TSX:TRP

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 43.5% below its fair value

Revenue is forecast to grow 4.98% per year

Earnings grew by 19.7% over the past year

Pays a high and reliable dividend of 4.49%

Risk Analysis

Interest payments are not well covered by earnings

Significant insider selling over the past 3 months

Shareholders have been diluted in the past year



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

-1.3%

TRP

-1.1%

CA Oil and Gas

-1.4%

CA Market


1 Year Return

23.9%

TRP

0.9%

CA Oil and Gas

8.6%

CA Market

Return vs Industry: TRP exceeded the Canadian Oil and Gas industry which returned 0.9% over the past year.

Return vs Market: TRP exceeded the Canadian Market which returned 8.6% over the past year.


Shareholder returns

TRPIndustryMarket
7 Day-1.3%-1.1%-1.4%
30 Day2.0%0.5%0.4%
90 Day-0.8%3.0%0.9%
1 Year30.1%23.9%5.6%0.9%12.2%8.6%
3 Year28.9%12.4%-14.2%-22.9%14.9%4.6%
5 Year58.6%27.5%-2.4%-17.9%38.2%17.9%

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

Valuation

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

43.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TRP (CA$66.84) is trading below our estimate of fair value (CA$118.26)

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 (15.6x) compared to the Oil and Gas industry average (9.8x).

PE vs Market: TRP is poor value based on its PE Ratio (15.6x) compared to the Canadian market (15.2x).


Price to Earnings Growth Ratio

PEG Ratio: TRP is poor value based on its PEG Ratio (390.2x)


Price to Book Ratio

PB vs Industry: TRP is overvalued based on its PB Ratio (2.3x) compared to the CA Oil and Gas industry average (0.6x).


Next Steps

Future Growth

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

0.04%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRP's forecast earnings growth (0.04% per year) is below the savings rate (1.4%).

Earnings vs Market: TRP's earnings (0.04% per year) are forecast to grow slower than the Canadian market (10.7% per year).

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

Revenue vs Market: TRP's revenue (5% per year) is forecast to grow faster than the Canadian market (4.9% per year).

High Growth Revenue: TRP's revenue (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 (14.2%).


Next Steps

Past Performance

How has TC Energy performed over the past 5 years?

34.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRP has high quality earnings.

Growing Profit Margin: TRP's current net profit margins (28.5%) are higher than last year (24.7%).


Past Earnings Growth Analysis

Earnings Trend: TRP's earnings have grown significantly by 34.2% per year over the past 5 years.

Accelerating Growth: TRP's earnings growth over the past year (19.7%) is below its 5-year average (34.2% per year).

Earnings vs Industry: TRP earnings growth over the past year (19.7%) exceeded the Oil and Gas industry 16.5%.


Return on Equity

High ROE: TRP's Return on Equity (12.2%) 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$8.3B) do not cover its short term liabilities (CA$11.0B).

Long Term Liabilities: TRP's short term assets (CA$8.3B) do not cover its long term liabilities (CA$56.4B).


Debt to Equity History and Analysis

Debt Level: TRP's debt to equity ratio (155.6%) is considered high.

Reducing Debt: TRP's debt to equity ratio has increased from 129.1% to 155.6% over the past 5 years.

Debt Coverage: TRP's debt is not well covered by operating cash flow (14.6%).

Interest Coverage: TRP's interest payments on its debt are not well covered by EBIT (2.8x 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?

4.49%

Current Dividend Yield


Upcoming Dividend Payment

Purchase TC Energy before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.5%marketbottom25%2.0%markettop25%5.7%industryaverage4.7%forecastin3Years4.9%

Current dividend yield vs market & industry

Notable Dividend: TRP's dividend (4.49%) is higher than the bottom 25% of dividend payers in the Canadian market (2.02%).

High Dividend: TRP's dividend (4.49%) is low compared to the top 25% of dividend payers in the Canadian market (5.71%).


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 (68.6%), 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 (85% payout ratio).


Next Steps

Management

What is the CEO of TC Energy's salary, the management and board of directors tenure and is there insider trading?

5.8yrs

Average management tenure


CEO

Russ Girling (56yo)

9.4yrs

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 ($USD9.46M) is above average for companies of similar size in the Canadian market ($USD6.87M).

Compensation vs Earnings: Russ's compensation has increased by more than 20% in the past year.


Management Age and Tenure

5.8yrs

Average Tenure

54.5yo

Average Age

Experienced Management: TRP's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

4.0yrs

Average Tenure

60.5yo

Average Age

Experienced Board: TRP's board of directors are considered experienced (4 years average tenure).


