TC ENERGY CORP (TRP) Stock Fundamental Analysis
NYSE:TRP - New York Stock Exchange, Inc. - CA87807B1076 - Common Stock - Currency: USD
Taking everything into account, TRP scores 3 out of 10 in our fundamental rating. TRP was compared to 211 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 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.
Of the past 5 years TRP 4 years were profitable.
TRP had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of TRP (3.76%) is comparable to the rest of the industry.
The Return On Equity of TRP (16.70%) is better than 66.67% of its industry peers.
With a Return On Invested Capital value of 3.78%, TRP is not doing good in the industry: 69.61% 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 28.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.76% | ||
| ROE | 16.7% | ||
| ROIC | 3.78% |
ROA(3y)1.52%
ROA(5y)2.6%
ROE(3y)5.64%
ROE(5y)8.81%
ROIC(3y)4.02%
ROIC(5y)4.1%
1.3 Margins
TRP has a better Profit Margin (30.55%) than 80.88% of its industry peers.
TRP's Profit Margin has declined in the last couple of years.
TRP has a better Operating Margin (41.67%) than 81.37% of its industry peers.
TRP's Operating Margin has been stable in the last couple of years.
The Gross Margin of TRP (68.45%) is better than 73.53% of its industry peers.
TRP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.67% | ||
| PM (TTM) | 30.55% | ||
| GM | 68.45% |
OM growth 3Y-1.23%
OM growth 5Y0.71%
PM growth 3Y-19.7%
PM growth 5Y-7.25%
GM growth 3Y-0.4%
GM growth 5Y-1.23%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TRP is destroying value.
There is no outstanding debt for TRP. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
Based on the Altman-Z score of 0.69, we must say that TRP is in the distress zone and has some risk of bankruptcy.
TRP has a worse Altman-Z score (0.69) than 65.20% of its industry peers.
The Debt to FCF ratio of TRP is 106.27, which is on the high side as it means it would take TRP, 106.27 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 106.27, TRP is doing worse than 67.65% of the companies in the same industry.
TRP has a Debt/Equity ratio of 2.23. This is a high value indicating a heavy dependency on external financing.
TRP's Debt to Equity ratio of 2.23 is on the low side compared to the rest of the industry. TRP is outperformed by 86.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.23 | ||
| Debt/FCF | 106.27 | ||
| Altman-Z | 0.69 |
ROIC/WACC0.56
WACC6.7%
2.3 Liquidity
A Current Ratio of 1.31 indicates that TRP should not have too much problems paying its short term obligations.
TRP's Current ratio of 1.31 is in line compared to the rest of the industry. TRP outperforms 54.41% of its industry peers.
TRP has a Quick Ratio of 1.23. This is a normal value and indicates that TRP is financially healthy and should not expect problems in meeting its short term obligations.
TRP has a Quick ratio of 1.23. This is in the better half of the industry: TRP outperforms 62.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The earnings per share for TRP have decreased by -5.45% in the last year.
Measured over the past 5 years, TRP shows a small growth in Earnings Per Share. The EPS has been growing by 0.64% on average per year.
EPS 1Y (TTM)-5.45%
EPS 3Y-0.05%
EPS 5Y0.64%
EPS Q2Q%-21.2%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-14.39%
3.2 Future
The Earnings Per Share is expected to grow by 3.85% on average over the next years.
The Revenue is expected to grow by 4.32% on average over the next years.
EPS Next Y-11.64%
EPS Next 2Y-2.8%
EPS Next 3Y-0.45%
EPS Next 5Y3.85%
Revenue Next Year-5.8%
Revenue Next 2Y0.4%
Revenue Next 3Y1.29%
Revenue Next 5Y4.32%
3.3 Evolution
The EPS 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
A Price/Earnings ratio of 14.95 indicates a correct valuation of TRP.
TRP's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of TRP to the average of the S&P500 Index (29.63), we can say TRP is valued slightly cheaper.
A Price/Forward Earnings ratio of 16.93 indicates a correct valuation of TRP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TRP is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, TRP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.95 | ||
| Fwd PE | 16.93 |
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 67.65% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TRP is valued a bit more expensive than 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 97.56 | ||
| EV/EBITDA | 13.56 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)23.42
EPS Next 2Y-2.8%
EPS Next 3Y-0.45%
5. Dividend
5.1 Amount
TRP has a Yearly Dividend Yield of 5.27%, which is a nice return.
TRP's Dividend Yield is a higher than the industry average which is at 6.75.
TRP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.27% |
5.2 History
On average, the dividend of TRP grows each year by 7.82%, 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)7.82%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
79.02% 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.
