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TRP

TC EnergyTSX:TRP Stock Report

Market Cap

CA$60.4b

7D

1.1%

1Y

2.7%

Updated

26 Nov, 2021

Data

Company Financials +
TRP fundamental analysis
Snowflake Score
Valuation0/6
Future Growth3/6
Past Performance1/6
Financial Health2/6
Dividends5/6

TRP Stock Overview

TC Energy Corporation operates as an energy infrastructure company in North America.

TC Energy Competitors

Enbridge

TSX:ENB

CA$102.6b

Pembina Pipeline

TSX:PPL

CA$21.7b

Inter Pipeline

TSX:IPL

CA$8.6b

Keyera

TSX:KEY

CA$6.5b

Price History & Performance

Summary of all time highs, changes and price drops for TC Energy
Historical stock prices
Current Share PriceCA$60.90
52 Week HighCA$68.20
52 Week LowCA$51.10
Beta0.77
1 Month Change-9.51%
3 Month Change1.87%
1 Year Change2.68%
3 Year Change11.85%
5 Year Change3.82%
Change since IPO253.04%

Recent News & Updates

Oct 18
These 4 Measures Indicate That TC Energy (TSE:TRP) Is Using Debt Extensively

These 4 Measures Indicate That TC Energy (TSE:TRP) Is Using Debt Extensively

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...

Oct 05
TC Energy (TSE:TRP) Is Experiencing Growth In Returns On Capital

TC Energy (TSE:TRP) Is Experiencing Growth In Returns On Capital

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Shareholder Returns

TRPCA Oil and GasCA Market
7D1.1%-0.5%-1.8%
1Y2.7%47.1%22.1%

Return vs Industry: TRP underperformed the Canadian Oil and Gas industry which returned 47.1% over the past year.

Return vs Market: TRP underperformed the Canadian Market which returned 22.1% over the past year.

Price Volatility

Is TRP's price volatile compared to industry and market?
TRP volatility
TRP Average Weekly Movement2.6%
Oil and Gas Industry Average Movement9.8%
Market Average Movement9.4%
10% most volatile stocks in CA Market17.2%
10% least volatile stocks in CA Market3.5%

Stable Share Price: TRP is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: TRP's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19517,500Francois Poirierhttps://www.tcenergy.com

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.

TC Energy Fundamentals Summary

How do TC Energy's earnings and revenue compare to its market cap?
TRP fundamental statistics
Market CapCA$60.44b
Earnings (TTM)CA$1.82b
Revenue (TTM)CA$13.10b

32.7x

P/E Ratio

4.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TRP income statement (TTM)
RevenueCA$13.10b
Cost of RevenueCA$3.85b
Gross ProfitCA$9.25b
ExpensesCA$7.43b
EarningsCA$1.82b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.86
Gross Margin70.58%
Net Profit Margin13.90%
Debt/Equity Ratio168.0%

How did TRP perform over the long term?

See historical performance and comparison

Dividends

5.7%

Current Dividend Yield

181%

Payout Ratio

Does TRP pay a reliable dividends?

See TRP dividend history and benchmarks
When do you need to buy TRP by to receive an upcoming dividend?
TC Energy dividend dates
Ex Dividend DateDec 30 2021
Dividend Pay DateJan 31 2022
Days until Ex dividend32 days
Days until Dividend pay date64 days

Does TRP pay a reliable dividends?

See TRP dividend history and benchmarks

Valuation

Is TC Energy undervalued compared to its fair value and its price relative to the market?

32.75x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TRP (CA$60.9) is trading above our estimate of fair value (CA$60.53)

Significantly Below Fair Value: TRP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TRP is poor value based on its PE Ratio (32.7x) compared to the Canadian Oil and Gas industry average (7.9x).

PE vs Market: TRP is poor value based on its PE Ratio (32.7x) compared to the Canadian market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: TRP is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: TRP is overvalued based on its PB Ratio (2.1x) compared to the CA Oil and Gas industry average (1.9x).


Future Growth

How is TC Energy forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

15.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRP's forecast earnings growth (15.7% per year) is above the savings rate (1.6%).

Earnings vs Market: TRP's earnings (15.7% per year) are forecast to grow faster than the Canadian market (10.6% per year).

High Growth Earnings: TRP's earnings are forecast to grow, but not significantly.

Revenue vs Market: TRP's revenue (7.3% per year) is forecast to grow faster than the Canadian market (5.6% per year).

High Growth Revenue: TRP's revenue (7.3% 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%).


Past Performance

How has TC Energy performed over the past 5 years?

22.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRP has a large one-off loss of CA$3.0B impacting its September 30 2021 financial results.

Growing Profit Margin: TRP's current net profit margins (13.9%) are lower than last year (34.3%).


Past Earnings Growth Analysis

Earnings Trend: TRP has become profitable over the past 5 years, growing earnings by 22.3% per year.

Accelerating Growth: TRP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TRP had negative earnings growth (-59%) over the past year, making it difficult to compare to the Oil and Gas industry average (132.3%).


Return on Equity

High ROE: TRP's Return on Equity (6.5%) is considered low.


Financial Health

How is TC Energy's financial position?


Financial Position Analysis

Short Term Liabilities: TRP's short term assets (CA$8.7B) do not cover its short term liabilities (CA$17.0B).

Long Term Liabilities: TRP's short term assets (CA$8.7B) do not cover its long term liabilities (CA$55.0B).


Debt to Equity History and Analysis

Debt Level: TRP's net debt to equity ratio (158.7%) is considered high.

Reducing Debt: TRP's debt to equity ratio has reduced from 210.2% to 168% over the past 5 years.

Debt Coverage: TRP's debt is not well covered by operating cash flow (12.9%).

Interest Coverage: TRP's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet


Dividend

What is TC Energy current dividend yield, its reliability and sustainability?

5.71%

Current Dividend Yield


Upcoming Dividend Payment

TodayNov 27 2021Ex Dividend DateDec 30 2021Dividend Pay DateJan 31 202232 days from Ex DividendBuy in the next 32 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: TRP's dividend (5.71%) is higher than the bottom 25% of dividend payers in the Canadian market (1.59%).

High Dividend: TRP's dividend (5.71%) is in the top 25% of dividend payers in the Canadian market (4.6%)


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 high payout ratio (180.8%), TRP's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TRP's dividends in 3 years are forecast to be covered by earnings (84% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

Francois Poirier (55 yo)

0.83

Tenure

CA$6,345,594

Compensation

Mr. Francois Lionel Poirier has been President and Chief Executive Officer and Director of TC Energy Corporation since January 1, 2021. Mr. Poirier had been President of Power & Storage and Mexico at TC En...


CEO Compensation Analysis

Compensation vs Market: Francois's total compensation ($USD4.96M) is about average for companies of similar size in the Canadian market ($USD5.54M).

Compensation vs Earnings: Francois's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: TRP's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: TRP's board of directors are considered experienced (4.3 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 4.2%.


Top Shareholders

Company Information

TC Energy Corporation's 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$60.440b
  • Shares outstanding: 979.26m
  • Website: https://www.tcenergy.com

Number of Employees


Location

  • TC Energy Corporation
  • 450 - 1 Street SW
  • Calgary
  • Alberta
  • T2P 5H1
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/26 23:30
End of Day Share Price2021/11/26 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.