TC ENERGY CORP - TRPCN 5.08 PERP (TRP-PR-E.CA) Stock Fundamental Analysis
TSX:TRP-PR-E - Toronto Stock Exchange - CA87807B8758 - Currency: CAD
We assign a fundamental rating of 4 out of 10 to TRP-PR-E. TRP-PR-E was compared to 212 industry peers in the Oil, Gas & Consumable Fuels industry. While TRP-PR-E has a great profitability rating, there are quite some concerns on its financial health. TRP-PR-E has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
TRP-PR-E had positive earnings in the past year.
In the past year TRP-PR-E had a positive cash flow from operations.
In the past 5 years TRP-PR-E has always been profitable.
In the past 5 years TRP-PR-E always reported a positive cash flow from operatings.
1.2 Ratios
TRP-PR-E's Return On Assets of 3.62% is fine compared to the rest of the industry. TRP-PR-E outperforms 70.75% of its industry peers.
TRP-PR-E has a Return On Equity of 15.78%. This is amongst the best in the industry. TRP-PR-E outperforms 87.26% of its industry peers.
With a Return On Invested Capital value of 3.94%, TRP-PR-E perfoms like the industry average, outperforming 55.66% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TRP-PR-E is below the industry average of 7.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.62% | ||
| ROE | 15.78% | ||
| ROIC | 3.94% |
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
Looking at the Profit Margin, with a value of 33.22%, TRP-PR-E belongs to the top of the industry, outperforming 90.09% of the companies in the same industry.
In the last couple of years the Profit Margin of TRP-PR-E has grown nicely.
TRP-PR-E has a better Operating Margin (42.10%) than 92.45% of its industry peers.
In the last couple of years the Operating Margin of TRP-PR-E has remained more or less at the same level.
Looking at the Gross Margin, with a value of 68.14%, TRP-PR-E belongs to the top of the industry, outperforming 82.08% of the companies in the same industry.
In the last couple of years the Gross Margin of TRP-PR-E has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.1% | ||
| PM (TTM) | 33.22% | ||
| GM | 68.14% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TRP-PR-E is destroying value.
The number of shares outstanding for TRP-PR-E remains at a similar level compared to 1 year ago.
Compared to 5 years ago, TRP-PR-E has more shares outstanding
The debt/assets ratio for TRP-PR-E has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.31, we must say that TRP-PR-E is in the distress zone and has some risk of bankruptcy.
TRP-PR-E has a worse Altman-Z score (0.31) than 60.85% of its industry peers.
The Debt to FCF ratio of TRP-PR-E is 84.11, which is on the high side as it means it would take TRP-PR-E, 84.11 years of fcf income to pay off all of its debts.
TRP-PR-E has a Debt to FCF ratio (84.11) which is in line with its industry peers.
TRP-PR-E has a Debt/Equity ratio of 2.15. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of TRP-PR-E (2.15) is worse than 80.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.15 | ||
| Debt/FCF | 84.11 | ||
| Altman-Z | 0.31 |
ROIC/WACC0.55
WACC7.12%
2.3 Liquidity
A Current Ratio of 0.70 indicates that TRP-PR-E may have some problems paying its short term obligations.
TRP-PR-E has a worse Current ratio (0.70) than 60.85% of its industry peers.
A Quick Ratio of 0.63 indicates that TRP-PR-E may have some problems paying its short term obligations.
The Quick ratio of TRP-PR-E (0.63) is worse than 63.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The earnings per share for TRP-PR-E have decreased strongly by -24.40% in the last year.
Measured over the past years, TRP-PR-E shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.06% on average per year.
Looking at the last year, TRP-PR-E shows a very negative growth in Revenue. The Revenue has decreased by -19.07% in the last year.
TRP-PR-E shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.77% yearly.
EPS 1Y (TTM)-24.4%
EPS 3Y-4.48%
EPS 5Y-2.06%
EPS Q2Q%-23.39%
Revenue 1Y (TTM)-19.07%
Revenue growth 3Y0.95%
Revenue growth 5Y0.77%
Sales Q2Q%-14.61%
3.2 Future
The Earnings Per Share is expected to grow by 4.69% on average over the next years.
The Revenue is expected to grow by 3.23% on average over the next years.
EPS Next Y2.08%
EPS Next 2Y4.59%
EPS Next 3Y3.37%
EPS Next 5Y4.69%
Revenue Next Year-7.6%
Revenue Next 2Y0.32%
Revenue Next 3Y1.15%
Revenue Next 5Y3.23%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
TRP-PR-E is valuated cheaply with a Price/Earnings ratio of 6.05.
TRP-PR-E's Price/Earnings ratio is rather cheap when compared to the industry. TRP-PR-E is cheaper than 88.68% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.91. TRP-PR-E is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 5.10, which indicates a rather cheap valuation of TRP-PR-E.
