TC ENERGY CORP (TRP) Stock Fundamental Analysis
NYSE:TRP - New York Stock Exchange, Inc. - CA87807B1076 - Common Stock - Currency: USD
TRP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 208 industry peers in the Oil, Gas & Consumable Fuels industry. TRP has a medium profitability rating, but doesn't score so well on its financial health evaluation. TRP has a expensive valuation and it also scores bad on growth.
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.
In the past 5 years TRP always reported a positive cash flow from operatings.
1.2 Ratios
TRP's Return On Assets of 3.62% is in line compared to the rest of the industry. TRP outperforms 52.40% of its industry peers.
The Return On Equity of TRP (15.78%) is better than 74.52% of its industry peers.
The Return On Invested Capital of TRP (3.94%) is worse than 64.90% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TRP is significantly below the industry average of 23.89%.
| 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 86.54% of the companies in the same industry.
In the last couple of years the Profit Margin of TRP has grown nicely.
Looking at the Operating Margin, with a value of 42.10%, TRP belongs to the top of the industry, outperforming 87.02% of the companies in the same industry.
In the last couple of years the Operating Margin of TRP has remained more or less at the same level.
TRP has a better Gross Margin (68.14%) than 76.92% 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.
The number of shares outstanding for TRP remains at a similar level compared to 1 year ago.
The number of shares outstanding for TRP has been increased compared to 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 0.60, we must say that TRP is in the distress zone and has some risk of bankruptcy.
TRP has a Altman-Z score of 0.60. This is in the lower half of the industry: TRP underperforms 62.98% of 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.
TRP has a Debt to FCF ratio (84.11) which is comparable to the rest of the industry.
TRP has a Debt/Equity ratio of 2.15. This is a high value indicating a heavy dependency on external financing.
TRP has a worse Debt to Equity ratio (2.15) than 81.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.15 | ||
| Debt/FCF | 84.11 | ||
| Altman-Z | 0.6 |
ROIC/WACC0.47
WACC8.32%
2.3 Liquidity
A Current Ratio of 0.70 indicates that TRP may have some problems paying its short term obligations.
The Current ratio of TRP (0.70) is worse than 76.44% of its industry peers.
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 74.52% 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%.
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 very negative growth in Revenue. In the last year, the Revenue has decreased by -19.07%.
The Revenue has been growing slightly by 0.77% on average over the past years.
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
TRP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.69% yearly.
TRP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.22% 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 5Y3.22%
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.
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 18.75 indicates a rather expensive valuation of TRP.
TRP's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of TRP to the average of the S&P500 Index (28.05), we can say TRP is valued slightly cheaper.
TRP is valuated correctly with a Price/Forward Earnings ratio of 15.84.
TRP's Price/Forward Earnings is on the same level as the industry average.
TRP is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.67, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.75 | ||
| Fwd PE | 15.84 |
4.2 Price Multiples
TRP's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. TRP is more expensive than 65.38% of the companies in the same industry.
TRP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 91.17 | ||
| EV/EBITDA | 15.05 |
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)9.01
PEG (5Y)N/A
EPS Next 2Y4.59%
EPS Next 3Y3.37%
5. Dividend
5.1 Amount
TRP has a Yearly Dividend Yield of 6.42%, which is a nice return.
Compared to an average industry Dividend Yield of 6.37, 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 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.42% |
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.
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%
47.24
-0.33 (-0.69%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners78.66%
Inst Owner Change-0.11%
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap49.13B
Analysts73.33
Price Target54.75 (15.9%)
Short Float %5.61%
Short Ratio23.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.42% |
Yearly Dividend2.85
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)-0.43%
PT rev (3m)2.45%
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 | 18.75 | ||
| Fwd PE | 15.84 | ||
| P/S | 5.11 | ||
| P/FCF | 91.17 | ||
| P/OCF | 9.52 | ||
| P/B | 2.43 | ||
| P/tB | 4.78 | ||
| EV/EBITDA | 15.05 |
EPS(TTM)2.52
EY5.33%
EPS(NY)2.98
Fwd EY6.31%
FCF(TTM)0.52
FCFY1.1%
OCF(TTM)4.96
OCFY10.51%
SpS9.25
BVpS19.47
TBVpS9.88
PEG (NY)9.01
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 | 0.6 |
F-Score4
WACC8.32%
ROIC/WACC0.47
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 5Y3.22%
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%