TC ENERGY CORP (TRP) Stock Fundamental Analysis
USA - NYSE:TRP - CA87807B1076 - Common Stock
52.23 USD
+1.78 (+3.53%)
52.23 USD
0 (0%)
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 valied quite expensively at the moment, while it does show a decent growth rate.
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.
Each year in the past 5 years TRP had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 3.63%, TRP perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
With a decent Return On Equity value of 15.40%, TRP is doing good in the industry, outperforming 76.19% of the companies in the same industry.
TRP's Return On Invested Capital of 4.10% is on the low side compared to the rest of the industry. TRP is outperformed by 62.86% 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 21.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.63% | ||
| ROE | 15.4% | ||
| ROIC | 4.1% |
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 better Profit Margin (33.09%) than 88.10% of its industry peers.
TRP's Profit Margin has improved in the last couple of years.
The Operating Margin of TRP (43.28%) is better than 87.62% 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 68.45%, TRP is doing good in the industry, outperforming 76.19% 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 | 43.28% | ||
| PM (TTM) | 33.09% | ||
| GM | 68.45% |
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.
The number of shares outstanding for TRP has been increased compared to 5 years ago.
Compared to 1 year ago, TRP has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.65, we must say that TRP is in the distress zone and has some risk of bankruptcy.
TRP has a worse Altman-Z score (0.65) than 60.95% of its industry peers.
The Debt to FCF ratio of TRP is 40.34, which is on the high side as it means it would take TRP, 40.34 years of fcf income to pay off all of its debts.
TRP has a Debt to FCF ratio of 40.34. This is comparable to the rest of the industry: TRP outperforms 41.43% of its industry peers.
TRP has a Debt/Equity ratio of 2.05. This is a high value indicating a heavy dependency on external financing.
TRP has a worse Debt to Equity ratio (2.05) than 80.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.05 | ||
| Debt/FCF | 40.34 | ||
| Altman-Z | 0.65 |
ROIC/WACC0.54
WACC7.55%
2.3 Liquidity
A Current Ratio of 0.61 indicates that TRP may have some problems paying its short term obligations.
With a Current ratio value of 0.61, TRP is not doing good in the industry: 81.43% of the companies in the same industry are doing better.
A Quick Ratio of 0.54 indicates that TRP may have some problems paying its short term obligations.
TRP's Quick ratio of 0.54 is on the low side compared to the rest of the industry. TRP is outperformed by 81.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
TRP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.47%.
TRP shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.06% yearly.
The Revenue has been growing slightly by 3.80% in the past 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)-32.47%
EPS 3Y-4.48%
EPS 5Y-2.06%
EPS Q2Q%-23.36%
Revenue 1Y (TTM)3.8%
Revenue growth 3Y0.95%
Revenue growth 5Y0.77%
Sales Q2Q%-7.14%
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 4.01% on average per year.
Based on estimates for the next years, TRP will show a small growth in Revenue. The Revenue will grow by 3.74% on average per year.
EPS Next Y-3.62%
EPS Next 2Y1.35%
EPS Next 3Y1.21%
EPS Next 5Y4.01%
Revenue Next Year-3.3%
Revenue Next 2Y1.07%
Revenue Next 3Y1.53%
Revenue Next 5Y3.74%
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
Based on the Price/Earnings ratio of 23.85, the valuation of TRP can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TRP is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 25.83, TRP is valued at the same level.
With a Price/Forward Earnings ratio of 19.21, TRP is valued on the expensive side.
TRP's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of TRP to the average of the S&P500 Index (32.68), we can say TRP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.85 | ||
| Fwd PE | 19.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRP is valued a bit more expensive than the industry average as 65.71% of the companies are valued more cheaply.
TRP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.97 | ||
| EV/EBITDA | 15.62 |
4.3 Compensation for Growth
TRP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.35%
EPS Next 3Y1.21%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.14%, TRP is a good candidate for dividend investing.
TRP's Dividend Yield is a higher than the industry average which is at 6.14.
TRP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.14% |
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 90.54% 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.