89.15% of the companies in the same industry are more expensive than TRP-PR-E, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TRP-PR-E to the average of the S&P500 Index (21.46), we can say TRP-PR-E is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.05 | ||
| Fwd PE | 5.1 |
4.2 Price Multiples
TRP-PR-E's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as TRP-PR-E.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.35 | ||
| EV/EBITDA | 9.55 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TRP-PR-E does not grow enough to justify the current Price/Earnings ratio.
TRP-PR-E has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.9
PEG (5Y)N/A
EPS Next 2Y4.59%
EPS Next 3Y3.37%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.55%, TRP-PR-E has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.21, TRP-PR-E pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.43, TRP-PR-E has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
5.2 History
On average, the dividend of TRP-PR-E grows each year by 13.09%, which is quite nice.
TRP-PR-E has been paying a dividend for at least 10 years, so it has a reliable track record.
TRP-PR-E has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)13.09%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
TRP-PR-E pays out 90.34% of its income as dividend. This is not a sustainable payout ratio.
The dividend of TRP-PR-E is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP90.34%
EPS Next 2Y4.59%
EPS Next 3Y3.37%
TC ENERGY CORP - TRPCN 5.08 PERP
TSX:TRP-PR-E (6/24/2025, 7:00:00 PM)
20.8
+0.12 (+0.58%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners78.66%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap21.63B
Analysts73.33
Price Target23.49 (12.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
Yearly Dividend3.9
Dividend Growth(5Y)13.09%
DP90.34%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-25.85%
Min EPS beat(2)-48.32%
Max EPS beat(2)-3.38%
EPS beat(4)2
Avg EPS beat(4)-10.64%
Min EPS beat(4)-48.32%
Max EPS beat(4)7.33%
EPS beat(8)5
Avg EPS beat(8)-1.64%
EPS beat(12)8
Avg EPS beat(12)-0.13%
EPS beat(16)9
Avg EPS beat(16)0.35%
Revenue beat(2)1
Avg Revenue beat(2)-29.46%
Min Revenue beat(2)-63.24%
Max Revenue beat(2)4.32%
Revenue beat(4)3
Avg Revenue beat(4)-12.67%
Min Revenue beat(4)-63.24%
Max Revenue beat(4)6.32%
Revenue beat(8)5
Avg Revenue beat(8)-6%
Revenue beat(12)8
Avg Revenue beat(12)-2.83%
Revenue beat(16)8
Avg Revenue beat(16)-3.32%
PT rev (1m)18.41%
PT rev (3m)3.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.17%
EPS NY rev (1m)0%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.05 | ||
| Fwd PE | 5.1 | ||
| P/S | 1.64 | ||
| P/FCF | 29.35 | ||
| P/OCF | 3.06 | ||
| P/B | 0.78 | ||
| P/tB | 1.54 | ||
| EV/EBITDA | 9.55 |
EPS(TTM)3.44
EY16.54%
EPS(NY)4.08
Fwd EY19.62%
FCF(TTM)0.71
FCFY3.41%
OCF(TTM)6.79
OCFY32.64%
SpS12.65
BVpS26.63
TBVpS13.51
PEG (NY)2.9
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.62% | ||
| ROE | 15.78% | ||
| ROCE | 5.02% | ||
| ROIC | 3.94% | ||
| ROICexc | 4.02% | ||
| ROICexgc | 4.6% | ||
| OM | 42.1% | ||
| PM (TTM) | 33.22% | ||
| GM | 68.14% | ||
| FCFM | 5.6% |
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-Score4
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.15 | ||
| Debt/FCF | 84.11 | ||
| Debt/EBITDA | 7.18 | ||
| Cap/Depr | 230.18% | ||
| Cap/Sales | 48.08% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.22% | ||
| Profit Quality | 16.87% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 0.31 |
F-Score4
WACC7.12%
ROIC/WACC0.55
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)-24.4%
EPS 3Y-4.48%
EPS 5Y-2.06%
EPS Q2Q%-23.39%
EPS Next Y2.08%
EPS Next 2Y4.59%
EPS Next 3Y3.37%
EPS Next 5Y4.69%
Revenue 1Y (TTM)-19.07%
Revenue growth 3Y0.95%
Revenue growth 5Y0.77%
Sales Q2Q%-14.61%
Revenue Next Year-7.6%
Revenue Next 2Y0.32%
Revenue Next 3Y1.15%
Revenue Next 5Y3.23%
EBIT growth 1Y-19.58%
EBIT growth 3Y-0.68%
EBIT growth 5Y0%
EBIT Next Year30.13%
EBIT Next 3Y12.83%
EBIT Next 5Y9.87%
FCF growth 1Y267.5%
FCF growth 3Y11.47%
FCF growth 5YN/A
OCF growth 1Y4.72%
OCF growth 3Y3.76%
OCF growth 5Y1.68%