TA-PH.TO

Utilities

TransAlta Corp · Independent Power Producers · $8B

UQS Score — Balanced Preset
28.2
Poor

TransAlta Corp scores 28.2/100 using the Balanced preset.

UQS vs Utilities Sector
TA-PH.TO
28.2
Sector avg
43.5
Quality
Weak
Moat
Weak
Growth
Weak
Risk
Weak
Valuation
Neutral

What is TransAlta Corp?

TransAlta Corporation is a Canadian electric power generator operating across hydro, wind, solar, gas, and transitional energy assets. Headquartered in Calgary, it serves commercial, industrial, and municipal customers across Canada, the United States, and Australia.

TransAlta generates and sells electricity through a diversified portfolio of power assets. Revenue flows from long-term power purchase agreements and wholesale energy markets. Its Energy Marketing segment also trades power, natural gas, and environmental products. The company is actively transitioning away from coal toward renewables and gas, while managing mine reclamation obligations tied to its legacy operations.

TransAlta Corporation has been headquartered in Calgary, Canada, with its current corporate structure established in 2012.

  • Hydroelectric power generation in Alberta, British Columbia, and Ontario
  • Wind and solar generation across Canada, the United States, and Western Australia
  • Gas-fired power generation in Canada and internationally
  • Energy marketing and trading of power, natural gas, and environmental products

Is TA-PH.TO a Good Stock to Buy?

UQS Score rates TA-PH.TO as Poor overall, reflecting broad weakness across most fundamental pillars.

The Valuation pillar stands out as the one relative bright spot, rated Good — suggesting the market may already be pricing in the company's challenges.

Quality, Moat, Growth, and Risk all carry Weak ratings, pointing to concerns around earnings durability, competitive positioning, expansion prospects, and balance sheet or operational risks.

See the exact pillar breakdown and full financial metrics by signing up for a Pro account at UQS Score. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does TA-PH.TO pay dividends?

Yes — TransAlta Corp pays a dividend.

TransAlta pays a regular dividend, which may appeal to income-oriented investors in the utilities sector. Dividend sustainability, however, is worth scrutinizing given the Weak Quality and Risk pillar ratings. Investors should review the company's payout history and cash flow coverage before relying on the dividend as a primary return driver.

When does TA-PH.TO report earnings?

TransAlta reports earnings on a quarterly cadence, typical for TSX-listed utilities.

The company's fundamental profile — as reflected in Weak Quality and Growth pillar ratings — suggests earnings have not demonstrated consistent strength relative to sector peers. Energy transition costs and commodity price exposure add variability to quarterly results.

For the most recent quarter's results, visit TransAlta's investor relations page directly.

TA-PH.TO Price History

+70.9% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

TA-PH.TO Long-term Outlook

TransAlta's growth outlook appears constrained, with the Growth pillar rated Weak. The ongoing shift from coal toward renewables and gas creates both opportunity and execution risk. The Weak Risk pillar suggests the path forward carries meaningful uncertainty, including regulatory, commodity, and reclamation-related headwinds.

Growth drivers

  • Expansion of wind and solar capacity across North America and Australia
  • Long-term contracted power agreements providing baseline revenue stability
  • Energy marketing operations that can capture short-term market opportunities

Key risks

  • Elevated operational and financial risk reflected in the Weak Risk pillar rating
  • Legacy coal asset reclamation costs and regulatory obligations
  • Commodity price volatility affecting uncontracted power generation revenues

TA-PH.TO vs Peers

TransAlta operates in a competitive regulated and merchant utility landscape alongside peers with varying business models.

IDATA-PH.TO scores lower
IDACORP, Inc.

IDACORP is a regulated electric utility focused on the Pacific Northwest, offering a more predictable earnings profile tied to rate-base growth rather than merchant power exposure.

CMSDTA-PH.TO scores lower
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079

This CMS Energy debt instrument reflects a regulated utility parent with a focus on Michigan's gas and electric markets, representing a different risk and return profile than TransAlta's equity.

CMSCTA-PH.TO scores lower
CMS Energy Corporation 5.875% Junior Subordinated Notes

Like CMSD, this CMS Energy security is tied to a regulated utility franchise, contrasting with TransAlta's broader merchant and transitional energy exposure.

Frequently Asked Questions

What does TransAlta do?

TransAlta generates and sells electricity through hydro, wind, solar, and gas assets across Canada, the United States, and Australia. It also trades power and natural gas through its Energy Marketing segment, and is transitioning away from coal generation toward cleaner energy sources.

Does TA-PH.TO pay dividends?

Yes, TransAlta pays a regular dividend. However, given the Weak Quality and Risk pillar ratings in the UQS framework, investors should assess whether the dividend is well-supported by underlying cash flows before treating it as a reliable income stream.

