TC ENERGY CORP (TRP) Stock Fundamental Analysis
USA - NYSE:TRP - CA87807B1076 - Common Stock
49.79 USD
-0.27 (-0.54%)
49.79 USD
0 (0%)
TRP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 210 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 does not seem to be growing, but still is valued expensively.
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 in line compared to the rest of the industry. TRP outperforms 52.38% of its industry peers.
With a decent Return On Equity value of 15.40%, TRP is doing good in the industry, outperforming 76.19% of the companies in the same industry.
With a Return On Invested Capital value of 4.10%, TRP is not doing good in the industry: 62.86% of the companies in the same industry are doing better.
TRP had an Average Return On Invested Capital over the past 3 years of 4.35%. This is significantly below the industry average of 21.78%.
| 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 88.10% of its industry peers.
In the last couple of years the Profit Margin of TRP has grown nicely.
TRP has a Operating Margin of 43.28%. This is amongst the best in the industry. TRP outperforms 87.62% of its industry peers.
In the last couple of years the Operating Margin of TRP has remained more or less at the same level.
TRP has a Gross Margin of 68.45%. This is in the better half of the industry: TRP outperforms 76.19% 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
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.
TRP has a better debt/assets ratio than last year.
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.
TRP has a worse Altman-Z score (0.64) than 61.90% 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.
TRP's Debt to FCF ratio of 40.34 is in line compared to the rest of the industry. TRP outperforms 41.43% of its industry peers.
TRP has a Debt/Equity ratio of 2.05. This is a high value indicating a heavy dependency on external financing.
TRP has a Debt to Equity ratio of 2.05. This is amonst the worse of the industry: TRP underperforms 80.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.05 | ||
| Debt/FCF | 40.34 | ||
| Altman-Z | 0.64 |
ROIC/WACC0.54
WACC7.57%
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 81.43% 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.
With a Quick ratio value of 0.54, TRP is not doing good in the industry: 81.43% of the companies in the same industry are doing better.
| 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.
TRP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.77% yearly.
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
TRP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.87% yearly.
The Revenue is expected to grow by 3.59% on average over the next years.
EPS Next Y-2.48%
EPS Next 2Y1.72%
EPS Next 3Y1.68%
EPS Next 5Y3.87%
Revenue Next Year-3.35%
Revenue Next 2Y0.86%
Revenue Next 3Y1.3%
Revenue Next 5Y3.59%
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 21.10, 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 26.03. TRP is around the same levels.
TRP is valuated rather expensively with a Price/Forward Earnings ratio of 18.12.
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 (22.27), we can say TRP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.1 | ||
| Fwd PE | 18.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRP is valued a bit more expensive than 65.71% of the companies in the same industry.
TRP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.37 | ||
| EV/EBITDA | 15.52 |
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 2Y1.72%
EPS Next 3Y1.68%
5. Dividend
5.1 Amount
TRP has a Yearly Dividend Yield of 4.81%, which is a nice return.
Compared to an average industry Dividend Yield of 6.82, 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.81% |
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
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 2Y1.72%
EPS Next 3Y1.68%
49.79
-0.27 (-0.54%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners78.19%
Inst Owner Change-0.26%
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap51.78B
Revenue(TTM)12.81B
Net Income(TTM)4.24B
Analysts73.08
Price Target54.47 (9.4%)
Short Float %1.12%
Short Ratio5.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.81% |
Yearly Dividend2.78
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)1.02%
PT rev (3m)-0.51%
EPS NQ rev (1m)-2.13%
EPS NQ rev (3m)-1.49%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.47%
Revenue NQ rev (1m)-0.64%
Revenue NQ rev (3m)-1.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.1 | ||
| Fwd PE | 18.12 | ||
| P/S | 5.68 | ||
| P/FCF | 49.37 | ||
| P/OCF | 9.61 | ||
| P/B | 2.64 | ||
| P/tB | 4.98 | ||
| EV/EBITDA | 15.52 |
EPS(TTM)2.36
EY4.74%
EPS(NY)2.75
Fwd EY5.52%
FCF(TTM)1.01
FCFY2.03%
OCF(TTM)5.18
OCFY10.4%
SpS8.77
BVpS18.84
TBVpS9.99
PEG (NY)N/A
PEG (5Y)N/A
Graham Number31.63
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 | 0.64 |
F-Score5
WACC7.57%
ROIC/WACC0.54
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-2.48%
EPS Next 2Y1.72%
EPS Next 3Y1.68%
EPS Next 5Y3.87%
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 5Y3.59%
EBIT growth 1Y-19.79%
EBIT growth 3Y-0.68%
EBIT growth 5Y0%
EBIT Next Year30.1%
EBIT Next 3Y12.65%
EBIT Next 5Y9.95%
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 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 90.54%.