TransAltaTAC 51 Net Margin % is 2.30% as of Mar. 2026. GuruFocus rates TAC with a GF Score™ of 51/100 and a GF Value™ of $6.86 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 421 Utilities - Independent Power Producers companies, TransAlta ranks worse than 75.53% on this metric.
Net margin is calculated as Net Income divided by its Revenue. TransAlta's Net Income for the
three
months ended in Mar. 2026 was $9 Mil. TransAlta's Revenue for the
three
months ended in Mar. 2026 was $412 Mil. Therefore, TransAlta's net margin for the quarter that ended in Mar. 2026 was 2.30%.
The historical rank and industry rank for TransAlta's Net Margin % or its related term are showing as below:
TAC'
s Net Margin % Range Over the Past 10 Years
Min: -19.74 Med: -2.03 Max: 20.72
Current: -7.73
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
TransAlta Net Margin % Related Terms
TransAlta Net Margin % Historical Data
* Premium members only.
The historical data trend for TransAlta's Net 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.
For the Utilities - Independent Power Producers subindustry, TransAlta's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, TransAlta's Net Margin % distribution charts can be found below:
* The bar in red indicates where TransAlta's Net 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.
TransAlta (TAC) has a Net Margin % of 2.30% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on TransAlta and its competitors. According to the industry distribution chart, TransAlta ranks #318 out of 421 companies in the Utilities - Independent Power Producers industry, placing it in the top 75.5%.
Is TransAlta's Net Margin % too high?
TransAlta's current Net Margin % is 2.30%. The Utilities - Independent Power Producers industry median Net Margin % is 6.17. TransAlta's value of 2.30% is 62.7% below this industry median. Based on the distribution chart, TransAlta ranks #318 out of 421 companies in the Utilities - Independent Power Producers industry, which is in the bottom quartile relative to peers. Overall, TransAlta has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does TransAlta's Net Margin % compare to CEG and VST?
According to the Utilities - Independent Power Producers industry distribution chart, TransAlta ranks #318 out of 421 companies for Net Margin %. This places TransAlta in the lower half of its industry. The industry median Net Margin % is 6.17. TransAlta's value of 2.30% is 62.7% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for an Utilities - Independent Power Producers company?
The median Net Margin % among Utilities - Independent Power Producers companies is 6.17, based on 421 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TransAlta's current Net Margin % of 2.30% is 62.7% below 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on TransAlta and its competitors. For the Utilities - Independent Power Producers industry, the median Net Margin % is 6.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TransAlta's current Net Margin % is 2.30%. 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 (TAC) is currently considered Significantly Overvalued. The stock's GF Value™ is $6.86, compared to a current price of $13.69 — trading 99.6% above its estimated fair value. The current Net Margin % is 2.30% and 62.7% below the Utilities - Independent Power Producers industry median of 6.17. TransAlta's overall GF Score™ is 51/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For TransAlta (TAC), the current Net Margin % is 2.30% 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 (TAC) Overvalued in 2026?
Based on GuruFocus' analysis, TransAlta stock appears to be overvalued.
The current stock price of $13.69 is trading 99.6% above its estimated GF Value™ of $6.86.
GuruFocus considers TransAlta to be Significantly Overvalued.
Key valuation signals for TAC:
Net Margin %: 2.30%
GF Value™: $6.86 vs. price of $13.69 (99.6% above fair value)
Industry Position: 62.7% below the Utilities - Independent Power Producers median (#318 of 421)
No single metric tells the full story. See the TAC 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.
51GF Score
Get the complete analysis for TAC
Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TAC has been successfully added to your 
