TSX:TRP

Stock Analysis Report

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Executive Summary

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


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

-2.2%

TRP

-1.6%

CA Oil and Gas

0.3%

CA Market


1 Year Return

-14.8%

TRP

-32.2%

CA Oil and Gas

-12.5%

CA Market

Return vs Industry: TRP exceeded the Canadian Oil and Gas industry which returned -32.2% over the past year.

Return vs Market: TRP underperformed the Canadian Market which returned -12.5% over the past year.


Shareholder returns

TRPIndustryMarket
7 Day-2.2%-1.6%0.3%
30 Day-12.2%-13.2%-3.0%
90 Day-14.4%5.1%9.7%
1 Year-10.5%-14.8%-28.5%-32.2%-9.5%-12.5%
3 Year4.8%-9.5%-28.0%-36.8%3.2%-6.6%
5 Year38.9%10.4%-32.8%-44.2%20.2%2.0%

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

Valuation

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$56.73) is trading below our estimate of fair value (CA$118.46)

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 (12.9x) compared to the Oil and Gas industry average (10.6x).

PE vs Market: TRP is good value based on its PE Ratio (12.9x) compared to the Canadian market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: TRP is poor value based on its PEG Ratio (68.5x)


Price to Book Ratio

PB vs Industry: TRP is overvalued based on its PB Ratio (1.9x) compared to the CA Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is TC Energy forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

0.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRP's forecast earnings growth (0.2% per year) is below the savings rate (1.7%).

Earnings vs Market: TRP's earnings (0.2% per year) are forecast to grow slower than the Canadian market (23.4% per year).

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

Revenue vs Market: TRP's revenue (4.4% per year) is forecast to grow slower than the Canadian market (5.5% per year).

High Growth Revenue: TRP's revenue (4.4% 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 (13.3%).


Next Steps

Past Performance

How has TC Energy performed over the past 5 years?

41.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRP has high quality earnings.

Growing Profit Margin: TRP's current net profit margins (31.2%) are higher than last year (27.7%).


Past Earnings Growth Analysis

Earnings Trend: TRP's earnings have grown significantly by 41.7% per year over the past 5 years.

Accelerating Growth: TRP's earnings growth over the past year (8.1%) is below its 5-year average (41.7% per year).

Earnings vs Industry: TRP earnings growth over the past year (8.1%) exceeded the Oil and Gas industry -16.2%.


Return on Equity

High ROE: TRP's Return on Equity (13.4%) is considered low.


Next Steps

Financial Health

How is TC Energy's financial position?


Financial Position Analysis

Short Term Liabilities: TRP's short term assets (CA$9.0B) do not cover its short term liabilities (CA$17.5B).

Long Term Liabilities: TRP's short term assets (CA$9.0B) do not cover its long term liabilities (CA$56.1B).


Debt to Equity History and Analysis

Debt Level: TRP's debt to equity ratio (162%) is considered high.

Reducing Debt: TRP's debt to equity ratio has increased from 150.5% to 162% over the past 5 years.

Debt Coverage: TRP's debt is not well covered by operating cash flow (12.4%).

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


Balance Sheet


Next Steps

Dividend

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

5.71%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TRP's dividend (5.71%) is higher than the bottom 25% of dividend payers in the Canadian market (1.89%).

High Dividend: TRP's dividend (5.71%) is low compared to the top 25% of dividend payers in the Canadian market (6.05%).


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 (69.3%), 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 (85.4% payout ratio).


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

Russ Girling (57yo)

10yrs

Tenure

CA$13,440,747

Compensation

Mr. Russell K. Girling, also known as Russ, B. Comm., M.B.A. (Finance) has been the Chief Executive Officer and President of TC Energy Corporation (formerly known as TransCanada Corporation) and TransCanad ...


CEO Compensation Analysis

Compensation vs Market: Russ's total compensation ($USD9.90M) is above average for companies of similar size in the Canadian market ($USD6.91M).

Compensation vs Earnings: Russ's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Russell Girling
President10yrsCA$13.44m0.034% CA$18.3m
Donald Marchand
Executive VP of Strategy & Corporate Development and CFO10yrsCA$4.46m0.0025% CA$1.4m
François Poirier
COO & President - Power & Storage and Mexico0.50yrCA$3.07m0.0053% CA$2.9m
Paul Miller
Executive VP & President of Liquids Pipelines6.33yrsCA$3.13m0.0050% CA$2.7m
Stanley Chapman
Executive VP & President of U.S. Natural Gas Pipelinesno dataCA$3.91m0.0036% CA$1.9m
David Moneta
Vice President of Investor Relations & Financial Communicationsno datano data0.0012% CA$657.6k
Patrick Keys
EVP of Stakeholder Relations1.17yrsno data0.0026% CA$1.4m
Joel Hunter
Senior Vice President of Capital Markets2.58yrsno data0.0012% CA$620.1k
Wendy Hanrahan
Executive Vice President of Corporate Services9.17yrsCA$2.32m0.0027% CA$1.5m
Shawn Patterson
Senior Vice President of Operations - U.S. Natural Gas Pipelines4yrsno datano data

5.2yrs

Average Tenure

55.5yo

Average Age

Experienced Management: TRP's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Russell Girling
President10yrsCA$13.44m0.034% CA$18.3m
Steven Williams
Independent Director1.17yrsCA$157.09k0.00032% CA$171.1k
Randy Limbacher
Independent Director2.08yrsCA$321.31kno data
John Lowe
Independent Director4.83yrsCA$354.24k0.0021% CA$1.1m
Donald Michael Stewart
Independent Director14.5yrsCA$256.50k0.0020% CA$1.1m
Siim Vanaselja
Independent Chairman of the Board3.17yrsCA$501.50k0.0013% CA$684.3k
Stéphan Crétier
Independent Director3.42yrsCA$239.50k0.0029% CA$1.6m
Thierry Vandal
Independent Director2.67yrsCA$321.31k0.000030% CA$16.0k
Indira Samarasekera
Independent Director4.25yrsCA$242.50kno data
Mary Salomone
Independent Director7.42yrsCA$336.69k0.00037% CA$197.8k

3.8yrs

Average Tenure

61.5yo

Average Age

Experienced Board: TRP's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


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$53.461b
  • Shares outstanding: 939.88m
  • 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
TRPTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 1973
TRSDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 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
TRP.PRFTSX (The Toronto Stock Exchange)CUM 1ST PFD SR 2CACADJan 2015
TNCA.FOTCPK (Pink Sheets LLC)CUM 1ST PFD SR 2USUSDJan 2015
TRP.PRJTSX (The Toronto Stock Exchange)PFD-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 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, LNG export terminals, and other businesses. It also has regulated natural gas storage facilities with a total working gas capacity of 535 billion cubic feet. 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/08 23:51
End of Day Share Price2020/07/08 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.