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TC ENERGY CORP - TRPCN 5.08 PERP (TRP-PR-E.CA) Stock Fundamental Analysis

TSX:TRP-PR-E - Toronto Stock Exchange - CA87807B8758 - Currency: CAD

19.68  +0.08 (+0.41%)

Fundamental Rating

4

TRP-PR-E gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 221 industry peers in the Oil, Gas & Consumable Fuels industry. While TRP-PR-E is still in line with the averages on profitability rating, there are concerns on its financial health. TRP-PR-E is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

TRP-PR-E had positive earnings in the past year.
TRP-PR-E had a positive operating cash flow in the past year.
Of the past 5 years TRP-PR-E 4 years were profitable.
Of the past 5 years TRP-PR-E 4 years had a positive operating cash flow.
TRP-PR-E.CA Yearly Net Income VS EBIT VS OCF VS FCFTRP-PR-E.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-E's Return On Assets of 3.76% is fine compared to the rest of the industry. TRP-PR-E outperforms 64.73% of its industry peers.
The Return On Equity of TRP-PR-E (16.70%) is better than 88.41% of its industry peers.
With a decent Return On Invested Capital value of 3.78%, TRP-PR-E is doing good in the industry, outperforming 62.32% of the companies in the same industry.
TRP-PR-E had an Average Return On Invested Capital over the past 3 years of 4.02%. This 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-E.CA Yearly ROA, ROE, ROICTRP-PR-E.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 -5 10

1.3 Margins

TRP-PR-E has a better Profit Margin (30.55%) than 91.79% of its industry peers.
In the last couple of years the Profit Margin of TRP-PR-E has declined.
TRP-PR-E has a better Operating Margin (41.67%) than 92.27% 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.
The Gross Margin of TRP-PR-E (68.45%) is better than 81.64% of its industry peers.
In the last couple of years the Gross Margin of TRP-PR-E has remained more or less at the same level.
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-E.CA Yearly Profit, Operating, Gross MarginsTRP-PR-E.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

TRP-PR-E has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
TRP-PR-E has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
TRP-PR-E.CA Yearly Shares OutstandingTRP-PR-E.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B
TRP-PR-E.CA Yearly Total Debt VS Total AssetsTRP-PR-E.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 0.42, we must say that TRP-PR-E is in the distress zone and has some risk of bankruptcy.
TRP-PR-E's Altman-Z score of 0.42 is in line compared to the rest of the industry. TRP-PR-E outperforms 41.55% of its industry peers.
TRP-PR-E has a debt to FCF ratio of 106.27. This is a negative value and a sign of low solvency as TRP-PR-E 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-E is in line with its industry, outperforming 52.66% of the companies in the same industry.
TRP-PR-E has a Debt/Equity ratio of 2.23. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of TRP-PR-E (2.23) is worse than 86.47% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.23
Debt/FCF 106.27
Altman-Z 0.42
ROIC/WACC0.62
WACC6.13%
TRP-PR-E.CA Yearly LT Debt VS Equity VS FCFTRP-PR-E.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-E should not have too much problems paying its short term obligations.
TRP-PR-E's Current ratio of 1.31 is fine compared to the rest of the industry. TRP-PR-E outperforms 62.80% of its industry peers.
TRP-PR-E has a Quick Ratio of 1.23. This is a normal value and indicates that TRP-PR-E is financially healthy and should not expect problems in meeting its short term obligations.
TRP-PR-E has a better Quick ratio (1.23) than 66.67% of its industry peers.
Industry RankSector Rank
Current Ratio 1.31
Quick Ratio 1.23
TRP-PR-E.CA Yearly Current Assets VS Current LiabilitesTRP-PR-E.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B

2

3. Growth

3.1 Past

The earnings per share for TRP-PR-E have decreased by -5.45% in the last year.
The Earnings Per Share has been growing slightly by 0.64% on average over the past years.
EPS 1Y (TTM)-5.45%
EPS 3Y-0.05%
EPS 5Y0.64%
EPS Q2Q%-21.2%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-14.39%

3.2 Future

TRP-PR-E is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.85% yearly.
The Revenue is expected to grow by 4.33% on average over the next years.
EPS Next Y-11.53%
EPS Next 2Y-2.12%
EPS Next 3Y0.17%
EPS Next 5Y3.85%
Revenue Next Year-6.58%
Revenue Next 2Y-0.2%
Revenue Next 3Y3.2%
Revenue Next 5Y4.33%

