TC ENERGY CORP (TRP) Stock Fundamental Analysis
NYSE:TRP - New York Stock Exchange, Inc. - CA87807B1076 - Common Stock
Taking everything into account, TRP scores 4 out of 10 in our fundamental rating. TRP was compared to 209 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.
TRP had a positive operating cash flow in the past year.
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's Return On Assets of 3.76% is in line compared to the rest of the industry. TRP outperforms 40.20% of its industry peers.
TRP has a better Return On Equity (16.70%) than 66.67% of its industry peers.
TRP's Return On Invested Capital of 3.78% is on the low side compared to the rest of the industry. TRP is outperformed by 69.61% of its industry peers.
TRP had an Average Return On Invested Capital over the past 3 years of 4.02%. This is significantly below the industry average of 28.77%.
| 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 80.39% of its industry peers.
TRP's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 41.67%, TRP belongs to the best of the industry, outperforming 80.88% 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.
TRP's Gross Margin of 68.45% is fine compared to the rest of the industry. TRP outperforms 74.02% 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 | 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
TRP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for TRP has been increased compared to 1 year ago.
Compared to 5 years ago, TRP has more shares outstanding
TRP has a better debt/assets ratio than last year.
2.2 Solvency
TRP has an Altman-Z score of 0.70. This is a bad value and indicates that TRP is not financially healthy and even has some risk of bankruptcy.
TRP has a Altman-Z score of 0.70. This is in the lower half of the industry: TRP underperforms 67.65% of its industry peers.
TRP has a debt to FCF ratio of 106.27. This is a negative value and a sign of low solvency as TRP would need 106.27 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 106.27, TRP is doing worse than 67.16% 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 86.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.23 | ||
| Debt/FCF | 106.27 | ||
| Altman-Z | 0.7 |
ROIC/WACC0.56
WACC6.77%
2.3 Liquidity
A Current Ratio of 1.31 indicates that TRP should not have too much problems paying its short term obligations.
With a Current ratio value of 1.31, TRP perfoms like the industry average, outperforming 54.41% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 1.23, TRP is in the better half of the industry, outperforming 62.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.54% over the past year.
Measured over the past 5 years, TRP shows a small growth in Earnings Per Share. The EPS has been growing by 3.15% on average per year.
Looking at the last year, TRP shows a small growth in Revenue. The Revenue has grown by 5.77% in the last year.
Measured over the past years, TRP shows a small growth in Revenue. The Revenue has been growing by 3.10% on average per year.
EPS 1Y (TTM)6.54%
EPS 3Y2.48%
EPS 5Y3.15%
EPS Q2Q%3%
Revenue 1Y (TTM)5.77%
Revenue growth 3Y7.02%
Revenue growth 5Y3.1%
Sales Q2Q%3.63%
3.2 Future
The Earnings Per Share is expected to grow by 0.64% on average over the next years.
TRP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.41% yearly.
EPS Next Y-8.58%
EPS Next 2Y-8.55%
EPS Next 3Y-3%
EPS Next 5Y0.64%
Revenue Next Year-0.94%
Revenue Next 2Y-3.54%
Revenue Next 3Y-0.32%
Revenue Next 5Y3.41%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.95, TRP is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as TRP.
TRP is valuated rather cheaply when we compare the Price/Earnings ratio to 27.96, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 18.04, TRP is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as TRP.
TRP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.11, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.95 | ||
| Fwd PE | 18.04 |
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 69.61% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TRP indicates a slightly more expensive valuation: TRP is more expensive than 64.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 103.93 | ||
| EV/EBITDA | 13.74 |
4.3 Compensation for Growth
TRP has a very decent profitability rating, which may justify a higher PE ratio.
TRP's earnings are expected to decrease with -3.00% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)4.74
EPS Next 2Y-8.55%
EPS Next 3Y-3%
5. Dividend
5.1 Amount
TRP has a Yearly Dividend Yield of 4.77%, which is a nice return.
Compared to an average industry Dividend Yield of 6.60, 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 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.77% |
5.2 History
The dividend of TRP is nicely growing with an annual growth rate of 7.82%!
TRP has paid a dividend for at least 10 years, which is 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-8.55%
EPS Next 3Y-3%
TC ENERGY CORP
NYSE:TRP (1/17/2025, 8:04:00 PM)
After market: 47.4 0 (0%)47.4
+1.23 (+2.66%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners80.07%
Inst Owner Change-0.01%
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap49.20B
Analysts71.2
Price Target49.64 (4.73%)
Short Float %4.67%
Short Ratio23.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.77% |
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)-2.59%
PT rev (3m)9.14%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.39%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-15.72%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)-5.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.95 | ||
| Fwd PE | 18.04 | ||
| P/S | 4.25 | ||
| P/FCF | 103.93 | ||
| P/OCF | 9.47 | ||
| P/B | 2.32 | ||
| P/tB | 4.39 | ||
| EV/EBITDA | 13.74 |
EPS(TTM)3.17
EY6.69%
EPS(NY)2.63
Fwd EY5.54%
FCF(TTM)0.46
FCFY0.96%
OCF(TTM)5
OCFY10.56%
SpS11.15
BVpS20.4
TBVpS10.81
PEG (NY)N/A
PEG (5Y)4.74
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 | 0.7 |
F-Score6
WACC6.77%
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)6.54%
EPS 3Y2.48%
EPS 5Y3.15%
EPS Q2Q%3%
EPS Next Y-8.58%
EPS Next 2Y-8.55%
EPS Next 3Y-3%
EPS Next 5Y0.64%
Revenue 1Y (TTM)5.77%
Revenue growth 3Y7.02%
Revenue growth 5Y3.1%
Sales Q2Q%3.63%
Revenue Next Year-0.94%
Revenue Next 2Y-3.54%
Revenue Next 3Y-0.32%
Revenue Next 5Y3.41%
EBIT growth 1Y3.62%
EBIT growth 3Y5.7%
EBIT growth 5Y3.83%
EBIT Next Year66.68%
EBIT Next 3Y19.99%
EBIT Next 5Y14.35%
FCF growth 1Y996.05%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y21.48%
OCF growth 3Y0.98%
OCF growth 5Y2.09%