TransAlta Corporation

TAC

Independent Power Producers · Utilities

Price

$13.72

-0.39 (-2.76%)

Market Cap

$4.09B

Exchange

New York Stock Exchange

Winston Score

Winston is worried

Below-average fundamentals — multiple weak pillars.

Data as of Jul 26, 2026 · filings through Mar 31, 2026

Share count rising — dilution

+9.6% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 271.0M (2021) → 297.0M (2025)

TransAlta Corporation is a Canadian electricity company that generates power and sells it to businesses, utilities, and governments. It operates a mix of power plants, including natural gas, wind, solar, and hydroelectric facilities. The company has been shifting away from coal over the past several years as part of a broader push toward cleaner energy sources.

TransAlta makes money by selling electricity under long-term contracts and on open energy markets, which gives it a mix of stable and variable revenue. It operates mainly in Canada, with additional assets in the United States and Australia, and had roughly $4.1 billion in market value as of mid-2026. The company's long-term contracts provide some protection against volatile power prices, but its negative operating margin signals that costs remain a challenge, and the key risk going forward is whether it can grow its renewable energy portfolio fast enough to offset the decline of its older fossil fuel assets.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-25.3% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-70.7% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (1%)

Research and development spending

Insider Activity

16.3%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$978M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

TransAlta Corporation's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

43.0%

Healthy — 43.0% gross margin

Operating Margin

4.2%

Thin — 4.2% operating margin

ROCE

0.4%

Weak — 0.4% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

-16.7%

Shrinking sales (-16.7% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

0/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

23.3%

Converts sales into free cash efficiently (23.3%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity

3.17

Heavy debt load (3.17)

Interest Cover

N/A

Data not available

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Valuation

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Dividend Yield

1.37%

Small dividend — 1.37% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth

+9.9%

Dividend growing modestly (9.9% YoY)

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