DP79.02%
EPS Next 2Y-2.8%
EPS Next 3Y-0.45%
44.99
-0.55 (-1.21%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners75.89%
Inst Owner Change-5.12%
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap46.75B
Analysts70.77
Price Target50.12 (11.4%)
Short Float %0.74%
Short Ratio3.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.27% |
Yearly Dividend2.8
Dividend Growth(5Y)7.82%
DP79.02%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.57%
Min EPS beat(2)1.8%
Max EPS beat(2)7.33%
EPS beat(4)4
Avg EPS beat(4)9.17%
Min EPS beat(4)1.8%
Max EPS beat(4)20.27%
EPS beat(8)6
Avg EPS beat(8)5.27%
EPS beat(12)8
Avg EPS beat(12)4.03%
EPS beat(16)11
Avg EPS beat(16)4.65%
Revenue beat(2)2
Avg Revenue beat(2)4.12%
Min Revenue beat(2)1.92%
Max Revenue beat(2)6.32%
Revenue beat(4)2
Avg Revenue beat(4)1.89%
Min Revenue beat(4)-0.38%
Max Revenue beat(4)6.32%
Revenue beat(8)5
Avg Revenue beat(8)1.92%
Revenue beat(12)7
Avg Revenue beat(12)1.69%
Revenue beat(16)7
Avg Revenue beat(16)-0.3%
PT rev (1m)0.97%
PT rev (3m)11.27%
EPS NQ rev (1m)1.06%
EPS NQ rev (3m)-12.47%
EPS NY rev (1m)1.49%
EPS NY rev (3m)3.31%
Revenue NQ rev (1m)1.31%
Revenue NQ rev (3m)-14.61%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.95 | ||
| Fwd PE | 16.93 | ||
| P/S | 3.99 | ||
| P/FCF | 97.56 | ||
| P/OCF | 8.89 | ||
| P/B | 2.18 | ||
| P/tB | 4.12 | ||
| EV/EBITDA | 13.56 |
EPS(TTM)3.01
EY6.69%
EPS(NY)2.66
Fwd EY5.91%
FCF(TTM)0.46
FCFY1.03%
OCF(TTM)5.06
OCFY11.25%
SpS11.27
BVpS20.62
TBVpS10.93
PEG (NY)N/A
PEG (5Y)23.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.76% | ||
| ROE | 16.7% | ||
| ROCE | 5.68% | ||
| ROIC | 3.78% | ||
| ROICexc | 3.94% | ||
| ROICexgc | 4.49% | ||
| OM | 41.67% | ||
| PM (TTM) | 30.55% | ||
| GM | 68.45% | ||
| FCFM | 4.09% |
ROA(3y)1.52%
ROA(5y)2.6%
ROE(3y)5.64%
ROE(5y)8.81%
ROIC(3y)4.02%
ROIC(5y)4.1%
ROICexc(3y)4.08%
ROICexc(5y)4.17%
ROICexgc(3y)4.66%
ROICexgc(5y)4.83%
ROCE(3y)6.26%
ROCE(5y)6.41%
ROICexcg growth 3Y-1.77%
ROICexcg growth 5Y-2.09%
ROICexc growth 3Y-0.71%
ROICexc growth 5Y-0.72%
OM growth 3Y-1.23%
OM growth 5Y0.71%
PM growth 3Y-19.7%
PM growth 5Y-7.25%
GM growth 3Y-0.4%
GM growth 5Y-1.23%
F-Score6
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.23 | ||
| Debt/FCF | 106.27 | ||
| Debt/EBITDA | 6.94 | ||
| Cap/Depr | 236.95% | ||
| Cap/Sales | 40.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.23% | ||
| Profit Quality | 13.39% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 0.69 |
F-Score6
WACC6.7%
ROIC/WACC0.56
Cap/Depr(3y)262.86%
Cap/Depr(5y)286.94%
Cap/Sales(3y)46.77%
Cap/Sales(5y)52.92%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.45%
EPS 3Y-0.05%
EPS 5Y0.64%
EPS Q2Q%-21.2%
EPS Next Y-11.64%
EPS Next 2Y-2.8%
EPS Next 3Y-0.45%
EPS Next 5Y3.85%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-14.39%
Revenue Next Year-5.8%
Revenue Next 2Y0.4%
Revenue Next 3Y1.29%
Revenue Next 5Y4.32%
EBIT growth 1Y3.62%
EBIT growth 3Y5.7%
EBIT growth 5Y3.83%
EBIT Next Year66.68%
EBIT Next 3Y19.99%
EBIT Next 5Y13.6%
FCF growth 1Y996.05%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y21.48%
OCF growth 3Y0.98%
OCF growth 5Y2.09%