TC ENERGY CORP (TRP.CA) Stock Fundamental Analysis
Canada - TSX:TRP - CA87807B1076 - Common Stock
74.77 CAD
+1.51 (+2.06%)
Taking everything into account, TRP scores 4 out of 10 in our fundamental rating. TRP was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. While TRP belongs to the best of the industry regarding profitability, there are concerns on its financial health. TRP is quite expensive at the moment. It does show a decent growth rate.
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.
Each year in the past 5 years TRP has 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 3.63%, TRP is in the better half of the industry, outperforming 70.09% of the companies in the same industry.
The Return On Equity of TRP (15.40%) is better than 85.51% of its industry peers.
TRP has a Return On Invested Capital (4.10%) 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 6.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.63% | ||
| ROE | 15.4% | ||
| ROIC | 4.1% |
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 33.09%, TRP belongs to the best of the industry, outperforming 88.32% of the companies in the same industry.
In the last couple of years the Profit Margin of TRP has grown nicely.
TRP has a Operating Margin of 43.28%. This is amongst the best in the industry. TRP outperforms 91.12% of its industry peers.
TRP's Operating Margin has been stable in the last couple of years.
TRP has a Gross Margin of 68.45%. This is amongst the best in the industry. TRP outperforms 81.31% of its industry peers.
TRP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 43.28% | ||
| PM (TTM) | 33.09% | ||
| GM | 68.45% |
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.
TRP has about the same amout of shares outstanding than it did 1 year ago.
TRP has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TRP has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.67, we must say that TRP is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.67, TRP perfoms like the industry average, outperforming 50.93% of the companies in the same industry.
The Debt to FCF ratio of TRP is 40.34, which is on the high side as it means it would take TRP, 40.34 years of fcf income to pay off all of its debts.
TRP has a Debt to FCF ratio of 40.34. This is comparable to the rest of the industry: TRP outperforms 55.61% of its industry peers.
TRP has a Debt/Equity ratio of 2.05. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.05, TRP is doing worse than 79.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.05 | ||
| Debt/FCF | 40.34 | ||
| Altman-Z | 0.67 |
ROIC/WACC0.55
WACC7.42%
2.3 Liquidity
A Current Ratio of 0.61 indicates that TRP may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.61, TRP is doing worse than 71.96% of the companies in the same industry.
TRP has a Quick Ratio of 0.61. This is a bad value and indicates that TRP is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.54, TRP is doing worse than 72.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The earnings per share for TRP have decreased strongly by -32.47% in the last year.
Measured over the past years, TRP shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.06% on average per year.
TRP shows a small growth in Revenue. In the last year, the Revenue has grown by 3.80%.
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)-32.47%
EPS 3Y-4.48%
EPS 5Y-2.06%
EPS Q2Q%-23.36%
Revenue 1Y (TTM)3.8%
Revenue growth 3Y0.95%
Revenue growth 5Y0.77%
Sales Q2Q%-7.14%
3.2 Future
TRP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.01% yearly.
The Revenue is expected to grow by 3.74% on average over the next years.
EPS Next Y-3.62%
EPS Next 2Y1.35%
EPS Next 3Y1.21%
EPS Next 5Y4.01%
Revenue Next Year-3.3%
Revenue Next 2Y1.07%
Revenue Next 3Y1.53%
Revenue Next 5Y3.74%
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.
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 is valuated rather expensively with a Price/Earnings ratio of 24.28.
TRP's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.28. TRP is around the same levels.
A Price/Forward Earnings ratio of 19.51 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 (33.61), we can say TRP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.28 | ||
| Fwd PE | 19.51 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TRP.
TRP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.79 | ||
| EV/EBITDA | 16.09 |
4.3 Compensation for Growth
TRP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.35%
EPS Next 3Y1.21%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.14%, TRP is a good candidate for dividend investing.
TRP's Dividend Yield is rather good when compared to the industry average which is at 4.97. TRP pays more dividend than 93.93% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, TRP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.14% |
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
90.54% of the earnings are spent on dividend by TRP. This is not a sustainable payout ratio.
