TC ENERGY CORP (TRP.CA) Stock Fundamental Analysis
Canada - TSX:TRP - CA87807B1076 - Common Stock
77.45 CAD
+1.08 (+1.41%)
We assign a fundamental rating of 4 out of 10 to TRP. TRP was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. TRP has an excellent profitability rating, but there are concerns on its financial health. While showing a medium growth rate, TRP is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year TRP was profitable.
TRP had a positive operating cash flow in the past year.
In the past 5 years TRP has always been profitable.
In the past 5 years TRP always reported a positive cash flow from operatings.
1.2 Ratios
TRP's Return On Assets of 3.63% is fine compared to the rest of the industry. TRP outperforms 70.09% of its industry peers.
Looking at the Return On Equity, with a value of 15.40%, TRP belongs to the top of the industry, outperforming 85.51% of the companies in the same industry.
TRP has a Return On Invested Capital (4.10%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for TRP is below the industry average of 6.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.63% | ||
| ROE | 15.4% | ||
| ROIC | 4.1% |
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 (33.09%) is better than 88.32% of its industry peers.
In the last couple of years the Profit Margin of TRP has grown nicely.
Looking at the Operating Margin, with a value of 43.28%, TRP belongs to the top of the industry, outperforming 91.12% of the companies in the same industry.
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 81.31% of its industry peers.
TRP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 43.28% | ||
| PM (TTM) | 33.09% | ||
| GM | 68.45% |
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
TRP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for TRP remains at a similar level compared to 1 year ago.
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
Based on the Altman-Z score of 0.68, we must say that TRP is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.68, TRP is in line with its industry, outperforming 51.40% of the companies in the same industry.
TRP has a debt to FCF ratio of 40.34. This is a negative value and a sign of low solvency as TRP would need 40.34 years to pay back of all of its debts.
TRP has a Debt to FCF ratio of 40.34. This is comparable to the rest of the industry: TRP outperforms 55.61% of its industry peers.
A Debt/Equity ratio of 2.05 is on the high side and indicates that TRP has dependencies on debt financing.
TRP's Debt to Equity ratio of 2.05 is on the low side compared to the rest of the industry. TRP is outperformed by 79.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.05 | ||
| Debt/FCF | 40.34 | ||
| Altman-Z | 0.68 |
ROIC/WACC0.55
WACC7.38%
2.3 Liquidity
TRP has a Current Ratio of 0.61. 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's Current ratio of 0.61 is on the low side compared to the rest of the industry. TRP is outperformed by 71.96% of its industry peers.
A Quick Ratio of 0.54 indicates that TRP may have some problems paying its short term obligations.
TRP has a Quick ratio of 0.54. This is in the lower half of the industry: TRP underperforms 72.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The earnings per share for TRP have decreased strongly by -32.47% 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.
The Revenue has been growing slightly by 3.80% in the past year.
TRP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.77% yearly.
EPS 1Y (TTM)-32.47%
EPS 3Y-4.48%
EPS 5Y-2.06%
EPS Q2Q%-23.36%
Revenue 1Y (TTM)3.8%
Revenue growth 3Y0.95%
Revenue growth 5Y0.77%
Sales Q2Q%-7.14%
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 4.01% on average per year.
The Revenue is expected to grow by 3.74% on average over the next years.
EPS Next Y-3.62%
EPS Next 2Y1.35%
EPS Next 3Y1.21%
EPS Next 5Y4.01%
Revenue Next Year-3.3%
Revenue Next 2Y1.07%
Revenue Next 3Y1.53%
Revenue Next 5Y3.74%
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.
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
With a Price/Earnings ratio of 25.15, TRP can be considered very expensive at the moment.
TRP's Price/Earnings ratio is in line with the industry average.
TRP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 20.21, TRP is valued on the expensive side.
TRP's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of TRP to the average of the S&P500 Index (34.59), we can say TRP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.15 | ||
| Fwd PE | 20.21 |
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 | 54.68 | ||
| EV/EBITDA | 16.29 |
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
With a Yearly Dividend Yield of 7.14%, TRP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.97, TRP pays a better dividend. On top of this TRP pays more dividend than 93.93% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, TRP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.14% |
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
TRP pays out 90.54% 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.
