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TC ENERGY CORP (TRP) Stock Fundamental Analysis

NYSE:TRP - New York Stock Exchange, Inc. - CA87807B1076 - Common Stock - Currency: USD

48.11  +0.15 (+0.31%)

After market: 48.11 0 (0%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to TRP. TRP was compared to 210 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 is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

6

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.
TRP had a positive operating cash flow in each of the past 5 years.
TRP Yearly Net Income VS EBIT VS OCF VS FCFTRP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B 6B

1.2 Ratios

TRP has a Return On Assets (3.62%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 15.78%, TRP is in the better half of the industry, outperforming 74.29% of the companies in the same industry.
TRP has a worse Return On Invested Capital (3.94%) than 64.76% of its industry peers.
TRP had an Average Return On Invested Capital over the past 3 years of 4.35%. This is significantly below the industry average of 23.80%.
Industry RankSector 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%
TRP Yearly ROA, ROE, ROICTRP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 10 15

1.3 Margins

TRP has a better Profit Margin (33.22%) than 86.67% of its industry peers.
TRP's Profit Margin has improved in the last couple of years.
The Operating Margin of TRP (42.10%) is better than 87.14% of its industry peers.
In the last couple of years the Operating Margin of TRP has remained more or less at the same level.
With a decent Gross Margin value of 68.14%, TRP is doing good in the industry, outperforming 77.14% of the companies in the same industry.
In the last couple of years the Gross Margin of TRP has remained more or less at the same level.
Industry RankSector 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%
TRP Yearly Profit, Operating, Gross MarginsTRP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60

1

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.
TRP Yearly Shares OutstandingTRP Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B
TRP Yearly Total Debt VS Total AssetsTRP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B 100B

2.2 Solvency

Based on the Altman-Z score of 0.61, we must say that TRP is in the distress zone and has some risk of bankruptcy.
TRP has a Altman-Z score of 0.61. This is in the lower half of the industry: TRP underperforms 62.86% 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 in line with 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 worse Debt to Equity ratio (2.15) than 81.90% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.15
Debt/FCF 84.11
Altman-Z 0.61
ROIC/WACC0.47
WACC8.29%
TRP Yearly LT Debt VS Equity VS FCFTRP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20B 40B 60B

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 75.71% of its industry peers.
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.
TRP has a Quick ratio of 0.63. This is in the lower half of the industry: TRP underperforms 73.81% of its industry peers.
Industry RankSector Rank
Current Ratio 0.7
Quick Ratio 0.63
TRP Yearly Current Assets VS Current LiabilitesTRP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

3

3. Growth

3.1 Past

The earnings per share for TRP have decreased strongly by -24.40% 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.
Looking at the last year, TRP shows a very negative growth in Revenue. The Revenue has decreased by -19.07% in the last year.
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

TRP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.69% yearly.
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.
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.
TRP Yearly Revenue VS EstimatesTRP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5B 10B 15B
TRP Yearly EPS VS EstimatesTRP Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 2 3 4 5

3

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 19.02, TRP is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as TRP.
When comparing the Price/Earnings ratio of TRP to the average of the S&P500 Index (27.69), we can say TRP is valued slightly cheaper.
A Price/Forward Earnings ratio of 16.02 indicates a correct valuation of TRP.
The rest of the industry has a similar Price/Forward Earnings ratio as TRP.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.36, TRP is valued rather cheaply.
Industry RankSector Rank
PE 19.02
Fwd PE 16.02
TRP Price Earnings VS Forward Price EarningsTRP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

64.76% of the companies in the same industry are cheaper than TRP, based on the Enterprise Value to EBITDA ratio.
TRP's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 92.22
EV/EBITDA 15.14
TRP Per share dataTRP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of TRP may justify a higher PE ratio.
PEG (NY)9.14
PEG (5Y)N/A
EPS Next 2Y4.59%
EPS Next 3Y3.37%

6

5. Dividend

5.1 Amount

TRP has a Yearly Dividend Yield of 7.74%, which is a nice return.
TRP's Dividend Yield is rather good when compared to the industry average which is at 6.49. TRP pays more dividend than 80.48% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, TRP pays a better dividend.
Industry RankSector Rank
Dividend Yield 7.74%

5.2 History

The dividend of TRP is nicely growing with an annual growth rate of 13.09%!
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
TRP Yearly Dividends per shareTRP Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4 5

5.3 Sustainability

90.34% of the earnings are spent on dividend by TRP. 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%
TRP Yearly Income VS Free CF VS DividendTRP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B
TRP Dividend Payout.TRP Dividend Payout, showing the Payout Ratio.TRP Dividend Payout.PayoutRetained Earnings

TC ENERGY CORP

NYSE:TRP (7/23/2025, 8:04:00 PM)

After market: 48.11 0 (0%)

48.11

+0.15 (+0.31%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)05-01 2025-05-01/bmo
Earnings (Next)07-31 2025-07-31/bmo
Inst Owners78.66%
Inst Owner Change-0.05%
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap50.03B
Analysts73.33
Price Target54.75 (13.8%)
Short Float %5.61%
Short Ratio23.05
Dividend
Industry RankSector Rank
Dividend Yield 7.74%
Yearly Dividend2.84
Dividend Growth(5Y)13.09%
DP90.34%
Div Incr Years0
Div Non Decr Years0
Ex-Date06-30 2025-06-30 (0.85)
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)-0.2%
PT rev (3m)6.92%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)-10.9%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.78%
Valuation
Industry RankSector Rank
PE 19.02
Fwd PE 16.02
P/S 5.17
P/FCF 92.22
P/OCF 9.63
P/B 2.45
P/tB 4.84
EV/EBITDA 15.14
EPS(TTM)2.53
EY5.26%
EPS(NY)3
Fwd EY6.24%
FCF(TTM)0.52
FCFY1.08%
OCF(TTM)5
OCFY10.39%
SpS9.31
BVpS19.6
TBVpS9.94
PEG (NY)9.14
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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
WACC8.29%
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%