TC ENERGY CORP (TRP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRP - CA87807B1076 - Common Stock
55.8 USD
-0.04 (-0.07%)
55.8 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to TRP. TRP was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. TRP has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
In the past year TRP had a positive cash flow from operations.
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 has a Return On Assets (2.82%) which is comparable to the rest of the industry.
TRP's Return On Equity of 12.35% is fine compared to the rest of the industry. TRP outperforms 71.43% of its industry peers.
The Return On Invested Capital of TRP (3.97%) is worse than 63.81% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TRP is significantly below the industry average of 21.09%.
| 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 Profit Margin of 27.28%. This is amongst the best in the industry. TRP outperforms 85.24% of its industry peers.
In the last couple of years the Profit Margin of TRP has grown nicely.
TRP has a better Operating Margin (44.41%) than 89.52% of its industry peers.
TRP's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 69.05%, TRP is doing good in the industry, outperforming 77.62% of the companies in the same industry.
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.
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.
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 has a Altman-Z score of 0.65. This is in the lower half of the industry: TRP underperforms 61.43% of its industry peers.
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 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.
TRP has a worse Debt to Equity ratio (2.13) than 81.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | 31.45 | ||
| Altman-Z | 0.65 |
ROIC/WACC0.52
WACC7.6%
2.3 Liquidity
A Current Ratio of 0.63 indicates that TRP may have some problems paying its short term obligations.
The Current ratio of TRP (0.63) is worse than 75.71% of its industry peers.
A Quick Ratio of 0.56 indicates that TRP may have some problems paying its short term obligations.
With a Quick ratio value of 0.56, TRP is not doing good in the industry: 75.71% of the companies in the same industry are doing better.
| 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
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
The Earnings Per Share is expected to grow by 3.82% on average over the next years.
The Revenue is expected to grow by 3.20% on average over the next years.
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
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
A Price/Earnings ratio of 25.02 indicates a quite expensive valuation of TRP.
Based on the Price/Earnings ratio, TRP is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 26.59. TRP is around the same levels.
TRP is valuated rather expensively with a Price/Forward Earnings ratio of 20.26.
The rest of the industry has a similar Price/Forward Earnings ratio as TRP.
TRP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.02 | ||
| Fwd PE | 20.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRP is valued a bit more expensive than 68.57% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as TRP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.79 | ||
| EV/EBITDA | 16.58 |
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
TRP has a Yearly Dividend Yield of 4.56%, which is a nice return.
Compared to an average industry Dividend Yield of 3.95, TRP pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, TRP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
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
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 2Y0.59%
EPS Next 3Y1.73%
55.8
-0.04 (-0.07%)
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 Cap58.09B
Revenue(TTM)12.43B
Net Income(TTM)3.39B
Analysts73.85
Price TargetN/A
Short Float %0.72%
Short Ratio3.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
Yearly Dividend2.83
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)4.26%
PT rev (3m)4.68%
EPS NQ rev (1m)-0.81%
EPS NQ rev (3m)-3.43%
EPS NY rev (1m)-1.4%
EPS NY rev (3m)-2.91%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.02 | ||
| Fwd PE | 20.26 | ||
| P/S | 6.4 | ||
| P/FCF | 40.79 | ||
| P/OCF | 10.56 | ||
| P/B | 2.9 | ||
| P/tB | 5.59 | ||
| EV/EBITDA | 16.58 |
EPS(TTM)2.23
EY4%
EPS(NY)2.75
Fwd EY4.94%
FCF(TTM)1.37
FCFY2.45%
OCF(TTM)5.28
OCFY9.47%
SpS8.72
BVpS19.26
TBVpS9.99
PEG (NY)N/A
PEG (5Y)N/A
Graham Number31.08
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
WACC7.6%
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-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 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%.