TC ENERGY CORP (TRP.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TRP - CA87807B1076 - Common Stock
75.5 CAD
-0.32 (-0.42%)
Overall TRP gets a fundamental rating of 4 out of 10. We evaluated TRP against 215 industry peers in the Oil, Gas & Consumable Fuels industry. TRP has an excellent profitability rating, but there are concerns on its financial health. TRP has a expensive valuation and it also scores bad on growth.
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.
In the past 5 years TRP always reported a positive cash flow from operatings.
1.2 Ratios
TRP has a Return On Assets of 2.82%. This is in the better half of the industry: TRP outperforms 67.91% of its industry peers.
TRP has a better Return On Equity (12.35%) than 83.72% of its industry peers.
TRP has a Return On Invested Capital (3.97%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for TRP is below the industry average of 6.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.82% | ||
| ROE | 12.35% | ||
| ROIC | 3.97% |
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
Looking at the Profit Margin, with a value of 27.28%, TRP belongs to the top of the industry, outperforming 87.44% of the companies in the same industry.
In the last couple of years the Profit Margin of TRP has grown nicely.
The Operating Margin of TRP (44.41%) is better than 91.63% of its industry peers.
TRP's Operating Margin has been stable in the last couple of years.
TRP's Gross Margin of 69.05% is amongst the best of the industry. TRP outperforms 83.26% 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 | 44.41% | ||
| PM (TTM) | 27.28% | ||
| GM | 69.05% |
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.
Compared to 1 year ago, TRP has about the same amount of shares outstanding.
The number of shares outstanding for TRP has been increased compared to 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 0.65. This is a bad value and indicates that TRP is not financially healthy and even has some risk of bankruptcy.
TRP's Altman-Z score of 0.65 is in line compared to the rest of the industry. TRP outperforms 53.02% of its industry peers.
TRP has a debt to FCF ratio of 31.45. This is a negative value and a sign of low solvency as TRP would need 31.45 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 31.45, TRP is in line with its industry, outperforming 55.35% of the companies in the same industry.
TRP has a Debt/Equity ratio of 2.13. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of TRP (2.13) is worse than 79.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | 31.45 | ||
| Altman-Z | 0.65 |
ROIC/WACC0.52
WACC7.64%
2.3 Liquidity
A Current Ratio of 0.63 indicates that TRP may have some problems paying its short term obligations.
With a Current ratio value of 0.63, TRP is not doing good in the industry: 64.19% of the companies in the same industry are doing better.
TRP has a Quick Ratio of 0.63. This is a bad value and indicates that TRP is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.56, TRP is doing worse than 65.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
TRP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.89%.
The Earnings Per Share has been decreasing by -2.06% on average over the past years.
The Revenue for TRP has decreased by -25.33% in the past year. This is quite bad
TRP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.77% yearly.
EPS 1Y (TTM)-32.89%
EPS 3Y-4.48%
EPS 5Y-2.06%
EPS Q2Q%-25.24%
Revenue 1Y (TTM)-25.33%
Revenue growth 3Y0.95%
Revenue growth 5Y0.77%
Sales Q2Q%-9.28%
3.2 Future
TRP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.82% yearly.
TRP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.20% yearly.
EPS Next Y-3.62%
EPS Next 2Y1.35%
EPS Next 3Y1.21%
EPS Next 5Y3.82%
Revenue Next Year-3.3%
Revenue Next 2Y1.07%
Revenue Next 3Y1.53%
Revenue Next 5Y3.2%
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
Based on the Price/Earnings ratio of 24.67, the valuation of TRP can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TRP indicates a somewhat cheap valuation: TRP is cheaper than 60.47% of the companies listed in the same industry.
TRP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 19.70 indicates a rather expensive valuation of TRP.
The rest of the industry has a similar Price/Forward Earnings ratio as TRP.
TRP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.67 | ||
| Fwd PE | 19.7 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TRP.
TRP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.28 | ||
| EV/EBITDA | 16.49 |
4.3 Compensation for Growth
The decent profitability rating of TRP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.35%
EPS Next 3Y1.21%
5. Dividend
5.1 Amount
TRP has a Yearly Dividend Yield of 4.44%, which is a nice return.
TRP's Dividend Yield is a higher than the industry average which is at 5.81.
Compared to an average S&P500 Dividend Yield of 2.40, TRP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
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
110.00% 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.
