TC ENERGY CORP - TRPCN 5.08 PERP (TRP-PR-E.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TRP-PR-E - CA87807B8758
23.46 CAD
+0.06 (+0.26%)
Overall TRP-PR-E gets a fundamental rating of 4 out of 10. We evaluated TRP-PR-E against 214 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 is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year TRP-PR-E was profitable.
- TRP-PR-E had a positive operating cash flow in the past year.
- TRP-PR-E had positive earnings in each of the past 5 years.
- TRP-PR-E had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- TRP-PR-E has a better Return On Assets (2.82%) than 69.16% of its industry peers.
- TRP-PR-E has a better Return On Equity (12.35%) than 85.98% of its industry peers.
- TRP-PR-E's Return On Invested Capital of 3.97% is in line compared to the rest of the industry. TRP-PR-E outperforms 59.81% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for TRP-PR-E is below the industry average of 6.53%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.82% | ||
| ROE | 12.35% | ||
| ROIC | 3.97% |
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
- TRP-PR-E has a Profit Margin of 27.28%. This is amongst the best in the industry. TRP-PR-E outperforms 90.65% of its industry peers.
- TRP-PR-E's Profit Margin has improved in the last couple of years.
- TRP-PR-E has a Operating Margin of 44.41%. This is amongst the best in the industry. TRP-PR-E outperforms 94.39% 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 69.05%, TRP-PR-E belongs to the top of the industry, outperforming 85.51% of the companies in the same industry.
- TRP-PR-E's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.41% | ||
| PM (TTM) | 27.28% | ||
| GM | 69.05% |
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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TRP-PR-E is destroying value.
- Compared to 1 year ago, TRP-PR-E has about the same amount of shares outstanding.
- The number of shares outstanding for TRP-PR-E has been increased compared to 5 years ago.
- TRP-PR-E has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.30, we must say that TRP-PR-E is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.30, TRP-PR-E is in line with its industry, outperforming 40.19% of the companies in the same industry.
- The Debt to FCF ratio of TRP-PR-E is 31.45, which is on the high side as it means it would take TRP-PR-E, 31.45 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of TRP-PR-E (31.45) is comparable to the rest of the industry.
- TRP-PR-E has a Debt/Equity ratio of 2.13. This is a high value indicating a heavy dependency on external financing.
- TRP-PR-E has a Debt to Equity ratio of 2.13. This is in the lower half of the industry: TRP-PR-E underperforms 74.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | 31.45 | ||
| Altman-Z | 0.3 |
ROIC/WACC0.54
WACC7.42%
2.3 Liquidity
- TRP-PR-E has a Current Ratio of 0.63. This is a bad value and indicates that TRP-PR-E is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.63, TRP-PR-E is doing worse than 61.22% of the companies in the same industry.
- TRP-PR-E has a Quick Ratio of 0.63. This is a bad value and indicates that TRP-PR-E is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.56, TRP-PR-E is doing worse than 60.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
- TRP-PR-E shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.89%.
- TRP-PR-E shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.06% yearly.
- TRP-PR-E shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -25.33%.
- 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)-32.89%
EPS 3Y-4.48%
EPS 5Y-2.06%
EPS Q2Q%-25.24%
Revenue 1Y (TTM)-25.33%
Revenue growth 3Y0.95%
Revenue growth 5Y0.77%
Sales Q2Q%-9.28%
3.2 Future
- The Earnings Per Share is expected to grow by 3.33% on average over the next years.
- The Revenue is expected to grow by 2.71% on average over the next years.
EPS Next Y-5.26%
EPS Next 2Y0.81%
EPS Next 3Y1.88%
EPS Next 5Y3.33%
Revenue Next Year-3.6%
Revenue Next 2Y1.19%
Revenue Next 3Y1.77%
Revenue Next 5Y2.71%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- TRP-PR-E is valuated cheaply with a Price/Earnings ratio of 7.67.
- Based on the Price/Earnings ratio, TRP-PR-E is valued cheaper than 87.85% of the companies in the same industry.
- TRP-PR-E's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- The Price/Forward Earnings ratio is 6.19, which indicates a rather cheap valuation of TRP-PR-E.
- TRP-PR-E's Price/Forward Earnings ratio is rather cheap when compared to the industry. TRP-PR-E is cheaper than 92.06% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, TRP-PR-E is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.67 | ||
| Fwd PE | 6.19 |
4.2 Price Multiples
- TRP-PR-E's Enterprise Value to EBITDA ratio is in line with the industry average.
- TRP-PR-E's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TRP-PR-E is cheaper than 76.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.52 | ||
| EV/EBITDA | 9.84 |
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)N/A
EPS Next 2Y0.81%
EPS Next 3Y1.88%
5. Dividend
5.1 Amount
- TRP-PR-E has a Yearly Dividend Yield of 4.48%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.82, TRP-PR-E pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, TRP-PR-E pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.48% |
5.2 History
- The dividend of TRP-PR-E is nicely growing with an annual growth rate of 13.09%!
- 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 110.00% 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.
DP110%
EPS Next 2Y0.81%
EPS Next 3Y1.88%
TC ENERGY CORP - TRPCN 5.08 PERP / TRP-PR-E.CA FAQ
Can you provide the ChartMill fundamental rating for TC ENERGY CORP - TRPCN 5.08 PERP?
ChartMill assigns a fundamental rating of 4 / 10 to TRP-PR-E.CA.
Can you provide the valuation status for TC ENERGY CORP - TRPCN 5.08 PERP?
ChartMill assigns a valuation rating of 7 / 10 to TC ENERGY CORP - TRPCN 5.08 PERP (TRP-PR-E.CA). This can be considered as Undervalued.
What is the profitability of TRP-PR-E stock?
TC ENERGY CORP - TRPCN 5.08 PERP (TRP-PR-E.CA) has a profitability rating of 7 / 10.
How financially healthy is TC ENERGY CORP - TRPCN 5.08 PERP?
The financial health rating of TC ENERGY CORP - TRPCN 5.08 PERP (TRP-PR-E.CA) is 1 / 10.
Can you provide the expected EPS growth for TRP-PR-E stock?
The Earnings per Share (EPS) of TC ENERGY CORP - TRPCN 5.08 PERP (TRP-PR-E.CA) is expected to decline by -5.26% in the next year.