TC ENERGY CORP (TRP.CA) Stock Fundamental Analysis
TSX:TRP - Toronto Stock Exchange - CA87807B1076 - Common Stock - Currency: CAD
Taking everything into account, TRP scores 4 out of 10 in our fundamental rating. TRP was compared to 211 industry peers in the Oil, Gas & Consumable Fuels industry. TRP scores excellent on profitability, but there are concerns on its financial health. TRP has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year TRP was profitable.
In the past year TRP had a positive cash flow from operations.
In the past 5 years TRP has always been profitable.
In the past 5 years TRP always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.62%, TRP is in the better half of the industry, outperforming 70.14% of the companies in the same industry.
TRP has a Return On Equity of 15.78%. This is amongst the best in the industry. TRP outperforms 85.78% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.94%, TRP is in line with its industry, outperforming 53.55% of the companies in the same industry.
TRP had an Average Return On Invested Capital over the past 3 years of 4.35%. This is below the industry average of 7.23%.
| 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
TRP's Profit Margin of 33.22% is amongst the best of the industry. TRP outperforms 90.05% of its industry peers.
TRP's Profit Margin has improved in the last couple of years.
TRP has a better Operating Margin (42.10%) than 91.00% of its industry peers.
In the last couple of years the Operating Margin of TRP has remained more or less at the same level.
TRP's Gross Margin of 68.14% is fine compared to the rest of the industry. TRP outperforms 79.15% of its industry peers.
In the last couple of years the Gross Margin of TRP 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
TRP 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 has about the same amount of shares outstanding.
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 0.63, we must say that TRP is in the distress zone and has some risk of bankruptcy.
TRP has a Altman-Z score (0.63) which is in line with its industry peers.
The Debt to FCF ratio of TRP is 84.11, which is on the high side as it means it would take TRP, 84.11 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TRP (84.11) is comparable to the rest of the industry.
A Debt/Equity ratio of 2.15 is on the high side and indicates that TRP has dependencies on debt financing.
With a Debt to Equity ratio value of 2.15, TRP is not doing good in the industry: 82.94% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.15 | ||
| Debt/FCF | 84.11 | ||
| Altman-Z | 0.63 |
ROIC/WACC0.44
WACC9%
2.3 Liquidity
A Current Ratio of 0.70 indicates that TRP may have some problems paying its short term obligations.
With a Current ratio value of 0.70, TRP is not doing good in the industry: 62.09% of the companies in the same industry are doing better.
TRP has a Quick Ratio of 0.70. This is a bad value and indicates that TRP is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of TRP (0.63) is worse than 64.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
TRP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.40%.
TRP shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.06% yearly.
The Revenue for TRP has decreased by -19.07% 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)-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 5.16% on average over the next years.
TRP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.05% yearly.
EPS Next Y2.08%
EPS Next 2Y4.59%
EPS Next 3Y3.37%
EPS Next 5Y5.16%
Revenue Next Year-7.6%
Revenue Next 2Y0.32%
Revenue Next 3Y1.15%
Revenue Next 5Y3.05%
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
A Price/Earnings ratio of 20.07 indicates a rather expensive valuation of TRP.
TRP's Price/Earnings ratio is in line with the industry average.
TRP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.17.
With a Price/Forward Earnings ratio of 16.92, TRP is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as TRP.
The average S&P500 Price/Forward Earnings ratio is at 22.10. TRP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.07 | ||
| Fwd PE | 16.92 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TRP.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TRP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 97.44 | ||
| EV/EBITDA | 15.61 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TRP does not grow enough to justify the current Price/Earnings ratio.
TRP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)9.64
PEG (5Y)N/A
EPS Next 2Y4.59%
EPS Next 3Y3.37%
5. Dividend
5.1 Amount
TRP has a Yearly Dividend Yield of 4.92%, which is a nice return.
Compared to an average industry Dividend Yield of 6.54, TRP pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, TRP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.92% |
5.2 History
The dividend of TRP is nicely growing with an annual growth rate of 13.09%!
TRP 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
TRP pays out 90.34% 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.
DP90.34%
EPS Next 2Y4.59%
EPS Next 3Y3.37%
TSX:TRP (5/28/2025, 7:00:00 PM)
69.05
-0.16 (-0.23%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners75.89%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap71.81B
Analysts71.85
Price Target74.82 (8.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.92% |
Yearly Dividend3.9
Dividend Growth(5Y)13.09%
DP90.34%
Div Incr Years0
Div Non Decr Years0
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)1.5%
PT rev (3m)0.94%
EPS NQ rev (1m)-10.81%
EPS NQ rev (3m)-7.46%
EPS NY rev (1m)0%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)0.71%
Revenue NQ rev (3m)2.32%
Revenue NY rev (1m)-2.62%
Revenue NY rev (3m)-1.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.07 | ||
| Fwd PE | 16.92 | ||
| P/S | 5.46 | ||
| P/FCF | 97.44 | ||
| P/OCF | 10.17 | ||
| P/B | 2.59 | ||
| P/tB | 5.11 | ||
| EV/EBITDA | 15.61 |
EPS(TTM)3.44
EY4.98%
EPS(NY)4.08
Fwd EY5.91%
FCF(TTM)0.71
FCFY1.03%
OCF(TTM)6.79
OCFY9.83%
SpS12.65
BVpS26.63
TBVpS13.51
PEG (NY)9.64
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 | 0.63 |
F-Score4
WACC9%
ROIC/WACC0.44
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 5Y5.16%
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 5Y3.05%
EBIT growth 1Y-19.58%
EBIT growth 3Y-0.68%
EBIT growth 5Y0%
EBIT Next Year30.13%
EBIT Next 3Y12.83%
EBIT Next 5Y9.56%
FCF growth 1Y267.5%
FCF growth 3Y11.47%
FCF growth 5YN/A
OCF growth 1Y4.72%
OCF growth 3Y3.76%
OCF growth 5Y1.68%