Insider Trading

Insider Buying: TRP insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

BuyCA$40,74129 Nov 19
David Pfeiffer
EntityIndividual
Shares605
Max PriceCA$67.34
BuyCA$33,91026 Nov 19
Jasmin Bertovic
EntityIndividual
Shares500
Max PriceCA$67.82
SellCA$63,77025 Nov 19
Robert Jacobucci
EntityIndividual
Shares940
Max PriceCA$67.84
SellCA$14,96220 Nov 19
Christopher Foster
EntityIndividual
Shares220
Max PriceCA$68.01
SellCA$40,45420 Nov 19
Christine Johnston
EntityIndividual
Shares595
Max PriceCA$67.99
BuyCA$85408 Nov 19
Christine Johnston
EntityIndividual
Shares13
Max PriceCA$65.69
BuyCA$1,66407 Nov 19
Dennis Hebert
EntityIndividual
Shares30
Max PriceCA$55.48
BuyCA$195,75105 Nov 19
Patrick Keys
EntityIndividual
Role
Chief Legal Officer
Executive VP of Stakeholder Relations & General Counsel
Shares3,000
Max PriceCA$65.26
BuyCA$32,58805 Nov 19
Charles Moran
EntityIndividual
Shares500
Max PriceCA$65.18
BuyCA$101,30318 Sep 19
Patrick Keys
EntityIndividual
Role
Chief Legal Officer
Executive VP of Stakeholder Relations & General Counsel
Shares1,500
Max PriceCA$67.54
BuyCA$33,09518 Sep 19
Bevin Wirzba
EntityIndividual
Shares500
Max PriceCA$66.19
BuyCA$309,51312 Sep 19
Stanley Chapman
EntityIndividual
Role
Senior Key Executive
Executive VP & President of U.S. Natural Gas Pipelines
Shares4,630
Max PriceCA$66.85
BuyCA$11,17310 Sep 19
Jasmin Bertovic
EntityIndividual
Shares220
Max PriceCA$50.79
SellCA$9,141,28209 Sep 19
Stanley Chapman
EntityIndividual
Role
Senior Key Executive
Executive VP & President of U.S. Natural Gas Pipelines
Shares136,065
Max PriceCA$67.18
BuyCA$33,68506 Sep 19
Joel Hunter
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Capital Markets
Shares500
Max PriceCA$67.37
BuyCA$311,05905 Sep 19
Donald Marchand
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares4,500
Max PriceCA$69.15
SellCA$140,97222 Aug 19
Patrick Keys
EntityIndividual
Role
Chief Legal Officer
Executive VP of Stakeholder Relations & General Counsel
Shares2,175
Max PriceCA$64.82
SellCA$6,97415 Aug 19
Robert Jacobucci
EntityIndividual
Shares108
Max PriceCA$64.57
BuyCA$251,26507 Aug 19
Patrick Keys
EntityIndividual
Role
Chief Legal Officer
Executive VP of Stakeholder Relations & General Counsel
Shares4,000
Max PriceCA$62.83
BuyCA$19,67517 Jun 19
Wendy Straatmann
EntityIndividual
Shares300
Max PriceCA$65.58
BuyCA$11,29310 Jun 19
Christopher Foster
EntityIndividual
Shares171
Max PriceCA$66.04
BuyCA$56,37531 May 19
Stephanie Wilson
EntityIndividual
Shares860
Max PriceCA$65.56
BuyCA$32,42016 May 19
Robert Jacobucci
EntityIndividual
Shares500
Max PriceCA$64.84
BuyCA$113,80016 May 19
Jennifer Pierce
EntityIndividual
Shares1,769
Max PriceCA$64.33
BuyCA$49,95916 May 19
Christopher Foster
EntityIndividual
Shares827
Max PriceCA$60.41
BuyCA$507,99109 May 19
Wendy Hanrahan
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Corporate Services
Shares8,040
Max PriceCA$63.18
BuyCA$99,92301 Apr 19
Robert Jacobucci
EntityIndividual
Shares1,675
Max PriceCA$59.66
BuyCA$17,97528 Mar 19
Jasmin Bertovic
EntityIndividual
Shares300
Max PriceCA$59.92
BuyCA$6,07127 Mar 19
Jasmin Bertovic
EntityIndividual
Shares100
Max PriceCA$60.71
BuyCA$151,00025 Mar 19
Christine Johnston
EntityIndividual
Shares2,500
Max PriceCA$60.40
BuyCA$68,81721 Mar 19
Charles Moran
EntityIndividual
Shares1,133
Max PriceCA$60.74
BuyCA$66,73819 Mar 19
Charles Moran
EntityIndividual
Shares1,100
Max PriceCA$60.67
SellCA$45,87813 Mar 19
Robert Jacobucci
EntityIndividual
Shares807
Max PriceCA$56.85
SellCA$106,44006 Mar 19
Eric Tatarchuk
EntityIndividual
Shares1,774
Max PriceCA$60.00
BuyCA$43,30404 Mar 19
Christine Johnston
EntityIndividual
Shares725
Max PriceCA$59.73
BuyCA$556,68627 Feb 19
Stanley Chapman
EntityIndividual
Role
Senior Key Executive
Executive VP & President of U.S. Natural Gas Pipelines
Shares12,400
Max PriceCA$44.89
SellCA$968,86725 Feb 19
David Kohlenberg
EntityIndividual
Shares16,561
Max PriceCA$58.64
SellCA$7,38122 Feb 19
Fareen Sunderji
EntityIndividual
Shares130
Max PriceCA$56.78
SellCA$38,68521 Feb 19
David Pfeiffer
EntityIndividual
Shares680
Max PriceCA$56.89
BuyCA$44,12021 Feb 19
Wendy Hanrahan
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Corporate Services
Shares775
Max PriceCA$56.97
BuyCA$109,94120 Feb 19
Robert Jacobucci
EntityIndividual
Shares1,935
Max PriceCA$57.28
SellCA$3,96320 Dec 18
Mark Yeomans
EntityIndividual
Shares75
Max PriceCA$52.84
BuyCA$67,13619 Dec 18
Richard Prior
EntityIndividual
Shares1,270
Max PriceCA$52.86
BuyCA$51,30019 Dec 18
Tracy Robinson
EntityIndividual
Shares1,000
Max PriceCA$51.30
BuyCA$84,40011 Dec 18
Tracy Robinson
EntityIndividual
Shares1,600
Max PriceCA$52.75

