TransAltaSTU:TZ1 55 Gross Margin % is 63.89% as of Mar. 2026, which is 15% above its 10-year median of 55.45. GuruFocus rates STU:TZ1 with a GF Score™ of 55/100 and a GF Value™ of €6.22 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 403 Utilities - Independent Power Producers companies, TransAlta ranks better than 80.15% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. TransAlta's Gross Profit for the
three
months ended in Mar. 2026 was €228 Mil. TransAlta's Revenue for the
three
months ended in Mar. 2026 was €356 Mil. Therefore, TransAlta's Gross Margin % for the quarter that ended in Mar. 2026 was 63.89%.
The historical rank and industry rank for TransAlta's Gross Margin % or its related term are showing as below:
STU:TZ1'
s Gross Margin % Range Over the Past 10 Years
Min: 51.09 Med: 55.45 Max: 65.07
Current: 60.99
During the past 13 years, the highestGross Margin % of TransAlta was 65.07%. The lowest was 51.09%. And the median was 55.45%.
TransAlta had a gross margin of 63.89% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for TransAlta was 3.00% per year.
TransAlta (STU:TZ1) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
TransAlta had a gross margin of 63.89% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
TransAlta Gross Margin % Related Terms
TransAlta Gross Margin % Historical Data
* Premium members only.
The historical data trend for TransAlta's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:TZ1 vs CEG, VST, NRG: Gross Margin % Comparison
For the Utilities - Independent Power Producers subindustry, TransAlta's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
TransAlta Gross Margin % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, TransAlta's Gross Margin % distribution charts can be found below:
* The bar in red indicates where TransAlta's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
TransAlta (STU:TZ1) has a Gross Margin % of 63.89% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on TransAlta and its competitors. This is 15% above median its historical median of 55.45. Over the past decade, TransAlta's Gross Margin % has ranged from 51.09 to 65.07. According to the industry distribution chart, TransAlta ranks #80 out of 403 companies in the Utilities - Independent Power Producers industry, placing it in the top 19.9%.
Is TransAlta's Gross Margin % too high?
TransAlta's current Gross Margin % of 63.89% is 15% above median its 10-year median of 55.45. Over the past 10 years, this metric has ranged from a low of 51.09 to a high of 65.07. The Utilities - Independent Power Producers industry median Gross Margin % is 31.35. TransAlta's value of 63.89% is 103.8% above this industry median. Based on the distribution chart, TransAlta ranks #80 out of 403 companies in the Utilities - Independent Power Producers industry, which is in the top quartile — a strong position relative to peers. Overall, TransAlta has a GF Score™ of 55/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does TransAlta's Gross Margin % compare to CEG and VST?
According to the Utilities - Independent Power Producers industry distribution chart, TransAlta ranks #80 out of 403 companies for Gross Margin %. This places TransAlta in the top 20% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 31.35. TransAlta's value of 63.89% is 103.8% above this benchmark. Historically, TransAlta's own Gross Margin % has ranged from 51.09 to 65.07 over the past decade. While the company's 10-year median is 55.45 vs. the industry median of 31.35, TransAlta has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Utilities - Independent Power Producers company?
The median Gross Margin % among Utilities - Independent Power Producers companies is 31.35, based on 403 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TransAlta's current Gross Margin % of 63.89% is 103.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on TransAlta and its competitors. For the Utilities - Independent Power Producers industry, the median Gross Margin % is 31.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TransAlta's current Gross Margin % is 63.89%, which is 15% above median its own 10-year median of 55.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TransAlta stock overvalued right now?
Based on GuruFocus' analysis, TransAlta (STU:TZ1) is currently considered Significantly Overvalued. The stock's GF Value™ is €6.22, compared to a current price of €12.40 — trading 99.4% above its estimated fair value. The current Gross Margin % is 63.89%, which is 15% above median its 10-year median of 55.45 and 103.8% above the Utilities - Independent Power Producers industry median of 31.35. TransAlta's overall GF Score™ is 55/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For TransAlta (STU:TZ1), the current Gross Margin % is 63.89% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is TransAlta (STU:TZ1) Overvalued in 2026?
Based on GuruFocus' analysis, TransAlta stock appears to be overvalued.
The current stock price of €12.40 is trading 99.4% above its estimated GF Value™ of €6.22.
GuruFocus considers TransAlta to be Significantly Overvalued.
Key valuation signals for STU:TZ1:
Gross Margin %: 63.89% (15% above median its 10-year median of 55.45)
GF Value™: €6.22 vs. price of €12.40 (99.4% above fair value)
Industry Position: 103.8% above the Utilities - Independent Power Producers median (#80 of 403)
No single metric tells the full story. See the STU:TZ1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TransAlta Corp is an independent power producer based in Alberta, Canada. The company operates a diverse electrical power generation assets in Canada, the United States, and Western Australia. The company has reportable segments namely, Hydro, Wind & Solar, Gas, Energy Transition segment and Corporate Segment. The company generates the majority of its revenue from the gas segment.
55GF Score
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