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TC ENERGY CORP (TRP) Stock Fundamental Analysis

NYSE:TRP - New York Stock Exchange, Inc. - CA87807B1076 - Common Stock - Currency: USD

47.57  -0.54 (-1.12%)

After market: 47.84 +0.27 (+0.57%)

Fundamental Rating

4

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.


Dividend Valuation Growth Profitability Health

6

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.
TRP Yearly Net Income VS EBIT VS OCF VS FCFTRP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B 6B

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 RankSector 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%
TRP Yearly ROA, ROE, ROICTRP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 10 15

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 RankSector 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%
TRP Yearly Profit, Operating, Gross MarginsTRP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60

1

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.
TRP Yearly Shares OutstandingTRP Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B
TRP Yearly Total Debt VS Total AssetsTRP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B 100B

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 RankSector Rank
Debt/Equity 2.15
Debt/FCF 84.11
Altman-Z 0.61
ROIC/WACC0.48
WACC8.28%
TRP Yearly LT Debt VS Equity VS FCFTRP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20B 40B 60B

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 RankSector Rank
Current Ratio 0.7
Quick Ratio 0.63
TRP Yearly Current Assets VS Current LiabilitesTRP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

3

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.
TRP Yearly Revenue VS EstimatesTRP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5B 10B 15B
TRP Yearly EPS VS EstimatesTRP Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 2 3 4 5

3

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 RankSector Rank
PE 18.8
Fwd PE 15.88
TRP Price Earnings VS Forward Price EarningsTRP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 RankSector Rank
P/FCF 91.41
EV/EBITDA 15.07
TRP Per share dataTRP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

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%

6

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 RankSector 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
TRP Yearly Dividends per shareTRP Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4 5

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%
TRP Yearly Income VS Free CF VS DividendTRP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B
TRP Dividend Payout.TRP Dividend Payout, showing the Payout Ratio.TRP Dividend Payout.PayoutRetained Earnings

TC ENERGY CORP

NYSE:TRP (7/24/2025, 8:07:58 PM)

After market: 47.84 +0.27 (+0.57%)

47.57

-0.54 (-1.12%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)05-01 2025-05-01/bmo
Earnings (Next)07-31 2025-07-31/bmo
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 RankSector Rank
Dividend Yield 7.74%
Yearly Dividend2.84
Dividend Growth(5Y)13.09%
DP90.34%
Div Incr Years0
Div Non Decr Years0
Ex-Date06-30 2025-06-30 (0.85)
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 RankSector 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 RankSector 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 RankSector 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%