TC ENERGY CORP (TRP.CA)
CA87807B1076 - Common Stock
Overall TRP gets a fundamental rating of 4 out of 10. We evaluated TRP against 228 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.
TRP had a positive operating cash flow in the past year.
In the past 5 years TRP has always been profitable.
Each year in the past 5 years TRP had a positive operating cash flow.
1.2 Ratios
TRP has a better Return On Assets (3.76%) than 62.44% of its industry peers.
With an excellent Return On Equity value of 16.70%, TRP belongs to the best of the industry, outperforming 86.88% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.78%, TRP is in the better half of the industry, outperforming 60.63% of the companies in the same industry.
TRP had an Average Return On Invested Capital over the past 3 years of 4.02%. This is below the industry average of 7.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.76% | ||
| ROE | 16.7% | ||
| ROIC | 3.78% |
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
With an excellent Profit Margin value of 30.55%, TRP belongs to the best of the industry, outperforming 90.05% of the companies in the same industry.
TRP's Profit Margin has declined in the last couple of years.
TRP's Operating Margin of 41.67% is amongst the best of the industry. TRP outperforms 90.50% of its industry peers.
TRP's Operating Margin has been stable in the last couple of years.
TRP's Gross Margin of 68.45% is amongst the best of the industry. TRP outperforms 81.00% of its industry peers.
TRP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.67% | ||
| PM (TTM) | 30.55% | ||
| GM | 68.45% |
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.
TRP has more shares outstanding than it did 1 year ago.
The number of shares outstanding for TRP has been increased compared to 5 years ago.
TRP has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.70, we must say that TRP is in the distress zone and has some risk of bankruptcy.
TRP has a Altman-Z score (0.70) which is comparable to the rest of the industry.
The Debt to FCF ratio of TRP is 106.27, which is on the high side as it means it would take TRP, 106.27 years of fcf income to pay off all of its debts.
TRP has a Debt to FCF ratio of 106.27. This is comparable to the rest of the industry: TRP outperforms 52.49% of its industry peers.
A Debt/Equity ratio of 2.23 is on the high side and indicates that TRP has dependencies on debt financing.
TRP's Debt to Equity ratio of 2.23 is on the low side compared to the rest of the industry. TRP is outperformed by 86.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.23 | ||
| Debt/FCF | 106.27 | ||
| Altman-Z | 0.7 |
ROIC/WACC0.58
WACC6.47%
2.3 Liquidity
TRP has a Current Ratio of 1.31. This is a normal value and indicates that TRP is financially healthy and should not expect problems in meeting its short term obligations.
TRP's Current ratio of 1.31 is fine compared to the rest of the industry. TRP outperforms 61.54% of its industry peers.
A Quick Ratio of 1.23 indicates that TRP should not have too much problems paying its short term obligations.
TRP has a better Quick ratio (1.23) than 65.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
TRP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.54%.
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 5.77%.
The Revenue has been growing slightly by 3.10% on average over the past years.
EPS 1Y (TTM)6.54%
EPS 3Y2.48%
EPS 5Y3.15%
EPS Q2Q%3%
Revenue 1Y (TTM)5.77%
Revenue growth 3Y7.02%
Revenue growth 5Y3.1%
Sales Q2Q%3.63%
3.2 Future
The Earnings Per Share is expected to grow by 0.23% on average over the next years.
TRP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.99% yearly.
EPS Next Y-8.58%
EPS Next 2Y-8.55%
EPS Next 3Y-3%
EPS Next 5Y0.23%
Revenue Next Year-1.23%
Revenue Next 2Y-3.82%
Revenue Next 3Y-0.34%
Revenue Next 5Y2.99%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.64, which indicates a correct valuation of TRP.
TRP's Price/Earnings ratio is in line with the industry average.
TRP is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
TRP is valuated rather expensively with a Price/Forward Earnings ratio of 17.65.
TRP's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.80, TRP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.64 | ||
| Fwd PE | 17.65 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TRP.
The rest of the industry has a similar Price/Free Cash Flow ratio as TRP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 101.73 | ||
| EV/EBITDA | 13.75 |
4.3 Compensation for Growth
TRP has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as TRP's earnings are expected to decrease with -3.00% in the coming years.
PEG (NY)N/A
PEG (5Y)4.64
EPS Next 2Y-8.55%
EPS Next 3Y-3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.04%, TRP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.22, TRP pays a bit more dividend than its industry peers.
TRP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.04% |
5.2 History
On average, the dividend of TRP grows each year by 7.82%, which is quite nice.
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
TRP pays out 79.02% 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.
