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TransCanada

TSX:TRP
Snowflake Description

Proven track record average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TRP
TSX
CA$56B
Market Cap
  1. Home
  2. CA
  3. Energy
Company description

TransCanada Corporation operates as an energy infrastructure company in North America. The last earnings update was 31 days ago. More info.


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TRP Share Price and Events
7 Day Returns
0.5%
TSX:TRP
1.8%
CA Oil and Gas
0.9%
CA Market
1 Year Returns
7.8%
TSX:TRP
-0.7%
CA Oil and Gas
-0.2%
CA Market
TRP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
TransCanada (TRP) 0.5% 6.1% 15.1% 7.8% 22.7% 19.6%
CA Oil and Gas 1.8% 2.4% 10.9% -0.7% -2.9% -29.7%
CA Market 0.9% 2.2% 10.5% -0.2% 15.7% 4.9%
1 Year Return vs Industry and Market
  • TRP outperformed the Oil and Gas industry which returned -0.7% over the past year.
  • TRP outperformed the Market in Canada which returned -0.2% over the past year.
Price Volatility
TRP
Industry
5yr Volatility vs Market

Value

 Is TransCanada undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of TransCanada to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for TransCanada.

TSX:TRP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 14 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.7%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:TRP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 1.02
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.022 (1 + (1- 26.5%) (90.53%))
1.471
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.47
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.471 * 5.96%)
10.71%

Discounted Cash Flow Calculation for TSX:TRP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for TransCanada is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:TRP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 10.71%)
2019 5,663.00 Analyst x2 5,115.09
2020 5,922.50 Analyst x2 4,831.90
2021 705.80 Analyst x1 520.12
2022 -68.28 Est @ -109.67% -45.45
2023 -120.30 Est @ -76.19% -72.32
2024 -183.75 Est @ -52.75% -99.79
2025 -250.52 Est @ -36.34% -122.88
2026 -312.79 Est @ -24.85% -138.58
2027 -365.38 Est @ -16.81% -146.22
2028 -406.24 Est @ -11.19% -146.84
Present value of next 10 years cash flows CA$9,695.02
TSX:TRP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CA$-406.24 × (1 + 1.95%) ÷ (10.71% – 1.95%)
CA$-4,725.22
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$-4,725.22 ÷ (1 + 10.71%)10
CA$-1,707.99
TSX:TRP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$9,695.02 + CA$-1,707.99
CA$7,987.03
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$7,987.03 / 922.12
CA$8.66
TSX:TRP Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$8.66
Current discount Discount to share price of CA$60.20
= -1 x (CA$60.20 - CA$8.66) / CA$8.66
-595%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of TransCanada is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for TransCanada's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are TransCanada's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:TRP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CAD CA$3.92
TSX:TRP Share Price ** TSX (2019-03-15) in CAD CA$60.2
Canada Oil and Gas Industry PE Ratio Median Figure of 65 Publicly-Listed Oil and Gas Companies 15.53x
Canada Market PE Ratio Median Figure of 542 Publicly-Listed Companies 14.84x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of TransCanada.

TSX:TRP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:TRP Share Price ÷ EPS (both in CAD)

= 60.2 ÷ 3.92

15.34x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TransCanada is good value based on earnings compared to the CA Oil and Gas industry average.
  • TransCanada is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does TransCanada's expected growth come at a high price?
Raw Data
TSX:TRP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.34x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
2.7%per year
Canada Oil and Gas Industry PEG Ratio Median Figure of 36 Publicly-Listed Oil and Gas Companies 1.02x
Canada Market PEG Ratio Median Figure of 251 Publicly-Listed Companies 1.2x

*Line of best fit is calculated by linear regression .

