TransAlta Corporation (TAC)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
TransAlta Corporation (TAC) trades at $13.62 with AI Score 46/100 (Grade C). TransAlta Corporation is a power generation company operating in Canada, the United States, and Australia. Market cap: $4.05B, Sector: Utilities.
Price live · AI analysis from May 10, 2026Analyst Coverage for TAC: TAC does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates TAC against Utilities peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
TAC: the 1 perspectives are evenly split.
How is this calculated? →TransAlta Corporation (TAC) Utility Operations & Dividend Profile
TransAlta Corporation, founded in 1909, is a North American and Australian power generator focused on transitioning to cleaner energy sources. With a diverse asset base including hydro, wind, solar, and gas, TransAlta serves municipalities, industries, and utility customers, differentiating itself through its commitment to energy transition and geographical diversification.
What Is the Investment Thesis for TAC?
TransAlta Corporation presents a compelling, long-term investment opportunity driven by its strategic shift towards renewable energy and its diversified asset base. While the company currently exhibits a negative profit margin of -7.7%, its gross margin of 32.4% indicates underlying profitability in its core operations. Key to the investment thesis is TransAlta's commitment to expanding its wind and solar capacity, capitalizing on the increasing demand for clean energy. The company's existing hydro assets provide a stable revenue stream and a hedge against the intermittency of wind and solar power. A potential catalyst is the increasing government incentives and regulatory support for renewable energy projects in North America and Australia. However, investors should be aware of the risks associated with fluctuating commodity prices and the potential for delays in project development.
Based on FMP financials and quantitative analysis
TAC Key Highlights
- Market capitalization of $4.05B, reflecting its significant presence in the power generation market.
- Dividend yield of 1.49%, providing a steady income stream for investors.
- Gross margin of 32.4%, indicating efficient operations in power generation.
- Beta of 0.46, suggesting lower volatility compared to the overall market.
- Operations across Canada, the United States, and Australia, providing geographical diversification.
Who Are TAC's Competitors?
TAC is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| VST Vistra Corp. | $154.79 | +2.48% | $52.19B | 41 |
| NRG NRG Energy, Inc. | $140.76 | +2.97% | $29.70B | 37 |
| ELP Companhia Paranaense de Energia - COPEL (ELP) | $9.27 | -6.27% | $27.53B | 48 |
| IDA IDACORP, Inc. | $151.09 | -2.24% | 9B | 53 |
| TXNM TXNM Energy, Inc. | $56.85 | -0.15% | $6.29B | 42 |
| TLN Talen Energy Corporation | $377.79 | +3.60% | 18B | 58 |
| KEN Kenon Holdings Ltd. | $70.67 | +3.77% | $3.68B | 51 |
| RJIFF Rojana Industrial Park Public Company Limited | $0.20 | +11.11% | $302.38M | 51 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are TAC's Key Strengths?
- Diversified asset base across multiple geographies and energy sources.
- Long-term contracts with customers providing stable revenue streams.
- Expertise in developing and operating power generation facilities.
- Commitment to transitioning to cleaner energy sources.
What Are TAC's Weaknesses?
- Negative profit margin.
- Exposure to fluctuating commodity prices.
- Dependence on regulatory approvals for new projects.
- Potential for delays in project development.
What Could Drive TAC Stock Higher?
- Government incentives and regulatory support for renewable energy projects in North America and Australia.
- Increasing demand for clean energy from municipalities, industries, and businesses.
- Technological advancements that reduce the cost of renewable energy technologies.
- Expansion of TransAlta's wind and solar capacity.
What Are the Key Risks for TAC?
- Financial-distress signal — its Altman Z-Score of 0.27 sits in the distress zone (elevated bankruptcy risk).
- Negative return on equity (-11.6%) — the business is not currently generating profit on shareholder capital.
- Fluctuating commodity prices.
- Delays in project development.
- Changes in government regulations and policies.
- Increasing competition from other power generators.
- Economic downturns that could reduce electricity demand.
What Are the Growth Opportunities for TAC?
- Growth opportunity 1: Expansion of Wind and Solar Capacity: TransAlta has a significant opportunity to expand its wind and solar capacity in North America and Australia. The global wind energy market is projected to reach $128.1 billion by 2027, while the solar energy market is expected to reach $223.3 billion by 2026. TransAlta can capitalize on this growth by developing new wind and solar projects, leveraging its existing land holdings and grid connections. Timeline: Ongoing.
- Growth opportunity 2: Development of Energy Storage Solutions: As the penetration of wind and solar power increases, the need for energy storage solutions becomes more critical. TransAlta can invest in battery storage technologies to address the intermittency of renewable energy sources and provide grid stability services. The global energy storage market is projected to reach $620 billion by 2040. Timeline: Ongoing.
- Growth opportunity 3: Leveraging Hydro Assets: TransAlta's existing hydro assets provide a stable and reliable source of clean energy. The company can optimize the operation of its hydro facilities to maximize power generation and provide ancillary services to the grid. The global hydropower market is expected to reach $26.8 billion by 2027. Timeline: Ongoing.
