TACTransAlta Corporation
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (5.8×).
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Margins have held roughly steady, a stable cost structure.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is TAC?
TransAlta Corporation earns 2.2% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 6.8 points below what the capital costs: growth destroys value
- Operating margin
- 5.8%
Operating margin · Utilities - Independent Power Producers median 5.9% · fiscal year to FY2025
- Cash conversion
- 5.84×
Cash conversion · 1.82× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −1.7%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −4.7% |
| FY2021 | −8.8% |
| FY2022 | 18% |
| FY2023 | 32% |
| FY2024 | 21% |
| FY2025 | 5.8% |
Details›
- Gross marginfiscal year to FY2025
- 59%
- Operating marginfiscal year to FY2025
- 5.8%
- Net marginfiscal year to FY2025
- −5.7%
- Free cash flow margin
- 17%
- Revenue, trailing twelve months
- $2.40B
- Free cash flow, trailing twelve months
- $397M
- Net income, trailing twelve months
- −$138M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 2.2%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.