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TC ENERGY CORP - TRPCN 4.939 PERP (TRP-PR-A.CA) Stock Fundamental Analysis

TSX:TRP-PR-A - Toronto Stock Exchange - CA87807B2066 - Currency: CAD

18.53  +0.03 (+0.16%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to TRP-PR-A. TRP-PR-A was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. While TRP-PR-A has a great profitability rating, there are quite some concerns on its financial health. TRP-PR-A is valued correctly, but it does not seem to be growing. TRP-PR-A also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

TRP-PR-A had positive earnings in the past year.
In the past year TRP-PR-A had a positive cash flow from operations.
Each year in the past 5 years TRP-PR-A has been profitable.
In the past 5 years TRP-PR-A always reported a positive cash flow from operatings.
TRP-PR-A.CA Yearly Net Income VS EBIT VS OCF VS FCFTRP-PR-A.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B -2B 4B 6B

1.2 Ratios

Looking at the Return On Assets, with a value of 3.76%, TRP-PR-A is in the better half of the industry, outperforming 64.18% of the companies in the same industry.
TRP-PR-A's Return On Equity of 16.70% is amongst the best of the industry. TRP-PR-A outperforms 89.05% of its industry peers.
TRP-PR-A has a Return On Invested Capital of 3.78%. This is in the better half of the industry: TRP-PR-A outperforms 61.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TRP-PR-A is below the industry average of 7.73%.
Industry RankSector 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%
TRP-PR-A.CA Yearly ROA, ROE, ROICTRP-PR-A.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 -5 10

1.3 Margins

Looking at the Profit Margin, with a value of 30.55%, TRP-PR-A belongs to the top of the industry, outperforming 91.54% of the companies in the same industry.
TRP-PR-A's Profit Margin has declined in the last couple of years.
The Operating Margin of TRP-PR-A (41.67%) is better than 92.54% of its industry peers.
In the last couple of years the Operating Margin of TRP-PR-A has remained more or less at the same level.
TRP-PR-A has a better Gross Margin (68.45%) than 82.09% of its industry peers.
TRP-PR-A's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
TRP-PR-A.CA Yearly Profit, Operating, Gross MarginsTRP-PR-A.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60

3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TRP-PR-A is destroying value.
Compared to 1 year ago, TRP-PR-A has more shares outstanding
Compared to 5 years ago, TRP-PR-A has more shares outstanding
Compared to 1 year ago, TRP-PR-A has an improved debt to assets ratio.
TRP-PR-A.CA Yearly Shares OutstandingTRP-PR-A.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B
TRP-PR-A.CA Yearly Total Debt VS Total AssetsTRP-PR-A.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 20B 40B 60B 80B 100B

2.2 Solvency

Based on the Altman-Z score of 0.41, we must say that TRP-PR-A is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.41, TRP-PR-A is not doing good in the industry: 63.18% of the companies in the same industry are doing better.
TRP-PR-A has a debt to FCF ratio of 106.27. This is a negative value and a sign of low solvency as TRP-PR-A 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-PR-A is in line with its industry, outperforming 51.74% of the companies in the same industry.
A Debt/Equity ratio of 2.23 is on the high side and indicates that TRP-PR-A has dependencies on debt financing.
With a Debt to Equity ratio value of 2.23, TRP-PR-A is not doing good in the industry: 86.07% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 2.23
Debt/FCF 106.27
Altman-Z 0.41
ROIC/WACC0.63
WACC6%
TRP-PR-A.CA Yearly LT Debt VS Equity VS FCFTRP-PR-A.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20B 40B 60B

2.3 Liquidity

TRP-PR-A has a Current Ratio of 1.31. This is a normal value and indicates that TRP-PR-A is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.31, TRP-PR-A is doing good in the industry, outperforming 63.18% of the companies in the same industry.
TRP-PR-A has a Quick Ratio of 1.23. This is a normal value and indicates that TRP-PR-A is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of TRP-PR-A (1.23) is better than 67.16% of its industry peers.
Industry RankSector Rank
Current Ratio 1.31
Quick Ratio 1.23
TRP-PR-A.CA Yearly Current Assets VS Current LiabilitesTRP-PR-A.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B

3

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 6.54% over the past year.
TRP-PR-A shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.15% yearly.
Looking at the last year, TRP-PR-A shows a small growth in Revenue. The Revenue has grown by 5.77% in the last year.
Measured over the past years, TRP-PR-A 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 0.36% on average over the next years.
TRP-PR-A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.33% yearly.
EPS Next Y-7.22%
EPS Next 2Y-8.54%
EPS Next 3Y-3.24%
EPS Next 5Y0.36%
Revenue Next Year-0.55%
Revenue Next 2Y-3.62%
Revenue Next 3Y-0.32%
Revenue Next 5Y3.33%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
TRP-PR-A.CA Yearly Revenue VS EstimatesTRP-PR-A.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B
TRP-PR-A.CA Yearly EPS VS EstimatesTRP-PR-A.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 2 3 4 5

