Transalta Corp (TA.TO) Buy, Sell or Hold

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Transalta Corp (TA.TO)

19.59

+0.12 (0.62%)

as of Jun 25, 2026, 8:00:00 pm Market Open.

238 watching

Investor Insights

Jun 25, 2026, 12:00 am

This summary was created by AI, based on 13 opinions in the last 12 months.

Transalta Corp (TA-T) has recently been navigating the complexities of the utility market, reflecting mixed sentiments from experts. Some see opportunities in its strategic acquisitions and growth prospects, particularly in the context of rising power demand due to data centers, especially in Alberta. However, concerns arise regarding its low dividend yield of approximately 1.6%, and its stock price trading below the issue price after recent financing efforts. Experts note the utility's underperformance can be attributed to broader market trends favoring high-growth AI stocks at the expense of traditional utilities. While there are points for optimism, particularly with expected earnings growth and beneficial market conditions, many advise caution and recommend monitoring pending developments before making any investment decisions.

Consensus

Cautious

Valuation

Fair Value

Similar

Fortis,FTS

DON'T BUY

6.4 maturing Nov 18/19 safe? This is a 7 year piece of paper which is at the sweet spot of the curve. This is a BBB which falls in the moderate risk category. Trading a little expensive given its credit quality.

DON'T BUY

They had missed earnings. A commission out. Dealing with Sundance issues with forced closure. They have not had free cash flow for some time. Had a couple of plant outages. There is a threat that their bond rating may be downgraded. Dividend is safe for now, but one or two more hiccups and they could be vulnerable.

PAST TOP PICK

(Top Pick Jul 4/11, Up 6.00%) He is worried about it. Thinks the investment grade rating will stay. It will be fine until 2014. He probably wont reinvest.

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.

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Transalta Corp (TA.TO)