TransAlta Corp (TAC) Stock Analysis
Verdict: AVOID
Debt-funded $1B Colorado acquisition and concurrent $350M equity dilution have triggered a liquidity crisis and technical breakdown.
Investment score: 38/100
Analysis as of
Is TransAlta Corp stock worth reviewing? The TradeMates thesis
Avoid due to excessive dilution and leverage.
7-factor investment score
- Valuation: 30/100 (weight 20%)
- Financial Health: 25/100 (weight 15%)
- Technical Momentum: 20/100 (weight 15%)
- Earnings Quality: 15/100 (weight 15%)
- Insider Sentiment: 60/100 (weight 10%)
- Analyst Consensus: 75/100 (weight 10%)
- Risk-Adjusted Return: 35/100 (weight 15%)
TransAlta Corp opportunities and risks
What speaks for TAC
- Colorado Asset Accretion
What speaks against TAC
- 8.08x Net Debt/EBITDA Leverage
Peers and competitors
- CPX.TO
- TA.TO
- MXG.TO
- CBLU.V
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| TAC | n/a | 2.4x | 18.4x | 32.4% | -7.7% | 9.8% |
| CPX.TO | 454.1x | 3.0x | 28.7x | -3.9% | 0.7% | 1.6% |
| TA.TO | n/a | 2.4x | 18.4x | 32.4% | -7.7% | 9.8% |
| TA.TO | n/a | 2.4x | 18.4x | 32.4% | -7.7% | 9.8% |
| MXG.TO | 20.5x | 3.5x | 17.5x | 29.2% | 16.9% | 0.2% |
| CBLU.V | n/a | 1.0x | n/a | 53.8% | -220.3% | -52.5% |
| Peer median | n/a | 2.4x | 18.4x | 32.4% | -7.7% | 1.6% |
Frequently asked questions about TransAlta Corp (TAC)
Is TAC stock a good investment?
The TradeMates model rates TransAlta Corp as AVOID with an investment score of 38/100. Avoid due to excessive dilution and leverage. This is algorithmic model output, not personal investment advice.
Is TAC stock a buy?
The TradeMates model verdict for TAC is AVOID with an investment score of 38/100. Treat this as a model signal to review, not a personal buy recommendation.