TC ENERGY CORP (TRP.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TRP - CA87807B1076 - Common Stock
75.52 CAD
-0.96 (-1.26%)
Overall TRP gets a fundamental rating of 4 out of 10. We evaluated TRP against 218 industry peers in the Oil, Gas & Consumable Fuels industry. TRP scores excellent on profitability, but there are concerns on its financial health. TRP is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
TRP had positive earnings in the past year.
In the past year TRP had a positive cash flow from operations.
In the past 5 years TRP has always been profitable.
Each year in the past 5 years TRP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.82%, TRP is in the better half of the industry, outperforming 67.89% of the companies in the same industry.
TRP has a Return On Equity of 12.35%. This is amongst the best in the industry. TRP outperforms 83.94% of its industry peers.
TRP has a Return On Invested Capital (3.97%) which is in line with its industry peers.
TRP had an Average Return On Invested Capital over the past 3 years of 4.35%. This 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 has a Profit Margin of 27.28%. This is amongst the best in the industry. TRP outperforms 88.07% of its industry peers.
In the last couple of years the Profit Margin of TRP has grown nicely.
Looking at the Operating Margin, with a value of 44.41%, TRP belongs to the top of the industry, outperforming 93.12% of the companies in the same industry.
TRP's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 69.05%, TRP belongs to the top of the industry, outperforming 83.94% of the companies in the same industry.
TRP'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 is destroying value.
The number of shares outstanding for TRP remains at a similar level compared to 1 year ago.
TRP has more shares outstanding than it did 5 years ago.
TRP has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.65, we must say that TRP is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of TRP (0.65) is comparable to the rest of the industry.
TRP has a debt to FCF ratio of 31.45. This is a negative value and a sign of low solvency as TRP would need 31.45 years to pay back of all of its debts.
TRP has a Debt to FCF ratio of 31.45. This is comparable to the rest of the industry: TRP outperforms 55.50% of its industry peers.
TRP has a Debt/Equity ratio of 2.13. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.13, TRP is not doing good in the industry: 78.44% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | 31.45 | ||
| Altman-Z | 0.65 |
ROIC/WACC0.53
WACC7.56%
2.3 Liquidity
TRP has a Current Ratio of 0.63. This is a bad value and indicates that TRP is not financially healthy enough and could expect problems in meeting its short term obligations.
TRP has a worse Current ratio (0.63) than 64.22% of its industry peers.
TRP has a Quick Ratio of 0.63. This is a bad value and indicates that TRP is not financially healthy enough and could expect problems in meeting its short term obligations.
TRP has a worse Quick ratio (0.56) than 63.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
TRP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.89%.
The Earnings Per Share has been decreasing by -2.06% on average over the past years.
The Revenue for TRP has decreased by -25.33% in the past year. This is quite bad
Measured over the past years, TRP shows a small growth in Revenue. The Revenue has been growing by 0.77% on average per year.
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
Based on estimates for the next years, TRP will show a small growth in Earnings Per Share. The EPS will grow by 3.82% on average per year.
The Revenue is expected to grow by 3.20% on average over the next years.
EPS Next Y-4.97%
EPS Next 2Y0.59%
EPS Next 3Y1.73%
EPS Next 5Y3.82%
Revenue Next Year-3.46%
Revenue Next 2Y1.29%
Revenue Next 3Y1.74%
Revenue Next 5Y3.2%
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
Based on the Price/Earnings ratio of 24.68, the valuation of TRP can be described as rather expensive.
TRP's Price/Earnings ratio is a bit cheaper when compared to the industry. TRP is cheaper than 60.55% of the companies in the same industry.
When comparing the Price/Earnings ratio of TRP to the average of the S&P500 Index (26.49), we can say TRP is valued inline with the index average.
A Price/Forward Earnings ratio of 20.01 indicates a rather expensive valuation of TRP.
TRP's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of TRP to the average of the S&P500 Index (23.69), we can say TRP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.68 | ||
| Fwd PE | 20.01 |
4.2 Price Multiples
TRP's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as TRP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.3 | ||
| EV/EBITDA | 16.45 |
4.3 Compensation for Growth
The decent profitability rating of TRP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.59%
EPS Next 3Y1.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.45%, TRP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.83, TRP pays a bit more dividend than its industry peers.
TRP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.45% |
5.2 History
On average, the dividend of TRP grows each year by 13.09%, which is quite nice.
TRP has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)13.09%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
TRP pays out 110.00% of its income as dividend. This is not a sustainable payout ratio.