When does TA-PH.TO report earnings?

TransAlta reports earnings quarterly, in line with standard practice for TSX-listed companies. For the exact timing of upcoming releases, check TransAlta's investor relations page for the most current schedule.

Is TA-PH.TO a good stock to buy?

The UQS Score rates TA-PH.TO as Poor, with Weak ratings across Quality, Moat, Growth, and Risk pillars. The Valuation pillar is rated Good, which may reflect that challenges are already priced in. Pro members can access the full breakdown to make a more informed assessment.

Is TA-PH.TO overvalued?

The UQS Valuation pillar for TA-PH.TO is rated Good, suggesting the stock does not appear expensive relative to its fundamentals at current levels. That said, a low valuation alone does not offset the Weak ratings across other pillars.

How does TA-PH.TO compare to its competitors?

Compared to regulated peers like IDACORP, TransAlta carries more merchant power and commodity price exposure, which contributes to a higher risk profile. Regulated utilities typically offer more earnings predictability, while TransAlta's diversified but transitioning asset base introduces greater variability.

What is TA-PH.TO's market cap bracket?

TransAlta is classified as a mid-cap company. This places it in a range where institutional coverage exists but liquidity and analyst attention may be lower than for large-cap utility peers.

Who founded TransAlta?

TransAlta has roots going back over a century in Canadian power generation. The current corporate structure was established in 2012. For detailed founding history, TransAlta's official corporate history page provides the most accurate account.

Is TA-PH.TO a long-term quality investment?

As a long-term quality indicator, the UQS Score rates TA-PH.TO as Poor. Weak scores across Quality, Moat, and Growth pillars suggest the business has not demonstrated the durable competitive advantages typically associated with long-term compounders in the utilities sector.

What is the main competitive advantage of TransAlta?

TransAlta's geographic and fuel-type diversification — spanning hydro, wind, solar, and gas across three countries — provides some operational resilience. However, the Weak Moat rating in the UQS framework suggests these advantages have not translated into a clearly defensible competitive position relative to sector peers.

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Pro Analysis

TA-PH.TO — Score History

2025303540Apr 11Apr 19Apr 27May 5May 13May 21May 24v5
Score changes· 7 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 22, 202628.225.632.024.52.456.8-0.8
May 8, 202629.07.832.024.936.956.7+0.4
May 3, 202628.624.632.024.92.261.10.0
Apr 18, 202628.624.632.024.92.261.2-0.4
Apr 14, 202629.024.632.024.92.264.0-0.1
Apr 12, 202629.124.632.024.92.264.0-4.3
Apr 11, 202633.424.050.024.92.264.0

TA-PH.TO — Pillar Breakdown

Quality

25.6/100 (25%)

TransAlta Corp currently shows below-average quality metrics, suggesting challenges with profitability.

Capital Efficiency (ROIC)Weak

How effectively capital is deployed to generate returns.

Return on EquityWeak

Profitability relative to shareholders' equity.

Operating ProfitabilityWeak

Ability to convert revenue into operating profit.

Net ProfitabilityWeak

Bottom-line profit as a share of revenue.

Gross Profit / AssetsModerate

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationStrong

Free cash flow relative to market value.

Growth

24.5/100 (20%)

TransAlta Corp faces growth headwinds with declining or stagnant revenue trends.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRWeak

Compound annual revenue growth rate over 3 years.

EPS GrowthWeak

Year-over-year earnings per share growth.

Forward Revenue OutlookWeak

Analyst consensus for future revenue growth.

Forward EPS GrowthStrong

Analyst consensus for future earnings growth.

Risk

2.4/100 (15%)

TransAlta Corp presents elevated risk with concerns around leverage or financial stability.

Financial LeverageWeak

Debt levels relative to earnings capacity.

Debt/EquityWeak

Total debt relative to shareholder equity.

Current RatioWeak

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageWeak

Earnings capacity relative to interest payments.

Valuation

56.8/100 (15%)

TransAlta Corp trades at a reasonable valuation with decent earnings yield and FCF multiples.

Earnings YieldWeak

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowStrong

How many years of FCF the market cap represents.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

EV/EBITDA vs SectorWeak

Enterprise value multiple relative to sector median.

Moat

32/100 (25%)

TransAlta Corp operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for TA-PH.TO.

Score Composition

Quality
25.6×25%6.4
Growth
24.5×20%4.9
Risk
2.4×15%0.4
Valuation
56.8×15%8.5
Moat
32.0×25%8.0
Total
28.2Poor

Financial Data

More Stock Analysis

How is the TA-PH.TO UQS Score Calculated?

The UQS (Unified Quality Score) for TransAlta Corp is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses TransAlta Corp's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether TransAlta Corp is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.