TC ENERGY CORP (TRP.CA) Stock Fundamental Analysis
Canada - TSX:TRP - CA87807B1076 - Common Stock
72.01 CAD
-0.32 (-0.44%)
Taking everything into account, TRP scores 4 out of 10 in our fundamental rating. TRP was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. While TRP belongs to the best of the industry regarding profitability, there are concerns on its financial health. TRP does not seem to be growing, but still is valued 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.
Each year in the past 5 years TRP has been profitable.
TRP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TRP (3.63%) is better than 68.60% of its industry peers.
TRP has a Return On Equity of 15.40%. This is amongst the best in the industry. TRP outperforms 85.02% of its industry peers.
With a Return On Invested Capital value of 4.10%, TRP perfoms like the industry average, outperforming 54.59% of the companies in the same industry.
TRP had an Average Return On Invested Capital over the past 3 years of 4.35%. This is below the industry average of 6.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.63% | ||
| ROE | 15.4% | ||
| ROIC | 4.1% |
ROA(3y)2.24%
ROA(5y)2.58%
ROE(3y)9.37%
ROE(5y)9.55%
ROIC(3y)4.35%
ROIC(5y)4.58%
1.3 Margins
With an excellent Profit Margin value of 33.09%, TRP belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
In the last couple of years the Profit Margin of TRP has grown nicely.
Looking at the Operating Margin, with a value of 43.28%, TRP belongs to the top of the industry, outperforming 91.30% of the companies in the same industry.
TRP's Operating Margin has been stable in the last couple of years.
The Gross Margin of TRP (68.45%) is better than 81.64% of its industry peers.
TRP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 43.28% | ||
| PM (TTM) | 33.09% | ||
| GM | 68.45% |
OM growth 3Y-1.61%
OM growth 5Y-0.76%
PM growth 3Y35%
PM growth 5Y2.15%
GM growth 3Y-0.69%
GM growth 5Y-0.74%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TRP is destroying value.
TRP has about the same amout of shares outstanding than it did 1 year ago.
TRP has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TRP has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.65, we must say that TRP is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.65, TRP is in line with its industry, outperforming 49.76% of the companies in the same industry.
TRP has a debt to FCF ratio of 40.34. This is a negative value and a sign of low solvency as TRP would need 40.34 years to pay back of all of its debts.
With a Debt to FCF ratio value of 40.34, TRP perfoms like the industry average, outperforming 54.11% of the companies in the same industry.
TRP has a Debt/Equity ratio of 2.05. This is a high value indicating a heavy dependency on external financing.
TRP has a worse Debt to Equity ratio (2.05) than 81.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.05 | ||
| Debt/FCF | 40.34 | ||
| Altman-Z | 0.65 |
ROIC/WACC0.54
WACC7.54%
2.3 Liquidity
TRP has a Current Ratio of 0.61. This is a bad value and indicates that TRP is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of TRP (0.61) is worse than 74.40% of its industry peers.
TRP has a Quick Ratio of 0.61. This is a bad value and indicates that TRP is not financially healthy enough and could expect problems in meeting its short term obligations.
TRP has a Quick ratio of 0.54. This is in the lower half of the industry: TRP underperforms 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
TRP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -26.71%.
The Earnings Per Share has been decreasing by -2.06% on average over the past years.
TRP shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -22.38%.
Measured over the past years, TRP shows a small growth in Revenue. The Revenue has been growing by 0.77% on average per year.
EPS 1Y (TTM)-26.71%
EPS 3Y-4.48%
EPS 5Y-2.06%
EPS Q2Q%-12.77%
Revenue 1Y (TTM)-22.38%
Revenue growth 3Y0.95%
Revenue growth 5Y0.77%
Sales Q2Q%-8.35%
3.2 Future
The Earnings Per Share is expected to grow by 3.87% on average over the next years.
Based on estimates for the next years, TRP will show a small growth in Revenue. The Revenue will grow by 3.59% on average per year.
EPS Next Y-2.48%
EPS Next 2Y1.72%
EPS Next 3Y1.68%
EPS Next 5Y3.87%
Revenue Next Year-3.35%
Revenue Next 2Y0.86%
Revenue Next 3Y1.3%
Revenue Next 5Y3.59%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 21.69, the valuation of TRP can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TRP is on the same level as its industry peers.
When comparing the Price/Earnings ratio of TRP to the average of the S&P500 Index (27.57), we can say TRP is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 18.66, the valuation of TRP can be described as rather expensive.
TRP's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of TRP to the average of the S&P500 Index (23.09), we can say TRP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.69 | ||
| Fwd PE | 18.66 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TRP.
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 | 50.84 | ||
| EV/EBITDA | 15.74 |
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)N/A
EPS Next 2Y1.72%
EPS Next 3Y1.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.65%, TRP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.56, TRP pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, TRP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.65% |
5.2 History
The dividend of TRP is nicely growing with an annual growth rate of 13.09%!
