-	-	-	-	-	-	-	-
CapEx / D&A	-	-	-	-	-	-	-	-	-	-
CapEx Coverage (OCF/CapEx)	-	-	-	-	-	-	-	-	-	-
Cash from Investing+	-573M	-327M	87M	-394M	-512M	-687M	-472M	-741M	-814M	-520M
Acquisitions	-101M	6M	478M	-28M	-200M	-32M	8M	-10M	-13M	-217M
Purchase of Investments	-12M	-6M	-48M	20M	-1M	-102M	-6M	-10M	-13M	-5M
Sale of Investments	-1000K	0	1000K	1000K	1000K	1000K	0	1000K	1000K	1000K
Other Investing	61M	58M	40M	-91M	117M	-69M	6M	201M	69M	12M
Cash from Financing+	149M	-163M	-703M	-651M	-14M	272M	-282M	45M	-1.43B	-291M
Dividends Paid	-170M	-111M	-86M	-86M	-85M	-86M	-87M	-97M	-109M	-123M
Dividend Payout Ratio %	5.64%	0.41%	-	-	0.55%	-	-	1.08%	0.08%	0.31%
Debt Issuance (Net)	-1000K	-1000K	-1000K	-1000K	1000K	1000K	-1000K	1000K	-1000K	1000K
Stock Issued	0	0	0	0	0	0	8M	3M	5M	12M
Share Repurchases	0	0	0	-23M	-68M	-57M	-4M	-52M	-87M	-143M
Other Financing	385M	6M	-72M	-2M	-141M	-118M	-158M	-160M	-1.06B	-43M
Net Change in Cash+	11M	251M	9M	-225M	322M	292M	244M	187M	-786M	-11M
Exchange Rate Effect	1000K	-1000K	-1000K	0	-1000K	1000K	-1000K	1000K	-1000K	1000K
Cash at Beginning	43M	54M	305M	314M	89M	411M	703M	947M	1.13B	348M
Cash at End	54M	305M	314M	89M	411M	703M	947M	1.13B	348M	337M
Free Cash Flow+	-70M	365M	237M	523M	418M	202M	512M	-72M	576M	276M
FCF Growth %	-1.25%	6.21%	-0.35%	1.21%	-0.2%	-0.52%	1.53%	-1.14%	9%	-0.52%
FCF Margin %	-	-	-	-	-	-	-	-	-	-
FCF / Net Income %	-	-	-	-	-	-	-	-	-	-

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	0.53%	3.73%	-3.54%	-4.65%	2%	-7.66%	-17.81%	2.18%	38.05%	13.06%
EBITDA Margin	33.22%	48.44%	37.67%	39.75%	44.48%	33.27%	17.64%	37.97%	50.97%	39.23%
Net Debt / EBITDA	5.90x	3.49x	3.90x	3.55x	3.00x	4.27x	5.53x	2.54x	2.03x	3.78x
Interest Coverage	0.59x	1.97x	0.79x	0.71x	1.58x	-0.43x	-1.12x	2.50x	5.14x	2.34x
CapEx / Revenue	22.14%	15.81%	16.86%	13.21%	18.36%	23.13%	17.64%	31.89%	26.08%	18.28%
Dividend Payout Ratio	563.64%	40.83%	-	-	54.88%	-	-	108%	8.35%	31%
Debt / Equity	1.02x	0.94x	0.85x	0.79x	0.87x	1.07x	1.39x	2.02x	2.29x	2.47x
EPS Growth	-117.31%	555.56%	-236.59%	-23.21%	189.86%	-248.39%	-70.65%	137.58%	294.92%	-74.25%

Revenue by Geography

	2017	2018	2022
CANADA	1.66B	1.57B	1.91B
CANADA Growth	-	-5.41%	21.11%
UNITED STATES	509M	511M	940M
UNITED STATES Growth	-	0.39%	83.95%
AUSTRALIA	135M	165M	131M
AUSTRALIA Growth	-	22.22%	-20.61%

Frequently Asked Questions

Valuation & Price

TransAlta Corporation (TAC) has a price-to-earnings (P/E) ratio of 20.6x. This is roughly in line with market averages.

Growth & Financials

TransAlta Corporation (TAC) reported $2.51B in revenue for fiscal year 2024. This represents a 6% decrease from $2.66B in 2011.

TransAlta Corporation (TAC) saw revenue decline by 15.2% over the past year.

TransAlta Corporation (TAC) reported a net loss of $115.0M for fiscal year 2024.

Dividend & Returns

Yes, TransAlta Corporation (TAC) pays a dividend with a yield of 1.94%. This makes it attractive for income-focused investors.

TransAlta Corporation (TAC) has a return on equity (ROE) of 13.1%. This is reasonable for most industries.

TransAlta Corporation (TAC) had negative free cash flow of $13.0M in fiscal year 2024, likely due to heavy capital investments.

Industry Metrics

TransAlta Corporation (TAC) has a dividend payout ratio of 31%. This suggests the dividend is well-covered and sustainable.

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