DP90.54%
EPS Next 2Y1.35%
EPS Next 3Y1.21%
TSX:TRP (11/14/2025, 7:00:00 PM)
77.45
+1.08 (+1.41%)
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 Cap80.55B
Revenue(TTM)13.77B
Net Income(TTM)4.24B
Analysts72.31
Price Target75.93 (-1.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.14% |
Yearly Dividend3.9
Dividend Growth(5Y)13.09%
DP90.54%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.21%
Min EPS beat(2)-3.38%
Max EPS beat(2)3.8%
EPS beat(4)2
Avg EPS beat(4)-10.14%
Min EPS beat(4)-48.32%
Max EPS beat(4)7.33%
EPS beat(8)6
Avg EPS beat(8)-1.14%
EPS beat(12)8
Avg EPS beat(12)0.09%
EPS beat(16)9
Avg EPS beat(16)-0.04%
Revenue beat(2)2
Avg Revenue beat(2)4.32%
Min Revenue beat(2)4.32%
Max Revenue beat(2)4.32%
Revenue beat(4)3
Avg Revenue beat(4)-13.17%
Min Revenue beat(4)-63.24%
Max Revenue beat(4)4.32%
Revenue beat(8)5
Avg Revenue beat(8)-5.73%
Revenue beat(12)8
Avg Revenue beat(12)-2.75%
Revenue beat(16)9
Avg Revenue beat(16)-2.61%
PT rev (1m)1.84%
PT rev (3m)1.07%
EPS NQ rev (1m)-3%
EPS NQ rev (3m)-2.36%
EPS NY rev (1m)-1.17%
EPS NY rev (3m)-5.59%
Revenue NQ rev (1m)-0.64%
Revenue NQ rev (3m)-1.19%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.15 | ||
| Fwd PE | 20.21 | ||
| P/S | 6.29 | ||
| P/FCF | 54.68 | ||
| P/OCF | 10.65 | ||
| P/B | 2.93 | ||
| P/tB | 5.52 | ||
| EV/EBITDA | 16.29 |
EPS(TTM)3.08
EY3.98%
EPS(NY)3.83
Fwd EY4.95%
FCF(TTM)1.42
FCFY1.83%
OCF(TTM)7.27
OCFY9.39%
SpS12.32
BVpS26.46
TBVpS14.03
PEG (NY)N/A
PEG (5Y)N/A
Graham Number42.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.63% | ||
| ROE | 15.4% | ||
| ROCE | 5.28% | ||
| ROIC | 4.1% | ||
| ROICexc | 4.16% | ||
| ROICexgc | 4.74% | ||
| OM | 43.28% | ||
| PM (TTM) | 33.09% | ||
| GM | 68.45% | ||
| FCFM | 11.5% |
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 Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.05 | ||
| Debt/FCF | 40.34 | ||
| Debt/EBITDA | 6.83 | ||
| Cap/Depr | 225.55% | ||
| Cap/Sales | 47.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.75% | ||
| Profit Quality | 34.75% | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 0.68 |
F-Score5
WACC7.38%
ROIC/WACC0.55
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)-32.47%
EPS 3Y-4.48%
EPS 5Y-2.06%
EPS Q2Q%-23.36%
EPS Next Y-3.62%
EPS Next 2Y1.35%
EPS Next 3Y1.21%
EPS Next 5Y4.01%
Revenue 1Y (TTM)3.8%
Revenue growth 3Y0.95%
Revenue growth 5Y0.77%
Sales Q2Q%-7.14%
Revenue Next Year-3.3%
Revenue Next 2Y1.07%
Revenue Next 3Y1.53%
Revenue Next 5Y3.74%
EBIT growth 1Y-19.79%
EBIT growth 3Y-0.68%
EBIT growth 5Y0%
EBIT Next Year30.1%
EBIT Next 3Y12.65%
EBIT Next 5Y10.1%
FCF growth 1Y325.57%
FCF growth 3Y11.47%
FCF growth 5YN/A
OCF growth 1Y3.49%
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 6 / 10 and the dividend payout ratio is 90.54%.