Executive Summary
TC Energy Corporation operates as an energy infrastructure company in North America.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -0.7% per year for the next 3 years
Snowflake Analysis
Established dividend payer with proven track record.
Similar Companies
Share Price & News
How has TC Energy's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: TRP has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.9%
TRP
0.6%
CA Oil and Gas
0.6%
CA Market
1 Year Return
31.5%
TRP
0.2%
CA Oil and Gas
5.8%
CA Market
Return vs Industry: TRP exceeded the Canadian Oil and Gas industry which returned 0.2% over the past year.
Return vs Market: TRP exceeded the Canadian Market which returned 5.8% over the past year.
Shareholder returns
| TRP | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.9% | 0.6% | 0.6% |
| 30 Day | 5.3% | -2.3% | 0.5% |
| 90 Day | 9.8% | 3.8% | 3.6% |
| 1 Year | 37.7%31.5% | 4.6%0.2% | 9.1%5.8% |
| 3 Year | 37.7%19.9% | -7.0%-16.9% | 15.4%5.0% |
| 5 Year | 67.4%34.3% | -9.6%-24.0% | 33.6%14.0% |
Price Volatility Vs. Market
How volatile is TC Energy's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
Is TC Energy Corporation’s (TSE:TRP) 7.1% ROCE Any Good?2 months ago | Simply Wall St
Is TC Energy Corporation's (TSE:TRP) ROE Of 12% Impressive?3 months ago | Simply Wall St
TC Energy Corporation Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting NowValuation
Is TC Energy undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TRP (CA$74.62) is trading below our estimate of fair value (CA$160.23)
Significantly Below Fair Value: TRP is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: TRP is poor value based on its PE Ratio (17.4x) compared to the Oil and Gas industry average (11x).
PE vs Market: TRP is poor value based on its PE Ratio (17.4x) compared to the Canadian market (15.9x).
Price to Earnings Growth Ratio
PEG Ratio: TRP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: TRP is overvalued based on its PB Ratio (2.6x) compared to the CA Oil and Gas industry average (0.7x).
Next Steps
Future Growth
How is TC Energy forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
-0.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TRP's earnings are forecast to decline over the next 3 years (-0.7% per year).
Earnings vs Market: TRP's earnings are forecast to decline over the next 3 years (-0.7% per year).
High Growth Earnings: TRP's earnings are forecast to decline over the next 3 years.
Revenue vs Market: TRP's revenue (5.5% per year) is forecast to grow faster than the Canadian market (4.9% per year).
High Growth Revenue: TRP's revenue (5.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TRP's Return on Equity is forecast to be low in 3 years time (14.1%).
Next Steps
Past Performance
How has TC Energy performed over the past 5 years?
38.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TRP has high quality earnings.
Growing Profit Margin: TRP's current net profit margins (30%) are higher than last year (25.9%).
Past Earnings Growth Analysis
Earnings Trend: TRP's earnings have grown significantly by 38.2% per year over the past 5 years.
Accelerating Growth: TRP's earnings growth over the past year (12.3%) is below its 5-year average (38.2% per year).
Earnings vs Industry: TRP earnings growth over the past year (12.3%) exceeded the Oil and Gas industry 6%.
Return on Equity
High ROE: TRP's Return on Equity (13.7%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is TC Energy's financial position?
Financial Position Analysis
Short Term Liabilities: TRP's short term assets (CA$7.7B) do not cover its short term liabilities (CA$12.9B).
Long Term Liabilities: TRP's short term assets (CA$7.7B) do not cover its long term liabilities (CA$54.0B).
Debt to Equity History and Analysis
Debt Level: TRP's debt to equity ratio (154.1%) is considered high.
Reducing Debt: TRP's debt to equity ratio has increased from 137.6% to 154.1% over the past 5 years.
Debt Coverage: TRP's debt is not well covered by operating cash flow (14.2%).
Interest Coverage: TRP's interest payments on its debt are not well covered by EBIT (2.7x coverage).
Balance Sheet
Inventory Level: TRP has a high level of physical assets or inventory.
Debt Coverage by Assets: TRP's debt is not covered by short term assets (assets are 0.2x debt).
Next Steps
Dividend
What is TC Energy's current dividend yield, its reliability and sustainability?
4.34%
Current Dividend Yield
Upcoming Dividend Payment
Purchase TC Energy before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: TRP's dividend (4.34%) is higher than the bottom 25% of dividend payers in the Canadian market (1.91%).
High Dividend: TRP's dividend (4.34%) is low compared to the top 25% of dividend payers in the Canadian market (5.32%).
Stability and Growth of Payments
Stable Dividend: TRP's dividends per share have been stable in the past 10 years.
Growing Dividend: TRP's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (70.1%), TRP's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: TRP's dividends in 3 years are forecast to be covered by earnings (82.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.8yrs
Average management tenure
CEO
Russ Girling (56yo)
9.6yrs
Tenure
CA$12,502,397
Compensation
Mr. Russell K. Girling, also known as Russ, B. Comm., M.B.A. (Finance) has been the Chief Executive Officer and President of TransCanada Corporation and TransCanada PipeLines Limited since July 1, 2010 and ...
CEO Compensation Analysis
Compensation vs Market: Russ's total compensation ($USD9.43M) is above average for companies of similar size in the Canadian market ($USD6.85M).
