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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DON'T BUY
Expects it will ultimately cut its dividend.
DON'T BUY
Doesn't see any catalyst for this company. Really trading off the strength of its dividend which is likely to be cut.
DON'T BUY
Not keen on this stock. Company has not earned its dividend since 1999 and is not projected to earn it until the end of 2006. Feels the dividend is vulnerable given the length and time they haven't been able to earn the dividend.
DON'T BUY
Yields are pretty high relative to bank stocks in particular. A little bit of risk in interest rates increasing. Longer term, management isn't particularily the sharpest knife in the drawer. If you are patient enough assets might get acquired.
DON'T BUY
This, Canadian Utilities and Transalta have lower growths. Would buy a Power Income Trust instead which would give 7/8% versus 4/5%.
BUY
For the last few years has barely been earning its dividends. This last year, they've had high maintenance expenses, but the cash flow more than covers the dividend. If buying for the dividend, it's very secure. Re-contracting power out of their Washington power plant which could add up tp $0.40 per earnings.
PAST TOP PICK
(A Top Pick Sept 8/04. Up 18%.) Liquidated the position in late '04. Was on a paired trade with being long on this one.
DON'T BUY
Views this as more of a bond than an equity. Earnings haven't covered their dividends for quite awhile. Can't see much capital appreciation.
BUY ON WEAKNESS
Have a couple million $'s of excess cash flow, so dividend can be maintained. Expects that by 2007, they will be back in a growth mode and dividend could be increased. Could be a pull back in the near term.
DON'T BUY
The question is, can they maintain the dividend when their earnings don't really cover it. A little too risky.
DON'T BUY
Has turned around nicely. Had a bottoming pattern over the summer. The stock is probably constrained at its highs this year, so there is probably a little bit of upside.
SELL
Hard to see where the catalyst for any upside is going to be. Utility business is a slow growing business. Also they are in the un-regulated side of the business and are buying very expensive gas to convert into electricity which they are selling and they are just not reaching the price. Have a fair amount of capital expenditure they need to do.
BUY
Earns about $1 and is paying out $1 which is considered very high and risky. They have a big plant in Washington State where they are getting better prices and those contracts roll in 2005. In 2006/2007 can see an incremental $0.40 in earnings. Good dividend.
BUY
In turnaround mode. Continuing to sell assets and improve their balance sheet. Feels they will be able to maintain their dividend which has quite a high yield.
PAST TOP PICK
(A Past Top pick Sept 28/04. Up 7%.) Utility stocks seems to be the safest area to preserve capital and still make a decent profit. May be a counter balance to the strong resource stocks. Feels the dividend is safe.
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