DP79.02%
EPS Next 2Y-8.55%
EPS Next 3Y-3%
TC ENERGY CORP
TSX:TRP (12/27/2024, 7:00:00 PM)
66.74
+0.2 (+0.3%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners80.07%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap69.28B
Analysts71.2
Price Target71.1 (6.53%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.04% |
Dividend Growth(5Y)7.82%
DP79.02%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.57%
Min EPS beat(2)1.8%
Max EPS beat(2)7.33%
EPS beat(4)4
Avg EPS beat(4)9.17%
Min EPS beat(4)1.8%
Max EPS beat(4)20.27%
EPS beat(8)6
Avg EPS beat(8)5.27%
EPS beat(12)8
Avg EPS beat(12)4.03%
EPS beat(16)11
Avg EPS beat(16)4.65%
Revenue beat(2)2
Avg Revenue beat(2)4.12%
Min Revenue beat(2)1.92%
Max Revenue beat(2)6.32%
Revenue beat(4)2
Avg Revenue beat(4)1.89%
Min Revenue beat(4)-0.38%
Max Revenue beat(4)6.32%
Revenue beat(8)5
Avg Revenue beat(8)1.92%
Revenue beat(12)7
Avg Revenue beat(12)1.69%
Revenue beat(16)7
Avg Revenue beat(16)-0.3%
PT rev (1m)14.3%
PT rev (3m)17.35%
EPS NQ rev (1m)-0.61%
EPS NQ rev (3m)-13.39%
EPS NY rev (1m)1.79%
EPS NY rev (3m)-4.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-15.72%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-5.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.64 | ||
| Fwd PE | 17.65 | ||
| P/S | 4.16 | ||
| P/FCF | 101.73 | ||
| P/OCF | 9.27 | ||
| P/B | 2.27 | ||
| P/tB | 4.29 | ||
| EV/EBITDA | 13.75 |
EPS(TTM)4.56
EY6.83%
EPS(NY)3.78
Fwd EY5.66%
FCF(TTM)0.66
FCFY0.98%
OCF(TTM)7.2
OCFY10.79%
SpS16.04
BVpS29.34
TBVpS15.55
PEG (NY)N/A
PEG (5Y)4.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.76% | ||
| ROE | 16.7% | ||
| ROCE | 5.68% | ||
| ROIC | 3.78% | ||
| ROICexc | 3.94% | ||
| ROICexgc | 4.49% | ||
| OM | 41.67% | ||
| PM (TTM) | 30.55% | ||
| GM | 68.45% | ||
| FCFM | 4.09% |
ROA(3y)1.52%
ROA(5y)2.6%
ROE(3y)5.64%
ROE(5y)8.81%
ROIC(3y)4.02%
ROIC(5y)4.1%
ROICexc(3y)4.08%
ROICexc(5y)4.17%
ROICexgc(3y)4.66%
ROICexgc(5y)4.83%
ROCE(3y)6.26%
ROCE(5y)6.41%
ROICexcg growth 3Y-1.77%
ROICexcg growth 5Y-2.09%
ROICexc growth 3Y-0.71%
ROICexc growth 5Y-0.72%
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%
F-Score6
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.23 | ||
| Debt/FCF | 106.27 | ||
| Debt/EBITDA | 6.94 | ||
| Cap/Depr | 236.95% | ||
| Cap/Sales | 40.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.23% | ||
| Profit Quality | 13.39% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 0.7 |
F-Score6
WACC6.47%
ROIC/WACC0.58
Cap/Depr(3y)262.86%
Cap/Depr(5y)286.94%
Cap/Sales(3y)46.77%
Cap/Sales(5y)52.92%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.54%
EPS 3Y2.48%
EPS 5Y3.15%
EPS Q2Q%3%
EPS Next Y-8.58%
EPS Next 2Y-8.55%
EPS Next 3Y-3%
EPS Next 5Y0.23%
Revenue 1Y (TTM)5.77%
Revenue growth 3Y7.02%
Revenue growth 5Y3.1%
Sales Q2Q%3.63%
Revenue Next Year-1.23%
Revenue Next 2Y-3.82%
Revenue Next 3Y-0.34%
Revenue Next 5Y2.99%
EBIT growth 1Y3.62%
EBIT growth 3Y5.7%
EBIT growth 5Y3.83%
EBIT Next Year66.68%
EBIT Next 3Y19.99%
EBIT Next 5Y13.89%
FCF growth 1Y996.05%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y21.48%
OCF growth 3Y0.98%
OCF growth 5Y2.09%