TC ENERGY CORP (TRP.CA) Stock Fundamental Analysis
TSX:TRP - Toronto Stock Exchange - CA87807B1076 - Common Stock - Currency: CAD
Overall TRP gets a fundamental rating of 4 out of 10. We evaluated TRP against 210 industry peers in the Oil, Gas & Consumable Fuels industry. While TRP has a great profitability rating, there are quite some concerns on its financial health. TRP does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
TRP had positive earnings in the past year.
In the past year TRP had a positive cash flow from operations.
TRP had positive earnings in each of the past 5 years.
Each year in the past 5 years TRP had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.62%, TRP is doing good in the industry, outperforming 69.52% of the companies in the same industry.
Looking at the Return On Equity, with a value of 15.78%, TRP belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
TRP has a Return On Invested Capital (3.94%) which is in line with its industry peers.
TRP had an Average Return On Invested Capital over the past 3 years of 4.35%. This is below the industry average of 7.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.62% | ||
| ROE | 15.78% | ||
| ROIC | 3.94% |
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 33.22%, TRP belongs to the best of the industry, outperforming 89.05% 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 42.10%, TRP belongs to the top of the industry, outperforming 90.95% of the companies in the same industry.
In the last couple of years the Operating Margin of TRP has remained more or less at the same level.
The Gross Margin of TRP (68.14%) is better than 80.48% 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 | 42.1% | ||
| PM (TTM) | 33.22% | ||
| GM | 68.14% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
Compared to 1 year ago, TRP has an improved debt to assets ratio.
2.2 Solvency
TRP has an Altman-Z score of 0.62. This is a bad value and indicates that TRP is not financially healthy and even has some risk of bankruptcy.
TRP has a Altman-Z score of 0.62. This is comparable to the rest of the industry: TRP outperforms 51.43% of its industry peers.
The Debt to FCF ratio of TRP is 84.11, which is on the high side as it means it would take TRP, 84.11 years of fcf income to pay off all of its debts.
TRP has a Debt to FCF ratio (84.11) which is in line with its industry peers.
TRP has a Debt/Equity ratio of 2.15. This is a high value indicating a heavy dependency on external financing.
TRP has a Debt to Equity ratio of 2.15. This is amonst the worse of the industry: TRP underperforms 82.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.15 | ||
| Debt/FCF | 84.11 | ||
| Altman-Z | 0.62 |
ROIC/WACC0.51
WACC7.65%
2.3 Liquidity
A Current Ratio of 0.70 indicates that TRP may have some problems paying its short term obligations.
TRP has a Current ratio of 0.70. This is in the lower half of the industry: TRP underperforms 62.86% of its industry peers.
A Quick Ratio of 0.63 indicates that TRP may have some problems paying its short term obligations.
TRP has a worse Quick ratio (0.63) than 64.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The earnings per share for TRP have decreased strongly by -24.40% in the last year.
Measured over the past years, TRP shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.06% on average per year.
Looking at the last year, TRP shows a very negative growth in Revenue. The Revenue has decreased by -19.07% in the last year.
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)-24.4%
EPS 3Y-4.48%
EPS 5Y-2.06%
EPS Q2Q%-23.39%
Revenue 1Y (TTM)-19.07%
Revenue growth 3Y0.95%
Revenue growth 5Y0.77%
Sales Q2Q%-14.61%
3.2 Future
TRP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.69% yearly.
TRP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.22% yearly.
EPS Next Y2.08%
EPS Next 2Y4.59%
EPS Next 3Y3.37%
EPS Next 5Y4.69%
Revenue Next Year-7.6%
Revenue Next 2Y0.32%
Revenue Next 3Y1.15%
Revenue Next 5Y3.22%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
TRP is valuated rather expensively with a Price/Earnings ratio of 18.95.
Compared to the rest of the industry, the Price/Earnings ratio of TRP is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.28. TRP is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.98, the valuation of TRP can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TRP is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of TRP to the average of the S&P500 Index (21.76), we can say TRP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.95 | ||
| Fwd PE | 15.98 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRP is on the same level as its industry peers.
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 | 91.99 | ||
| EV/EBITDA | 15.28 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of TRP may justify a higher PE ratio.
