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TC PipeLines

NYSE:TCP
Snowflake Description

Reasonable growth potential second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TCP
NYSE
$3B
Market Cap
  1. Home
  2. US
  3. Energy
Company description

TC PipeLines, LP acquires, owns, and participates in the management of energy infrastructure businesses in North America. The last earnings update was 27 days ago. More info.


Add to Portfolio Compare Print
  • TC PipeLines is a fund or ETF! Currently our data availability for these is poor, we only recommend using them as part of a portfolio.
TCP Share Price and Events
7 Day Returns
0.1%
NYSE:TCP
1.9%
US Oil and Gas
1.2%
US Market
1 Year Returns
1.3%
NYSE:TCP
-0.4%
US Oil and Gas
3%
US Market
TCP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
TC PipeLines (TCP) 0.1% 9% 26.5% 1.3% -29.1% -23.5%
US Oil and Gas 1.9% 0.7% 13.3% -0.4% 9.8% -24%
US Market 1.2% 2.1% 14.6% 3% 39% 43.5%
1 Year Return vs Industry and Market
  • TCP outperformed the Oil and Gas industry which returned -0.4% over the past year.
  • TCP underperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
TCP
Industry
5yr Volatility vs Market

Value

 Is TC PipeLines 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 TC PipeLines 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

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

NYSE:TCP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

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 NYSE:TCP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.92
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.921 (1 + (1- 21%) (81.42%))
1.344
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.34
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.344 * 5.96%)
10.74%

Discounted Cash Flow Calculation for NYSE:TCP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for TC PipeLines 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.

NYSE:TCP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.74%)
2019 552.34 Est @ 10.36% 498.78
2020 596.90 Est @ 8.07% 486.75
2021 635.51 Est @ 6.47% 467.98
2022 669.48 Est @ 5.35% 445.19
2023 700.02 Est @ 4.56% 420.36
2024 728.10 Est @ 4.01% 394.82
2025 754.51 Est @ 3.63% 369.47
2026 779.85 Est @ 3.36% 344.84
2027 804.57 Est @ 3.17% 321.27
2028 829.01 Est @ 3.04% 298.93
Present value of next 10 years cash flows $4,048.39
NYSE:TCP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $829.01 × (1 + 2.73%) ÷ (10.74% – 2.73%)
$10,634.25
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $10,634.25 ÷ (1 + 10.74%)10
$3,834.61
NYSE:TCP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $4,048.39 + $3,834.61
$7,883.00
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $7,883.00 / 71.31
$110.55
NYSE:TCP Discount to Share Price
Calculation Result
Value per share (USD) From above. $110.55
Current discount Discount to share price of $36.31
= -1 x ($36.31 - $110.55) / $110.55
67.2%

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

Current Discount
Amount off the current price TC PipeLines is available for.
Intrinsic value
>50%
Share price is $36.31 vs Future cash flow value of $110.55
Current Discount Checks
For TC PipeLines to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • TC PipeLines's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • TC PipeLines's share price is below the future cash flow value, and at a substantial discount (> 40%).
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 TC PipeLines's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are TC PipeLines's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:TCP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $-2.68
NYSE:TCP Share Price ** NYSE (2019-03-20) in USD $36.31
United States of America Oil and Gas Industry PE Ratio Median Figure of 108 Publicly-Listed Oil and Gas Companies 12.4x
United States of America Market PE Ratio Median Figure of 3,058 Publicly-Listed Companies 17.69x

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

** Primary Listing of TC PipeLines.

NYSE:TCP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:TCP Share Price ÷ EPS (both in USD)

= 36.31 ÷ -2.68

-13.55x

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

  • TC PipeLines is loss making, we can't compare its value to the US Oil and Gas industry average.
  • TC PipeLines is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does TC PipeLines's expected growth come at a high price?
Raw Data
NYSE:TCP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -13.55x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
100.8%per year
United States of America Oil and Gas Industry PEG Ratio Median Figure of 75 Publicly-Listed Oil and Gas Companies 0.52x
United States of America Market PEG Ratio Median Figure of 2,103 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

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

  • Unable to calculate PEG ratio for TC PipeLines, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on TC PipeLines's assets?
Raw Data
NYSE:TCP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $8.11
NYSE:TCP Share Price * NYSE (2019-03-20) in USD $36.31
United States of America Oil and Gas Industry PB Ratio Median Figure of 196 Publicly-Listed Oil and Gas Companies 1.14x
United States of America Market PB Ratio Median Figure of 5,156 Publicly-Listed Companies 1.89x
NYSE:TCP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:TCP Share Price ÷ Book Value per Share (both in USD)

= 36.31 ÷ 8.11

4.48x

* Primary Listing of TC PipeLines.

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

  • TC PipeLines is overvalued based on assets compared to the US Oil and Gas industry average.
X
Value checks
We assess TC PipeLines'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. TC PipeLines has a total score of 2/6, 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 TC PipeLines expected to perform in the next 1 to 3 years based on estimates from 5 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
100.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is TC PipeLines expected to grow at an attractive rate?
  • TC PipeLines's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • TC PipeLines's earnings growth is expected to exceed the United States of America market average.
  • TC PipeLines's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:TCP Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:TCP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 100.8%
NYSE:TCP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts -12.5%
United States of America Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 11%
United States of America Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 5.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*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
NYSE:TCP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:TCP Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 556 360 269 3
2019-12-31 553 347 263 3
NYSE:TCP Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 722 540 -191
2018-09-30 603 419 277
2018-06-30 594 394 263
2018-03-31 572 386 241
2017-12-31 546 376 219
2017-09-30 533 396 211
2017-06-30 531 387 212
2017-03-31 527 424 212
2016-12-31 523 417 211
2016-09-30 513 422 19
2016-06-30 488 403 21
2016-03-31 467 332 13

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • TC PipeLines's earnings are expected to grow significantly at over 20% yearly.
  • TC PipeLines's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
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
NYSE:TCP 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 5 Analyst Estimates (S&P Global) See Below

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

NYSE:TCP Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 3.63 3.72 3.45 4.00
2019-12-31 3.57 3.79 3.40 4.00
NYSE:TCP Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 -2.68
2018-09-30 3.90
2018-06-30 3.73
2018-03-31 3.45
2017-12-31 3.16
2017-09-30 3.08
2017-06-30 3.14
2017-03-31 3.18
2016-12-31 3.21
2016-09-30 0.29
2016-06-30 0.33
2016-03-31 0.20

*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.
  • TC PipeLines is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess TC PipeLines'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 United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America 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.
TC PipeLines has a total score of 4/6, 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 TC PipeLines 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 TC PipeLines'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.
  • TC PipeLines does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare TC PipeLines's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare TC PipeLines's 1-year growth to the US Oil and Gas industry average as it is not currently profitable.
Earnings and Revenue History
TC PipeLines'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 TC PipeLines Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:TCP Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 722.00 -191.00 6.00
2018-09-30 603.00 277.00 6.00
2018-06-30 594.00 263.00 6.00
2018-03-31 572.00 241.00 7.00
2017-12-31 546.00 219.00 8.00
2017-09-30 533.00 211.00 8.00
2017-06-30 531.00 212.00 7.00
2017-03-31 527.00 212.00 7.00
2016-12-31 523.00 211.00 7.00
2016-09-30 513.00 19.00 9.00
2016-06-30 488.00 21.00 9.00
2016-03-31 467.00 13.00 8.00
2015-12-31 514.00 -2.00 9.00
2015-09-30 427.00 189.00 6.00
2015-06-30 422.00 174.00 10.00
2015-03-31 422.00 168.00 10.00
2014-12-31 424.00 168.00 9.00
2014-09-30 422.00 162.00 9.00
2014-06-30 427.00 167.00 6.00
2014-03-31 424.00 154.00 9.00
2013-12-31 408.00 126.00 9.00
2013-09-30 410.00 75.00 9.00
2013-06-30 418.00 87.00 8.00
2013-03-31 492.00 124.00 6.00
2012-12-31 442.00 134.00 6.00
2012-09-30 388.00 182.00 6.00
2012-06-30 338.00 176.00 6.00
2012-03-31 222.00 151.00 9.00

*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.
  • It is difficult to establish if TC PipeLines has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if TC PipeLines has efficiently used its assets last year compared to the US Oil and Gas industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if TC PipeLines improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess TC PipeLines'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.
TC PipeLines has a total score of 0/6, 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 TC PipeLines'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 TC PipeLines's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • TC PipeLines is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • TC PipeLines's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of TC PipeLines'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 0x 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 TC PipeLines Company Filings, last reported 2 months ago.