TSX:TRP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.34x ÷ 2.7%

5.75x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TransCanada is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on TransCanada's assets?
Raw Data
TSX:TRP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CAD CA$27.62
TSX:TRP Share Price * TSX (2019-03-15) in CAD CA$60.2
Canada Oil and Gas Industry PB Ratio Median Figure of 232 Publicly-Listed Oil and Gas Companies 0.91x
Canada Market PB Ratio Median Figure of 2,348 Publicly-Listed Companies 1.57x
TSX:TRP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:TRP Share Price ÷ Book Value per Share (both in CAD)

= 60.2 ÷ 27.62

2.18x

* Primary Listing of TransCanada.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TransCanada is overvalued based on assets compared to the CA Oil and Gas industry average.
X
Value checks
We assess TransCanada's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. TransCanada has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is TransCanada expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
2.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is TransCanada expected to grow at an attractive rate?
  • TransCanada's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • TransCanada's earnings growth is positive but not above the Canada market average.
  • TransCanada's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:TRP Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:TRP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts 2.7%
TSX:TRP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 5%
Canada Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 20.5%
Canada Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 5.7%
Canada Market Earnings Growth Rate Market Cap Weighted Average 17.9%
Canada Market Revenue Growth Rate Market Cap Weighted Average 6.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:TRP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:TRP Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 7,243
2022-12-31 7,173
2021-12-31 15,841 7,240 4
2020-12-31 15,454 7,143 3,709 9
2019-12-31 14,800 6,774 3,580 9
TSX:TRP Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2018-12-31 13,679 6,555 3,539
2018-09-30 13,392 5,906 3,308
2018-06-30 13,431 5,792 2,992
2018-03-31 13,466 5,340 3,088
2017-12-31 13,449 5,230 2,997
2017-09-30 13,493 5,415 1,778
2017-06-30 13,930 5,495 1,031
2017-03-31 13,451 5,290 515
2016-12-31 12,547 5,069 124
2016-09-30 11,737 4,902 -1,976
2016-06-30 11,049 4,884 -1,439
2016-03-31 10,929 4,705 -1,375

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • TransCanada's earnings are expected to grow by 2.7% yearly, however this is not considered high growth (20% yearly).
  • TransCanada's revenue is expected to grow by 5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:TRP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from TransCanada Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:TRP Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 3.95 4.22 3.80 6.00
2019-12-31 3.85 4.13 3.49 5.00
TSX:TRP Past Financials Data
Date (Data in CAD Millions) EPS *
2018-12-31 3.92
2018-09-30 3.70
2018-06-30 3.38
2018-03-31 3.52
2017-12-31 3.44
2017-09-30 2.07
2017-06-30 1.23
2017-03-31 0.64
2016-12-31 0.16
2016-09-30 -2.72
2016-06-30 -2.04
2016-03-31 -1.94

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • TransCanada is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess TransCanada's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
TransCanada has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has TransCanada performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare TransCanada's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • TransCanada's year on year earnings growth rate has been positive over the past 5 years.
  • TransCanada's 1-year earnings growth exceeds its 5-year average (18.1% vs 15.7%)
  • TransCanada's earnings growth has not exceeded the CA Oil and Gas industry average in the past year (18.1% vs 18.1%).
Earnings and Revenue History
TransCanada's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from TransCanada Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:TRP Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 13,679.00 3,539.00
2018-09-30 13,392.00 3,308.00
2018-06-30 13,431.00 2,992.00
2018-03-31 13,466.00 3,088.00
2017-12-31 13,449.00 2,997.00
2017-09-30 13,493.00 1,778.00
2017-06-30 13,930.00 1,031.00
2017-03-31 13,451.00 515.00
2016-12-31 12,547.00 124.00
2016-09-30 11,737.00 -1,976.00
2016-06-30 11,049.00 -1,439.00
2016-03-31 10,929.00 -1,375.00
2015-12-31 11,353.00 -1,240.00
2015-09-30 11,065.00 1,676.00
2015-06-30 10,572.00 1,731.00
2015-03-31 10,175.00 1,718.00
2014-12-31 10,185.00 1,743.00
2014-09-30 9,901.00 1,705.00
2014-06-30 9,654.00 1,729.00
2014-03-31 9,429.00 1,678.00
2013-12-31 8,797.00 1,712.00
2013-09-30 8,554.00 1,598.00
2013-06-30 8,476.00 1,486.00
2013-03-31 8,314.00 1,393.00
2012-12-31 8,007.00 1,299.00
2012-09-30 7,933.00 1,369.00
2012-06-30 7,850.00 1,386.00
2012-03-31 7,916.00 1,467.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • TransCanada has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • TransCanada used its assets more efficiently than the CA Oil and Gas industry average last year based on Return on Assets.
  • TransCanada has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess TransCanada's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
TransCanada has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is TransCanada's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up TransCanada's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • TransCanada's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • TransCanada's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of TransCanada's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from TransCanada Company Filings, last reported 2 months ago.

