TC ENERGY CORP (TRP.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TRP - CA87807B1076 - Common Stock
74.71 CAD
-0.19 (-0.25%)
Overall TRP gets a fundamental rating of 4 out of 10. We evaluated TRP against 211 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.
TRP had positive earnings in each of the past 5 years.
TRP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TRP (2.82%) is better than 67.30% of its industry peers.
TRP's Return On Equity of 12.35% is amongst the best of the industry. TRP outperforms 84.36% of its industry peers.
TRP has a Return On Invested Capital of 3.97%. This is comparable to the rest of the industry: TRP outperforms 58.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TRP is below the industry average of 6.52%.
| 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
TRP has a better Profit Margin (27.28%) than 89.10% of its industry peers.
TRP's Profit Margin has improved in the last couple of years.
TRP has a better Operating Margin (44.41%) than 92.89% of its industry peers.
In the last couple of years the Operating Margin of TRP has remained more or less at the same level.
TRP has a Gross Margin of 69.05%. This is amongst the best in the industry. TRP outperforms 83.89% 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.
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.
TRP has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.64, we must say that TRP is in the distress zone and has some risk of bankruptcy.
TRP's Altman-Z score of 0.64 is in line compared to the rest of the industry. TRP outperforms 53.55% 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.
With a Debt to FCF ratio value of 31.45, TRP perfoms like the industry average, outperforming 55.45% 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.
With a Debt to Equity ratio value of 2.13, TRP is not doing good in the industry: 76.30% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | 31.45 | ||
| Altman-Z | 0.64 |
ROIC/WACC0.54
WACC7.35%
2.3 Liquidity
A Current Ratio of 0.63 indicates that TRP may have some problems paying its short term obligations.
TRP's Current ratio of 0.63 is on the low side compared to the rest of the industry. TRP is outperformed by 63.03% of its industry peers.
A Quick Ratio of 0.56 indicates that TRP may have some problems paying its short term obligations.
TRP has a Quick ratio of 0.56. This is in the lower half of the industry: TRP underperforms 62.56% of its industry peers.
| 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%.
TRP shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.06% yearly.
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 3.33% yearly.
The Revenue is expected to grow by 2.71% on average over the next years.
EPS Next Y-5.26%
EPS Next 2Y0.81%
EPS Next 3Y1.88%
EPS Next 5Y3.33%
Revenue Next Year-3.6%
Revenue Next 2Y1.19%
Revenue Next 3Y1.77%
Revenue Next 5Y2.71%
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 24.42, the valuation of TRP can be described as rather expensive.
60.66% of the companies in the same industry are more expensive than TRP, based on the Price/Earnings ratio.
TRP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 19.71, the valuation of TRP can be described as rather expensive.
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 (23.98), we can say TRP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.42 | ||
| Fwd PE | 19.71 |
4.2 Price Multiples
TRP's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, TRP is valued a bit cheaper than the industry average as 60.19% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.86 | ||
| EV/EBITDA | 16.37 |
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 2Y0.81%
EPS Next 3Y1.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.52%, TRP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.71, TRP pays a bit more dividend than its industry peers.
TRP's Dividend Yield is a higher than the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
5.2 History
On average, the dividend of TRP grows each year by 13.09%, 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)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.
The dividend of TRP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP110%
EPS Next 2Y0.81%
EPS Next 3Y1.88%
TSX:TRP (1/12/2026, 7:00:00 PM)
74.71
-0.19 (-0.25%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners83.73%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap77.77B
Revenue(TTM)12.43B
Net Income(TTM)3.39B
Analysts74.4
Price Target79.72 (6.71%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
Yearly Dividend3.9
Dividend Growth(5Y)13.09%
DP110%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)1.23%
PT rev (3m)6.93%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.43%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)-2.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.42 | ||
| Fwd PE | 19.71 | ||
| P/S | 6.26 | ||
| P/FCF | 39.86 | ||
| P/OCF | 10.32 | ||
| P/B | 2.83 | ||
| P/tB | 5.46 | ||
| EV/EBITDA | 16.37 |
EPS(TTM)3.06
EY4.1%
EPS(NY)3.79
Fwd EY5.07%
FCF(TTM)1.87
FCFY2.51%
OCF(TTM)7.24
OCFY9.69%
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 | 0.64 |
F-Score5
WACC7.35%
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)-32.89%
EPS 3Y-4.48%
EPS 5Y-2.06%
EPS Q2Q%-25.24%
EPS Next Y-5.26%
EPS Next 2Y0.81%
EPS Next 3Y1.88%
EPS Next 5Y3.33%
Revenue 1Y (TTM)-25.33%
Revenue growth 3Y0.95%
Revenue growth 5Y0.77%
Sales Q2Q%-9.28%
Revenue Next Year-3.6%
Revenue Next 2Y1.19%
Revenue Next 3Y1.77%
Revenue Next 5Y2.71%
EBIT growth 1Y-20.42%
EBIT growth 3Y-0.68%
EBIT growth 5Y0%
EBIT Next Year29.76%
EBIT Next 3Y13.14%
EBIT Next 5Y9.48%
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 for TRP 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 earnings growth outlook for TC ENERGY CORP?
The Earnings per Share (EPS) of TC ENERGY CORP (TRP.CA) is expected to decline by -5.26% in the next year.
Can you provide the dividend sustainability for TRP stock?
The dividend rating of TC ENERGY CORP (TRP.CA) is 4 / 10 and the dividend payout ratio is 110%.