TransAlta Corporation cash flow to debt ratio of 14.41% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

TransAlta Corporation's free cash flow has decreased -16.49% from $475.00M last year to $396.68M, signaling decreasing performance

TransAlta Corporation's debt to equity ratio is 3.17, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy

TransAlta Corporation's debt has increased relative to shareholder equity from 2.61 last year to 3.17 today, signaling weakened financials

TransAlta Corporation has a net debt to EBITDA ratio of 5.35x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

TransAlta Corporation's interest coverage ratio is -0.20, which means that the company struggles to meet interest obligations, signaling financial risk.

TransAlta Corporation's profit margin has decreased (-196.04%) in the last year from 8.05% to -7.73%, signaling decreasing performance

TransAlta Corporation's short-term liabilities of $1.83G exceed its short-term assets of $1.33G, signaling financial risk

TransAlta Corporation's return on assets of 0.00% is lower than the 5.00% threshold, indicating inefficient asset utilization

TransAlta Corporation's return on equity of -11.56%, is lower than 15.00%, indicating bad performance

TransAlta Corporation's operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

TransAlta Corporation had positive net income in 3.00 out of 5 years, indicating stable and consistent earnings

TransAlta Corporation has positive free cash flow, indicating the company generates cash after capital expenditures

TransAlta Corporation has a free cash flow yield of 9.56%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

TransAlta Corporation's yearly earnings has decreased -160.21% since last year from $229.00M to $-137.89M, signaling decreasing performance

TransAlta Corporation's yearly revenue has decreased -15.50% since last year from $2.85G to $2.40G, signaling decreasing performance

ROIC -0.72% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

TransAlta Corporation's 3-year revenue CAGR of -6.87% is negative, indicating declining revenue over the past 3 years

TransAlta Corporation had revenue growth in 3.00 out of 5 years, indicating consistent revenue performance

TransAlta Corporation had positive ROE in 3.00 out of 5 years, indicating consistent and reliable returns on equity

TransAlta Corporation is overvalued relative to its fair value price of 9.59 based on Discounted Cash Flow model

TransAlta Corporation has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

TransAlta Corporation is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model

TransAlta Corporation has an EV/EBITDA ratio of 10.64x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

TransAlta Corporation is undervalued relative to its fair value price of 17.41 based on Earnings Fair Value model

TransAlta Corporation has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

TransAlta Corporation has a price-to-book ratio of 2.80x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

TransAlta Corporation has a price-to-sales ratio of 1.87x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue