TC ENERGY CORP (TRP) Stock Fundamental Analysis
NYSE:TRP - New York Stock Exchange, Inc. - CA87807B1076 - Common Stock - Currency: USD
Overall TRP gets a fundamental rating of 3 out of 10. We evaluated TRP 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 valued expensive and it does not seem to be growing.
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.
In the past 5 years TRP has always been profitable.
In the past 5 years TRP always reported a positive cash flow from operatings.
1.2 Ratios
TRP's Return On Assets of 3.62% is in line compared to the rest of the industry. TRP outperforms 50.70% of its industry peers.
The Return On Equity of TRP (15.78%) is better than 73.71% of its industry peers.
TRP's Return On Invested Capital of 3.94% is on the low side compared to the rest of the industry. TRP is outperformed by 65.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TRP is significantly below the industry average of 25.73%.
| 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 85.92% of the companies in the same industry.
TRP's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 42.10%, TRP belongs to the best of the industry, outperforming 85.92% 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.
TRP's Gross Margin of 68.14% is fine compared to the rest of the industry. TRP outperforms 75.59% of its industry peers.
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 | 42.1% | ||
| 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
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
TRP has an Altman-Z score of 0.64. 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 0.64, TRP is not doing good in the industry: 62.91% of the companies in the same industry are doing better.
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.
TRP has a Debt to FCF ratio of 84.11. This is comparable to the rest of the industry: TRP outperforms 41.78% of its industry peers.
TRP has a Debt/Equity ratio of 2.15. This is a high value indicating a heavy dependency on external financing.
TRP has a worse Debt to Equity ratio (2.15) than 83.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.15 | ||
| Debt/FCF | 84.11 | ||
| Altman-Z | 0.64 |
ROIC/WACC0.44
WACC9%
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 74.18% of its industry peers.
A Quick Ratio of 0.63 indicates that TRP may have some problems paying its short term obligations.
With a Quick ratio value of 0.63, TRP is not doing good in the industry: 72.30% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
TRP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.40%.
The Earnings Per Share has been decreasing by -2.06% on average over the past years.
The Revenue for TRP has decreased by -19.07% in the past year. This is quite bad
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
Based on estimates for the next years, TRP will show a small growth in Earnings Per Share. The EPS will grow by 5.16% on average per year.
TRP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.05% yearly.
EPS Next Y2.08%
EPS Next 2Y4.59%
EPS Next 3Y3.37%
EPS Next 5Y5.16%
Revenue Next Year-7.6%
Revenue Next 2Y0.32%
Revenue Next 3Y1.15%
Revenue Next 5Y3.05%
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 20.26, which indicates a rather expensive current valuation of TRP.
The rest of the industry has a similar Price/Earnings ratio as TRP.
Compared to an average S&P500 Price/Earnings ratio of 25.91, TRP is valued a bit cheaper.
The Price/Forward Earnings ratio is 17.10, which indicates a rather expensive current valuation of TRP.
TRP's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.77, TRP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.26 | ||
| Fwd PE | 17.1 |
4.2 Price Multiples
TRP's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. TRP is more expensive than 64.79% of the companies in the same industry.
TRP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 98.46 | ||
| EV/EBITDA | 15.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TRP does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of TRP may justify a higher PE ratio.
PEG (NY)9.73
PEG (5Y)N/A
EPS Next 2Y4.59%
EPS Next 3Y3.37%
5. Dividend
5.1 Amount
TRP has a Yearly Dividend Yield of 4.92%, which is a nice return.
Compared to an average industry Dividend Yield of 6.82, TRP pays a bit more dividend than its industry peers.
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 | 4.92% |
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 90.34% of its income as dividend. 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%
50.45
+0.94 (+1.9%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners75.89%
Inst Owner Change4.04%
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap52.47B
Analysts71.85
Price Target54.19 (7.41%)
Short Float %1.01%
Short Ratio3.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.92% |
Yearly Dividend2.82
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)5.84%
PT rev (3m)8.11%
EPS NQ rev (1m)-10.81%
EPS NQ rev (3m)-7.46%
EPS NY rev (1m)0%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)0.71%
Revenue NQ rev (3m)2.32%
Revenue NY rev (1m)-2.62%
Revenue NY rev (3m)-1.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.26 | ||
| Fwd PE | 17.1 | ||
| P/S | 5.52 | ||
| P/FCF | 98.46 | ||
| P/OCF | 10.28 | ||
| P/B | 2.62 | ||
| P/tB | 5.17 | ||
| EV/EBITDA | 15.7 |
EPS(TTM)2.49
EY4.94%
EPS(NY)2.95
Fwd EY5.85%
FCF(TTM)0.51
FCFY1.02%
OCF(TTM)4.91
OCFY9.73%
SpS9.14
BVpS19.25
TBVpS9.77
PEG (NY)9.73
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 | 0.64 |
F-Score4
WACC9%
ROIC/WACC0.44
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 5Y5.16%
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 5Y3.05%
EBIT growth 1Y-19.58%
EBIT growth 3Y-0.68%
EBIT growth 5Y0%
EBIT Next Year30.13%
EBIT Next 3Y12.83%
EBIT Next 5Y9.56%
FCF growth 1Y267.5%
FCF growth 3Y11.47%
FCF growth 5YN/A
OCF growth 1Y4.72%
OCF growth 3Y3.76%
OCF growth 5Y1.68%