TransAltaSTU:TZ1 55 10-Year ROIIC % is 1.02 as of Dec. 2025. 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 332 Utilities - Independent Power Producers companies, TransAlta ranks worse than 58.73% on this metric.
10-Year Return on Invested Incremental Capital (10-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 10-year.
TransAlta's 10-Year ROIIC % for the quarter that ended in Dec. 2025 was 1.02%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for TransAlta's 10-Year ROIIC % or its related term are showing as below:
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
TransAlta 10-Year ROIIC % Related Terms
TransAlta 10-Year ROIIC % Historical Data
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The historical data trend for TransAlta's 10-Year ROIIC % 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: 10-Year ROIIC % Comparison
For the Utilities - Independent Power Producers subindustry, TransAlta's 10-Year ROIIC %, along with its competitors' market caps and 10-Year ROIIC % 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 10-Year ROIIC % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, TransAlta's 10-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where TransAlta's 10-Year ROIIC % falls into.
TransAlta's 10-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
10-Year ROIIC %
=
10-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
10-Year Incremental Invested Capital**
=
( 43.335 (Dec. 2025) - 60.4385607 (Dec. 2015) )
/
( 5270.099 (Dec. 2025) - 7024.41 (Dec. 2015) )
=
-17.1035607
/
-1754.311
=
0.97%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 10-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
TransAlta (STU:TZ1) has a 10-Year ROIIC % of 1.02 as of Dec. 2025. 10-Year ROIIC % measures the change in earnings as a percentage of change in investment over 10-year. View historical data on TransAlta and its competitors. According to the industry distribution chart, TransAlta ranks #195 out of 332 companies in the Utilities - Independent Power Producers industry, placing it in the top 58.7%.
Is TransAlta's 10-Year ROIIC % too high?
TransAlta's current 10-Year ROIIC % is 1.02. The Utilities - Independent Power Producers industry median 10-Year ROIIC % is 2.33. TransAlta's value of 1.02 is 56.1% below this industry median. Based on the distribution chart, TransAlta ranks #195 out of 332 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 10-Year ROIIC % compare to CEG and VST?
According to the Utilities - Independent Power Producers industry distribution chart, TransAlta ranks #195 out of 332 companies for 10-Year ROIIC %. This places TransAlta in the lower half of its industry. The industry median 10-Year ROIIC % is 2.33. TransAlta's value of 1.02 is 56.1% 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 10-Year ROIIC % for an Utilities - Independent Power Producers company?
The median 10-Year ROIIC % among Utilities - Independent Power Producers companies is 2.33, based on 332 companies in the industry. Companies in the top quartile (top 25%) have a 10-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 10-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TransAlta's current 10-Year ROIIC % of 1.02 is 56.1% 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 10-Year ROIIC % mean?
A high 10-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 10-Year ROIIC % measures the change in earnings as a percentage of change in investment over 10-year. View historical data on TransAlta and its competitors. For the Utilities - Independent Power Producers industry, the median 10-Year ROIIC % is 2.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TransAlta's current 10-Year ROIIC % is 1.02. 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 10-Year ROIIC % is 1.02 and 56.1% below the Utilities - Independent Power Producers industry median of 2.33. 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 10-Year ROIIC % calculated?
10-Year ROIIC % is calculated from a company's financial statements. For TransAlta (STU:TZ1), the current 10-Year ROIIC % is 1.02 as of Dec. 2025. 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:
10-Year ROIIC %: 1.02
GF Value™: €6.22 vs. price of €12.40 (99.4% above fair value)
Industry Position: 56.1% below the Utilities - Independent Power Producers median (#195 of 332)
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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