TC ENERGY CORP (TRP.CA) Stock Fundamental Analysis
TSX:TRP - Toronto Stock Exchange - CA87807B1076 - Common Stock - Currency: CAD
Taking everything into account, TRP scores 4 out of 10 in our fundamental rating. TRP was compared to 218 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 has a expensive valuation and it also scores bad on growth.
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
TRP has a better Return On Assets (3.89%) than 71.56% of its industry peers.
TRP has a better Return On Equity (16.65%) than 88.99% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.25%, TRP is in the better half of the industry, outperforming 63.76% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TRP is below the industry average of 7.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 16.65% | ||
| ROIC | 4.25% |
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
The Profit Margin of TRP (33.36%) is better than 91.74% of its industry peers.
In the last couple of years the Profit Margin of TRP has grown nicely.
TRP has a better Operating Margin (42.02%) than 90.83% of its industry peers.
TRP's Operating Margin has been stable in the last couple of years.
TRP has a Gross Margin of 67.95%. This is amongst the best in the industry. TRP outperforms 80.28% of its industry peers.
TRP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.02% | ||
| PM (TTM) | 33.36% | ||
| GM | 67.95% |
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.
The number of shares outstanding for TRP remains at a similar level compared to 1 year ago.
Compared to 5 years ago, TRP has more shares outstanding
Compared to 1 year ago, TRP has an improved debt to assets ratio.
2.2 Solvency
TRP has an Altman-Z score of 0.64. 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 (0.64) which is in line with its industry peers.
TRP has a debt to FCF ratio of 44.37. This is a negative value and a sign of low solvency as TRP would need 44.37 years to pay back of all of its debts.
The Debt to FCF ratio of TRP (44.37) is comparable to the rest of the 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 83.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.04 | ||
| Debt/FCF | 44.37 | ||
| Altman-Z | 0.64 |
ROIC/WACC0.46
WACC9.15%
2.3 Liquidity
TRP has a Current Ratio of 0.55. 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 Current ratio of 0.55. This is in the lower half of the industry: TRP underperforms 72.02% of its industry peers.
A Quick Ratio of 0.47 indicates that TRP may have some problems paying its short term obligations.
TRP has a Quick ratio of 0.47. This is in the lower half of the industry: TRP underperforms 74.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
TRP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.48%.
The Earnings Per Share has been decreasing by -2.06% on average over the past years.
The Revenue for TRP has decreased by -13.57% in the past year. This is quite bad
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)-17.48%
EPS 3Y-4.48%
EPS 5Y-2.06%
EPS Q2Q%-61.48%
Revenue 1Y (TTM)-13.57%
Revenue growth 3Y0.95%
Revenue growth 5Y0.77%
Sales Q2Q%-67.89%
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 5.16% on average per year.
TRP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.05% yearly.
EPS Next Y2.08%
EPS Next 2Y4.59%
EPS Next 3Y3.37%
EPS Next 5Y5.16%
Revenue Next Year-5.11%
Revenue Next 2Y0.14%
Revenue Next 3Y0.83%
Revenue Next 5Y3.05%
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
TRP is valuated rather expensively with a Price/Earnings ratio of 18.63.
TRP's Price/Earnings ratio is in line with the industry average.
TRP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.98.
Based on the Price/Forward Earnings ratio of 18.25, the valuation of TRP can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as TRP.
When comparing the Price/Forward Earnings ratio of TRP to the average of the S&P500 Index (21.38), we can say TRP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.63 | ||
| Fwd PE | 18.25 |
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.
TRP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.97 | ||
| EV/EBITDA | 15.04 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TRP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)8.95
PEG (5Y)N/A
EPS Next 2Y4.59%
EPS Next 3Y3.37%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.96%, TRP is a good candidate for dividend investing.
TRP's Dividend Yield is a higher than the industry average which is at 7.45.
Compared to an average S&P500 Dividend Yield of 2.46, TRP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.96% |
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
TRP pays out 88.20% of its income as dividend. This is not a sustainable payout ratio.