PEG (NY)9.1
PEG (5Y)N/A
EPS Next 2Y4.59%
EPS Next 3Y3.37%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.50%, TRP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.19, TRP pays a bit more dividend than its industry peers.
TRP's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
5.2 History
On average, the dividend of TRP grows each year by 13.09%, which is quite nice.
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
90.34% 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.
DP90.34%
EPS Next 2Y4.59%
EPS Next 3Y3.37%
TSX:TRP (7/2/2025, 7:00:00 PM)
65.19
-1.29 (-1.94%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners78.66%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap67.80B
Analysts73.33
Price Target75.33 (15.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
Yearly Dividend3.9
Dividend Growth(5Y)13.09%
DP90.34%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-25.85%
Min EPS beat(2)-48.32%
Max EPS beat(2)-3.38%
EPS beat(4)2
Avg EPS beat(4)-10.64%
Min EPS beat(4)-48.32%
Max EPS beat(4)7.33%
EPS beat(8)5
Avg EPS beat(8)-1.64%
EPS beat(12)8
Avg EPS beat(12)-0.13%
EPS beat(16)9
Avg EPS beat(16)0.35%
Revenue beat(2)1
Avg Revenue beat(2)-29.46%
Min Revenue beat(2)-63.24%
Max Revenue beat(2)4.32%
Revenue beat(4)3
Avg Revenue beat(4)-12.67%
Min Revenue beat(4)-63.24%
Max Revenue beat(4)6.32%
Revenue beat(8)5
Avg Revenue beat(8)-6%
Revenue beat(12)8
Avg Revenue beat(12)-2.83%
Revenue beat(16)8
Avg Revenue beat(16)-3.32%
PT rev (1m)0.68%
PT rev (3m)2.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.17%
EPS NY rev (1m)0%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.95 | ||
| Fwd PE | 15.98 | ||
| P/S | 5.16 | ||
| P/FCF | 91.99 | ||
| P/OCF | 9.6 | ||
| P/B | 2.45 | ||
| P/tB | 4.83 | ||
| EV/EBITDA | 15.28 |
EPS(TTM)3.44
EY5.28%
EPS(NY)4.08
Fwd EY6.26%
FCF(TTM)0.71
FCFY1.09%
OCF(TTM)6.79
OCFY10.41%
SpS12.65
BVpS26.63
TBVpS13.51
PEG (NY)9.1
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.62% | ||
| ROE | 15.78% | ||
| ROCE | 5.02% | ||
| ROIC | 3.94% | ||
| ROICexc | 4.02% | ||
| ROICexgc | 4.6% | ||
| OM | 42.1% | ||
| PM (TTM) | 33.22% | ||
| GM | 68.14% | ||
| FCFM | 5.6% |
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%
ROICexcg growth 3Y-4.34%
ROICexcg 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-Score4
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.15 | ||
| Debt/FCF | 84.11 | ||
| Debt/EBITDA | 7.18 | ||
| Cap/Depr | 230.18% | ||
| Cap/Sales | 48.08% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.22% | ||
| Profit Quality | 16.87% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 0.62 |
F-Score4
WACC7.65%
ROIC/WACC0.51
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)-24.4%
EPS 3Y-4.48%
EPS 5Y-2.06%
EPS Q2Q%-23.39%
EPS Next Y2.08%
EPS Next 2Y4.59%
EPS Next 3Y3.37%
EPS Next 5Y4.69%
Revenue 1Y (TTM)-19.07%
Revenue growth 3Y0.95%
Revenue growth 5Y0.77%
Sales Q2Q%-14.61%
Revenue Next Year-7.6%
Revenue Next 2Y0.32%
Revenue Next 3Y1.15%
Revenue Next 5Y3.22%
EBIT growth 1Y-19.58%
EBIT growth 3Y-0.68%
EBIT growth 5Y0%
EBIT Next Year30.13%
EBIT Next 3Y12.83%
EBIT Next 5Y10.98%
FCF growth 1Y267.5%
FCF growth 3Y11.47%
FCF growth 5YN/A
OCF growth 1Y4.72%
OCF growth 3Y3.76%
OCF growth 5Y1.68%