TC ENERGY CORP (TRP) Stock Fundamental Analysis
USA - NYSE:TRP - CA87807B1076 - Common Stock
51.46 USD
-0.27 (-0.52%)
51.46 USD
0 (0%)
Overall TRP gets a fundamental rating of 3 out of 10. We evaluated TRP against 211 industry peers in the Oil, Gas & Consumable Fuels industry. While TRP is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
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
TRP has a Return On Assets of 3.63%. This is comparable to the rest of the industry: TRP outperforms 53.08% of its industry peers.
The Return On Equity of TRP (15.40%) is better than 74.88% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.10%, TRP is doing worse than 61.61% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TRP is significantly below the industry average of 21.53%.
| 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
Looking at the Profit Margin, with a value of 33.09%, TRP belongs to the top of the industry, outperforming 87.68% of the companies in the same industry.
In the last couple of years the Profit Margin of TRP has grown nicely.
TRP has a Operating Margin of 43.28%. This is amongst the best in the industry. TRP outperforms 88.15% of its industry peers.
TRP's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 68.45%, TRP is doing good in the industry, outperforming 76.78% 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
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.
TRP has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.66, we must say that TRP is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of TRP (0.66) is worse than 62.09% 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.
With a Debt to FCF ratio value of 40.34, TRP perfoms like the industry average, outperforming 40.76% of the companies in the same industry.
TRP has a Debt/Equity ratio of 2.05. This is a high value indicating a heavy dependency on external financing.
TRP's Debt to Equity ratio of 2.05 is on the low side compared to the rest of the industry. TRP is outperformed by 81.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.05 | ||
| Debt/FCF | 40.34 | ||
| Altman-Z | 0.66 |
ROIC/WACC0.52
WACC7.82%
2.3 Liquidity
A Current Ratio of 0.61 indicates that TRP may have some problems paying its short term obligations.
The Current ratio of TRP (0.61) is worse than 82.46% of its industry peers.
A Quick Ratio of 0.54 indicates that TRP may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.54, TRP is doing worse than 80.57% of the companies in the same industry.
| 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 -26.71%.
TRP shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.06% yearly.
Looking at the last year, TRP shows a very negative growth in Revenue. The Revenue has decreased by -22.38% in the last year.
The Revenue has been growing slightly by 0.77% on average over the past years.
EPS 1Y (TTM)-26.71%
EPS 3Y-4.48%
EPS 5Y-2.06%
EPS Q2Q%-12.77%
Revenue 1Y (TTM)-22.38%
Revenue growth 3Y0.95%
Revenue growth 5Y0.77%
Sales Q2Q%-8.35%
3.2 Future
The Earnings Per Share is expected to grow by 3.87% on average over the next years.
TRP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.59% yearly.
EPS Next Y-2.48%
EPS Next 2Y1.72%
EPS Next 3Y1.68%
EPS Next 5Y3.87%
Revenue Next Year-3.35%
Revenue Next 2Y0.86%
Revenue Next 3Y1.3%
Revenue Next 5Y3.59%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 21.81, which indicates a rather expensive current valuation of TRP.
The rest of the industry has a similar Price/Earnings ratio as TRP.
The average S&P500 Price/Earnings ratio is at 27.53. TRP is valued slightly cheaper when compared to this.
TRP is valuated rather expensively with a Price/Forward Earnings ratio of 18.73.
TRP's Price/Forward Earnings is on the same level as the industry average.
TRP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.81 | ||
| Fwd PE | 18.73 |
4.2 Price Multiples
66.35% 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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.03 | ||
| EV/EBITDA | 15.82 |
4.3 Compensation for Growth
The decent profitability rating of TRP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.72%
EPS Next 3Y1.68%
5. Dividend
5.1 Amount
TRP has a Yearly Dividend Yield of 4.60%, which is a nice return.
TRP's Dividend Yield is a higher than the industry average which is at 6.15.
TRP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.6% |
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
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 2Y1.72%
EPS Next 3Y1.68%
51.46
-0.27 (-0.52%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners78.19%
Inst Owner Change0.01%
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap53.52B
Analysts73.08
Price Target53.54 (4.04%)
Short Float %2.4%
Short Ratio14.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.6% |
Yearly Dividend2.78
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)-1.82%
PT rev (3m)-2.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.04%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)-4.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.81 | ||
| Fwd PE | 18.73 | ||
| P/S | 5.87 | ||
| P/FCF | 51.03 | ||
| P/OCF | 9.94 | ||
| P/B | 2.73 | ||
| P/tB | 5.15 | ||
| EV/EBITDA | 15.82 |
EPS(TTM)2.36
EY4.59%
EPS(NY)2.75
Fwd EY5.34%
FCF(TTM)1.01
FCFY1.96%
OCF(TTM)5.18
OCFY10.06%
SpS8.77
BVpS18.84
TBVpS9.99
PEG (NY)N/A
PEG (5Y)N/A
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%
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-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 | 0.66 |
F-Score5
WACC7.82%
ROIC/WACC0.52
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)-26.71%
EPS 3Y-4.48%
EPS 5Y-2.06%
EPS Q2Q%-12.77%
EPS Next Y-2.48%
EPS Next 2Y1.72%
EPS Next 3Y1.68%
EPS Next 5Y3.87%
Revenue 1Y (TTM)-22.38%
Revenue growth 3Y0.95%
Revenue growth 5Y0.77%
Sales Q2Q%-8.35%
Revenue Next Year-3.35%
Revenue Next 2Y0.86%
Revenue Next 3Y1.3%
Revenue Next 5Y3.59%
EBIT growth 1Y-19.79%
EBIT growth 3Y-0.68%
EBIT growth 5Y0%
EBIT Next Year30.1%
EBIT Next 3Y12.65%
EBIT Next 5Y9.95%
FCF growth 1Y325.57%
FCF growth 3Y11.47%
FCF growth 5YN/A
OCF growth 1Y3.49%
OCF growth 3Y3.76%
OCF growth 5Y1.68%