TSX:TRP Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 30,993.00 50,256.00 1,166.00
2018-09-30 29,937.00 47,635.00 1,459.00
2018-06-30 29,316.00 47,047.00 1,806.00
2018-03-31 28,180.00 45,246.00 1,395.00
2017-12-31 26,891.00 43,516.00 1,412.00
2017-09-30 26,284.00 43,600.00 1,704.00
2017-06-30 26,358.00 43,326.00 1,803.00
2017-03-31 26,239.00 46,208.00 1,294.00
2016-12-31 25,983.00 44,858.00 1,380.00
2016-09-30 23,217.00 48,908.00 2,592.00
2016-06-30 18,315.00 43,616.00 2,139.00
2016-03-31 17,836.00 35,041.00 1,750.00
2015-12-31 18,155.00 35,089.00 1,181.00
2015-09-30 21,225.00 33,122.00 755.00
2015-06-30 20,963.00 30,966.00 590.00
2015-03-31 21,209.00 31,931.00 1,821.00
2014-12-31 20,653.00 28,390.00 854.00
2014-09-30 20,934.00 27,002.00 698.00
2014-06-30 20,517.00 25,702.00 567.00
2014-03-31 20,561.00 26,348.00 749.00
2013-12-31 20,136.00 25,770.00 927.00
2013-09-30 19,763.00 23,753.00 645.00
2013-06-30 19,646.00 23,649.00 746.00
2013-03-31 19,161.00 22,415.00 513.00
2012-12-31 18,336.00 22,182.00 551.00
2012-09-30 18,411.00 21,422.00 494.00
2012-06-30 18,330.00 21,884.00 490.00
2012-03-31 18,260.00 21,182.00 196.00
  • TransCanada's level of debt (162.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (128% vs 162.2% today).
  • Debt is not well covered by operating cash flow (13%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.7x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess TransCanada's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. TransCanada has a total score of 0/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is TransCanada's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.98%
Current annual income from TransCanada dividends. Estimated to be 5.32% next year.
If you bought CA$2,000 of TransCanada shares you are expected to receive CA$100 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • TransCanada's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.09%).
  • TransCanada's dividend is below the markets top 25% of dividend payers in Canada (5.65%).
Upcoming dividend payment

Purchase TransCanada on or before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:TRP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
Canada Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 36 Stocks 4.4%
Canada Market Average Dividend Yield Market Cap Weighted Average of 331 Stocks 3.6%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.1%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
Canada Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:TRP Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 4.04 1.00
2022-12-31 3.78 1.00
2021-12-31 3.50 8.00
2020-12-31 3.22 17.00
2019-12-31 2.97 17.00
TSX:TRP Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-02-14 3.000 5.075
2018-11-01 2.760 5.181
2018-08-02 2.760 5.073
2018-04-27 2.760 4.931
2018-02-15 2.760 5.029
2017-11-09 2.500 4.165
2017-07-28 2.500 4.013
2017-05-05 2.500 3.958
2017-02-16 2.500 4.013
2016-11-01 2.260 3.715
2016-07-28 2.260 3.686
2016-02-11 2.260 4.270
2015-07-31 2.080 4.644
2015-05-01 2.080 3.990
2015-02-13 2.080 3.756
2014-11-04 1.920 3.459
2014-07-31 1.920 3.405
2014-05-02 1.920 3.707
2014-02-20 1.920 3.827
2013-11-05 1.840 3.846
2013-07-26 1.840 4.007
2013-04-26 1.840 3.872
2013-02-12 1.840 3.791
2012-10-30 1.760 3.775
2012-07-27 1.760 3.918
2012-04-27 1.760 4.102
2012-02-14 1.760 4.084
2011-11-01 1.680 3.982
2011-07-28 1.680 4.042
2011-04-29 1.680 4.046
2011-02-15 1.680 4.301
2010-11-03 1.600 4.296
2010-07-29 1.600 4.244
2010-04-30 1.600 4.448
2010-02-23 1.600 4.355
2009-11-04 1.520 4.416
2009-07-30 1.520 4.677
2009-05-01 1.520 4.838
2009-03-18 1.520 5.030

