TC ENERGY CORP (TRP)
CA87807B1076 - Common Stock
TRP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 213 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of TRP while its profitability can be described as average. 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.
In the past year TRP had a positive cash flow from operations.
Each year in the past 5 years TRP has been profitable.
In the past 5 years TRP always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.12%, TRP is doing worse than 71.83% of the companies in the same industry.
With a Return On Equity value of 9.03%, TRP is not doing good in the industry: 62.91% of the companies in the same industry are doing better.
The Return On Invested Capital of TRP (3.98%) is worse than 71.83% of its industry peers.
TRP had an Average Return On Invested Capital over the past 3 years of 4.02%. This is significantly below the industry average of 44.22%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.12% | ||
| ROE | 9.03% | ||
| ROIC | 3.98% |
ROA(3y)1.52%
ROA(5y)2.6%
ROE(3y)5.64%
ROE(5y)8.81%
ROIC(3y)4.02%
ROIC(5y)4.1%
1.3 Margins
TRP's Profit Margin of 16.73% is in line compared to the rest of the industry. TRP outperforms 55.40% of its industry peers.
In the last couple of years the Profit Margin of TRP has declined.
Looking at the Operating Margin, with a value of 42.37%, TRP belongs to the top of the industry, outperforming 80.28% 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.
Looking at the Gross Margin, with a value of 68.84%, TRP is in the better half of the industry, outperforming 74.18% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.37% | ||
| PM (TTM) | 16.73% | ||
| GM | 68.84% |
OM growth 3Y-1.23%
OM growth 5Y0.71%
PM growth 3Y-19.7%
PM growth 5Y-7.25%
GM growth 3Y-0.4%
GM growth 5Y-1.23%
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 more 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.
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.
With a Altman-Z score value of 0.61, TRP is not doing good in the industry: 68.08% of the companies in the same industry are doing better.
TRP has a Debt/Equity ratio of 2.04. This is a high value indicating a heavy dependency on external financing.
TRP's Debt to Equity ratio of 2.04 is on the low side compared to the rest of the industry. TRP is outperformed by 84.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.04 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.61 |
ROIC/WACC0.72
WACC5.54%
2.3 Liquidity
A Current Ratio of 0.94 indicates that TRP may have some problems paying its short term obligations.
The Current ratio of TRP (0.94) is worse than 65.73% of its industry peers.
TRP has a Quick Ratio of 0.94. 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 worse Quick ratio (0.85) than 61.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.04% over the past year.
The Earnings Per Share has been growing slightly by 3.15% on average over the past years.
TRP shows a small growth in Revenue. In the last year, the Revenue has grown by 5.48%.
TRP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.10% yearly.
EPS 1Y (TTM)4.04%
EPS 3Y2.48%
EPS 5Y3.15%
EPS growth Q2Q3.9%
Revenue 1Y (TTM)5.48%
Revenue growth 3Y7.02%
Revenue growth 5Y3.1%
Revenue growth Q2Q9.49%
3.2 Future
The Earnings Per Share is expected to grow by 4.29% on average over the next years.
The Revenue is expected to grow by 6.13% on average over the next years.
EPS Next Y-7.08%
EPS Next 2Y-1.07%
EPS Next 3Y1.72%
EPS Next 5Y4.29%
Revenue Next Year2.61%
Revenue Next 2Y3.86%
Revenue Next 3Y5.25%
Revenue Next 5Y6.13%
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 11.68 indicates a reasonable valuation of TRP.
TRP's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.83. TRP is valued rather cheaply when compared to this.
TRP is valuated correctly with a Price/Forward Earnings ratio of 12.05.
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 (20.47), we can say TRP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.68 | ||
| Fwd PE | 12.05 |
4.2 Price Multiples
71.83% of the companies in the same industry are cheaper than TRP, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.71 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.7
EPS Next 2Y-1.07%
EPS Next 3Y1.72%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.36%, TRP is a good candidate for dividend investing.
TRP's Dividend Yield is a higher than the industry average which is at 5.80.
TRP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.36% |
5.2 History
On average, the dividend of TRP grows each year by 7.82%, which is quite nice.
TRP has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.82%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
TRP pays out 117.47% 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.
DP117.47%
EPS Next 2Y-1.07%
EPS Next 3Y1.72%
TC ENERGY CORP
NYSE:TRP (5/16/2024, 7:21:54 PM)
Premarket: 39.17 +0.05 (+0.13%)39.12
+0.17 (+0.44%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap40.59B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.36% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.68 | ||
| Fwd PE | 12.05 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)3.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.12% | ||
| ROE | 9.03% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 42.37% | ||
| PM (TTM) | 16.73% | ||
| GM | 68.84% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.04 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)4.04%
EPS 3Y2.48%
EPS 5Y
EPS growth Q2Q
EPS Next Y-7.08%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.48%
Revenue growth 3Y7.02%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y