TransAltaSTU:TZ1 55 Operating Margin % is 12.92% as of Mar. 2026, which is 19% above its 10-year median of 10.85. 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 417 Utilities - Independent Power Producers companies, TransAlta ranks worse than 72.42% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. TransAlta's Operating Income for the
three
months ended in Mar. 2026 was €46 Mil. TransAlta's Revenue for the
three
months ended in Mar. 2026 was €356 Mil. Therefore, TransAlta's Operating Margin % for the quarter that ended in Mar. 2026 was 12.92%.
The historical rank and industry rank for TransAlta's Operating Margin % or its related term are showing as below:
STU:TZ1'
s Operating Margin % Range Over the Past 10 Years
Min: -2.14 Med: 10.85 Max: 29.6
Current: 1.94
STU:TZ1's Operating Margin % is ranked worse than 72.42% of 417
companies
in the Utilities - Independent Power Producers industry
Industry Median: 13.27
vs STU:TZ1: 1.94
TransAlta's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
TransAlta's Operating Income for the
three
months ended in Mar. 2026 was €46 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was €27 Mil.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
TransAlta Operating Margin % Related Terms
TransAlta Operating Margin % Historical Data
* Premium members only.
The historical data trend for TransAlta's Operating 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: Operating Margin % Comparison
For the Utilities - Independent Power Producers subindustry, TransAlta's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, TransAlta's Operating Margin % distribution charts can be found below:
* The bar in red indicates where TransAlta's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
TransAlta's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 (STU:TZ1) has a Operating Margin % of 12.92% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on TransAlta and its competitors. This is 19% above median its historical median of 10.85. According to the industry distribution chart, TransAlta ranks #302 out of 417 companies in the Utilities - Independent Power Producers industry, placing it in the top 72.4%.
Is TransAlta's Operating Margin % too high?
TransAlta's current Operating Margin % of 12.92% is 19% above median its 10-year median of 10.85. The Utilities - Independent Power Producers industry median Operating Margin % is 13.27. TransAlta's value of 12.92% is 2.6% below this industry median. Based on the distribution chart, TransAlta ranks #302 out of 417 companies in the Utilities - Independent Power Producers industry, which is below the industry midpoint. 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 Operating Margin % compare to CEG and VST?
According to the Utilities - Independent Power Producers industry distribution chart, TransAlta ranks #302 out of 417 companies for Operating Margin %. This places TransAlta in the lower half of its industry. The industry median Operating Margin % is 13.27. TransAlta's value of 12.92% is 2.6% below this benchmark. While the company's 10-year median is 10.85 vs. the industry median of 13.27, TransAlta has consistently been below 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 Operating Margin % for an Utilities - Independent Power Producers company?
The median Operating Margin % among Utilities - Independent Power Producers companies is 13.27, based on 417 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TransAlta's current Operating Margin % of 12.92% is 2.6% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on TransAlta and its competitors. For the Utilities - Independent Power Producers industry, the median Operating Margin % is 13.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TransAlta's current Operating Margin % is 12.92%, which is 19% above median its own 10-year median of 10.85. 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 Operating Margin % is 12.92%, which is 19% above median its 10-year median of 10.85 and 2.6% below the Utilities - Independent Power Producers industry median of 13.27. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For TransAlta (STU:TZ1), the current Operating Margin % is 12.92% 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:
Operating Margin %: 12.92% (19% above median its 10-year median of 10.85)
GF Value™: €6.22 vs. price of €12.40 (99.4% above fair value)
Industry Position: 2.6% below the Utilities - Independent Power Producers median (#302 of 417)
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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