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TC ENERGY CORP - TRPCN 5.985 PERP (TRP-PR-D.CA) Stock Fundamental Analysis

TSX:TRP-PR-D - Toronto Stock Exchange - CA87807B8006 - Currency: CAD

21.2  +0.05 (+0.24%)

Fundamental Rating

5

Overall TRP-PR-D gets a fundamental rating of 5 out of 10. We evaluated TRP-PR-D against 214 industry peers in the Oil, Gas & Consumable Fuels industry. TRP-PR-D scores excellent on profitability, but there are concerns on its financial health. TRP-PR-D is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

TRP-PR-D had positive earnings in the past year.
TRP-PR-D had a positive operating cash flow in the past year.
TRP-PR-D had positive earnings in each of the past 5 years.
In the past 5 years TRP-PR-D always reported a positive cash flow from operatings.
TRP-PR-D.CA Yearly Net Income VS EBIT VS OCF VS FCFTRP-PR-D.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

TRP-PR-D's Return On Assets of 3.76% is fine compared to the rest of the industry. TRP-PR-D outperforms 63.18% of its industry peers.
Looking at the Return On Equity, with a value of 16.70%, TRP-PR-D belongs to the top of the industry, outperforming 88.06% of the companies in the same industry.
TRP-PR-D has a Return On Invested Capital of 3.78%. This is in the better half of the industry: TRP-PR-D outperforms 60.20% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TRP-PR-D 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-D.CA Yearly ROA, ROE, ROICTRP-PR-D.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 -5 10

1.3 Margins

With an excellent Profit Margin value of 30.55%, TRP-PR-D belongs to the best of the industry, outperforming 90.55% of the companies in the same industry.
In the last couple of years the Profit Margin of TRP-PR-D has declined.
TRP-PR-D has a better Operating Margin (41.67%) than 91.54% of its industry peers.
TRP-PR-D's Operating Margin has been stable in the last couple of years.
TRP-PR-D has a better Gross Margin (68.45%) than 81.09% of its industry peers.
TRP-PR-D'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-D.CA Yearly Profit, Operating, Gross MarginsTRP-PR-D.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-D is destroying value.
TRP-PR-D has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TRP-PR-D has more shares outstanding
The debt/assets ratio for TRP-PR-D has been reduced compared to a year ago.
TRP-PR-D.CA Yearly Shares OutstandingTRP-PR-D.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B
TRP-PR-D.CA Yearly Total Debt VS Total AssetsTRP-PR-D.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 0.43, we must say that TRP-PR-D is in the distress zone and has some risk of bankruptcy.
TRP-PR-D has a Altman-Z score (0.43) which is comparable to the rest of the industry.
The Debt to FCF ratio of TRP-PR-D is 106.27, which is on the high side as it means it would take TRP-PR-D, 106.27 years of fcf income to pay off all of its debts.
TRP-PR-D's Debt to FCF ratio of 106.27 is in line compared to the rest of the industry. TRP-PR-D outperforms 50.75% of its industry peers.
TRP-PR-D has a Debt/Equity ratio of 2.23. This is a high value indicating a heavy dependency on external financing.
TRP-PR-D has a worse Debt to Equity ratio (2.23) than 87.06% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.23
Debt/FCF 106.27
Altman-Z 0.43
ROIC/WACC0.61
WACC6.15%
TRP-PR-D.CA Yearly LT Debt VS Equity VS FCFTRP-PR-D.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

A Current Ratio of 1.31 indicates that TRP-PR-D should not have too much problems paying its short term obligations.
TRP-PR-D has a Current ratio of 1.31. This is in the better half of the industry: TRP-PR-D outperforms 62.19% of its industry peers.
A Quick Ratio of 1.23 indicates that TRP-PR-D should not have too much problems paying its short term obligations.
TRP-PR-D has a Quick ratio of 1.23. This is in the better half of the industry: TRP-PR-D outperforms 66.17% of its industry peers.
Industry RankSector Rank
Current Ratio 1.31
Quick Ratio 1.23
TRP-PR-D.CA Yearly Current Assets VS Current LiabilitesTRP-PR-D.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.
Measured over the past 5 years, TRP-PR-D 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-PR-D shows a small growth in Revenue. The Revenue has grown by 5.77% in the last year.
TRP-PR-D shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.10% yearly.
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

TRP-PR-D is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.36% yearly.
The Revenue is expected to grow by 3.33% on average over the next years.
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-D.CA Yearly Revenue VS EstimatesTRP-PR-D.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-D.CA Yearly EPS VS EstimatesTRP-PR-D.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

Based on the Price/Earnings ratio of 4.65, the valuation of TRP-PR-D can be described as very cheap.
Based on the Price/Earnings ratio, TRP-PR-D is valued cheaper than 90.55% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.12, TRP-PR-D is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 5.61, the valuation of TRP-PR-D can be described as very cheap.
Based on the Price/Forward Earnings ratio, TRP-PR-D is valued cheaply inside the industry as 83.08% of the companies are valued more expensively.
TRP-PR-D's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 94.77.
Industry RankSector Rank
PE 4.65
Fwd PE 5.61
TRP-PR-D.CA Price Earnings VS Forward Price EarningsTRP-PR-D.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRP-PR-D is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as TRP-PR-D.
Industry RankSector Rank
P/FCF 32.31
EV/EBITDA 8.94
TRP-PR-D.CA Per share dataTRP-PR-D.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

TRP-PR-D has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as TRP-PR-D's earnings are expected to decrease with -3.24% in the coming years.
PEG (NY)N/A
PEG (5Y)1.47
EPS Next 2Y-8.54%
EPS Next 3Y-3.24%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.02%, TRP-PR-D is a good candidate for dividend investing.
TRP-PR-D's Dividend Yield is a higher than the industry average which is at 6.59.
TRP-PR-D'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

On average, the dividend of TRP-PR-D grows each year by 7.82%, which is quite nice.
TRP-PR-D has paid a dividend for at least 10 years, which is a reliable track record.
TRP-PR-D has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)7.82%
Div Incr Years1
Div Non Decr Years4
TRP-PR-D.CA Yearly Dividends per shareTRP-PR-D.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 1

5.3 Sustainability

TRP-PR-D pays out 79.02% of its income as dividend. This is not a sustainable payout ratio.
TRP-PR-D's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP79.02%
EPS Next 2Y-8.54%
EPS Next 3Y-3.24%
TRP-PR-D.CA Yearly Income VS Free CF VS DividendTRP-PR-D.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-D.CA Dividend Payout.TRP-PR-D.CA Dividend Payout, showing the Payout Ratio.TRP-PR-D.CA Dividend Payout.PayoutRetained Earnings

TC ENERGY CORP - TRPCN 5.985 PERP

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

21.2

+0.05 (+0.24%)

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 Cap22.01B
Analysts71.2
Price Target23.22 (9.53%)
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 Years1
Div Non Decr Years4
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)2.33%
PT rev (3m)17.44%
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 4.65
Fwd PE 5.61
P/S 1.32
P/FCF 32.31
P/OCF 2.95
P/B 0.72
P/tB 1.36
EV/EBITDA 8.94
EPS(TTM)4.56
EY21.51%
EPS(NY)3.78
Fwd EY17.84%
FCF(TTM)0.66
FCFY3.09%
OCF(TTM)7.2
OCFY33.96%
SpS16.04
BVpS29.34
TBVpS15.55
PEG (NY)N/A
PEG (5Y)1.47
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 0.43
F-Score6
WACC6.15%
ROIC/WACC0.61
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%