TC ENERGY CORP (TRP) Stock Fundamental Analysis
USA - NYSE:TRP - CA87807B1076 - Common Stock
52.46 USD
-0.2 (-0.38%)
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.
In the past year TRP had a positive cash flow from operations.
Each year in the past 5 years TRP has been profitable.
Each year in the past 5 years TRP had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TRP (3.63%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 15.40%, TRP is in the better half of the industry, outperforming 74.29% of the companies in the same industry.
The Return On Invested Capital of TRP (4.10%) is worse than 61.90% 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 21.66%.
| 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 87.62% of its industry peers.
TRP's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 43.28%, TRP belongs to the best of the industry, outperforming 87.62% of the companies in the same industry.
In the last couple of years the Operating Margin of TRP has remained more or less at the same level.
The Gross Margin of TRP (68.45%) is better than 77.14% of its industry peers.
In the last couple of years the Gross Margin of TRP has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TRP is destroying value.
TRP has about the same amout of shares outstanding than it did 1 year ago.
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 0.66, we must say that TRP is in the distress zone and has some risk of bankruptcy.
TRP has a worse Altman-Z score (0.66) than 60.48% 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.
With a Debt to FCF ratio value of 40.34, TRP perfoms like the industry average, outperforming 40.48% of the companies in the same industry.
A Debt/Equity ratio of 2.05 is on the high side and indicates that TRP has dependencies on debt financing.
The Debt to Equity ratio of TRP (2.05) is worse than 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.05 | ||
| Debt/FCF | 40.34 | ||
| Altman-Z | 0.66 |
ROIC/WACC0.52
WACC7.84%
2.3 Liquidity
A Current Ratio of 0.61 indicates that TRP may have some problems paying its short term obligations.
The Current ratio of TRP (0.61) is worse than 81.90% of its industry peers.
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: 79.52% 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
The earnings per share for TRP have decreased strongly by -26.71% 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.
TRP shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -22.38%.
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)-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 3.54% yearly.
TRP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.26% yearly.
EPS Next Y-2.12%
EPS Next 2Y2.01%
EPS Next 3Y2.07%
EPS Next 5Y3.54%
Revenue Next Year-3.35%
Revenue Next 2Y0.86%
Revenue Next 3Y1.3%
Revenue Next 5Y3.26%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 21.77, the valuation of TRP can be described as rather expensive.
TRP's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.41, TRP is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 18.63, the valuation of TRP can be described as rather expensive.
TRP's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of TRP to the average of the S&P500 Index (22.88), we can say TRP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.77 | ||
| Fwd PE | 18.63 |
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 65.71% of the companies listed 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 | 51.05 | ||
| EV/EBITDA | 15.81 |
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 2Y2.01%
EPS Next 3Y2.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.43%, TRP is a good candidate for dividend investing.
TRP's Dividend Yield is a higher than the industry average which is at 6.17.
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 | 6.43% |
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
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 2Y2.01%
EPS Next 3Y2.07%
NYSE:TRP (9/19/2025, 12:46:36 PM)
52.46
-0.2 (-0.38%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners78.66%
Inst Owner Change1.72%
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap54.56B
Analysts73.08
Price Target53.91 (2.76%)
Short Float %1.43%
Short Ratio8.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.43% |
Yearly Dividend2.82
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)-1.76%
PT rev (3m)-1.71%
EPS NQ rev (1m)-1.76%
EPS NQ rev (3m)-10.2%
EPS NY rev (1m)-4.12%
EPS NY rev (3m)-4.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.2%
Revenue NY rev (1m)1.31%
Revenue NY rev (3m)4.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.77 | ||
| Fwd PE | 18.63 | ||
| P/S | 5.87 | ||
| P/FCF | 51.05 | ||
| P/OCF | 9.94 | ||
| P/B | 2.73 | ||
| P/tB | 5.15 | ||
| EV/EBITDA | 15.81 |
EPS(TTM)2.41
EY4.59%
EPS(NY)2.82
Fwd EY5.37%
FCF(TTM)1.03
FCFY1.96%
OCF(TTM)5.28
OCFY10.06%
SpS8.94
BVpS19.2
TBVpS10.18
PEG (NY)N/A
PEG (5Y)N/A
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%
ROICexcg growth 3Y-4.34%
ROICexcg 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 | 0.66 |
F-Score5
WACC7.84%
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)-26.71%
EPS 3Y-4.48%
EPS 5Y-2.06%
EPS Q2Q%-12.77%
EPS Next Y-2.12%
EPS Next 2Y2.01%
EPS Next 3Y2.07%
EPS Next 5Y3.54%
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 5Y3.26%
EBIT growth 1Y-19.79%
EBIT growth 3Y-0.68%
EBIT growth 5Y0%
EBIT Next Year30.13%
EBIT Next 3Y12.83%
EBIT Next 5Y9.6%
FCF growth 1Y325.57%
FCF growth 3Y11.47%
FCF growth 5YN/A
OCF growth 1Y3.49%
OCF growth 3Y3.76%
OCF growth 5Y1.68%