NYSE:TCP Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 699.00 2,108.00 33.00
2018-09-30 1,166.00 2,247.00 48.00
2018-06-30 1,155.00 2,308.00 51.00
2018-03-31 1,124.00 2,377.00 68.00
2017-12-31 1,068.00 2,403.00 33.00
2017-09-30 1,018.00 2,478.00 73.00
2017-06-30 1,015.00 2,390.00 51.00
2017-03-31 1,222.00 1,809.00 60.00
2016-12-31 1,272.00 1,911.00 64.00
2016-09-30 1,101.00 1,923.00 72.00
2016-06-30 1,071.00 1,953.00 40.00
2016-03-31 1,096.00 2,073.00 48.00
2015-12-31 1,151.00 1,903.00 39.00
2015-09-30 1,327.00 1,904.00 28.00
2015-06-30 1,338.00 1,914.00 44.00
2015-03-31 1,589.00 2,034.00 384.00
2014-12-31 1,586.00 1,695.00 26.00
2014-09-30 1,813.00 1,533.00 98.00
2014-06-30 1,768.00 1,563.00 45.00
2014-03-31 1,791.00 1,568.00 41.00
2013-12-31 1,789.00 1,578.00 25.00
2013-09-30 1,829.00 1,552.00 4.00
2013-06-30 1,649.00 376.00 67.00
2013-03-31 1,287.00 685.00 2.00
2012-12-31 2,422.00 1,028.00 3.00
2012-09-30 1,313.00 692.00 7.00
2012-06-30 1,321.00 700.00 6.00
2012-03-31 1,330.00 707.00 5.00
  • TC PipeLines's level of debt (301.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (88.2% vs 301.6% today).
  • Debt is well covered by operating cash flow (25.6%, greater than 20% of total debt).
  • TC PipeLines is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess TC PipeLines'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. TC PipeLines has a total score of 2/6, 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 TC PipeLines'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
7.16%
Current annual income from TC PipeLines dividends. Estimated to be 7.25% next year.
If you bought $2,000 of TC PipeLines shares you are expected to receive $143 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?
  • TC PipeLines's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
  • TC PipeLines's dividend is above the markets top 25% of dividend payers in United States of America (3.64%).
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
NYSE:TCP 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 5 Analyst Estimates (S&P Global) See Below
United States of America Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 65 Stocks 3.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

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

NYSE:TCP Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 2.68 2.00
2022-12-31 2.66 2.00
2021-12-31 2.62 5.00
2020-12-31 2.65 9.00
2019-12-31 2.60 7.00
NYSE:TCP Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-01-22 2.600 7.880
2018-10-23 2.600 8.422
2018-07-26 2.600 8.104
2018-05-02 2.600 9.996
2018-01-23 4.000 9.776
2017-10-24 4.000 7.579
2017-08-03 4.000 7.636
2017-08-02 4.000 7.111
2017-04-25 3.760 6.637
2017-01-23 3.760 6.227
2016-11-04 3.760 6.938
2016-08-04 3.760 6.944
2016-05-04 3.560 6.476
2016-02-26 3.560 7.028
2016-02-25 3.560 8.150
2015-11-06 3.560 7.920
2015-07-24 3.560 6.766
2015-04-23 3.360 5.440
2015-02-25 3.360 5.299
2014-10-24 3.360 4.892
2014-07-24 3.360 5.718
2014-04-28 3.240 6.287
2014-01-17 3.240 6.785
2013-10-25 3.240 6.850
2013-07-24 3.240 6.578
2013-04-24 3.120 6.730
2013-02-28 3.120 6.491
2013-02-08 3.120 6.885
2012-10-26 3.120 7.494
2012-07-25 3.120 6.793
2012-04-24 3.080 7.326
2012-01-17 3.080 6.751
2011-10-20 3.080 6.577
2011-07-19 3.080 6.971
2011-04-19 3.000 6.387
2011-01-18 3.000 5.751
2010-10-20 3.000 6.140
2010-07-20 2.920 6.607
2010-04-20 2.920 7.526
2010-01-20 2.920 7.814
2009-10-22 2.920 7.787
2009-07-30 2.920 7.775
2009-04-17 2.820 8.351
2009-03-23 2.820 9.250

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

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of TC PipeLines's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.3x coverage).
X
Income/ dividend checks
We assess TC PipeLines's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - 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 TC PipeLines afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. TC PipeLines has a total score of 3/6, 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 TC PipeLines'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
Nathan Brown
COMPENSATION $0
AGE 41
TENURE AS CEO 0.8 years
CEO Bio