- Growth opportunity 4: Carbon Capture and Storage (CCS) Technologies: TransAlta can invest in CCS technologies to reduce emissions from its natural gas-fired facilities. CCS involves capturing carbon dioxide emissions from power plants and storing them underground, preventing them from entering the atmosphere. The global CCS market is projected to reach $7.48 billion by 2028. Timeline: Ongoing.
- Growth opportunity 5: Expansion into New Geographies: TransAlta can expand its operations into new geographies with favorable renewable energy policies and abundant renewable energy resources. This could include countries in Europe, Asia, or South America. Expanding geographically would diversify revenue streams and reduce dependence on specific regional markets. Timeline: Future.
What Opportunities Does TAC Have?
- Expansion of wind and solar capacity.
- Development of energy storage solutions.
- Leveraging hydro assets.
- Carbon capture and storage technologies.
What Threats Does TAC Face?
- Increasing competition from other power generators.
- Changes in government regulations and policies.
- Technological advancements that could disrupt the industry.
- Economic downturns that could reduce electricity demand.
What Are TAC's Competitive Advantages?
- Diversified asset base across multiple geographies and energy sources.
- Long-term contracts with customers providing stable revenue streams.
- Expertise in developing and operating power generation facilities.
- Commitment to transitioning to cleaner energy sources, aligning with global trends.
What Does TAC Do?
TransAlta Corporation, established in 1909 and headquartered in Calgary, Canada, is a power generation company with operations spanning Canada, the United States, and Australia. Originally focused on hydroelectric power, TransAlta has evolved into a diversified energy provider with a growing emphasis on renewable energy sources. The company operates through four key segments: Hydro, Wind and Solar, Gas, and Energy Transition. These segments encompass a wide range of power generation assets, including hydroelectric facilities, wind farms, solar installations, and natural gas-fired plants. TransAlta also engages in wholesale trading of electricity and other energy-related commodities and derivatives, supporting its core power generation activities. The company serves a diverse customer base, including municipalities, medium and large industries, businesses, and utility customers. TransAlta's strategic focus on transitioning to cleaner energy sources positions it to capitalize on the growing demand for renewable power and the global shift towards decarbonization. The company's commitment to sustainability is reflected in its investments in wind, solar, and hydro power, as well as its efforts to reduce emissions from its natural gas-fired facilities. TransAlta's geographic diversification across North America and Australia provides a degree of resilience against regional market fluctuations and regulatory changes.
What Products and Services Does TAC Offer?
- Generates electricity from hydro, wind, solar, and natural gas sources.
- Owns and operates power generation facilities in Canada, the United States, and Australia.
- Engages in wholesale trading of electricity and energy-related commodities.
- Develops new renewable energy projects.
- Provides electricity to municipalities, industries, businesses, and utility customers.
- Operates related mining operations and natural gas pipeline operations.
How Does TAC Make Money?
- Generates revenue by selling electricity to customers under long-term contracts and in the wholesale market.
- Operates and maintains its power generation assets to ensure reliable electricity supply.
- Invests in new renewable energy projects to expand its clean energy portfolio.
- Trades electricity and energy-related commodities to optimize its revenue streams.
What Industry Does TAC Operate In?
TransAlta operates within the independent power producer (IPP) sector, a dynamic segment of the utilities industry. The sector is undergoing a significant transformation driven by the global shift towards renewable energy and decarbonization. Market trends include increasing demand for wind and solar power, declining costs of renewable energy technologies, and growing regulatory pressure to reduce carbon emissions. TransAlta competes with other IPPs such as Vistra Corp. (VST), NRG Energy, Inc. (NRG), Companhia Paranaense de Energia - COPEL (ELP), IDACORP, Inc. (IDA), and TXNM Energy, Inc. (TXNM), all vying for market share in the evolving energy landscape. TransAlta's focus on transitioning to cleaner energy sources positions it favorably to capitalize on these trends.
Who Are TAC's Key Customers?
- Municipalities
- Medium and large industries
- Businesses
- Utility customers
How TransAlta Corporation Is Valued
TransAlta Corporation carries a market capitalization of $4.05B, placing it in the mid-cap category. Relative to its peer group, TAC's quantitative score of 46/100 is roughly in line with the peer average of 44/100.
ROE -12%Key Financial Metrics
Return on equity for TransAlta Corporation stands at -11.6%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -1.9%, showing how much profit it generates from its asset base. Its free cash flow yield is 9.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.76 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is -3.0%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 4/9Financial Health
TransAlta Corporation's Piotroski F-Score is 4/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.27 places it in the distress zone, a signal of elevated financial risk.
FY2026 estForward Outlook
Wall Street analysts project TransAlta Corporation revenue of about $2.12B for fiscal 2026, with EPS near $0.31.
TAC Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests confidence in TransAlta's future, indicating that key stakeholders believe in the company's potential for growth.