TRP has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)13.09%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
90.54% of the earnings are spent on dividend by TRP. This is not a sustainable payout ratio.
The dividend of TRP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP90.54%
EPS Next 2Y1.72%
EPS Next 3Y1.68%
TSX:TRP (10/21/2025, 7:00:00 PM)
72.01
-0.32 (-0.44%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners78.19%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap74.89B
Revenue(TTM)12.81B
Net Income(TTM)4.24B
Analysts73.08
Price Target74.56 (3.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.65% |
Yearly Dividend3.9
Dividend Growth(5Y)13.09%
DP90.54%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.21%
Min EPS beat(2)-3.38%
Max EPS beat(2)3.8%
EPS beat(4)2
Avg EPS beat(4)-10.14%
Min EPS beat(4)-48.32%
Max EPS beat(4)7.33%
EPS beat(8)6
Avg EPS beat(8)-1.14%
EPS beat(12)8
Avg EPS beat(12)0.09%
EPS beat(16)9
Avg EPS beat(16)-0.04%
Revenue beat(2)2
Avg Revenue beat(2)4.32%
Min Revenue beat(2)4.32%
Max Revenue beat(2)4.32%
Revenue beat(4)3
Avg Revenue beat(4)-13.17%
Min Revenue beat(4)-63.24%
Max Revenue beat(4)4.32%
Revenue beat(8)5
Avg Revenue beat(8)-5.73%
Revenue beat(12)8
Avg Revenue beat(12)-2.75%
Revenue beat(16)9
Avg Revenue beat(16)-2.61%
PT rev (1m)0%
PT rev (3m)-1.02%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)-1.18%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)-4.47%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.69 | ||
| Fwd PE | 18.66 | ||
| P/S | 5.85 | ||
| P/FCF | 50.84 | ||
| P/OCF | 9.9 | ||
| P/B | 2.72 | ||
| P/tB | 5.13 | ||
| EV/EBITDA | 15.74 |
EPS(TTM)3.32
EY4.61%
EPS(NY)3.86
Fwd EY5.36%
FCF(TTM)1.42
FCFY1.97%
OCF(TTM)7.27
OCFY10.1%
SpS12.32
BVpS26.46
TBVpS14.03
PEG (NY)N/A
PEG (5Y)N/A
Graham Number44.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.63% | ||
| ROE | 15.4% | ||
| ROCE | 5.28% | ||
| ROIC | 4.1% | ||
| ROICexc | 4.16% | ||
| ROICexgc | 4.74% | ||
| OM | 43.28% | ||
| PM (TTM) | 33.09% | ||
| GM | 68.45% | ||
| FCFM | 11.5% |
ROA(3y)2.24%
ROA(5y)2.58%
ROE(3y)9.37%
ROE(5y)9.55%
ROIC(3y)4.35%
ROIC(5y)4.58%
ROICexc(3y)4.42%
ROICexc(5y)4.65%
ROICexgc(3y)5.04%
ROICexgc(5y)5.34%
ROCE(3y)5.6%
ROCE(5y)5.97%
ROICexgc growth 3Y-4.34%
ROICexgc growth 5Y-4.28%
ROICexc growth 3Y-4.22%
ROICexc growth 5Y-3.48%
OM growth 3Y-1.61%
OM growth 5Y-0.76%
PM growth 3Y35%
PM growth 5Y2.15%
GM growth 3Y-0.69%
GM growth 5Y-0.74%
F-Score5
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.05 | ||
| Debt/FCF | 40.34 | ||
| Debt/EBITDA | 6.83 | ||
| Cap/Depr | 225.55% | ||
| Cap/Sales | 47.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.75% | ||
| Profit Quality | 34.75% | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 0.65 |
F-Score5
WACC7.54%
ROIC/WACC0.54
Cap/Depr(3y)260.57%
Cap/Depr(5y)266.14%
Cap/Sales(3y)50.84%
Cap/Sales(5y)51.87%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-26.71%
EPS 3Y-4.48%
EPS 5Y-2.06%
EPS Q2Q%-12.77%
EPS Next Y-2.48%
EPS Next 2Y1.72%
EPS Next 3Y1.68%
EPS Next 5Y3.87%
Revenue 1Y (TTM)-22.38%
Revenue growth 3Y0.95%
Revenue growth 5Y0.77%
Sales Q2Q%-8.35%
Revenue Next Year-3.35%
Revenue Next 2Y0.86%
Revenue Next 3Y1.3%
Revenue Next 5Y3.59%
EBIT growth 1Y-19.79%
EBIT growth 3Y-0.68%
EBIT growth 5Y0%
EBIT Next Year30.1%
EBIT Next 3Y12.65%
EBIT Next 5Y9.95%
FCF growth 1Y325.57%
FCF growth 3Y11.47%
FCF growth 5YN/A
OCF growth 1Y3.49%
OCF growth 3Y3.76%
OCF growth 5Y1.68%