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.
TRP-PR-E.CA Yearly Revenue VS EstimatesTRP-PR-E.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-E.CA Yearly EPS VS EstimatesTRP-PR-E.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 4.61, the valuation of TRP-PR-E can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of TRP-PR-E indicates a rather cheap valuation: TRP-PR-E is cheaper than 91.79% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TRP-PR-E to the average of the S&P500 Index (30.19), we can say TRP-PR-E is valued rather cheaply.
With a Price/Forward Earnings ratio of 5.20, the valuation of TRP-PR-E can be described as very cheap.
Based on the Price/Forward Earnings ratio, TRP-PR-E is valued cheaply inside the industry as 87.44% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.58, TRP-PR-E is valued rather cheaply.
Industry RankSector Rank
PE 4.61
Fwd PE 5.2
TRP-PR-E.CA Price Earnings VS Forward Price EarningsTRP-PR-E.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as TRP-PR-E.
The rest of the industry has a similar Price/Free Cash Flow ratio as TRP-PR-E.
Industry RankSector Rank
P/FCF 30.03
EV/EBITDA 8.79
TRP-PR-E.CA Per share dataTRP-PR-E.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

TRP-PR-E has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)7.22
EPS Next 2Y-2.12%
EPS Next 3Y0.17%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.90%, TRP-PR-E is a good candidate for dividend investing.
TRP-PR-E's Dividend Yield is a higher than the industry average which is at 6.30.
TRP-PR-E's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
Industry RankSector Rank
Dividend Yield 4.9%

5.2 History

The dividend of TRP-PR-E is nicely growing with an annual growth rate of 7.82%!
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)7.82%
Div Incr Years1
Div Non Decr Years4
TRP-PR-E.CA Yearly Dividends per shareTRP-PR-E.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

79.02% of the earnings are spent on dividend by TRP-PR-E. This is not a sustainable payout ratio.
TRP-PR-E's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP79.02%
EPS Next 2Y-2.12%
EPS Next 3Y0.17%
TRP-PR-E.CA Yearly Income VS Free CF VS DividendTRP-PR-E.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-E.CA Dividend Payout.TRP-PR-E.CA Dividend Payout, showing the Payout Ratio.TRP-PR-E.CA Dividend Payout.PayoutRetained Earnings

TC ENERGY CORP - TRPCN 5.08 PERP

TSX:TRP-PR-E (2/14/2025, 7:00:00 PM)

19.68

+0.08 (+0.41%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)02-14 2025-02-14/bmo
Earnings (Next)05-01 2025-05-01/bmo
Inst Owners80.07%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap20.45B
Analysts70.77
Price Target21.74 (10.47%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 4.9%
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)5.36%
PT rev (3m)22.48%
EPS NQ rev (1m)1.06%
EPS NQ rev (3m)-12.47%
EPS NY rev (1m)1.49%
EPS NY rev (3m)3.31%
Revenue NQ rev (1m)1.31%
Revenue NQ rev (3m)-14.61%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)0.75%
Valuation
Industry RankSector Rank
PE 4.61
Fwd PE 5.2
P/S 1.23
P/FCF 30.03
P/OCF 2.74
P/B 0.67
P/tB 1.27
EV/EBITDA 8.79
EPS(TTM)4.27
EY21.7%
EPS(NY)3.78
Fwd EY19.21%
FCF(TTM)0.66
FCFY3.33%
OCF(TTM)7.19
OCFY36.54%
SpS16.02
BVpS29.31
TBVpS15.53
PEG (NY)N/A
PEG (5Y)7.22
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 0.42
F-Score6
WACC6.13%
ROIC/WACC0.62
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)-5.45%
EPS 3Y-0.05%
EPS 5Y0.64%
EPS Q2Q%-21.2%
EPS Next Y-11.53%
EPS Next 2Y-2.12%
EPS Next 3Y0.17%
EPS Next 5Y3.85%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-14.39%
Revenue Next Year-6.58%
Revenue Next 2Y-0.2%
Revenue Next 3Y3.2%
Revenue Next 5Y4.33%
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%