TC ENERGY CORP (TRP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRP - CA87807B1076 - Common Stock
54.21 USD
-0.51 (-0.93%)
54.21 USD
0 (0%)
TRP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 209 industry peers in the Oil, Gas & Consumable Fuels industry. While TRP is still in line with the averages on profitability rating, 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
In the past year TRP was profitable.
In the past year TRP had a positive cash flow from operations.
Each year in the past 5 years TRP has been profitable.
TRP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.82%, TRP perfoms like the industry average, outperforming 46.89% of the companies in the same industry.
The Return On Equity of TRP (12.35%) is better than 69.38% of its industry peers.
TRP has a Return On Invested Capital of 3.97%. This is in the lower half of the industry: TRP underperforms 64.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TRP is significantly below the industry average of 21.47%.
| 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
Looking at the Profit Margin, with a value of 27.28%, TRP belongs to the top of the industry, outperforming 85.17% of the companies in the same industry.
In the last couple of years the Profit Margin of TRP has grown nicely.
Looking at the Operating Margin, with a value of 44.41%, TRP belongs to the top of the industry, outperforming 89.00% 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 69.05% is fine compared to the rest of the industry. TRP outperforms 77.51% 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
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.
TRP has a better debt/assets ratio than last year.
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.
With a Altman-Z score value of 0.65, TRP is not doing good in the industry: 62.20% of the companies in the same industry are doing better.
The Debt to FCF ratio of TRP is 31.45, which is on the high side as it means it would take TRP, 31.45 years of fcf income to pay off all of its debts.
TRP has a Debt to FCF ratio (31.45) which is in line with its industry peers.
TRP has a Debt/Equity ratio of 2.13. This is a high value indicating a heavy dependency on external financing.
TRP has a worse Debt to Equity ratio (2.13) than 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | 31.45 | ||
| Altman-Z | 0.65 |
ROIC/WACC0.52
WACC7.67%
2.3 Liquidity
TRP has a Current Ratio of 0.63. 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 0.63 is on the low side compared to the rest of the industry. TRP is outperformed by 77.03% of its industry peers.
A Quick Ratio of 0.56 indicates that TRP may have some problems paying its short term obligations.
TRP's Quick ratio of 0.56 is on the low side compared to the rest of the industry. TRP is outperformed by 77.99% 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%.
The Earnings Per Share has been decreasing by -2.06% on average over the past years.
Looking at the last year, TRP shows a very negative growth in Revenue. The Revenue has decreased by -25.33% in the last year.
The Revenue has been growing slightly by 0.77% on average over the past years.
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
The Earnings Per Share is expected to grow by 3.82% 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 3.20% yearly.
EPS Next Y-3.62%
EPS Next 2Y1.35%
EPS Next 3Y1.21%
EPS Next 5Y3.82%
Revenue Next Year-3.3%
Revenue Next 2Y1.07%
Revenue Next 3Y1.53%
Revenue Next 5Y3.2%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 24.75, TRP is valued on the expensive side.
TRP's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.11. TRP is around the same levels.
Based on the Price/Forward Earnings ratio of 19.75, the valuation of TRP can be described as rather expensive.
TRP's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.21, TRP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.75 | ||
| Fwd PE | 19.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRP indicates a slightly more expensive valuation: TRP is more expensive than 68.42% of the companies listed in the same industry.
TRP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.38 | ||
| EV/EBITDA | 16.47 |
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 2Y1.35%
EPS Next 3Y1.21%
5. Dividend
5.1 Amount
TRP has a Yearly Dividend Yield of 4.48%, which is a nice return.
Compared to an average industry Dividend Yield of 5.96, 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.48% |
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.
TRP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP110%
EPS Next 2Y1.35%
EPS Next 3Y1.21%
54.21
-0.51 (-0.93%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners78.19%
Inst Owner Change4.43%
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap56.43B
Revenue(TTM)12.43B
Net Income(TTM)3.39B
Analysts72.31
Price Target55.44 (2.27%)
Short Float %0.81%
Short Ratio3.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.48% |
Yearly Dividend2.78
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)3.54%
PT rev (3m)1.66%
EPS NQ rev (1m)-1.8%
EPS NQ rev (3m)-3.43%
EPS NY rev (1m)-1.17%
EPS NY rev (3m)-1.53%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.75 | ||
| Fwd PE | 19.75 | ||
| P/S | 6.34 | ||
| P/FCF | 40.38 | ||
| P/OCF | 10.45 | ||
| P/B | 2.87 | ||
| P/tB | 5.53 | ||
| EV/EBITDA | 16.47 |
EPS(TTM)2.19
EY4.04%
EPS(NY)2.74
Fwd EY5.06%
FCF(TTM)1.34
FCFY2.48%
OCF(TTM)5.19
OCFY9.57%
SpS8.55
BVpS18.9
TBVpS9.8
PEG (NY)N/A
PEG (5Y)N/A
Graham Number30.52
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 | 0.65 |
F-Score5
WACC7.67%
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)-32.89%
EPS 3Y-4.48%
EPS 5Y-2.06%
EPS Q2Q%-25.24%
EPS Next Y-3.62%
EPS Next 2Y1.35%
EPS Next 3Y1.21%
EPS Next 5Y3.82%
Revenue 1Y (TTM)-25.33%
Revenue growth 3Y0.95%
Revenue growth 5Y0.77%
Sales Q2Q%-9.28%
Revenue Next Year-3.3%
Revenue Next 2Y1.07%
Revenue Next 3Y1.53%
Revenue Next 5Y3.2%
EBIT growth 1Y-20.42%
EBIT growth 3Y-0.68%
EBIT growth 5Y0%
EBIT Next Year30.1%
EBIT Next 3Y12.65%
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 FAQ
Can you provide the ChartMill fundamental rating for TC ENERGY CORP?
ChartMill assigns a fundamental rating of 3 / 10 to TRP.
What is the valuation status of TC ENERGY CORP (TRP) stock?
ChartMill assigns a valuation rating of 2 / 10 to TC ENERGY CORP (TRP). This can be considered as Overvalued.
How profitable is TC ENERGY CORP (TRP) stock?
TC ENERGY CORP (TRP) has a profitability rating of 6 / 10.
What is the financial health of TC ENERGY CORP (TRP) stock?
The financial health rating of TC ENERGY CORP (TRP) is 1 / 10.
Can you provide the dividend sustainability for TRP stock?
The dividend rating of TC ENERGY CORP (TRP) is 5 / 10 and the dividend payout ratio is 110%.