TC ENERGY CORP (TRP.CA)
CA87807B1076 - Common Stock
Overall TRP gets a fundamental rating of 4 out of 10. We evaluated TRP against 220 industry peers in the Oil, Gas & Consumable Fuels industry. TRP has a medium profitability rating, but doesn't score so well on its financial health evaluation. TRP has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year TRP was profitable.
In the past year TRP had a positive cash flow from operations.
TRP had positive earnings in each of the past 5 years.
In the past 5 years TRP always reported a positive cash flow from operatings.
1.2 Ratios
TRP's Return On Assets of 2.68% is in line compared to the rest of the industry. TRP outperforms 50.00% of its industry peers.
The Return On Equity of TRP (11.39%) is better than 78.04% of its industry peers.
TRP's Return On Invested Capital of 3.99% is fine compared to the rest of the industry. TRP outperforms 60.28% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TRP is below the industry average of 7.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.68% | ||
| ROE | 11.39% | ||
| ROIC | 3.99% |
ROA(3y)1.52%
ROA(5y)2.6%
ROE(3y)5.64%
ROE(5y)8.81%
ROIC(3y)4.02%
ROIC(5y)4.1%
1.3 Margins
TRP has a better Profit Margin (20.79%) than 77.57% of its industry peers.
TRP's Profit Margin has declined in the last couple of years.
TRP has a Operating Margin of 41.88%. This is amongst the best in the industry. TRP outperforms 89.72% of its industry peers.
In the last couple of years the Operating Margin of TRP has remained more or less at the same level.
TRP's Gross Margin of 68.63% is fine compared to the rest of the industry. TRP outperforms 78.97% of its industry peers.
In the last couple of years the Gross Margin of TRP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.88% | ||
| PM (TTM) | 20.79% | ||
| GM | 68.63% |
OM growth 3Y-1.23%
OM growth 5Y0.71%
PM growth 3Y-19.7%
PM growth 5Y-7.25%
GM growth 3Y-0.4%
GM growth 5Y-1.23%
2. Health
2.1 Basic Checks
TRP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, TRP has more shares outstanding
Compared to 5 years ago, TRP has more shares outstanding
TRP has a better debt/assets ratio than last year.
2.2 Solvency
TRP has an Altman-Z score of 0.65. This is a bad value and indicates that TRP is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.65, TRP perfoms like the industry average, outperforming 47.20% of the companies in the same industry.
TRP has a debt to FCF ratio of 249.95. This is a negative value and a sign of low solvency as TRP would need 249.95 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 249.95, TRP is in line with its industry, outperforming 52.34% of the companies in the same industry.
A Debt/Equity ratio of 2.04 is on the high side and indicates that TRP has dependencies on debt financing.
TRP's Debt to Equity ratio of 2.04 is on the low side compared to the rest of the industry. TRP is outperformed by 89.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.04 | ||
| Debt/FCF | 249.95 | ||
| Altman-Z | 0.65 |
ROIC/WACC0.68
WACC5.87%
2.3 Liquidity
A Current Ratio of 0.76 indicates that TRP may have some problems paying its short term obligations.
TRP's Current ratio of 0.76 is on the low side compared to the rest of the industry. TRP is outperformed by 64.02% of its industry peers.
A Quick Ratio of 0.68 indicates that TRP may have some problems paying its short term obligations.
TRP has a Quick ratio (0.68) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.14% over the past year.
The Earnings Per Share has been growing slightly by 3.15% on average over the past years.
TRP shows a small growth in Revenue. In the last year, the Revenue has grown by 5.81%.
TRP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.10% yearly.
EPS 1Y (TTM)4.14%
EPS 3Y2.48%
EPS 5Y3.15%
EPS Q2Q%-2.08%
Revenue 1Y (TTM)5.81%
Revenue growth 3Y7.02%
Revenue growth 5Y3.1%
Sales Q2Q%6.66%
3.2 Future
Based on estimates for the next years, TRP will show a small growth in Earnings Per Share. The EPS will grow by 4.39% on average per year.
TRP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.50% yearly.
EPS Next Y-4.46%
EPS Next 2Y-1.46%
EPS Next 3Y1.61%
EPS Next 5Y4.39%
Revenue Next Year4.6%
Revenue Next 2Y4.74%
Revenue Next 3Y5.08%
Revenue Next 5Y6.5%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.97, TRP is valued correctly.
TRP's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of TRP to the average of the S&P500 Index (30.52), we can say TRP is valued rather cheaply.
The Price/Forward Earnings ratio is 14.42, which indicates a correct valuation of TRP.
TRP's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.99, TRP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.97 | ||
| Fwd PE | 14.42 |
4.2 Price Multiples
TRP's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TRP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 252.47 | ||
| EV/EBITDA | 12.81 |
4.3 Compensation for Growth
TRP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.43
EPS Next 2Y-1.46%
EPS Next 3Y1.61%
5. Dividend
5.1 Amount
TRP has a Yearly Dividend Yield of 6.14%, which is a nice return.
Compared to an average industry Dividend Yield of 6.47, TRP pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.26, TRP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.14% |
5.2 History
The dividend of TRP is nicely growing with an annual growth rate of 7.82%!
TRP has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)7.82%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
104.95% of the earnings are spent on dividend by TRP. This is not a sustainable payout ratio.
TRP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP104.95%
EPS Next 2Y-1.46%
EPS Next 3Y1.61%
TC ENERGY CORP
TSX:TRP (9/13/2024, 7:00:00 PM)
63.27
+0.7 (+1.12%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap65.64B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.14% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.97 | ||
| Fwd PE | 14.42 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)4.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.68% | ||
| ROE | 11.39% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 41.88% | ||
| PM (TTM) | 20.79% | ||
| GM | 68.63% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.04 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)4.14%
EPS 3Y2.48%
EPS 5Y
EPS Q2Q%
EPS Next Y-4.46%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.81%
Revenue growth 3Y7.02%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y