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of TransCanada's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (1.1x coverage).
X
Income/ dividend checks
We assess TransCanada's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can TransCanada afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. TransCanada has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Russ Girling
COMPENSATION CA$10,041,020
AGE 55
TENURE AS CEO 8.7 years
CEO Bio

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 has been Director of Nutrien Ltd. since January 01, 2018. Mr. Girling has been Director of Potash Corporation of Saskatchewan, Inc. since January 01, 2018. He serves as the Chief Financial Officer, Executive Vice President and Treasurer of Nova Gas Transmission Ltd. He served as the Chief Financial Officer of Gas Transmission Northwest LLC. He served as the Chief Executive Officer of TC PipeLines GP Inc., a General Partner of TC PipeLines, LP from June 1, 2006 to June 30, 2010, President from June 2006 to January 18, 2007 and Chief Financial Officer since April 1999. He served as the Chief Operating Officer of TransCanada Corp. and TransCanada PipeLines Limited since July 17, 2009 until June 30, 2010. He served as President of Pipelines Division for Transcanada Corporation and TCPL since May 30, 2006 until June 30, 2010. Until 2001, he served as President of TransCanada Gas Services and was responsible for its ultimate disposition. Mr. Girling served as an Executive Vice President of Corporate Development and Chief Financial Officer of TransCanada Corp. from March 2003 to May 30, 2006. He served as the Chief Financial Officer of TransCanada Power Services Ltd., the General Partner of Transcanada Power LP. He served as the Chief Financial Officer for TransCanada PipeLines Limited from March 2003 to June 2006 and also served as its Executive Vice President until June 2006. From July 1999 to June 2000, Mr. Girling served as Senior Vice President and Chief Financial Officer of TransCanada. From January 1999 to July 1999, he served as Vice President of Finance of TransCanada. From July 1998 to January 1999, he served as an Executive Vice President of Power of TransCanada Energy Ltd. In 1995 Mr. Girling was appointed Executive Vice-President, Power where he had overall responsibility for the creation and management of the TransCanada subsidiary, TransCanada Power, including the creation of TransCanada Power, L.P. From October 1995 to July 1998, Mr. Girling served as a Senior Vice President of North American Power of TransCanada Energy Ltd. Mr. Girling served as an Executive Vice President and Chief Financial Officer of Transcanada Corp. from June 2000 to March 2003. From January 1999 to September 1999, he served as Vice President of Finance. He served as Executive Vice President of Power at TransCanada from 1995 to 1999. Prior to joining TransCanada in 1994, Mr. Girling held several marketing and management positions at Suncor Inc., Northridge Petroleum Marketing and Dome Petroleum. Prior to July 1998, he served as Senior Vice President of North American Power at TransCanada Energy. Mr. Girling served as the Chairman of TC PipeLines GP Inc. since January 18, 2007. He served as the Chairman of TransCanada Power Services Ltd., the General Partner of Transcanada Power LP. He served as the Chairman of TransCanada Power, L.P. Mr. Girling has been a Director of TransCanada Corp and TransCanada PipeLines Limited. since July 2010. Mr. Girling has been a Director of NOVA Gas Transmission Ltd., since August 1, 1999. He served as a Director of TC PipeLines GP Inc. since April 1999. Mr. Girling serves as a Director of Transcanada Power LP. He was a Director at Agrium Inc. since May 9, 2006 until 2018. He was the 2012 City of Calgary and area Co-Chair of the United Way campaign. He serves as a Director of the Willow Park Charity Golf Classic and was a Member of the United Way Campaign from 2002 to 2004. Mr. Girling also serves as a Director of Alberta Childrens Hospital Foundation. He served as a Director of TransCanada Power Services Ltd., General Partner of EPCOR Power L.P. His Key skills and experience includes: Mining, Energy & Exploration, Distribution and Public Policy & External Relations. He served as a Director of Bruce Power Inc. He served as a Director of the Power Pool of Alberta and Junior Achievement. He is the former Chairman of the Interstate Natural Gas Association of America (INGAA) and the Natural Gas Council (NGC). He is also a member of the Canadian Council of Chief Executives, the U.S. National Petroleum Council and U.S. Business Roundtable. He served as a Director of the Canadian Energy Pipeline Association (CEPA). He was a 1998/1999 recipient of Canada’s Top 40 Under 40 Award for leadership excellence for Canadians under the age of 40. In 2008 he was the recipient of the Haskayne School of Business Management Alumni Excellence (MAX) Award. He is a member of the Board of Directors of the American Petroleum Institute and the Business Council of Canada. Mr. Girling holds a Bachelor of Commerce degree and a Master of Business Administration in Finance from the University of Calgary.

