TC ENERGY CORP (TRP) Stock Fundamental Analysis
NYSE:TRP - New York Stock Exchange, Inc. - CA87807B1076 - Common Stock - Currency: USD
Taking everything into account, TRP scores 4 out of 10 in our fundamental rating. 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 does not seem to be growing, but still is valued expensively.
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.
In the past 5 years TRP has always been profitable.
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 comparable to the rest of the industry.
TRP has a Return On Equity of 15.78%. This is in the better half of the industry: TRP outperforms 74.29% of its industry peers.
TRP has a Return On Invested Capital of 3.94%. This is in the lower half of the industry: TRP underperforms 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 23.79%.
| 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
Looking at the Profit Margin, with a value of 33.22%, TRP belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
In the last couple of years the Profit Margin of TRP has grown nicely.
TRP's Operating Margin of 42.10% is amongst the best of the industry. TRP outperforms 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.
TRP has a Gross Margin of 68.14%. This is in the better half of the industry: TRP outperforms 77.14% of its industry peers.
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.
Compared to 1 year ago, TRP has about the same amount of shares outstanding.
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 0.61. 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 doing worse than 62.86% of the companies in the same industry.
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.
With a Debt to FCF ratio value of 84.11, TRP perfoms like the industry average, outperforming 40.48% of the companies in the same industry.
A Debt/Equity ratio of 2.15 is on the high side and indicates that TRP has dependencies on debt 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 81.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.15 | ||
| Debt/FCF | 84.11 | ||
| Altman-Z | 0.61 |
ROIC/WACC0.48
WACC8.28%
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.
TRP's Current ratio of 0.70 is on the low side compared to the rest of the industry. TRP is outperformed by 75.71% of its industry peers.
A Quick Ratio of 0.63 indicates that TRP may have some problems paying its short term obligations.
TRP has a worse Quick ratio (0.63) than 73.81% of its industry peers.
| 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.
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%.
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.
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
The Price/Earnings ratio is 18.80, which indicates a rather expensive current valuation of TRP.
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 (27.35), we can say TRP is valued slightly cheaper.
A Price/Forward Earnings ratio of 15.88 indicates a correct valuation of TRP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TRP is on the same level as its industry peers.
TRP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.54.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.8 | ||
| Fwd PE | 15.88 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRP indicates a slightly more expensive valuation: TRP is more expensive than 64.76% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TRP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 91.41 | ||
| EV/EBITDA | 15.07 |
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)9.03
PEG (5Y)N/A
EPS Next 2Y4.59%
EPS Next 3Y3.37%
5. Dividend
5.1 Amount
TRP has a Yearly Dividend Yield of 7.74%, which is a nice return.
Compared to an average industry Dividend Yield of 6.49, TRP pays a better dividend. On top of this TRP pays more dividend than 80.48% of the companies listed 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 | 7.74% |
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
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%
47.57
-0.54 (-1.12%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners78.66%
Inst Owner Change-0.05%
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap49.47B
Analysts73.33
Price Target54.75 (15.09%)
Short Float %5.61%
Short Ratio23.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.74% |
Yearly Dividend2.84
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)-0.2%
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.8 | ||
| Fwd PE | 15.88 | ||
| P/S | 5.12 | ||
| P/FCF | 91.41 | ||
| P/OCF | 9.54 | ||
| P/B | 2.43 | ||
| P/tB | 4.8 | ||
| EV/EBITDA | 15.07 |
EPS(TTM)2.53
EY5.32%
EPS(NY)3
Fwd EY6.3%
FCF(TTM)0.52
FCFY1.09%
OCF(TTM)4.99
OCFY10.48%
SpS9.29
BVpS19.55
TBVpS9.92
PEG (NY)9.03
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
WACC8.28%
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 5Y3.22%
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%