TC ENERGY CORP (TRP.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TRP - CA87807B1076 - Common Stock
75.27 CAD
+0.46 (+0.61%)
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 belongs to the best of the industry regarding profitability, 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
TRP had positive earnings in the past year.
TRP had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 2.82%, TRP is doing good in the industry, outperforming 67.89% of the companies in the same industry.
TRP has a Return On Equity of 12.35%. This is amongst the best in the industry. TRP outperforms 83.94% 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 57.34% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TRP is below the industry average of 6.53%.
| 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
The Profit Margin of TRP (27.28%) is better than 88.07% of its industry peers.
In the last couple of years the Profit Margin of TRP has grown nicely.
TRP has a Operating Margin of 44.41%. This is amongst the best in the industry. TRP outperforms 93.12% 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 83.94% of its industry peers.
TRP's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
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.
The Altman-Z score of TRP (0.64) is comparable to the rest of the industry.
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.
TRP has a Debt to FCF ratio (31.45) which is comparable to the rest of the 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: 78.44% 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/WACC0.53
WACC7.54%
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: 64.22% of the companies in the same industry are doing better.
A Quick Ratio of 0.56 indicates that TRP may have some problems paying its short term obligations.
The Quick ratio of TRP (0.56) is worse than 63.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The earnings per share for TRP have decreased strongly by -32.89% 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.
Looking at the last year, TRP shows a very negative growth in Revenue. The Revenue has decreased by -25.33% in the last year.
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)-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-4.97%
EPS Next 2Y0.59%
EPS Next 3Y1.73%
EPS Next 5Y3.82%
Revenue Next Year-3.46%
Revenue Next 2Y1.29%
Revenue Next 3Y1.74%
Revenue Next 5Y3.2%
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
Based on the Price/Earnings ratio of 24.60, the valuation of TRP can be described as rather expensive.
TRP's Price/Earnings ratio is a bit cheaper when compared to the industry. TRP is cheaper than 61.01% of the companies in the same industry.
TRP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.54.
With a Price/Forward Earnings ratio of 19.94, TRP is valued on the expensive side.
TRP's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.78. TRP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.6 | ||
| Fwd PE | 19.94 |
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 | 40.16 | ||
| EV/EBITDA | 16.28 |
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 2Y0.59%
EPS Next 3Y1.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.45%, TRP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.83, 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 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.45% |
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 110.00% 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.
DP110%
EPS Next 2Y0.59%
EPS Next 3Y1.73%
TSX:TRP (12/12/2025, 7:00:00 PM)
75.27
+0.46 (+0.61%)
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 Cap78.36B
Revenue(TTM)12.43B
Net Income(TTM)3.39B
Analysts73.85
Price Target78.75 (4.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.45% |
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)3.72%
PT rev (3m)5.63%
EPS NQ rev (1m)-1.63%
EPS NQ rev (3m)-3.43%
EPS NY rev (1m)-1.4%
EPS NY rev (3m)-2.91%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.6 | ||
| Fwd PE | 19.94 | ||
| P/S | 6.3 | ||
| P/FCF | 40.16 | ||
| P/OCF | 10.4 | ||
| P/B | 2.85 | ||
| P/tB | 5.5 | ||
| EV/EBITDA | 16.28 |
EPS(TTM)3.06
EY4.07%
EPS(NY)3.77
Fwd EY5.01%
FCF(TTM)1.87
FCFY2.49%
OCF(TTM)7.24
OCFY9.62%
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
WACC7.54%
ROIC/WACC0.53
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-4.97%
EPS Next 2Y0.59%
EPS Next 3Y1.73%
EPS Next 5Y3.82%
Revenue 1Y (TTM)-25.33%
Revenue growth 3Y0.95%
Revenue growth 5Y0.77%
Sales Q2Q%-9.28%
Revenue Next Year-3.46%
Revenue Next 2Y1.29%
Revenue Next 3Y1.74%
Revenue Next 5Y3.2%
EBIT growth 1Y-20.42%
EBIT growth 3Y-0.68%
EBIT growth 5Y0%
EBIT Next Year29.85%
EBIT Next 3Y13.03%
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%.