CEO Compensation
  • Russ's compensation has been consistent with company performance over the past year.
  • Russ's remuneration is about average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the TransCanada management team in years:

5
Average Tenure
55
Average Age
  • The average tenure for the TransCanada management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Russ Girling

TITLE
President
COMPENSATION
CA$10M
AGE
55
TENURE
8.7 yrs

Don Marchand

TITLE
Executive VP & CFO
COMPENSATION
CA$4M
AGE
55
TENURE
8.7 yrs

Paul Miller

TITLE
Executive VP of Technical Centre & President of Liquids Pipelines
COMPENSATION
CA$3M
AGE
59
TENURE
5 yrs

Stan Chapman

TITLE
Executive VP & President of U.S. Natural Gas Pipelines
COMPENSATION
CA$3M
AGE
52

David Moneta

TITLE
Vice President of Investor Relations

Kristine Delkus

TITLE
Executive VP of Stakeholders Relations & General Counsel
AGE
60
TENURE
5 yrs

Francois Poirier

TITLE
Executive VP of Corporate Development & Strategy and President-Mexico Natural Gas Pipelines & Energy
AGE
52
TENURE
2.1 yrs

Joel Hunter

TITLE
Senior Vice President of Capital Markets
AGE
51

Wendy Hanrahan

TITLE
Executive Vice President of Corporate Services
COMPENSATION
CA$2M
AGE
60
TENURE
7.8 yrs

Shawn Patterson

TITLE
Senior Vice President of Operations - U.S. Natural Gas Pipelines
AGE
44
TENURE
2.7 yrs
Board of Directors Tenure

Average tenure and age of the TransCanada board of directors in years:

6.7
Average Tenure
61
Average Age
  • The tenure for the TransCanada board of directors is about average.
Board of Directors