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.4%.


Management Team

  • Russ Girling (56yo)

    President

    • Tenure: 9.4yrs
    • Compensation: CA$12.50m
  • Don Marchand (56yo)

    Executive VP & CFO

    • Tenure: 9.4yrs
    • Compensation: CA$3.62m
  • Wendy Hanrahan (61yo)

    Executive Vice President of Corporate Services

    • Tenure: 8.6yrs
    • Compensation: CA$2.32m
  • Paul Miller (60yo)

    Executive VP of Technical Centre & President of Liquids Pipelines

    • Tenure: 5.8yrs
    • Compensation: CA$3.01m
  • David Moneta

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Joel Hunter (52yo)

    Senior Vice President of Capital Markets

    • Tenure: 0yrs
  • Francois Poirier (53yo)

    Executive VP - Corporate Development & Strategy and President - Power & Storage and Mexico

    • Tenure: 2.8yrs
  • Stan Chapman (53yo)

    Executive VP & President of U.S. Natural Gas Pipelines

    • Tenure: 0yrs
    • Compensation: CA$3.45m
  • Shawn Patterson (45yo)

    Senior Vice President of Operations - U.S. Natural Gas Pipelines

    • Tenure: 3.4yrs
  • Patrick Keys

    Executive VP of Stakeholder Relations & General Counsel

    • Tenure: 0.9yrs

Board Members

  • Randy Limbacher (61yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: CA$177.54k
  • John Lowe (60yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: CA$350.85k
  • Donald Michael Stewart (67yo)

    Independent Director

    • Tenure: 13.9yrs
    • Compensation: CA$248.50k
  • Russ Girling (56yo)

    President

    • Tenure: 9.4yrs
    • Compensation: CA$12.50m
  • Siim Vanaselja (62yo)

    Independent Chairman of the Board

    • Tenure: 2.6yrs
    • Compensation: CA$501.50k
  • Stéphan Crétier (55yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: CA$242.50k
  • S. Jackson (66yo)

    Independent Director

    • Tenure: 17.9yrs
    • Compensation: CA$242.72k
  • Thierry Vandal (58yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: CA$317.24k
  • Indira Samarasekera (66yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: CA$244.00k
  • Mary Salomone (59yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: CA$319.29k

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$62.305b
  • Shares outstanding: 934.39m
  • Website: https://www.tcenergy.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TRPNYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 1973
TRSDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1973
TRPTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 1973
TRSDUSE (Dusseldorf Stock Exchange)YesCommon SharesDEEURDec 1973
TRP.PRATSX (The Toronto Stock Exchange)PFD SHS SER 1CACADSep 2009
TRP.PRBTSX (The Toronto Stock Exchange)PFD SHS SER 3CACADMar 2010
TRP.PRCTSX (The Toronto Stock Exchange)1ST PFD SER 5CACADJun 2010
TCAN.FOTCPK (Pink Sheets LLC)1ST PFD SER 5USUSDJun 2010
TNCA.FOTCPK (Pink Sheets LLC)CUM 1ST PFD SR 2USUSDJan 2015
TRP.PRFTSX (The Toronto Stock Exchange)CUM 1ST PFD SR 2CACADJan 2015
TRP.PRJTSX (The Toronto Stock Exchange)1ST PFD SER 13CACADApr 2016
TRP.PRKTSX (The Toronto Stock Exchange)CUM RED PFD 15CACADNov 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 Pi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/05 23:46
End of Day Share Price2019/12/05 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.