6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 4.06, the valuation of TRP-PR-A can be described as very cheap.
TRP-PR-A's Price/Earnings ratio is rather cheap when compared to the industry. TRP-PR-A is cheaper than 92.54% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.12, TRP-PR-A is valued rather cheaply.
A Price/Forward Earnings ratio of 4.90 indicates a rather cheap valuation of TRP-PR-A.
Based on the Price/Forward Earnings ratio, TRP-PR-A is valued cheaper than 87.56% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 94.77, TRP-PR-A is valued rather cheaply.
Industry RankSector Rank
PE 4.06
Fwd PE 4.9
TRP-PR-A.CA Price Earnings VS Forward Price EarningsTRP-PR-A.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as TRP-PR-A.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TRP-PR-A is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 28.24
EV/EBITDA 8.67
TRP-PR-A.CA Per share dataTRP-PR-A.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

TRP-PR-A has a very decent profitability rating, which may justify a higher PE ratio.
TRP-PR-A's earnings are expected to decrease with -3.24% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.29
EPS Next 2Y-8.54%
EPS Next 3Y-3.24%

7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.02%, TRP-PR-A is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.59, TRP-PR-A pays a bit more dividend than its industry peers.
TRP-PR-A's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
Industry RankSector Rank
Dividend Yield 5.02%

5.2 History

The dividend of TRP-PR-A is nicely growing with an annual growth rate of 7.82%!
TRP-PR-A has paid a dividend for at least 10 years, which is a reliable track record.
As TRP-PR-A did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)7.82%
Div Incr Years0
Div Non Decr Years5
TRP-PR-A.CA Yearly Dividends per shareTRP-PR-A.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6 0.8

5.3 Sustainability

79.02% of the earnings are spent on dividend by TRP-PR-A. This is not a sustainable payout ratio.
The dividend of TRP-PR-A is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP79.02%
EPS Next 2Y-8.54%
EPS Next 3Y-3.24%
TRP-PR-A.CA Yearly Income VS Free CF VS DividendTRP-PR-A.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B -2B 4B
TRP-PR-A.CA Dividend Payout.TRP-PR-A.CA Dividend Payout, showing the Payout Ratio.TRP-PR-A.CA Dividend Payout.PayoutRetained Earnings

TC ENERGY CORP - TRPCN 4.939 PERP

TSX:TRP-PR-A (2/7/2025, 7:00:00 PM)

18.53

+0.03 (+0.16%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)11-07 2024-11-07/bmo
Earnings (Next)02-14 2025-02-14/amc
Inst Owners80.07%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap19.23B
Analysts71.2
Price Target20.48 (10.52%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 5.02%
Yearly Dividend2.8
Dividend Growth(5Y)7.82%
DP79.02%
Div Incr Years0
Div Non Decr Years5
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)7.25%
PT rev (3m)28.83%
EPS NQ rev (1m)-0.94%
EPS NQ rev (3m)-14.2%
EPS NY rev (1m)1.49%
EPS NY rev (3m)-2.89%
Revenue NQ rev (1m)1.29%
Revenue NQ rev (3m)-14.63%
Revenue NY rev (1m)0.69%
Revenue NY rev (3m)-4.86%
Valuation
Industry RankSector Rank
PE 4.06
Fwd PE 4.9
P/S 1.16
P/FCF 28.24
P/OCF 2.57
P/B 0.63
P/tB 1.19
EV/EBITDA 8.67
EPS(TTM)4.56
EY24.61%
EPS(NY)3.78
Fwd EY20.41%
FCF(TTM)0.66
FCFY3.54%
OCF(TTM)7.2
OCFY38.85%
SpS16.04
BVpS29.34
TBVpS15.55
PEG (NY)N/A
PEG (5Y)1.29
Profitability
Industry RankSector 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 RankSector 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 0.41
F-Score6
WACC6%
ROIC/WACC0.63
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-7.22%
EPS Next 2Y-8.54%
EPS Next 3Y-3.24%
EPS Next 5Y0.36%
Revenue 1Y (TTM)5.77%
Revenue growth 3Y7.02%
Revenue growth 5Y3.1%
Sales Q2Q%3.63%
Revenue Next Year-0.55%
Revenue Next 2Y-3.62%
Revenue Next 3Y-0.32%
Revenue Next 5Y3.33%
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%