TSE:TA

Transalta Corp (TA.TO)

17.69
-0.31 (1.72%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJun 5, 2026, 12:00 am

This summary was created by AI, based on 11 opinions in the last 12 months.

Transalta Corp (TA-T) has garnered mixed opinions from analysts regarding its investment potential. While some experts view the company's strategic asset acquisitions positively, recognizing potential growth driven by the increasing demand for energy, particularly from data centers in Alberta, others express concerns about the stock's current valuation amid changing market dynamics favoring growth stocks. The company's dividend yield is deemed low, raising questions for income-focused investors, and its history of dividend cuts has left some hesitant. Yet, there is optimism regarding its reasonable PE ratio and expected EPS growth of 50-60% over the next couple of years, suggesting potential upside. Nonetheless, competitive pressures from AI-driven innovations and market preferences remain critical considerations for the future performance of Transalta Corp.

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Consensus
Cautious
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Valuation
Fair Value
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Fortis,FTS
HOLD
Dividend is safe even though they are paying out more than earnings. Not a name she is particularly interested in because there is not a lot of earnings growth. Would prefer a bank or pipeline. You are only getting it for the 6%.
COMMENT
With its recent selloff, it is probably reasonable value. Yield of 6.75% but there has been no growth for a long time. If it could sustain the yield, then it is reasonably priced.
BUY
Somebody said “their earnings are slipping and won't have enough to cover their dividend”. Stock took a dip when that statement came out. Dividend does not really depend on earnings, but on cash flow. Cost of capital is extremely low for these people. There is a little bit of a cloud, but he doesn't think they will cut their dividend.
DON'T BUY
Scrapped their carbon capture project. Is the dividend safe? The real issue is not the carbon capture project. They have a number of challenges going forward. 1.) Have to renegotiate a contract in one of their big power plants in the state of Washington. 2.) They are going to have a large CapX project spending over the next 1.5 years or so. 3.) They are in a litigation situation with Trans Canada (TRP-T) over a shutdown of a power plant. Too many unknowns.
DON'T BUY
Preferreds? Just had some disappointing results. The problem is, they are a regulated utility and have power agreements with the government of Alberta. If they don't perform, they are liable.
DON'T BUY
Not a fan. It is a touch business. The regulators are not guaranteeing a rate for them. They have to be particularly excellent at securing forward sales prices and aligning with commodity inputs. Not is favourite name in this space. Prefers TRP or FTS.
COMMENT
When the stock rope is major support level at about $18, that's when you should have sold. If you own, you are at least having a good yield. Wait till he gets to $18-$19 before buying.
COMMENT
In a little bit of a potential cash bind. In 2012, they have issues with 1) growth capital spending, 2) regular capital spending and a 3) dividend. They are seeing some impairment with their cash flow. It is possible the 7% dividend could be cut. If they didt cut it, they would still have a healthy dividend.
DON'T BUY
Power producer with assets in Western Canada and the Pacific Northwest. One out their Sundance plants went down. They are in a dispute with Trans Canada (TRP-T) and if they are found to be liable, it would take about $100 million to refurbish the plant. Also have some higher cost coal plants.
DON'T BUY
(Market Call Minute) Weakest company in the utilities group – prefers ENB.
COMMENT
Unpopular right now, this is odd when all the utilities are very popular. Some investors are unsure if the yield is sustainable. Had a number of power contracts that were very favourable. As the prices for natural gas went down, the stock market for power is going down. New contracts coming on are probably not going to be priced the same as the old ones. He could possibly buy this, not for tremendous potential but for some yield. 3.6% yield.
DON'T BUY
Have had ongoing operational problems in an area where almost everything else has done really well.
HOLD
Problem has always been that it had a high dividend yield and was not hold enough back for expansion. It is pretty much of a sideways mover. It has been range bound since the financial crisis. IT is difficult to see this change until they upgrade coal fired power plants.
DON'T BUY
In is income now portfolio. Not expecting a lot of increase in dividends. Assets are reasonably mature. He sold half 6 months ago. He would not buy it now. He is just looking at yield.
DON'T BUY
Solid dividend player but doesn't necessarily have the growth opportunities that you would see in other sectors. Some of the midstream type companies have a little bit better growth than this one. Prefers others.
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