TC ENERGY CORP - TRPCN 3.72 PERP (TRP-PR-I.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TRP-PR-I - CA87807B7016
19.19 CAD
-0.11 (-0.57%)
Overall TRP-PR-I gets a fundamental rating of 5 out of 10. We evaluated TRP-PR-I against 206 industry peers in the Oil, Gas & Consumable Fuels industry. TRP-PR-I scores excellent on profitability, but there are concerns on its financial health. TRP-PR-I is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year TRP-PR-I was profitable.
- TRP-PR-I had a positive operating cash flow in the past year.
- TRP-PR-I had positive earnings in each of the past 5 years.
- TRP-PR-I had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- TRP-PR-I's Return On Assets of 2.82% is fine compared to the rest of the industry. TRP-PR-I outperforms 70.56% of its industry peers.
- The Return On Equity of TRP-PR-I (12.35%) is better than 87.38% of its industry peers.
- TRP-PR-I's Return On Invested Capital of 3.97% is fine compared to the rest of the industry. TRP-PR-I outperforms 61.22% of its industry peers.
- TRP-PR-I had an Average Return On Invested Capital over the past 3 years of 4.35%. This is below the industry average of 6.62%.
| 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
- With an excellent Profit Margin value of 27.28%, TRP-PR-I belongs to the best of the industry, outperforming 92.52% of the companies in the same industry.
- In the last couple of years the Profit Margin of TRP-PR-I has grown nicely.
- TRP-PR-I has a Operating Margin of 44.41%. This is amongst the best in the industry. TRP-PR-I outperforms 96.26% of its industry peers.
- TRP-PR-I's Operating Margin has been stable in the last couple of years.
- With an excellent Gross Margin value of 69.05%, TRP-PR-I belongs to the best of the industry, outperforming 86.92% of the companies in the same industry.
- In the last couple of years the Gross Margin of TRP-PR-I has remained more or less at the same level.
| 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
- TRP-PR-I has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, TRP-PR-I has about the same amount of shares outstanding.
- Compared to 5 years ago, TRP-PR-I has more shares outstanding
- The debt/assets ratio for TRP-PR-I has been reduced compared to a year ago.
2.2 Solvency
- TRP-PR-I has an Altman-Z score of 0.27. This is a bad value and indicates that TRP-PR-I is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.27, TRP-PR-I is doing worse than 63.08% of the companies in the same industry.
- TRP-PR-I has a debt to FCF ratio of 31.45. This is a negative value and a sign of low solvency as TRP-PR-I would need 31.45 years to pay back of all of its debts.
- TRP-PR-I has a Debt to FCF ratio of 31.45. This is comparable to the rest of the industry: TRP-PR-I outperforms 58.41% of its industry peers.
- TRP-PR-I has a Debt/Equity ratio of 2.13. This is a high value indicating a heavy dependency on external financing.
- TRP-PR-I has a Debt to Equity ratio of 2.13. This is in the lower half of the industry: TRP-PR-I underperforms 72.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | 31.45 | ||
| Altman-Z | 0.27 |
ROIC/WACC0.57
WACC7%
2.3 Liquidity
- A Current Ratio of 0.63 indicates that TRP-PR-I may have some problems paying its short term obligations.
- TRP-PR-I has a Current ratio (0.63) which is in line with its industry peers.
- A Quick Ratio of 0.56 indicates that TRP-PR-I may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.56, TRP-PR-I is in line with its industry, outperforming 40.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
- The earnings per share for TRP-PR-I have decreased strongly by -32.89% in the last year.
- The Earnings Per Share has been decreasing by -2.06% on average over the past years.
- Looking at the last year, TRP-PR-I shows a very negative growth in Revenue. The Revenue has decreased by -25.33% in the last year.
- TRP-PR-I 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
- TRP-PR-I is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.33% yearly.
- Based on estimates for the next years, TRP-PR-I will show a small growth in Revenue. The Revenue will grow by 2.71% on average per year.
EPS Next Y-5.65%
EPS Next 2Y0.77%
EPS Next 3Y1.89%
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
- Based on the Price/Earnings ratio of 6.27, the valuation of TRP-PR-I can be described as very cheap.
- 93.46% of the companies in the same industry are more expensive than TRP-PR-I, based on the Price/Earnings ratio.
- TRP-PR-I is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 5.07, the valuation of TRP-PR-I can be described as very cheap.
- Based on the Price/Forward Earnings ratio, TRP-PR-I is valued cheaper than 95.33% of the companies in the same industry.
- TRP-PR-I is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.27 | ||
| Fwd PE | 5.07 |
4.2 Price Multiples
- TRP-PR-I's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TRP-PR-I is cheaper than 63.55% of the companies in the same industry.
- 85.98% of the companies in the same industry are more expensive than TRP-PR-I, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.24 | ||
| EV/EBITDA | 9.31 |
4.3 Compensation for Growth
- The decent profitability rating of TRP-PR-I may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.77%
EPS Next 3Y1.89%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.48%, TRP-PR-I is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 3.29, TRP-PR-I pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, TRP-PR-I pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.48% |
5.2 History
- The dividend of TRP-PR-I is nicely growing with an annual growth rate of 13.09%!
- TRP-PR-I has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)13.09%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 110.00% of the earnings are spent on dividend by TRP-PR-I. This is not a sustainable payout ratio.
- The dividend of TRP-PR-I is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP110%
EPS Next 2Y0.77%
EPS Next 3Y1.89%
TC ENERGY CORP - TRPCN 3.72 PERP / TRP-PR-I.CA FAQ
Can you provide the ChartMill fundamental rating for TC ENERGY CORP - TRPCN 3.72 PERP?
ChartMill assigns a fundamental rating of 5 / 10 to TRP-PR-I.CA.
Can you provide the valuation status for TC ENERGY CORP - TRPCN 3.72 PERP?
ChartMill assigns a valuation rating of 8 / 10 to TC ENERGY CORP - TRPCN 3.72 PERP (TRP-PR-I.CA). This can be considered as Undervalued.
Can you provide the profitability details for TC ENERGY CORP - TRPCN 3.72 PERP?
TC ENERGY CORP - TRPCN 3.72 PERP (TRP-PR-I.CA) has a profitability rating of 7 / 10.
What are the PE and PB ratios of TC ENERGY CORP - TRPCN 3.72 PERP (TRP-PR-I.CA) stock?
The Price/Earnings (PE) ratio for TC ENERGY CORP - TRPCN 3.72 PERP (TRP-PR-I.CA) is 6.27 and the Price/Book (PB) ratio is 0.73.
How sustainable is the dividend of TC ENERGY CORP - TRPCN 3.72 PERP (TRP-PR-I.CA) stock?
The dividend rating of TC ENERGY CORP - TRPCN 3.72 PERP (TRP-PR-I.CA) is 5 / 10 and the dividend payout ratio is 110%.