TC ENERGY CORP (TRP) Stock Fundamental Analysis
NYSE:TRP - New York Stock Exchange, Inc. - CA87807B1076 - Common Stock - Currency: USD
Overall TRP gets a fundamental rating of 3 out of 10. We evaluated TRP against 212 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 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.
TRP had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 3.89%, TRP is in line with its industry, outperforming 49.06% of the companies in the same industry.
TRP has a Return On Equity of 16.65%. This is in the better half of the industry: TRP outperforms 71.70% of its industry peers.
TRP has a Return On Invested Capital of 4.25%. This is in the lower half of the industry: TRP underperforms 64.15% 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 27.43%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 16.65% | ||
| ROIC | 4.25% |
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 33.36% is amongst the best of the industry. TRP outperforms 85.85% of its industry peers.
TRP's Profit Margin has improved in the last couple of years.
TRP has a Operating Margin of 42.02%. This is amongst the best in the industry. TRP outperforms 85.85% of its industry peers.
TRP's Operating Margin has been stable in the last couple of years.
The Gross Margin of TRP (67.95%) is better than 74.06% 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 | 42.02% | ||
| PM (TTM) | 33.36% | ||
| GM | 67.95% |
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.
The number of shares outstanding for TRP remains at a similar level compared to 1 year ago.
TRP has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TRP has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.64, we must say that TRP is in the distress zone and has some risk of bankruptcy.
TRP's Altman-Z score of 0.64 is on the low side compared to the rest of the industry. TRP is outperformed by 62.74% of its industry peers.
The Debt to FCF ratio of TRP is 44.37, which is on the high side as it means it would take TRP, 44.37 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 44.37, TRP perfoms like the industry average, outperforming 40.57% of the companies in the same industry.
A Debt/Equity ratio of 2.04 is on the high side and indicates that TRP has dependencies on debt financing.
With a Debt to Equity ratio value of 2.04, TRP is not doing good in the industry: 82.55% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.04 | ||
| Debt/FCF | 44.37 | ||
| Altman-Z | 0.64 |
ROIC/WACC0.46
WACC9.17%
2.3 Liquidity
A Current Ratio of 0.55 indicates that TRP may have some problems paying its short term obligations.
TRP has a Current ratio of 0.55. This is amonst the worse of the industry: TRP underperforms 83.96% of its industry peers.
A Quick Ratio of 0.47 indicates that TRP may have some problems paying its short term obligations.
With a Quick ratio value of 0.47, TRP is not doing good in the industry: 83.02% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
TRP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.48%.
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.
The Revenue for TRP has decreased by -13.57% in the past year. This is quite bad
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)-17.48%
EPS 3Y-4.48%
EPS 5Y-2.06%
EPS Q2Q%-61.48%
Revenue 1Y (TTM)-13.57%
Revenue growth 3Y0.95%
Revenue growth 5Y0.77%
Sales Q2Q%-67.89%
3.2 Future
The Earnings Per Share is expected to grow by 5.16% on average over the next years.
Based on estimates for the next years, TRP will show a small growth in Revenue. The Revenue will grow by 3.05% on average per year.
EPS Next Y2.08%
EPS Next 2Y4.59%
EPS Next 3Y3.37%
EPS Next 5Y5.16%
Revenue Next Year-5.11%
Revenue Next 2Y0.14%
Revenue Next 3Y0.83%
Revenue Next 5Y3.05%
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
With a Price/Earnings ratio of 18.44, TRP is valued on the expensive side.
TRP's Price/Earnings ratio is in line with the industry average.
TRP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.79.
With a Price/Forward Earnings ratio of 18.07, TRP is valued on the expensive side.
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 (21.38), we can say TRP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.44 | ||
| Fwd PE | 18.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRP is valued a bit more expensive than 66.98% of the companies in the same industry.
TRP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.43 | ||
| EV/EBITDA | 14.97 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TRP does not grow enough to justify the current Price/Earnings ratio.
TRP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)8.86
PEG (5Y)N/A
EPS Next 2Y4.59%
EPS Next 3Y3.37%
5. Dividend
5.1 Amount
TRP has a Yearly Dividend Yield of 4.96%, which is a nice return.
