TC ENERGY CORP (TRP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRP - CA87807B1076 - Common Stock
54.66 USD
+0.34 (+0.63%)
54.66 USD
0 (0%)
Overall TRP gets a fundamental rating of 3 out of 10. We evaluated TRP against 209 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of TRP while its profitability can be described as average. 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.
Each year in the past 5 years TRP has 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.
The Return On Equity of TRP (12.35%) is better than 71.29% of its industry peers.
With a Return On Invested Capital value of 3.97%, TRP is not doing good in the industry: 64.59% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for TRP is significantly below the industry average of 20.87%.
| 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's Profit Margin of 27.28% is amongst the best of the industry. TRP outperforms 85.17% of its industry peers.
In the last couple of years the Profit Margin of TRP has grown nicely.
TRP's Operating Margin of 44.41% is amongst the best of the industry. TRP outperforms 89.47% 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 69.05%. This is in the better half 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.
TRP has about the same amout of shares outstanding than it did 1 year ago.
TRP has more shares outstanding than it did 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 Altman-Z score of 0.64. This is in the lower half of the industry: TRP underperforms 62.68% of its industry peers.
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 of 31.45. This is comparable to the rest of the industry: TRP outperforms 41.15% of its industry peers.
A Debt/Equity ratio of 2.13 is on the high side and indicates that TRP has dependencies on debt financing.
With a Debt to Equity ratio value of 2.13, TRP is not doing good in the industry: 82.30% 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/WACC0.52
WACC7.57%
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 77.03% of its industry peers.
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 77.03% 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.
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
TRP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.77% yearly.
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
Based on estimates for the next years, TRP will show a small growth in Earnings Per Share. The EPS will grow by 3.82% on average per year.
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
TRP is valuated rather expensively with a Price/Earnings ratio of 24.62.
Compared to the rest of the industry, the Price/Earnings ratio of TRP is on the same level as its industry peers.
TRP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.54, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 19.98 indicates a rather expensive valuation of TRP.
TRP's Price/Forward Earnings is on the same level as 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 | 24.62 | ||
| Fwd PE | 19.98 |
4.2 Price Multiples
TRP's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. TRP is more expensive than 68.90% 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 | 40.24 | ||
| EV/EBITDA | 16.38 |
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 4.45%, which is a nice return.
TRP's Dividend Yield is a higher than the industry average which is at 5.59.
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
110.00% of the earnings are spent on dividend by TRP. This is not a sustainable payout ratio.
The dividend of TRP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP110%
EPS Next 2Y0.59%
EPS Next 3Y1.73%
54.66
+0.34 (+0.63%)
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 Cap56.90B
Revenue(TTM)12.43B
Net Income(TTM)3.39B
Analysts73.85
Price Target56.44 (3.26%)
Short Float %0.81%
Short Ratio3.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.45% |
Yearly Dividend2.8
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)3.62%
PT rev (3m)3.5%
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 | 24.62 | ||
| Fwd PE | 19.98 | ||
| P/S | 6.32 | ||
| P/FCF | 40.24 | ||
| P/OCF | 10.42 | ||
| P/B | 2.86 | ||
| P/tB | 5.51 | ||
| EV/EBITDA | 16.38 |
EPS(TTM)2.22
EY4.06%
EPS(NY)2.74
Fwd EY5%
FCF(TTM)1.36
FCFY2.48%
OCF(TTM)5.25
OCFY9.6%
SpS8.65
BVpS19.12
TBVpS9.92
PEG (NY)N/A
PEG (5Y)N/A
Graham Number30.9
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
WACC7.57%
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%.