TRP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP88.2%
EPS Next 2Y4.59%
EPS Next 3Y3.37%
TSX:TRP (4/29/2025, 7:00:00 PM)
69.5
+0.1 (+0.14%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners75.89%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap72.22B
Analysts72.31
Price Target73.9 (6.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.96% |
Yearly Dividend3.9
Dividend Growth(5Y)13.09%
DP88.2%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-20.5%
Min EPS beat(2)-48.32%
Max EPS beat(2)7.33%
EPS beat(4)3
Avg EPS beat(4)-7.98%
Min EPS beat(4)-48.32%
Max EPS beat(4)7.33%
EPS beat(8)6
Avg EPS beat(8)-0.73%
EPS beat(12)8
Avg EPS beat(12)0.15%
EPS beat(16)10
Avg EPS beat(16)0.83%
Revenue beat(2)1
Avg Revenue beat(2)-30.66%
Min Revenue beat(2)-63.24%
Max Revenue beat(2)1.92%
Revenue beat(4)2
Avg Revenue beat(4)-13.83%
Min Revenue beat(4)-63.24%
Max Revenue beat(4)6.32%
Revenue beat(8)4
Avg Revenue beat(8)-6.64%
Revenue beat(12)7
Avg Revenue beat(12)-3.49%
Revenue beat(16)7
Avg Revenue beat(16)-3.93%
PT rev (1m)0.11%
PT rev (3m)3.61%
EPS NQ rev (1m)-1.33%
EPS NQ rev (3m)5.5%
EPS NY rev (1m)-1.43%
EPS NY rev (3m)0.72%
Revenue NQ rev (1m)0.49%
Revenue NQ rev (3m)1.96%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.63 | ||
| Fwd PE | 18.25 | ||
| P/S | 5.24 | ||
| P/FCF | 53.97 | ||
| P/OCF | 9.38 | ||
| P/B | 2.62 | ||
| P/tB | 5.19 | ||
| EV/EBITDA | 15.04 |
EPS(TTM)3.73
EY5.37%
EPS(NY)3.81
Fwd EY5.48%
FCF(TTM)1.29
FCFY1.85%
OCF(TTM)7.41
OCFY10.66%
SpS13.25
BVpS26.55
TBVpS13.4
PEG (NY)8.95
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 16.65% | ||
| ROCE | 5.37% | ||
| ROIC | 4.25% | ||
| ROICexc | 4.31% | ||
| ROICexgc | 4.94% | ||
| OM | 42.02% | ||
| PM (TTM) | 33.36% | ||
| GM | 67.95% | ||
| FCFM | 9.72% |
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-Score5
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.04 | ||
| Debt/FCF | 44.37 | ||
| Debt/EBITDA | 6.58 | ||
| Cap/Depr | 228.05% | ||
| Cap/Sales | 46.17% | ||
| Interest Coverage | 1.7 | ||
| Cash Conversion | 89.76% | ||
| Profit Quality | 29.12% | ||
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 0.64 |
F-Score5
WACC9.15%
ROIC/WACC0.46
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)-17.48%
EPS 3Y-4.48%
EPS 5Y-2.06%
EPS Q2Q%-61.48%
EPS Next Y2.08%
EPS Next 2Y4.59%
EPS Next 3Y3.37%
EPS Next 5Y5.16%
Revenue 1Y (TTM)-13.57%
Revenue growth 3Y0.95%
Revenue growth 5Y0.77%
Sales Q2Q%-67.89%
Revenue Next Year-5.11%
Revenue Next 2Y0.14%
Revenue Next 3Y0.83%
Revenue Next 5Y3.05%
EBIT growth 1Y-15.59%
EBIT growth 3Y-0.68%
EBIT growth 5Y0%
EBIT Next Year30.66%
EBIT Next 3Y12.86%
EBIT Next 5Y9.56%
FCF growth 1Y251.87%
FCF growth 3Y11.47%
FCF growth 5YN/A
OCF growth 1Y5.89%
OCF growth 3Y3.76%
OCF growth 5Y1.68%