DP90.54%
EPS Next 2Y1.35%
EPS Next 3Y1.21%
52.23
+1.78 (+3.53%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners78.19%
Inst Owner Change-0.26%
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap54.32B
Revenue(TTM)13.77B
Net Income(TTM)4.24B
Analysts72.31
Price Target54.47 (4.29%)
Short Float %1.12%
Short Ratio5.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.14% |
Yearly Dividend2.77
Dividend Growth(5Y)13.09%
DP90.54%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.21%
Min EPS beat(2)-3.38%
Max EPS beat(2)3.8%
EPS beat(4)2
Avg EPS beat(4)-10.14%
Min EPS beat(4)-48.32%
Max EPS beat(4)7.33%
EPS beat(8)6
Avg EPS beat(8)-1.14%
EPS beat(12)8
Avg EPS beat(12)0.09%
EPS beat(16)9
Avg EPS beat(16)-0.04%
Revenue beat(2)2
Avg Revenue beat(2)4.32%
Min Revenue beat(2)4.32%
Max Revenue beat(2)4.32%
Revenue beat(4)3
Avg Revenue beat(4)-13.17%
Min Revenue beat(4)-63.24%
Max Revenue beat(4)4.32%
Revenue beat(8)5
Avg Revenue beat(8)-5.73%
Revenue beat(12)8
Avg Revenue beat(12)-2.75%
Revenue beat(16)9
Avg Revenue beat(16)-2.61%
PT rev (1m)1.02%
PT rev (3m)-0.51%
EPS NQ rev (1m)-2.13%
EPS NQ rev (3m)-1.49%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.47%
Revenue NQ rev (1m)-0.64%
Revenue NQ rev (3m)-1.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.85 | ||
| Fwd PE | 19.21 | ||
| P/S | 5.98 | ||
| P/FCF | 51.97 | ||
| P/OCF | 10.12 | ||
| P/B | 2.78 | ||
| P/tB | 5.25 | ||
| EV/EBITDA | 15.62 |
EPS(TTM)2.19
EY4.19%
EPS(NY)2.72
Fwd EY5.21%
FCF(TTM)1.01
FCFY1.92%
OCF(TTM)5.16
OCFY9.88%
SpS8.74
BVpS18.78
TBVpS9.96
PEG (NY)N/A
PEG (5Y)N/A
Graham Number30.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.63% | ||
| ROE | 15.4% | ||
| ROCE | 5.28% | ||
| ROIC | 4.1% | ||
| ROICexc | 4.16% | ||
| ROICexgc | 4.74% | ||
| OM | 43.28% | ||
| PM (TTM) | 33.09% | ||
| GM | 68.45% | ||
| FCFM | 11.5% |
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%
ROICexgc growth 3Y-4.34%
ROICexgc 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-Score5
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.05 | ||
| Debt/FCF | 40.34 | ||
| Debt/EBITDA | 6.83 | ||
| Cap/Depr | 225.55% | ||
| Cap/Sales | 47.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.75% | ||
| Profit Quality | 34.75% | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 0.65 |
F-Score5
WACC7.55%
ROIC/WACC0.54
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)-32.47%
EPS 3Y-4.48%
EPS 5Y-2.06%
EPS Q2Q%-23.36%
EPS Next Y-3.62%
EPS Next 2Y1.35%
EPS Next 3Y1.21%
EPS Next 5Y4.01%
Revenue 1Y (TTM)3.8%
Revenue growth 3Y0.95%
Revenue growth 5Y0.77%
Sales Q2Q%-7.14%
Revenue Next Year-3.3%
Revenue Next 2Y1.07%
Revenue Next 3Y1.53%
Revenue Next 5Y3.74%
EBIT growth 1Y-19.79%
EBIT growth 3Y-0.68%
EBIT growth 5Y0%
EBIT Next Year30.1%
EBIT Next 3Y12.65%
EBIT Next 5Y10.1%
FCF growth 1Y325.57%
FCF growth 3Y11.47%
FCF growth 5YN/A
OCF growth 1Y3.49%
OCF growth 3Y3.76%
OCF growth 5Y1.68%
TC ENERGY CORP / TRP FAQ
Can you provide the ChartMill fundamental rating for TC ENERGY CORP?
ChartMill assigns a fundamental rating of 4 / 10 to TRP.
What is the valuation status of TC ENERGY CORP (TRP) stock?
ChartMill assigns a valuation rating of 2 / 10 to TC ENERGY CORP (TRP). This can be considered as Overvalued.
How profitable is TC ENERGY CORP (TRP) stock?
TC ENERGY CORP (TRP) has a profitability rating of 6 / 10.
What is the financial health of TC ENERGY CORP (TRP) stock?
The financial health rating of TC ENERGY CORP (TRP) is 1 / 10.
Can you provide the dividend sustainability for TRP stock?
The dividend rating of TC ENERGY CORP (TRP) is 5 / 10 and the dividend payout ratio is 90.54%.