TRP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP110%
EPS Next 2Y0.59%
EPS Next 3Y1.73%
TSX:TRP (12/5/2025, 7:00:00 PM)
75.52
-0.96 (-1.26%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners78.19%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap78.62B
Revenue(TTM)12.43B
Net Income(TTM)3.39B
Analysts73.85
Price Target78.75 (4.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.45% |
Yearly Dividend3.9
Dividend Growth(5Y)13.09%
DP110%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.38%
Min EPS beat(2)-4.57%
Max EPS beat(2)3.8%
EPS beat(4)1
Avg EPS beat(4)-13.12%
Min EPS beat(4)-48.32%
Max EPS beat(4)3.8%
EPS beat(8)5
Avg EPS beat(8)-1.97%
EPS beat(12)7
Avg EPS beat(12)-0.86%
EPS beat(16)9
Avg EPS beat(16)-0.26%
Revenue beat(2)1
Avg Revenue beat(2)1.8%
Min Revenue beat(2)-0.72%
Max Revenue beat(2)4.32%
Revenue beat(4)2
Avg Revenue beat(4)-13.83%
Min Revenue beat(4)-63.24%
Max Revenue beat(4)4.32%
Revenue beat(8)4
Avg Revenue beat(8)-5.97%
Revenue beat(12)7
Avg Revenue beat(12)-3.33%
Revenue beat(16)9
Avg Revenue beat(16)-2.19%
PT rev (1m)3.72%
PT rev (3m)5.63%
EPS NQ rev (1m)-1.63%
EPS NQ rev (3m)-3.43%
EPS NY rev (1m)-1.4%
EPS NY rev (3m)-2.91%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.68 | ||
| Fwd PE | 20.01 | ||
| P/S | 6.32 | ||
| P/FCF | 40.3 | ||
| P/OCF | 10.43 | ||
| P/B | 2.86 | ||
| P/tB | 5.52 | ||
| EV/EBITDA | 16.45 |
EPS(TTM)3.06
EY4.05%
EPS(NY)3.77
Fwd EY5%
FCF(TTM)1.87
FCFY2.48%
OCF(TTM)7.24
OCFY9.59%
SpS11.94
BVpS26.38
TBVpS13.68
PEG (NY)N/A
PEG (5Y)N/A
Graham Number42.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.82% | ||
| ROE | 12.35% | ||
| ROCE | 5.11% | ||
| ROIC | 3.97% | ||
| ROICexc | 4.05% | ||
| ROICexgc | 4.62% | ||
| OM | 44.41% | ||
| PM (TTM) | 27.28% | ||
| GM | 69.05% | ||
| FCFM | 15.69% |
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%
ROICexgc growth 3Y-4.34%
ROICexgc 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-Score5
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | 31.45 | ||
| Debt/EBITDA | 7.13 | ||
| Cap/Depr | 207.7% | ||
| Cap/Sales | 44.93% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.8% | ||
| Profit Quality | 57.53% | ||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 0.65 |
F-Score5
WACC7.56%
ROIC/WACC0.53
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)-32.89%
EPS 3Y-4.48%
EPS 5Y-2.06%
EPS Q2Q%-25.24%
EPS Next Y-4.97%
EPS Next 2Y0.59%
EPS Next 3Y1.73%
EPS Next 5Y3.82%
Revenue 1Y (TTM)-25.33%
Revenue growth 3Y0.95%
Revenue growth 5Y0.77%
Sales Q2Q%-9.28%
Revenue Next Year-3.46%
Revenue Next 2Y1.29%
Revenue Next 3Y1.74%
Revenue Next 5Y3.2%
EBIT growth 1Y-20.42%
EBIT growth 3Y-0.68%
EBIT growth 5Y0%
EBIT Next Year29.85%
EBIT Next 3Y13.03%
EBIT Next 5Y9.78%
FCF growth 1Y359.1%
FCF growth 3Y11.47%
FCF growth 5YN/A
OCF growth 1Y1.39%
OCF growth 3Y3.76%
OCF growth 5Y1.68%
TC ENERGY CORP / TRP.CA FAQ
Can you provide the ChartMill fundamental rating for TC ENERGY CORP?
ChartMill assigns a fundamental rating of 4 / 10 to TRP.CA.
What is the valuation status of TC ENERGY CORP (TRP.CA) stock?
ChartMill assigns a valuation rating of 3 / 10 to TC ENERGY CORP (TRP.CA). This can be considered as Overvalued.
How profitable is TC ENERGY CORP (TRP.CA) stock?
TC ENERGY CORP (TRP.CA) has a profitability rating of 7 / 10.
What is the financial health of TC ENERGY CORP (TRP.CA) stock?
The financial health rating of TC ENERGY CORP (TRP.CA) is 1 / 10.
Can you provide the dividend sustainability for TRP stock?
The dividend rating of TC ENERGY CORP (TRP.CA) is 5 / 10 and the dividend payout ratio is 110%.