Siim Vanaselja

TITLE
Chairman of the Board
COMPENSATION
CA$420K
AGE
61
TENURE
1.8 yrs

Russ Girling

TITLE
President
COMPENSATION
CA$10M
AGE
55
TENURE
8.7 yrs

Kevin Benson

TITLE
Independent Director
COMPENSATION
CA$249K
AGE
71
TENURE
14.2 yrs

Donald Michael Stewart

TITLE
Independent Director
COMPENSATION
CA$253K
AGE
66
TENURE
13.2 yrs

John Lowe

TITLE
Independent Director
COMPENSATION
CA$333K
AGE
59
TENURE
3.5 yrs

S. Jackson

TITLE
Independent Director
COMPENSATION
CA$339K
AGE
65
TENURE
17.2 yrs

Paula G. Reynolds

TITLE
Independent Director
COMPENSATION
CA$336K
AGE
61
TENURE
7.3 yrs

Mary Salomone

TITLE
Independent Director
COMPENSATION
CA$313K
AGE
58
TENURE
6.1 yrs

Indira Samarasekera

TITLE
Independent Director
COMPENSATION
CA$244K
AGE
65
TENURE
2.9 yrs

Stéphan Crétier

TITLE
Independent Director
COMPENSATION
CA$212K
AGE
54
TENURE
2.1 yrs
Who owns this company?
Recent Insider Trading
  • TransCanada insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
06. Mar 19 Sell Eric Tatarchuk Individual 02. Mar 19 02. Mar 19 -1,774 CA$60.00 CA$-106,440
04. Mar 19 Buy Christine Johnston Individual 04. Mar 19 04. Mar 19 725 CA$59.73 CA$43,304
27. Feb 19 Buy Stanley Chapman Individual 26. Feb 19 26. Feb 19 12,400 CA$44.89 CA$556,686
25. Feb 19 Sell David Kohlenberg Individual 22. Feb 19 22. Feb 19 -16,561 CA$58.64 CA$-968,867
22. Feb 19 Sell Fareen Sunderji Individual 19. Feb 19 19. Feb 19 -130 CA$56.78 CA$-7,381
21. Feb 19 Sell David Pfeiffer Individual 20. Feb 19 20. Feb 19 -680 CA$56.89 CA$-38,685
21. Feb 19 Buy Wendy Hanrahan Individual 19. Feb 19 19. Feb 19 775 CA$56.97 CA$44,120
20. Feb 19 Buy Robert Jacobucci Individual 19. Feb 19 20. Feb 19 1,935 CA$57.28 CA$109,941
20. Dec 18 Sell Mark Yeomans Individual 19. Dec 18 19. Dec 18 -75 CA$52.84 CA$-3,963
19. Dec 18 Buy Richard Prior Individual 17. Dec 18 17. Dec 18 1,270 CA$52.86 CA$67,136
19. Dec 18 Buy Tracy Robinson Individual 18. Dec 18 18. Dec 18 1,000 CA$51.30 CA$51,300
11. Dec 18 Buy Tracy Robinson Individual 10. Dec 18 10. Dec 18 1,600 CA$52.75 CA$84,400
03. Dec 18 Buy Norrie Ramsay Individual 23. Nov 18 23. Nov 18 370 CA$52.87 CA$19,562
18. Nov 18 Sell Penny Favel Individual 15. Nov 18 15. Nov 18 -240 CA$51.97 CA$-12,473
18. Nov 18 Buy Norrie Ramsay Individual 13. Nov 18 13. Nov 18 490 CA$51.19 CA$25,083
13. Nov 18 Buy Richard Prior Individual 13. Nov 18 13. Nov 18 1,300 CA$51.45 CA$66,891
08. Nov 18 Buy Charles Moran Individual 07. Nov 18 07. Nov 18 1,400 CA$51.44 CA$72,019
07. Nov 18 Buy Richard Prior Individual 07. Nov 18 07. Nov 18 1,250 CA$51.98 CA$64,975
06. Nov 18 Buy Charles Moran Individual 05. Nov 18 05. Nov 18 880 CA$51.28 CA$45,122
24. Sep 18 Sell Mark Yeomans Individual 20. Sep 18 20. Sep 18 -167 CA$54.06 CA$-9,028
21. Sep 18 Buy Norrie Ramsay Individual 17. Sep 18 19. Sep 18 706 CA$54.72 CA$38,459
12. Jun 18 Buy Charles Moran Individual 12. Jun 18 12. Jun 18 900 CA$54.83 CA$49,349
24. May 18 Buy Wendy Hanrahan Individual 23. May 18 23. May 18 750 CA$54.13 CA$40,587
26. Mar 18 Buy David Diakow Individual 26. Mar 18 26. Mar 18 500 CA$52.13 CA$26,065
26. Mar 18 Buy John Lowe Individual 26. Mar 18 26. Mar 18 2,500 CA$51.96 CA$129,910
04. Apr 18 Buy John Lowe Individual 02. Apr 18 03. Apr 18 2,500 CA$51.62 CA$128,773
21. Mar 18 Buy Anthony Palmer Individual 20. Mar 18 20. Mar 18 2,000 CA$53.05 CA$106,100
X
Management checks
We assess TransCanada's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. TransCanada has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Can You Imagine How TransCanada's Shareholders Feel About The 21% Share Price Increase?

For example, long term TransCanada Corporation (TSE:TRP) shareholders have enjoyed a 21% share price rise over the last half decade, well in excess of the market return of around 4.9% (not including dividends). … One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … During the five years of share price growth, TransCanada moved from a loss to profitability.

Simply Wall St -

Do You Know What TransCanada Corporation's (TSE:TRP) P/E Ratio Means?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … Based on the last twelve months, TransCanada's P/E ratio is 14.46. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Why We Like TransCanada Corporation’s (TSE:TRP) 6.3% Return On Capital Employed

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

TransCanada Corporation (TSE:TRP): Is It A Smart Long Term Opportunity?

In September 2018, TransCanada Corporation (TSE:TRP) announced its earnings update. … analyst consensus outlook appear cautiously subdued, … the higher past 5-year average growth rate of 8.4%

Simply Wall St -

Need To Know: TransCanada Corporation (TSE:TRP) Insiders Have Been Buying Shares

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … So we'll take a look at whether insiders have been buying or selling shares in TransCanada Corporation (TSE:TRP). … In the last twelve months there was more buying than selling by TransCanada insiders

Simply Wall St -

Do Institutions Own TransCanada Corporation (TSE:TRP) Shares?