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 of Crossroads Pipeline Company and Tuscarora Gas Transmission Co. He serves as Vice President of Financial Services - US Natural Gas at ANR Storage Co. and ANR Pipeline Co. He serves as Controller at Great Lakes Gas Transmission. He serves as Principal Financial Officer and Controller of CPG OpCo GP LLC at CPG OpCo LP. Mr. Brown has been Principal Financial Officer of CPP GP LLC - General Partner and Controller of CPP GP LLC - General Partner at Columbia Pipeline Partners LP since July 01, 2016. He has been Controller of U.S. Natural Gas Pipelines at TransCanada Corporation since November 01, 2009 and is responsible for the accounting of TransCanada’s U.S. natural gas pipelines. Mr. Brown was Principal Financial Officer and Controller of TC Pipelines GP Inc., a General Partner of TC PipeLines, LP from May 01, 2014 to May 01, 2018. He serves as Controller at North Baja Pipeline, LLC. He served as an Accounting Manager of TransCanada’s U.S. natural gas pipelines since joining TransCanada in 2009 from the accounting firm of Grant Thornton LLP. Mr. Brown spent eight years in public accounting, most recently as an audit Manager for Grant Thornton LLP and Ernst &Young. Mr. Brown holds Bachelor’s Degree in Accounting from Texas A&M University and holds Master of Science in Accounting from Texas A&M University from 1995 to 2001. He is a Certified Public Accountant.

CEO Compensation
  • Insufficient data for Nathan to compare compensation growth.
  • Nathan's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the TC PipeLines management team in years:

1.1
Average Tenure
53
Average Age
  • The average tenure for the TC PipeLines management team is less than 2 years, this suggests a new team.
Management Team

Nathan Brown

TITLE
President
AGE
41
TENURE
0.8 yrs

Chuck Morris

TITLE
VP, Principal Financial Officer & Treasurer
AGE
55
TENURE
1.1 yrs

Jon Dobson

TITLE
Secretary of TC Pipelines GP Inc
AGE
51
TENURE
4.8 yrs

Rhonda Amundson

TITLE
Manager
COMPENSATION
$118K
AGE
56
Board of Directors Tenure

Average tenure and age of the TC PipeLines board of directors in years:

0.8
Average Tenure
52
Average Age
  • The average tenure for the TC PipeLines board of directors is less than 3 years, this suggests a new board.
Board of Directors

Stan Chapman

TITLE
Chairman of TC PipeLines GP
AGE
52
TENURE
0.2 yrs

Nathan Brown

TITLE
President
AGE
41
TENURE
0.8 yrs

Malyn Malquist

TITLE
Independent Director of TC PipeLines GP
COMPENSATION
$169K
AGE
65
TENURE
7.9 yrs

Jack Jenkins-Stark

TITLE
Lead Director of TC PipeLines GP
COMPENSATION
$169K
AGE
67

Val Mirosh

TITLE
Independent Director of TC PipeLines GP
COMPENSATION
$154K
AGE
72
TENURE
14.5 yrs

Sean Brett

TITLE
Director of TC PipeLines GP Inc
AGE
52
TENURE
0.8 yrs

Nadine Berge

TITLE
Director of TC PipeLines GP Inc
AGE
45
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess TC PipeLines'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. TC PipeLines 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

Is TC PipeLines LP (NYSE:TCP) Attractive At Its Current PE Ratio?

This analysis is intended to introduce important early concepts to people who are starting to invest. … While TCP might seem like an attractive stock to buy, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions. … I will deconstruct the P/E ratio and highlight what you need to be careful of when using the P/E ratio

Simply Wall St -

Can TC PipeLines LP's (NYSE:TCP) ROE Continue To Surpass The Industry Average?

The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … If TCP borrows debt to invest in its business, its profits will be higher. … But ROE does not capture any debt, so we only see high profits and low equity, which is great on the surface

Simply Wall St -

Why TC PipeLines LP (NYSE:TCP) Should Have A Place In Your Portfolio

TC PipeLines LP (NYSE:TCP) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of TCP, it

Simply Wall St -

With An ROE Of 25.09%, Has TC PipeLines LP's (NYSE:TCP) Management Done Well?

Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of TC PipeLines’s equity capital deployed. … ROE can be dissected into three distinct ratios: net profit margin, asset turnover, and financial leverage. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NYSE:TCP Last Perf Jun 1st 18 Essentially, profit margin shows how much money the company makes after paying for all its expenses.

Simply Wall St -

How Financially Strong Is TC PipeLines LP (NYSE:TCP)?