TRP's Dividend Yield is a higher than the industry average which is at 7.35.
Compared to an average S&P500 Dividend Yield of 2.47, TRP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.96% |
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 88.20% 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.
DP88.2%
EPS Next 2Y4.59%
EPS Next 3Y3.37%
49.6
+0.1 (+0.2%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners75.89%
Inst Owner Change-41.64%
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap51.54B
Analysts72.31
Price Target53.43 (7.72%)
Short Float %7%
Short Ratio27.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.96% |
Yearly Dividend2.81
Dividend Growth(5Y)13.09%
DP88.2%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-20.5%
Min EPS beat(2)-48.32%
Max EPS beat(2)7.33%
EPS beat(4)3
Avg EPS beat(4)-7.98%
Min EPS beat(4)-48.32%
Max EPS beat(4)7.33%
EPS beat(8)6
Avg EPS beat(8)-0.73%
EPS beat(12)8
Avg EPS beat(12)0.15%
EPS beat(16)10
Avg EPS beat(16)0.83%
Revenue beat(2)1
Avg Revenue beat(2)-30.66%
Min Revenue beat(2)-63.24%
Max Revenue beat(2)1.92%
Revenue beat(4)2
Avg Revenue beat(4)-13.83%
Min Revenue beat(4)-63.24%
Max Revenue beat(4)6.32%
Revenue beat(8)4
Avg Revenue beat(8)-6.64%
Revenue beat(12)7
Avg Revenue beat(12)-3.49%
Revenue beat(16)7
Avg Revenue beat(16)-3.93%
PT rev (1m)4.77%
PT rev (3m)7.64%
EPS NQ rev (1m)-1.33%
EPS NQ rev (3m)5.5%
EPS NY rev (1m)-1.43%
EPS NY rev (3m)0.72%
Revenue NQ rev (1m)0.49%
Revenue NQ rev (3m)1.96%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.44 | ||
| Fwd PE | 18.07 | ||
| P/S | 5.19 | ||
| P/FCF | 53.43 | ||
| P/OCF | 9.29 | ||
| P/B | 2.59 | ||
| P/tB | 5.14 | ||
| EV/EBITDA | 14.97 |
EPS(TTM)2.69
EY5.42%
EPS(NY)2.74
Fwd EY5.53%
FCF(TTM)0.93
FCFY1.87%
OCF(TTM)5.34
OCFY10.76%
SpS9.55
BVpS19.14
TBVpS9.66
PEG (NY)8.86
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 16.65% | ||
| ROCE | 5.37% | ||
| ROIC | 4.25% | ||
| ROICexc | 4.31% | ||
| ROICexgc | 4.94% | ||
| OM | 42.02% | ||
| PM (TTM) | 33.36% | ||
| GM | 67.95% | ||
| FCFM | 9.72% |
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 Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.04 | ||
| Debt/FCF | 44.37 | ||
| Debt/EBITDA | 6.58 | ||
| Cap/Depr | 228.05% | ||
| Cap/Sales | 46.17% | ||
| Interest Coverage | 1.7 | ||
| Cash Conversion | 89.76% | ||
| Profit Quality | 29.12% | ||
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 0.64 |
F-Score5
WACC9.17%
ROIC/WACC0.46
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)-17.48%
EPS 3Y-4.48%
EPS 5Y-2.06%
EPS Q2Q%-61.48%
EPS Next Y2.08%
EPS Next 2Y4.59%
EPS Next 3Y3.37%
EPS Next 5Y5.16%
Revenue 1Y (TTM)-13.57%
Revenue growth 3Y0.95%
Revenue growth 5Y0.77%
Sales Q2Q%-67.89%
Revenue Next Year-5.11%
Revenue Next 2Y0.14%
Revenue Next 3Y0.83%
Revenue Next 5Y3.05%
EBIT growth 1Y-15.59%
EBIT growth 3Y-0.68%
EBIT growth 5Y0%
EBIT Next Year30.66%
EBIT Next 3Y12.86%
EBIT Next 5Y9.56%
FCF growth 1Y251.87%
FCF growth 3Y11.47%
FCF growth 5YN/A
OCF growth 1Y5.89%
OCF growth 3Y3.76%
OCF growth 5Y1.68%