- Community sentiment has shifted positively, with discussions highlighting the company's commitment to renewable energy and sustainability initiatives.
- Analysts are increasingly noting TransAlta's strategic acquisitions, which could enhance its market position and operational efficiency.
- The company's recent earnings report showed resilience, with a focus on diversifying its energy portfolio, appealing to environmentally-conscious investors.
Bear Case
- Concerns over regulatory challenges in the energy sector have surfaced, creating uncertainty around TransAlta's operational landscape.
- Some community members express skepticism regarding the pace of the company's transition to renewable energy, fearing it may not meet market expectations.
- Recent market trends show volatility in energy prices, which could negatively impact TransAlta's revenue stability in the near term.
- There is a growing sentiment that competition in the renewable sector is intensifying, potentially pressuring TransAlta's market share and profitability.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
TAC Latest News
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TransAlta to Acquire Two Gas Assets in Colorado
MT Newswires · Jun 3, 2026
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TransAlta to Buy Colorado Gas Assets for $1 Billion
MT Newswires · Jun 3, 2026
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Earnings Scheduled For May 6, 2026
benzinga · May 6, 2026
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Earnings Scheduled For February 27, 2026
benzinga · Feb 27, 2026
TAC Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for TAC.
Price Targets
Wall Street price target analysis for TAC.
TAC MoonshotScore
What does this score mean?
The MoonshotScore rates TAC's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Classification
Industry Independent Power ProducersLeadership: John Harry Kousinioris
CEO
John Kousinioris serves as the CEO of TransAlta Corporation, bringing extensive experience in the energy sector. His career includes leadership roles in various energy companies, focusing on strategy, operations, and business development. He holds advanced degrees in engineering and business administration, providing a strong foundation for managing a complex energy portfolio. Kousinioris is known for his strategic vision and commitment to sustainable energy solutions.
Track Record: Under John Kousinioris' leadership, TransAlta has accelerated its transition to cleaner energy sources, investing heavily in wind, solar, and hydro power projects. He has overseen the decommissioning of coal-fired power plants and the development of new renewable energy facilities. Kousinioris has also focused on improving operational efficiency and reducing costs across the company's operations.
Common Questions About TAC (Utilities)
What does TransAlta Corporation do?
TransAlta Corporation is an independent power producer that generates and sells electricity in Canada, the United States, and Australia. The company operates a diverse fleet of power generation assets, including hydro, wind, solar, and natural gas-fired facilities. TransAlta serves municipalities, industries, businesses, and utility customers. They are actively transitioning to cleaner energy sources by expanding their renewable energy portfolio and decommissioning coal-fired power plants.
What do analysts say about TAC stock?
Analysts generally view TransAlta Corporation as a company with strong growth potential due to its focus on renewable energy and its diversified asset base. Key valuation metrics include price-to-earnings ratio, price-to-book ratio, and dividend yield. Growth considerations include the company's ability to execute its renewable energy projects on time and within budget, as well as its ability to manage commodity price risk and regulatory changes. Analyst ratings vary, with some recommending a 'buy' rating and others recommending a 'hold' rating.
What are the main risks for TAC?
TransAlta Corporation faces several risks, including fluctuating commodity prices, delays in project development, changes in government regulations and policies, increasing competition from other power generators, and economic downturns that could reduce electricity demand. The company's exposure to commodity price risk is mitigated by its long-term contracts with customers and its hedging strategies. Regulatory risks include changes in environmental regulations and policies that could increase compliance costs or delay project approvals. Competition from other power generators could put pressure on prices and reduce market share.
How does TransAlta Corporation compare to competitors in its industry?
TransAlta Corporation competes with other independent power producers such as Vistra Corp. (VST), NRG Energy, Inc. (NRG), and others. TransAlta differentiates itself through its commitment to transitioning to cleaner energy sources and its diversified asset base across multiple geographies and energy sources. While some competitors may have larger market capitalizations or more diversified portfolios of power generation assets, TransAlta's focus on renewable energy positions it favorably to capitalize on the growing demand for clean energy and the global shift towards decarbonization.
What are the key financial metrics investors watch for TAC?
Investors in TransAlta Corporation closely monitor several key financial metrics, including revenue growth, gross margin, operating income, net income, earnings per share (EPS), and cash flow from operations. In the utilities sector, metrics like dividend yield and payout ratio are also important. Given TransAlta's focus on renewable energy, investors also track capital expenditures on renewable energy projects and the percentage of electricity generated from renewable sources. The company's debt-to-equity ratio is another important metric to assess its financial leverage and risk.
What are the key factors to evaluate for TAC?
TransAlta Corporation (TAC) holds an AI score of 46/100 (low). Not financial advice.
How frequently does TAC data refresh on this page?
TAC prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven TAC's recent stock price performance?
TransAlta Corporation (TAC) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Diversified asset base across multiple geographies and energy sources. See the News tab for the latest drivers. Past performance does not predict future results.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on available data and may be subject to change.
- Financial metrics are based on historical data and may not be indicative of future performance.