TC ENERGY CORP (TRP.CA) Stock Fundamental Analysis
Canada - TSX:TRP - CA87807B1076 - Common Stock
71.64 CAD
-0.34 (-0.47%)
Taking everything into account, TRP scores 4 out of 10 in our fundamental rating. TRP was compared to 216 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 is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
TRP had positive earnings in the past year.
In the past year TRP had a positive cash flow from operations.
TRP had positive earnings in each of the past 5 years.
In the past 5 years TRP always reported a positive cash flow from operatings.
1.2 Ratios
TRP has a better Return On Assets (3.63%) than 69.91% 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 85.19% of the companies in the same industry.
The Return On Invested Capital of TRP (4.10%) is comparable to the rest of the industry.
TRP had an Average Return On Invested Capital over the past 3 years of 4.35%. This is below the industry average of 6.93%.
| 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
TRP has a better Profit Margin (33.09%) than 89.35% of its industry peers.
In the last couple of years the Profit Margin of TRP has grown nicely.
TRP's Operating Margin of 43.28% is amongst the best of the industry. TRP outperforms 91.20% 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 81.48% 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 | 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
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.
The debt/assets ratio for TRP has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.65, we must say that TRP is in the distress zone and 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 52.31% of its industry peers.
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.
The Debt to FCF ratio of TRP (40.34) is comparable to the rest of the industry.
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 80.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.05 | ||
| Debt/FCF | 40.34 | ||
| Altman-Z | 0.65 |
ROIC/WACC0.52
WACC7.85%
2.3 Liquidity
A Current Ratio of 0.61 indicates that TRP may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.61, TRP is doing worse than 72.69% of the companies in the same industry.
TRP has a Quick 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 Quick ratio of 0.54 is on the low side compared to the rest of the industry. TRP is outperformed by 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
TRP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -26.71%.
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 -22.38% in the last year.
The Revenue has been growing slightly by 0.77% on average over the past years.
EPS 1Y (TTM)-26.71%
EPS 3Y-4.48%
EPS 5Y-2.06%
EPS Q2Q%-12.77%
Revenue 1Y (TTM)-22.38%
Revenue growth 3Y0.95%
Revenue growth 5Y0.77%
Sales Q2Q%-8.35%
3.2 Future
The Earnings Per Share is expected to grow by 3.54% 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 3.26% yearly.
EPS Next Y-2.12%
EPS Next 2Y2.01%
EPS Next 3Y2.07%
EPS Next 5Y3.54%
Revenue Next Year-3.35%
Revenue Next 2Y0.86%
Revenue Next 3Y1.3%
Revenue Next 5Y3.26%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.58, which indicates a rather expensive current valuation of TRP.
TRP's Price/Earnings is on the same level as the industry average.
TRP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.20.
Based on the Price/Forward Earnings ratio of 18.46, the valuation of TRP can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as TRP.
The average S&P500 Price/Forward Earnings ratio is at 22.71. TRP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.58 | ||
| Fwd PE | 18.46 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRP is on the same level as its industry peers.
TRP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.58 | ||
| EV/EBITDA | 15.74 |
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 2Y2.01%
EPS Next 3Y2.07%
5. Dividend
5.1 Amount
TRP has a Yearly Dividend Yield of 6.43%, which is a nice return.
TRP's Dividend Yield is a higher than the industry average which is at 5.90.
TRP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.43% |
5.2 History
The dividend of TRP is nicely growing with an annual growth rate of 13.09%!
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
90.54% 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.
DP90.54%
EPS Next 2Y2.01%
EPS Next 3Y2.07%
TSX:TRP (9/16/2025, 7:00:00 PM)
71.64
-0.34 (-0.47%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners78.66%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap74.51B
Analysts73.08
Price Target74.56 (4.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.43% |
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)-1.22%
PT rev (3m)-1.02%
EPS NQ rev (1m)-1.76%
EPS NQ rev (3m)-10.2%
EPS NY rev (1m)-4.12%
EPS NY rev (3m)-4.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.2%
Revenue NY rev (1m)1.31%
Revenue NY rev (3m)4.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.58 | ||
| Fwd PE | 18.46 | ||
| P/S | 5.82 | ||
| P/FCF | 50.58 | ||
| P/OCF | 9.85 | ||
| P/B | 2.71 | ||
| P/tB | 5.11 | ||
| EV/EBITDA | 15.74 |
EPS(TTM)3.32
EY4.63%
EPS(NY)3.88
Fwd EY5.42%
FCF(TTM)1.42
FCFY1.98%
OCF(TTM)7.27
OCFY10.15%
SpS12.32
BVpS26.46
TBVpS14.03
PEG (NY)N/A
PEG (5Y)N/A
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%
ROICexcg growth 3Y-4.34%
ROICexcg 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 | 0.65 |
F-Score5
WACC7.85%
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)-26.71%
EPS 3Y-4.48%
EPS 5Y-2.06%
EPS Q2Q%-12.77%
EPS Next Y-2.12%
EPS Next 2Y2.01%
EPS Next 3Y2.07%
EPS Next 5Y3.54%
Revenue 1Y (TTM)-22.38%
Revenue growth 3Y0.95%
Revenue growth 5Y0.77%
Sales Q2Q%-8.35%
Revenue Next Year-3.35%
Revenue Next 2Y0.86%
Revenue Next 3Y1.3%
Revenue Next 5Y3.26%
EBIT growth 1Y-19.79%
EBIT growth 3Y-0.68%
EBIT growth 5Y0%
EBIT Next Year30.13%
EBIT Next 3Y12.83%
EBIT Next 5Y9.6%
FCF growth 1Y325.57%
FCF growth 3Y11.47%
FCF growth 5YN/A
OCF growth 1Y3.49%
OCF growth 3Y3.76%
OCF growth 5Y1.68%