Compensation vs Earnings: Russ's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 9.6yrs | CA$12.50m | 0.034% CA$23.8m | |
| Executive VP of Strategy & Corporate Development and CFO | 9.6yrs | CA$3.62m | 0.0026% CA$1.8m | |
| Executive VP & President of Liquids Pipelines | 5.9yrs | CA$3.01m | 0.0046% CA$3.2m | |
| Executive VP & President of U.S. Natural Gas Pipelines | 0yrs | CA$3.45m | 0.0025% CA$1.8m | |
| Chief Operating Officer & President - Power & Storage and Mexico | 0.08yrs | no data | 0.0022% CA$1.5m | |
| Vice President of Investor Relations | 0yrs | no data | 0.0012% CA$812.3k | |
| Executive VP of Stakeholder Relations & General Counsel | 1.1yrs | no data | 0.0019% CA$1.4m | |
| Senior Vice President of Capital Markets | 2.2yrs | no data | 0.00086% CA$602.2k | |
| Executive Vice President of Corporate Services | 8.8yrs | CA$2.32m | 0.0029% CA$2.0m | |
| Senior Vice President of Operations - U.S. Natural Gas Pipelines | 3.6yrs | no data | no data |
4.8yrs
Average Tenure
54.5yo
Average Age
Experienced Management: TRP's management team is considered experienced (4.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 9.6yrs | CA$12.50m | 0.034% CA$23.8m | |
| Independent Director | 0.8yrs | no data | 0.00032% CA$224.1k | |
| Independent Director | 1.7yrs | CA$177.54k | no data | |
| Independent Director | 4.4yrs | CA$350.85k | 0.0021% CA$1.5m | |
| Independent Director | 14.1yrs | CA$248.50k | 0.0018% CA$1.3m | |
| Independent Chairman of the Board | 2.8yrs | CA$501.50k | 0.0013% CA$896.3k | |
| Independent Director | 3yrs | CA$242.50k | 0.0029% CA$2.0m | |
| Independent Director | 2.3yrs | CA$317.24k | 0.000030% CA$21.0k | |
| Independent Director | 3.8yrs | CA$244.00k | no data | |
| Independent Director | 7yrs | CA$319.29k | 0.00032% CA$224.1k |
3.4yrs
Average Tenure
60.5yo
Average Age
Experienced Board: TRP's board of directors are considered experienced (3.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: TRP insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3%.
Top Shareholders
Company Information
TC Energy Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: TC Energy Corporation
- Ticker: TRP
- Exchange: TSX
- Founded: 1951
- Industry: Oil and Gas Storage and Transportation
- Sector: Energy
- Market Cap: CA$70.023b
- Shares outstanding: 938.40m
- Website: https://www.tcenergy.com
Number of Employees
Location
- TC Energy Corporation
- 450 - 1 Street SW
- Calgary
- Alberta
- T2P 5H1
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| TRP | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Dec 1973 |
| TRP | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Dec 1973 |
| TRS | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Dec 1973 |
| TRS | DUSE (Dusseldorf Stock Exchange) | Yes | Common Shares | DE | EUR | Dec 1973 |
| TRP.PRA | TSX (The Toronto Stock Exchange) | PFD SHS SER 1 | CA | CAD | Sep 2009 | |
| TRP.PRB | TSX (The Toronto Stock Exchange) | PFD SHS SER 3 | CA | CAD | Mar 2010 | |
| TRP.PRC | TSX (The Toronto Stock Exchange) | 1ST PFD SER 5 | CA | CAD | Jun 2010 | |
| TCAN.F | OTCPK (Pink Sheets LLC) | 1ST PFD SER 5 | US | USD | Jun 2010 | |
| TRP.PRF | TSX (The Toronto Stock Exchange) | CUM 1ST PFD SR 2 | CA | CAD | Jan 2015 | |
| TNCA.F | OTCPK (Pink Sheets LLC) | CUM 1ST PFD SR 2 | US | USD | Jan 2015 | |
| TRP.PRJ | TSX (The Toronto Stock Exchange) | 1ST PFD SER 13 | CA | CAD | Apr 2016 | |
| TRP.PRK | TSX (The Toronto Stock Exchange) | CUM RED PFD 15 | CA | CAD | Nov 2016 |
Biography
TC Energy Corporation operates as an energy infrastructure company in North America. It operates through Canadian Natural Gas Pipelines, U.S. Natural Gas Pipelines, Mexico Natural Gas Pipelines, Liquids Pipelines, and Power and Storage segments. The company builds and operates 92,600 km network of natural gas pipelines, which transports natural gas from supply basins to local distribution companies, power generation plants, industrial facilities, interconnecting pipelines, and other businesses. It also has regulated natural gas storage facilities with a total working gas capacity of 535 billion cubic feet; and owns and manages midstream assets that provide natural gas producer services, including gathering, treatment, conditioning, processing, and liquids handling with a focus on the Appalachian Basin. In addition, it has approximately 4,900 km of oil and liquids pipeline infrastructure that connects Alberta crude oil supplies to refining markets in Illinois, Oklahoma, Texas, and the U.S. Gulf Coast. Further, the company owns or has interests in 10 power generation facilities with a combined capacity of approximately 6,600 megawatts that are powered by natural gas and nuclear fuel sources located in Alberta, Ontario, Québec, New Brunswick and Arizona; and owns and operates approximately 118 billion cubic feet of unregulated natural gas storage capacity in Alberta. The company was formerly known as TransCanada Corporation and changed its name to TC Energy Corporation in May 2019. TC Energy Corporation was founded in 1951 and is headquartered in Calgary, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 23:47 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.