NYSE:TCP

Stock Analysis Report

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Executive Summary

TC PipeLines, LP acquires, owns, and participates in the management of energy infrastructure businesses in North America. More Details


Snowflake Analysis

Average dividend payer with acceptable track record.


Similar Companies

Share Price & News

How has TC PipeLines's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TCP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: TCP's weekly volatility has decreased from 11% to 6% over the past year.


Market Performance


7 Day Return

6.5%

TCP

10.2%

US Oil and Gas

1.8%

US Market


1 Year Return

-17.7%

TCP

-29.6%

US Oil and Gas

20.4%

US Market

Return vs Industry: TCP exceeded the US Oil and Gas industry which returned -33.4% over the past year.

Return vs Market: TCP underperformed the US Market which returned 19% over the past year.


Shareholder returns

TCPIndustryMarket
7 Day6.5%10.2%1.8%
30 Day6.7%26.0%6.0%
90 Day-0.5%12.8%6.8%
1 Year-10.9%-17.7%-24.9%-29.6%23.2%20.4%
3 Year-20.0%-36.9%-29.9%-39.5%47.4%37.6%
5 Year-6.6%-35.8%-24.7%-39.7%91.9%70.8%

Long-Term Price Volatility Vs. Market

How volatile is TC PipeLines's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

8.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TCP ($31.65) is trading above our estimate of fair value ($26.86)

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


Price To Earnings Ratio

PE vs Industry: TCP is good value based on its PE Ratio (8.2x) compared to the US Oil and Gas industry average (9.6x).

PE vs Market: TCP is good value based on its PE Ratio (8.2x) compared to the US market (19.5x).


Price to Earnings Growth Ratio

PEG Ratio: TCP is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: TCP is overvalued based on its PB Ratio (3.3x) compared to the US Oil and Gas industry average (0.9x).


Next Steps

Future Growth

How is TC PipeLines forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

4.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCP's forecast earnings growth (4.1% per year) is above the savings rate (2.2%).

Earnings vs Market: TCP's earnings (4.1% per year) are forecast to grow slower than the US market (21.9% per year).

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

Revenue vs Market: TCP's revenue (1.8% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: TCP's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TCP's Return on Equity is forecast to be high in 3 years time (30.3%)


Next Steps

Past Performance

How has TC PipeLines performed over the past 5 years?

2.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TCP has high quality earnings.

Growing Profit Margin: TCP became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: TCP's earnings have grown by 2.2% per year over the past 5 years.

Accelerating Growth: TCP has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: TCP has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-29.6%).


Return on Equity

High ROE: Whilst TCP's Return on Equity (37.94%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is TC PipeLines's financial position?


Financial Position Analysis

Short Term Liabilities: TCP's short term assets ($300.0M) do not cover its short term liabilities ($499.0M).

Long Term Liabilities: TCP's short term assets ($300.0M) do not cover its long term liabilities ($1.8B).


Debt to Equity History and Analysis

Debt Level: TCP's debt to equity ratio (265.9%) is considered high.

Reducing Debt: TCP's debt to equity ratio has increased from 143.9% to 265.9% over the past 5 years.

Debt Coverage: TCP's debt is not well covered by operating cash flow (19%).

Interest Coverage: TCP's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet


Next Steps

Dividend

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

8.21%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TCP's dividend (8.21%) is higher than the bottom 25% of dividend payers in the US market (1.5%).

High Dividend: TCP's dividend (8.21%) is in the top 25% of dividend payers in the US market (4.15%)


Stability and Growth of Payments

Stable Dividend: TCP's dividend payments have been volatile in the past 10 years.

Growing Dividend: TCP's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (67.7%), TCP's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TCP's dividends in 3 years are forecast to be covered by earnings (68.9% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Nathan Brown (43 yo)

2.5yrs

Tenure

Mr. Nathaniel Alan Brown, also known as Nathan, is President, Principal Executive Officer and Director at TC Pipelines GP, Inc. and TC PipeLines LP since May 01, 2018 respectively. He serves as Controller ...


CEO Compensation Analysis

Compensation vs Market: Nathan's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD4.20M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Nathaniel Brown
President2.5yrsno datano data
William Morris
VP, Principal Financial Officer & Treasurer of TC PipeLines GP2.5yrsno datano data
Burton Cole
Controller & Principal Accounting Officer of TC Pipelines GP1.33yrsno datano data
Jon Dobson
Secretary of TC Pipelines GP Inc6.5yrsno datano data
Janine Watson
VP & GM of TC Pipelines GP Inc.5.08yrsno datano data
Rhonda Amundson
Managerno dataUS$117.85kno data

2.5yrs

Average Tenure

51.5yo

Average Age

Experienced Management: TCP's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nathaniel Brown
President2.5yrsno datano data
John Jenkins-Stark
Independent Lead Director of TC PipeLines GPno dataUS$175.00k0.00041%
$ 9.3k
Malyn Malquist
Independent Director of TC PipeLines GP9.58yrsUS$175.00k0.0014%
$ 31.6k
Stanley Chapman
Chairman of TC PipeLines GP1.83yrsno datano data
Nadine Berge
Director of TC PipeLines GP Inc2.5yrsno datano data
Gloria Hartl
Director of TC PipeLines GP Incno datano datano data

2.5yrs

Average Tenure

51yo

Average Age

Experienced Board: TCP's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 PipeLines, LP's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TC PipeLines, LP
  • Ticker: TCP
  • Exchange: NYSE
  • Founded: 1998
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: US$2.257b
  • Shares outstanding: 71.31m
  • Website: https://www.tcpipelineslp.com

Location

  • TC PipeLines, LP
  • 700 Louisiana Street
  • Suite 700
  • Houston
  • Texas
  • 77002-2761
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TCPNYSE (New York Stock Exchange)YesCommon UnitsUSUSDMay 1999
TC0DB (Deutsche Boerse AG)YesCommon UnitsDEEURMay 1999

Biography

TC PipeLines, LP acquires, owns, and participates in the management of energy infrastructure businesses in North America. The company has interests in eight natural gas interstate pipeline systems that tra...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/25 00:20
End of Day Share Price2020/11/24 00:00
Earnings2020/09/30
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.