TC ENERGY CORP (TRP.CA) Stock Fundamental Analysis
TSX:TRP - Toronto Stock Exchange - CA87807B1076 - Common Stock - Currency: CAD
Overall TRP gets a fundamental rating of 4 out of 10. We evaluated TRP against 210 industry peers in the Oil, Gas & Consumable Fuels industry. TRP has an excellent profitability rating, but there are concerns on its financial health. TRP has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
TRP had positive earnings in the past year.
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 69.52% of its industry peers.
TRP has a Return On Equity of 15.78%. This is amongst the best in the industry. TRP outperforms 85.24% of its industry peers.
With a Return On Invested Capital value of 3.94%, TRP perfoms like the industry average, outperforming 53.81% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TRP is below the industry average of 7.31%.
| 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
With an excellent Profit Margin value of 33.22%, TRP belongs to the best of the industry, outperforming 88.57% of the companies in the same industry.
In the last couple of years the Profit Margin of TRP has grown nicely.
With an excellent Operating Margin value of 42.10%, TRP belongs to the best of the industry, outperforming 90.95% 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 68.14%, TRP belongs to the top of the industry, outperforming 80.95% 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 | 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.
TRP has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, TRP has more shares outstanding
TRP has a better debt/assets ratio than last year.
2.2 Solvency
TRP has an Altman-Z score of 0.62. This is a bad value and indicates that TRP is not financially healthy and even has some risk of bankruptcy.
TRP has a Altman-Z score of 0.62. This is comparable to the rest of the industry: TRP outperforms 51.43% of its industry peers.
TRP has a debt to FCF ratio of 84.11. This is a negative value and a sign of low solvency as TRP would need 84.11 years to pay back of all of its debts.
TRP's Debt to FCF ratio of 84.11 is in line compared to the rest of the industry. TRP outperforms 51.90% of its industry peers.
TRP has a Debt/Equity ratio of 2.15. This is a high value indicating a heavy dependency on external financing.
TRP's Debt to Equity ratio of 2.15 is on the low side compared to the rest of the industry. TRP is outperformed by 82.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.15 | ||
| Debt/FCF | 84.11 | ||
| Altman-Z | 0.62 |
ROIC/WACC0.48
WACC8.25%
2.3 Liquidity
TRP has a Current 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.
With a Current ratio value of 0.70, TRP is not doing good in the industry: 63.81% of the companies in the same industry are doing better.
A Quick Ratio of 0.63 indicates that TRP may have some problems paying its short term obligations.
The Quick ratio of TRP (0.63) is worse than 64.76% 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 -26.77%.
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%.
TRP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.77% yearly.
EPS 1Y (TTM)-26.77%
EPS 3Y-4.48%
EPS 5Y-2.06%
EPS Q2Q%-13.07%
Revenue 1Y (TTM)3.8%
Revenue growth 3Y0.95%
Revenue growth 5Y0.77%
Sales Q2Q%-8.26%
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.
The Revenue is expected to grow by 3.22% on average over the next years.
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 5Y3.22%
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
A Price/Earnings ratio of 19.93 indicates a rather expensive valuation of TRP.
TRP's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of TRP to the average of the S&P500 Index (26.82), we can say TRP is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 16.22, the valuation of TRP can be described as correct.
TRP's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 36.21. TRP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.93 | ||
| Fwd PE | 16.22 |
4.2 Price Multiples
TRP's Enterprise Value to EBITDA is on the same level as the industry average.
TRP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 93.36 | ||
| EV/EBITDA | 15.24 |
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.
The decent profitability rating of TRP may justify a higher PE ratio.
PEG (NY)9.57
PEG (5Y)N/A
EPS Next 2Y4.59%
EPS Next 3Y3.37%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.42%, TRP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.32, TRP pays a better dividend. On top of this TRP pays more dividend than 92.38% of the companies listed in the same industry.
TRP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.42% |
5.2 History
On average, the dividend of TRP grows each year by 13.09%, which is quite nice.
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.
The dividend of TRP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP90.34%
EPS Next 2Y4.59%
EPS Next 3Y3.37%
TSX:TRP (7/31/2025, 7:00:00 PM)
66.16
+1.14 (+1.75%)
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 Cap68.81B
Analysts73.33
Price Target75.12 (13.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.42% |
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)-0.27%
PT rev (3m)1.66%
EPS NQ rev (1m)0.72%
EPS NQ rev (3m)-10.17%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.56%
Revenue NQ rev (3m)1.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.93 | ||
| Fwd PE | 16.22 | ||
| P/S | 5.23 | ||
| P/FCF | 93.36 | ||
| P/OCF | 9.75 | ||
| P/B | 2.48 | ||
| P/tB | 4.9 | ||
| EV/EBITDA | 15.24 |
EPS(TTM)3.32
EY5.02%
EPS(NY)4.08
Fwd EY6.17%
FCF(TTM)0.71
FCFY1.07%
OCF(TTM)6.79
OCFY10.26%
SpS12.65
BVpS26.63
TBVpS13.51
PEG (NY)9.57
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 | 0.62 |
F-Score4
WACC8.25%
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)-26.77%
EPS 3Y-4.48%
EPS 5Y-2.06%
EPS Q2Q%-13.07%
EPS Next Y2.08%
EPS Next 2Y4.59%
EPS Next 3Y3.37%
EPS Next 5Y4.69%
Revenue 1Y (TTM)3.8%
Revenue growth 3Y0.95%
Revenue growth 5Y0.77%
Sales Q2Q%-8.26%
Revenue Next Year-7.6%
Revenue Next 2Y0.32%
Revenue Next 3Y1.15%
Revenue Next 5Y3.22%
EBIT growth 1Y-19.58%
EBIT growth 3Y-0.68%
EBIT growth 5Y0%
EBIT Next Year30.13%
EBIT Next 3Y12.83%
EBIT Next 5Y10.98%
FCF growth 1Y267.5%
FCF growth 3Y11.47%
FCF growth 5YN/A
OCF growth 1Y4.72%
OCF growth 3Y3.76%
OCF growth 5Y1.68%