TransAlta Corp.

Section1: Company Overview and Fundamental Insights:

TransAlta Corp. (TSX: TA) engages in the generation and distribution of electricity through wind, hydro, gas and coal power plants. It operates through the following business segments: Hydro, Wind and Solar, Gas, Energy Transition, Energy Marketing, and Corporate. The Hydro, Wind and Solar, Gas and Energy Transition business segments are responsible for operating and maintaining the company's electrical generation facilities in Canada, Australia, and the US. The Energy Marketing segment is responsible for marketing and scheduling the company's merchant asset fleet outside of Alberta along with procurement of gas, transport and storage to the company's gas fleet, providing intellectual knowledge to support the company's growth team, and generating a stand-alone gross margin separate from the company's asset business through a North American energy marketing platform. The company was founded by William Maxwell Aitken in 1909 and is headquartered in Calgary, Canada.

Kalkine’s Investor Report covers the Investment Highlights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

The top 10 shareholders together form ~46.81% of the total shareholding. Brookfield Corporation and Fidelity Management & Research Company LLC hold a maximum stake in the company at ~9.08% and ~7.86%, respectively.

The company reported rising financials in Q4 2025, where it clocked healthy growth under its Operating Margin, which is a key positive. Furthermore, it witnessed elevated Assets to Equity Ratio and Current Ratio, displaying its healthy operational strength.

Section 2: Business Updates and Financial Highlights

The picture below gives an overview of the company’s recent activity, such as an announcement regarding Unlocking Data Centre Growth at Keephills.

Section 3: Key Risks and Company Outlook

Section 4: Stock Recommendation Summary

The stock has witnessed a downside of ~7.10% and ~6.30% over the last 1 week and 3 months respectively. Moreover, it is trading below the average 52-week high price of CAD 25.025 and 52-week low price of CAD 11.16, providing an opportunity to accumulate the stock.

Valuation Methodology: EV to Sales Based Relative Valuation (Illustrative):

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is March 20, 2026. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Dividend Yield may vary as per the stock price movement. 

Note 5: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.