TACTransAlta Corporation
Is it safe?
Nothing alarming, nothing pristine: heavy debt (BB) and typical volatility.
Moderately leveraged. A rule of thumb on leverage, not a credit rating.
Moderate price swings, typical volatility. Worst drawdown -55% · now 26% below its 52-week high.
Where this answer is blind. Altman sits structurally low for utilities and pipelines; Beneish runs high for fast growers, since sales growth alone lifts it; banks and REITs are excluded.
Can TAC take a bad year?
TransAlta Corporation carries $3.56B of net debt at 4.95× EBITDA: a heavy load to carry through a bad year.
Net debt · as at FY2025 · over four years of earnings before interest, tax and depreciation, heavy
- Net debt / EBITDA
- 4.95×
Net debt / EBITDA · 3.62× a year ago · the load is going up
- Interest cover
- 0.40×
Interest cover · operating profit does not cover the interest bill
- Annualised volatility
- 43%
Annualised volatility · roughly twice as jumpy as the market
Details›
- Total debtFY2025
- $3.76B
- Cash and short-term investments
- $205M
- Net debt
- $3.56B
- EBITDA, trailing twelve months
- $719M
- Operating profit, trailing twelve months
- $140M
- Debt / equity
- 2.69×
- Total debt / EBITDA
- 5.23×
- Annualised volatilitytwo years of daily moves
- 43%
- Worst drawdown on file
- −55%
- Below its 52-week high
- 26%
Balance sheet from SEC filings; drawdown and volatility from end-of-day closes; Altman Z from the filed statements.