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 212 industry peers in the Oil, Gas & Consumable Fuels industry. TRP scores excellent on profitability, but there are concerns on its financial health. TRP does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year TRP was profitable.
TRP had a positive operating cash flow in the past year.
TRP had positive earnings in each of the past 5 years.
TRP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TRP (3.62%) is better than 69.34% of its industry peers.
Looking at the Return On Equity, with a value of 15.78%, TRP belongs to the top of the industry, outperforming 85.85% of the companies in the same industry.
The Return On Invested Capital of TRP (3.94%) is comparable to the rest of the industry.
TRP had an Average Return On Invested Capital over the past 3 years of 4.35%. This is below the industry average of 7.33%.
| 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 has a Profit Margin of 33.22%. This is amongst the best in the industry. TRP outperforms 88.68% of its industry peers.
In the last couple of years the Profit Margin of TRP has grown nicely.
The Operating Margin of TRP (42.10%) is better than 91.04% 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 amongst the best of the industry. TRP outperforms 80.66% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
TRP has an Altman-Z score of 0.61. This is a bad value and indicates that TRP is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.61, TRP is in line with its industry, outperforming 51.42% of the companies in the same industry.
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.
TRP has a Debt to FCF ratio of 84.11. This is comparable to the rest of the industry: TRP outperforms 50.47% of its industry peers.
A Debt/Equity ratio of 2.15 is on the high side and indicates that TRP has dependencies on debt financing.
TRP has a Debt to Equity ratio of 2.15. This is amonst the worse of the industry: TRP underperforms 81.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.15 | ||
| Debt/FCF | 84.11 | ||
| Altman-Z | 0.61 |
ROIC/WACC0.48
WACC8.2%
2.3 Liquidity
A Current Ratio of 0.70 indicates that TRP may have some problems paying its short term obligations.
TRP has a Current ratio of 0.70. This is in the lower half of the industry: TRP underperforms 62.26% of its industry peers.
A Quick Ratio of 0.63 indicates that TRP may have some problems paying its short term obligations.
With a Quick ratio value of 0.63, TRP is not doing good in the industry: 64.62% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The earnings per share for TRP have decreased strongly by -24.40% in the last year.
The Earnings Per Share has been decreasing by -2.06% on average over the past years.
TRP shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -19.07%.
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
Based on estimates for the next years, TRP will show a small growth in Earnings Per Share. The EPS will grow by 4.69% on average per year.
TRP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.23% yearly.
EPS Next Y2.08%
EPS Next 2Y4.59%
EPS Next 3Y3.37%
EPS Next 5Y4.69%
Revenue Next Year-7.6%
Revenue Next 2Y0.32%
Revenue Next 3Y1.15%
Revenue Next 5Y3.23%
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
With a Price/Earnings ratio of 18.85, TRP is valued on the expensive side.
TRP's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.92, TRP is valued a bit cheaper.
With a Price/Forward Earnings ratio of 15.89, TRP is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TRP is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.46, TRP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.85 | ||
| Fwd PE | 15.89 |
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 | 91.48 | ||
| EV/EBITDA | 15.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TRP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)9.05
PEG (5Y)N/A
EPS Next 2Y4.59%
EPS Next 3Y3.37%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.55%, TRP has a reasonable but not impressive dividend return.
TRP's Dividend Yield is a higher than the industry average which is at 6.21.
Compared to an average S&P500 Dividend Yield of 2.44, TRP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
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 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 (6/23/2025, 7:00:00 PM)
64.83
-0.33 (-0.51%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners78.66%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap67.42B
Analysts73.33
Price Target75.33 (16.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
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)0.68%
PT rev (3m)2.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.17%
EPS NY rev (1m)0%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.85 | ||
| Fwd PE | 15.89 | ||
| P/S | 5.13 | ||
| P/FCF | 91.48 | ||
| P/OCF | 9.55 | ||
| P/B | 2.43 | ||
| P/tB | 4.8 | ||
| EV/EBITDA | 15.08 |
EPS(TTM)3.44
EY5.31%
EPS(NY)4.08
Fwd EY6.29%
FCF(TTM)0.71
FCFY1.09%
OCF(TTM)6.79
OCFY10.47%
SpS12.65
BVpS26.63
TBVpS13.51
PEG (NY)9.05
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 | 0.61 |
F-Score4
WACC8.2%
ROIC/WACC0.48
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 5Y4.69%
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 5Y3.23%
EBIT growth 1Y-19.58%
EBIT growth 3Y-0.68%
EBIT growth 5Y0%
EBIT Next Year30.13%
EBIT Next 3Y12.83%
EBIT Next 5Y9.87%
FCF growth 1Y267.5%
FCF growth 3Y11.47%
FCF growth 5YN/A
OCF growth 1Y4.72%
OCF growth 3Y3.76%
OCF growth 5Y1.68%