The dividend of TRP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP90.54%
EPS Next 2Y1.35%
EPS Next 3Y1.21%
TSX:TRP (11/10/2025, 7:00:00 PM)
74.77
+1.51 (+2.06%)
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 Cap77.76B
Revenue(TTM)13.77B
Net Income(TTM)4.24B
Analysts72.31
Price Target75.93 (1.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.14% |
Yearly Dividend3.9
Dividend Growth(5Y)13.09%
DP90.54%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.21%
Min EPS beat(2)-3.38%
Max EPS beat(2)3.8%
EPS beat(4)2
Avg EPS beat(4)-10.14%
Min EPS beat(4)-48.32%
Max EPS beat(4)7.33%
EPS beat(8)6
Avg EPS beat(8)-1.14%
EPS beat(12)8
Avg EPS beat(12)0.09%
EPS beat(16)9
Avg EPS beat(16)-0.04%
Revenue beat(2)2
Avg Revenue beat(2)4.32%
Min Revenue beat(2)4.32%
Max Revenue beat(2)4.32%
Revenue beat(4)3
Avg Revenue beat(4)-13.17%
Min Revenue beat(4)-63.24%
Max Revenue beat(4)4.32%
Revenue beat(8)5
Avg Revenue beat(8)-5.73%
Revenue beat(12)8
Avg Revenue beat(12)-2.75%
Revenue beat(16)9
Avg Revenue beat(16)-2.61%
PT rev (1m)1.84%
PT rev (3m)1.07%
EPS NQ rev (1m)-3%
EPS NQ rev (3m)-2.36%
EPS NY rev (1m)-1.17%
EPS NY rev (3m)-5.59%
Revenue NQ rev (1m)-0.64%
Revenue NQ rev (3m)-1.19%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.28 | ||
| Fwd PE | 19.51 | ||
| P/S | 6.07 | ||
| P/FCF | 52.79 | ||
| P/OCF | 10.28 | ||
| P/B | 2.83 | ||
| P/tB | 5.33 | ||
| EV/EBITDA | 16.09 |
EPS(TTM)3.08
EY4.12%
EPS(NY)3.83
Fwd EY5.12%
FCF(TTM)1.42
FCFY1.89%
OCF(TTM)7.27
OCFY9.73%
SpS12.32
BVpS26.46
TBVpS14.03
PEG (NY)N/A
PEG (5Y)N/A
Graham Number42.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.63% | ||
| ROE | 15.4% | ||
| ROCE | 5.28% | ||
| ROIC | 4.1% | ||
| ROICexc | 4.16% | ||
| ROICexgc | 4.74% | ||
| OM | 43.28% | ||
| PM (TTM) | 33.09% | ||
| GM | 68.45% | ||
| FCFM | 11.5% |
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 Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.05 | ||
| Debt/FCF | 40.34 | ||
| Debt/EBITDA | 6.83 | ||
| Cap/Depr | 225.55% | ||
| Cap/Sales | 47.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.75% | ||
| Profit Quality | 34.75% | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 0.67 |
F-Score5
WACC7.42%
ROIC/WACC0.55
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)-32.47%
EPS 3Y-4.48%
EPS 5Y-2.06%
EPS Q2Q%-23.36%
EPS Next Y-3.62%
EPS Next 2Y1.35%
EPS Next 3Y1.21%
EPS Next 5Y4.01%
Revenue 1Y (TTM)3.8%
Revenue growth 3Y0.95%
Revenue growth 5Y0.77%
Sales Q2Q%-7.14%
Revenue Next Year-3.3%
Revenue Next 2Y1.07%
Revenue Next 3Y1.53%
Revenue Next 5Y3.74%
EBIT growth 1Y-19.79%
EBIT growth 3Y-0.68%
EBIT growth 5Y0%
EBIT Next Year30.1%
EBIT Next 3Y12.65%
EBIT Next 5Y10.1%
FCF growth 1Y325.57%
FCF growth 3Y11.47%
FCF growth 5YN/A
OCF growth 1Y3.49%
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 6 / 10 and the dividend payout ratio is 90.54%.