Additionally, TCP has generated US$376.00M in operating cash flow in the last twelve months, leading to an operating cash to total debt ratio of 15.65%, signalling that TCP’s operating cash is not sufficient to cover its debt. … We can check to see whether TCP is able to meet its debt obligations by looking at the net interest coverage ratio. … In TCP's, case, the ratio of 4.17x suggests that interest is appropriately covered, which means that lenders may be inclined to lend more money to the company, as it is seen as safe in terms of payback.Next Steps: TCP’s high debt levels is not met with high cash flow coverage.

Simply Wall St -

TC PipeLines LP's (NYSE:TCP) Poor Growth Outlook Brings Concerns

A consensus of 6 US oil, gas and consumable fuels analysts covering the stock indicates that its revenue level is expected to decline by -5.44% by 2020, putting pressure on expected future earnings, with its year-on-year growth rate estimated to underperform the industry average growth (1.61% vs. … When revenues are declining and earnings growth are lagging the industry, there is high uncertainty around the sustainability of its current operations. … With 71.31 million shares, that's a US$1.84B market cap - which is too low for a company that has a 5-year free cash flow cumulative average growth rate (CAGR) of 7.46% (source: analyst consensus).

Simply Wall St -

TC PipeLines LP (NYSE:TCP): Can Growth Justify Its May Share Price?

TC PipeLines is available at a price-to-earnings ratio of 11.23x, showing us it is undervalued relative to the current US market average of 18.27x , and undervalued based on its latest annual earnings update compared to the oil and gas average of 13.31x. … However, since TC PipeLines is a high-growth stock, we must also account for its earnings growth by using calculation called the PEG ratio. … A PE ratio of 11.23x and expected year-on-year earnings growth of 10.24% give TC PipeLines an acceptable PEG ratio of 1.1x.

Simply Wall St -

Should You Be Tempted To Buy TC PipeLines LP (NYSE:TCP) Because Of Its PE Ratio?

TC PipeLines LP (NYSE:TCP) trades with a trailing P/E of 9.7x, which is lower than the industry average of 12.5x. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for TCP Price per share = $30.81 Earnings per share = $3.165 ∴ Price-Earnings Ratio = $30.81 ÷ $3.165 = 9.7x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … Since TCP's P/E of 9.7x is lower than its industry peers (12.5x), it means that investors are paying less than they should for each dollar of TCP's earnings.

Simply Wall St -

TC PipeLines LP (NYSE:TCP): Are Analysts Bullish?

Below is my commentary, albeit very simple and high-level, on how market analysts predict TC PipeLines's earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. … The growth outlook in the following year seems much more buoyant with rates reaching double digit 17.60% compared to today’s earnings, and finally hitting US$311.85M by 2021. … NYSE:TCP Future Profit Mar 30th 18 Even though it’s useful to be aware of the rate of growth year by year relative to today’s value, it may be more valuable to gauge the rate at which the earnings are rising or falling on average every year.

Simply Wall St -

Want To Invest In TC PipeLines LP (NYSE:TCP)? Here's How It Performed Lately

Below, I will run you through a simple sense check to build perspective on how TC PipeLines is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its oil and gas industry peers. … Check out our latest analysis for TC PipeLines How TCP fared against its long-term earnings performance and its industry I prefer to use the ‘latest twelve-month’ data, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. … This means that, in the recent industry expansion, TC PipeLines has not been able to realize the gains unlike its industry peers.What does this mean?

Simply Wall St -

Company Info

Description

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 transport approximately 10.8 billion cubic feet per day of natural gas from producing regions and import facilities to market hubs and consuming markets primarily in the Western, Midwestern, and Eastern United States. It serves large utilities, local distribution companies, natural gas marketers, producing companies, and other interstate pipelines, including affiliates. TC PipeLines GP, Inc. operates as a general partner of the company. TC PipeLines, LP was founded in 1998 and is based in Houston, Texas.

Details
Name: TC PipeLines, LP
TCP
Exchange: NYSE
Founded: 1998
$2,589,135,238
71,306,396
Website: http://www.tcpipelineslp.com
Address: TC PipeLines, LP
700 Louisiana Street,
Suite 700,
Houston,
Texas, 77002,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE TCP Common Units New York Stock Exchange US USD 25. May 1999
DB TC0 Common Units Deutsche Boerse AG DE EUR 25. May 1999
Number of employees
Current staff
Staff numbers
0
TC PipeLines employees.
Industry
Oil and Gas Storage and Transportation
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 23:46
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/03/18
Last earnings filing: 2019/02/21
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.