TC ENERGY CORP (TRP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRP - CA87807B1076 - Common Stock
53.68 USD
+0.05 (+0.09%)
53.68 USD
0 (0%)
Overall TRP gets a fundamental rating of 3 out of 10. We evaluated TRP against 210 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 does not seem to be growing, but still is valued expensively.
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
With a Return On Assets value of 2.82%, TRP perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
TRP has a Return On Equity of 12.35%. This is in the better half of the industry: TRP outperforms 68.57% of its industry peers.
TRP has a worse Return On Invested Capital (3.97%) than 64.76% 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 21.41%.
| 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 84.76% of the companies in the same industry.
In the last couple of years the Profit Margin of TRP has grown nicely.
TRP has a Operating Margin of 44.41%. This is amongst the best in the industry. TRP outperforms 89.05% 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's Gross Margin of 69.05% is fine compared to the rest of the industry. TRP outperforms 77.62% 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
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.
Compared to 5 years ago, TRP has more shares outstanding
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.
With a Altman-Z score value of 0.65, TRP is not doing good in the industry: 63.33% of the companies in the same industry are doing better.
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.
The Debt to FCF ratio of TRP (31.45) 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.
With a Debt to Equity ratio value of 2.13, TRP is not doing good in the industry: 81.90% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | 31.45 | ||
| Altman-Z | 0.65 |
ROIC/WACC0.52
WACC7.66%
2.3 Liquidity
A Current Ratio of 0.63 indicates that TRP may have some problems paying its short term obligations.
TRP has a Current ratio of 0.63. This is in the lower half of the industry: TRP underperforms 77.62% of its industry peers.
TRP has a Quick 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.
With a Quick ratio value of 0.56, TRP is not doing good in the industry: 78.57% 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
The earnings per share for TRP have decreased strongly by -32.89% in the last year.
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.
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 4.01% on average per year.
Based on estimates for the next years, TRP will show a small growth in Revenue. The Revenue will grow by 3.74% on average per year.
EPS Next Y-3.62%
EPS Next 2Y1.35%
EPS Next 3Y1.21%
EPS Next 5Y4.01%
Revenue Next Year-3.3%
Revenue Next 2Y1.07%
Revenue Next 3Y1.53%
Revenue Next 5Y3.74%
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 24.74 indicates a rather expensive valuation of TRP.
The rest of the industry has a similar Price/Earnings ratio as TRP.
TRP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
With a Price/Forward Earnings ratio of 19.76, TRP is valued on the expensive side.
TRP's Price/Forward Earnings ratio is in line with the industry average.
TRP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.74 | ||
| Fwd PE | 19.76 |
4.2 Price Multiples
68.57% of the companies in the same industry are cheaper than TRP, based on the Enterprise Value to EBITDA ratio.
TRP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.35 | ||
| EV/EBITDA | 16.46 |
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 4.44%, which is a nice return.
Compared to an average industry Dividend Yield of 5.88, 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 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
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
TRP pays out 110.00% of its income as dividend. 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%
53.68
+0.05 (+0.09%)
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 Cap55.83B
Revenue(TTM)12.43B
Net Income(TTM)3.39B
Analysts72.31
Price Target55.44 (3.28%)
Short Float %0.65%
Short Ratio2.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
Yearly Dividend2.77
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)-2.6%
EPS NQ rev (3m)-3.69%
EPS NY rev (1m)-1.17%
EPS NY rev (3m)-1.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.74 | ||
| Fwd PE | 19.76 | ||
| P/S | 6.33 | ||
| P/FCF | 40.35 | ||
| P/OCF | 10.45 | ||
| P/B | 2.87 | ||
| P/tB | 5.53 | ||
| EV/EBITDA | 16.46 |
EPS(TTM)2.17
EY4.04%
EPS(NY)2.72
Fwd EY5.06%
FCF(TTM)1.33
FCFY2.48%
OCF(TTM)5.14
OCFY9.57%
SpS8.48
BVpS18.73
TBVpS9.71
PEG (NY)N/A
PEG (5Y)N/A
Graham Number30.24
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
WACC7.66%
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 5Y4.01%
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 5Y3.74%
EBIT growth 1Y-20.42%
EBIT growth 3Y-0.68%
EBIT growth 5Y0%
EBIT Next Year30.1%
EBIT Next 3Y12.65%
EBIT Next 5Y10.1%
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%.