TSE:TA

Transalta Corp (TA.TO)

19.59
+0.12 (0.62%)
as of Jun 25, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJun 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.

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Consensus
Cautious
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Valuation
Fair Value
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TOP PICK
Analysts hate this stock but they are wrong. It is subject to whatever power rates and fluctuations are. Went through a tough period starting in 2001, but things are starting to get better in the power generation business. Problems in plants have been fixed and now they are spending money on maintenanace. The 5% dividend is rock solid.
BUY
Has a very high yield at 5.25%. Likes it for the income. Any capital gain is a bonus. Has been penalized in the last few years because of some problems in some plants they had. Recently have been spending their money on improving their plants to increase profitability and once that's over, expect increased profits and dividends.
DON'T BUY
A power generating company. Has a lot of coal fires plants in western Canada. Bought this when it had a pull back, but not adding to their position at this price, even taking some profit. A great dividend paying stock. Dividend is "reasonably" secure. A little expensive right now. Facing some higher coal costs now.
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.
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