Generally speaking, as a company grows, institutions will increase their ownership. … Our analysis of the ownership of the company, below, shows that. … institutional investors have bought into the company.

Simply Wall St -

Can TransCanada Corporation (TSE:TRP) Maintain Its Strong Returns?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Another way to think of that is that for every CA$1 worth of equity in the company, it was able to earn CA$0.12. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Why Dividend Hunters Love TransCanada Corporation (TSE:TRP)

TransCanada Corporation (TSE:TRP) has pleased shareholders over the past 10 years, by paying out dividends. … The company currently pays out a dividend yield of 5.6% to shareholders, making it a relatively attractive dividend stock. … How I analyze a dividend stock

Simply Wall St -

Should You Be Tempted To Buy TransCanada Corporation (TSE:TRP) At Its Current PE Ratio?

While this makes TRP appear like a great stock to buy, you might change your mind after I explain the assumptions behind the P/E ratio. … I will deconstruct the P/E ratio and highlight what you need to be careful of when using the P/E ratio … Demystifying the P/E ratio

Simply Wall St -

Who Are The Top Investors In TransCanada Corporation (TSE:TRP)?

Today, I will be analyzing TransCanada Corporation’s (TSE:TRP) recent ownership structure, an important but not-so-popular subject among individual investors. … A company's ownership structure is often linked to its share performance in both the long- and short-term. … Differences in ownership structure of companies can have a profound effect on how management's incentives are aligned with shareholder returns, and whether they adhere to corporate governance best practices.

Simply Wall St -

Company Info

Description

TransCanada 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 Energy segments. The company transports natural gas to local distribution companies, power generation plants, industrial facilities, interconnecting pipelines, and other businesses. It owns and operates wholly-owned natural gas pipelines of 81,500 kilometers and partially-owned natural gas pipelines of 11,100 kilometers; and regulated natural gas storage facilities with a total working gas capacity of 535 billion cubic feet. The company also 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 owns and operates liquids pipelines infrastructure for the transportation of Alberta crude oil supplies to the refining markets in Illinois, Oklahoma, and the U.S. Gulf Coast, as well as U.S. crude oil supplies from the market hub at Cushing, Oklahoma to the U.S. Gulf Coast. Further, the company operates 10 power generation facilities with a power generation capacity of 6,615 megawatt 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. TransCanada Corporation was founded in 1951 and is headquartered in Calgary, Canada.

Details
Name: TransCanada Corporation
TRP
Exchange: TSX
Founded: 1951
CA$55,511,723,390
922,121,651
Website: http://www.transcanada.com
Address: TransCanada Corporation
450 - 1 Street SW,
Calgary,
Alberta, T2P 5H1,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX TRP Common Shares The Toronto Stock Exchange CA CAD 11. Dec 1973
NYSE TRP Common Shares New York Stock Exchange US USD 11. Dec 1973
DB TRS Common Shares Deutsche Boerse AG DE EUR 11. Dec 1973
TSX TRP.PRC 1ST PFD SER 5 The Toronto Stock Exchange CA CAD 29. Jun 2010
TSX TRP.PRA PFD SHS SER 1 The Toronto Stock Exchange CA CAD 30. Sep 2009
TSX TRP.PRB PFD SHS SER 3 The Toronto Stock Exchange CA CAD 11. Mar 2010
TSX TRP.PRF PFD SER 2 The Toronto Stock Exchange CA CAD 02. Jan 2015
TSX TRP.PRJ 1ST PFD SER 13 The Toronto Stock Exchange CA CAD 21. Apr 2016
TSX TRP.PRK CUM RED PFD 15 The Toronto Stock Exchange CA CAD 21. Nov 2016
OTCPK TCAN.F 1ST PFD SER 5 Pink Sheets LLC US USD 29. Jun 2010
OTCPK TNCA.F PFD SER 2 Pink Sheets LLC US USD 02. Jan 2015
Number of employees
Current staff
Staff numbers
7,081
TransCanada employees.
Industry
Oil and Gas Storage and Transportation
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/17 23:43
End of day share price update: 2019/03/15 00:00
Last estimates confirmation: 2019/03/11
Last earnings filing: 2019/02/14
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.