DP110%
EPS Next 2Y1.35%
EPS Next 3Y1.21%
TSX:TRP (11/28/2025, 7:00:00 PM)
75.5
-0.32 (-0.42%)
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 Cap78.60B
Revenue(TTM)12.43B
Net Income(TTM)3.39B
Analysts72.31
Price Target77.74 (2.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
Yearly Dividend3.9
Dividend Growth(5Y)13.09%
DP110%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.38%
Min EPS beat(2)-4.57%
Max EPS beat(2)3.8%
EPS beat(4)1
Avg EPS beat(4)-13.12%
Min EPS beat(4)-48.32%
Max EPS beat(4)3.8%
EPS beat(8)5
Avg EPS beat(8)-1.97%
EPS beat(12)7
Avg EPS beat(12)-0.86%
EPS beat(16)9
Avg EPS beat(16)-0.26%
Revenue beat(2)1
Avg Revenue beat(2)1.8%
Min Revenue beat(2)-0.72%
Max Revenue beat(2)4.32%
Revenue beat(4)2
Avg Revenue beat(4)-13.83%
Min Revenue beat(4)-63.24%
Max Revenue beat(4)4.32%
Revenue beat(8)4
Avg Revenue beat(8)-5.97%
Revenue beat(12)7
Avg Revenue beat(12)-3.33%
Revenue beat(16)9
Avg Revenue beat(16)-2.19%
PT rev (1m)4.27%
PT rev (3m)3%
EPS NQ rev (1m)-3.39%
EPS NQ rev (3m)-5.32%
EPS NY rev (1m)-1.17%
EPS NY rev (3m)-5.59%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.67 | ||
| Fwd PE | 19.7 | ||
| P/S | 6.32 | ||
| P/FCF | 40.28 | ||
| P/OCF | 10.43 | ||
| P/B | 2.86 | ||
| P/tB | 5.52 | ||
| EV/EBITDA | 16.49 |
EPS(TTM)3.06
EY4.05%
EPS(NY)3.83
Fwd EY5.08%
FCF(TTM)1.87
FCFY2.48%
OCF(TTM)7.24
OCFY9.59%
SpS11.94
BVpS26.38
TBVpS13.68
PEG (NY)N/A
PEG (5Y)N/A
Graham Number42.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.82% | ||
| ROE | 12.35% | ||
| ROCE | 5.11% | ||
| ROIC | 3.97% | ||
| ROICexc | 4.05% | ||
| ROICexgc | 4.62% | ||
| OM | 44.41% | ||
| PM (TTM) | 27.28% | ||
| GM | 69.05% | ||
| FCFM | 15.69% |
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 Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | 31.45 | ||
| Debt/EBITDA | 7.13 | ||
| Cap/Depr | 207.7% | ||
| Cap/Sales | 44.93% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.8% | ||
| Profit Quality | 57.53% | ||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 0.65 |
F-Score5
WACC7.64%
ROIC/WACC0.52
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)-32.89%
EPS 3Y-4.48%
EPS 5Y-2.06%
EPS Q2Q%-25.24%
EPS Next Y-3.62%
EPS Next 2Y1.35%
EPS Next 3Y1.21%
EPS Next 5Y3.82%
Revenue 1Y (TTM)-25.33%
Revenue growth 3Y0.95%
Revenue growth 5Y0.77%
Sales Q2Q%-9.28%
Revenue Next Year-3.3%
Revenue Next 2Y1.07%
Revenue Next 3Y1.53%
Revenue Next 5Y3.2%
EBIT growth 1Y-20.42%
EBIT growth 3Y-0.68%
EBIT growth 5Y0%
EBIT Next Year30.1%
EBIT Next 3Y12.65%
EBIT Next 5Y9.78%
FCF growth 1Y359.1%
FCF growth 3Y11.47%
FCF growth 5YN/A
OCF growth 1Y1.39%
OCF growth 3Y3.76%
OCF growth 5Y1.68%
TC ENERGY CORP / TRP.CA FAQ
Can you provide the ChartMill fundamental rating for TC ENERGY CORP?
ChartMill assigns a fundamental rating of 4 / 10 to TRP.CA.
What is the valuation status of TC ENERGY CORP (TRP.CA) stock?
ChartMill assigns a valuation rating of 3 / 10 to TC ENERGY CORP (TRP.CA). This can be considered as Overvalued.
How profitable is TC ENERGY CORP (TRP.CA) stock?
TC ENERGY CORP (TRP.CA) has a profitability rating of 7 / 10.
What is the financial health of TC ENERGY CORP (TRP.CA) stock?
The financial health rating of TC ENERGY CORP (TRP.CA) is 1 / 10.
Can you provide the dividend sustainability for TRP stock?
The dividend rating of TC ENERGY CORP (TRP.CA) is 5 / 10 and the dividend payout ratio is 110%.