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TC PipeLines

NYSE:TCP
Snowflake Description

Solid track record average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TCP
NYSE
$2B
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 108 days ago. More info.


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  • TC PipeLines has significant price volatility in the past 3 months.
TCP Share Price and Events
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 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 14.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

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 3%
Equity Risk Premium S&P Global 7.1%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.8
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.797 (1 + (1- 21%) (124.76%))
1.583
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.58
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (1.583 * 7.05%)
14.11%

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 use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:TCP DCF 1st Stage: Next 5 year cash flow forecast
2018 2019 2020 2021 2022
Levered FCF (USD, Millions) 262.82 282.44 303.52 326.18 350.52
Source Extrapolated @ (7.46%) Extrapolated @ (7.46%) Extrapolated @ (7.46%) Extrapolated @ (7.46%) Extrapolated @ (7.46%)
Present Value
Discounted (@ 14.11%)
230.32 216.90 204.26 192.36 181.16
Present value of next 5 years cash flows $1,025
NYSE:TCP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
= $351 × (1 + 2.95%) ÷ (14.11% – 2.95%)
$3,233
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $3,233 ÷ (1 + 14.11%)5
$1,671
NYSE:TCP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $1,025 + $1,671
$2,696
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,696 / 71
$37.81
NYSE:TCP Discount to Share Price
Calculation Result
Value per share (USD) From above. $37.81
Current discount Discount to share price of $27.24
= -1 x ($27.24 - $37.81) / $37.81
27.9%

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
28%
Share price is $27.24 vs Future cash flow value of $37.81
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, but not 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 () in USD $3.45
NYSE:TCP Share Price ** NYSE (2018-07-17) in USD $27.24
United States of America Oil and Gas Industry PE Ratio Median Figure of 300 Publicly-Listed Oil and Gas Companies 13.48x
United States of America Market PE Ratio Median Figure of 7,808 Publicly-Listed Companies 18.38x

* 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)

= 27.24 ÷ 3.45

7.9x

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

  • TC PipeLines is good value based on earnings compared to the US Oil and Gas industry average.
  • TC PipeLines is good value based on earnings compared 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 7.9x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
-3.5%per year
United States of America Oil and Gas Industry PEG Ratio Median Figure of 221 Publicly-Listed Oil and Gas Companies 1.13x
United States of America Market PEG Ratio Median Figure of 5,905 Publicly-Listed Companies 1.6x

*Line of best fit is calculated by linear regression .

NYSE:TCP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 7.9x ÷ -3.5%

-2.26x

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

  • TC PipeLines earnings are not expected to grow next year, 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 () in USD $13.93
NYSE:TCP Share Price * NYSE (2018-07-17) in USD $27.24
United States of America Oil and Gas Industry PB Ratio Median Figure of 799 Publicly-Listed Oil and Gas Companies 1.09x
United States of America Market PB Ratio Median Figure of 13,225 Publicly-Listed Companies 1.73x
NYSE:TCP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 27.24 ÷ 13.93

1.96x

* 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 3/6, 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 6 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
-3.5%
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 are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 3%.
Growth vs Market Checks
  • TC PipeLines's earnings are expected to decrease over the next 1-3 years, this is below 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 6 Analysts -3.5%
NYSE:TCP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts -5.2%
United States of America Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 9.2%
United States of America Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 5.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 11.8%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 6.2%

*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 (3 months ago) See Below
Future Estimates Average of up to 6 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
2022-12-31
2021-12-31
2020-12-31 530 238 1
2019-12-31 513 292 234 3
2018-12-31 577 378 266 3
NYSE:TCP Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-03-31 572 386 241
2017-12-31 546 376 219
2017-09-30 533 413 211
2017-06-30 531 404 212
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
2015-12-31 514 260 -2
2015-09-30 427 282 189
2015-06-30 422 274 174

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • TC PipeLines's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • 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 (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from TC PipeLines Company Filings, last reported 3 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
2022-12-31 2.19 2.19 2.19 1.00
2021-12-31 2.03 2.03 2.03 1.00
2020-12-31 3.11 3.62 2.65 3.00
2019-12-31 3.00 3.85 2.20 5.00
2018-12-31 3.63 4.31 3.27 6.00
NYSE:TCP Past Financials Data
Date (Data in USD Millions) EPS *
2018-03-31 3.45
2017-12-31 3.16
2017-09-30 3.09
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
2015-12-31 -0.03
2015-09-30 2.96
2015-06-30 2.74

*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 not expected to efficiently use shareholders’ funds in the future (Return on Equity less 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 0/6, 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's year on year earnings growth rate has been positive over the past 5 years.
  • TC PipeLines's 1-year earnings growth exceeds its 5-year average (13.7% vs 3.4%)
  • TC PipeLines's earnings growth has not matched the US Oil and Gas industry average in the past year (13.7% vs 42.7%).
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 3 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
2018-03-31 572.00 241.00 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 8.00
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
2011-12-31 488.00 154.00 9.00
2011-09-30 220.50 153.40 9.10

*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.
  • TC PipeLines has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • TC PipeLines used its assets more efficiently than the US Oil and Gas industry average last year based on Return on Assets.
  • TC PipeLines has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
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 5/6, 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 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 TC PipeLines Company Filings, last reported 3 months ago.

NYSE:TCP Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
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
2011-12-31 1,333.00 742.00 29.00
2011-09-30 1,333.60 750.30 7.30
  • TC PipeLines's level of debt (211.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (52.8% vs 211.5% today).
  • Debt is not well covered by operating cash flow (16.2%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.2x coverage).
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
14.68%
Current annual income from TC PipeLines dividends. Estimated to be 9.64% next year.
If you bought $2,000 of TC PipeLines shares you are expected to receive $294 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 (1.49%).
  • TC PipeLines's dividend is above the markets top 25% of dividend payers in United States of America (3.98%).
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 6 Analyst Estimates (S&P Global) See Below
United States of America Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 209 Stocks 4.1%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 5856 Stocks 3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 4%

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
2022-12-31 2.66 2.00
2021-12-31 2.63 2.00
2020-12-31 2.60 9.00
2019-12-31 2.60 10.00
2018-12-31 2.67 10.00
NYSE:TCP Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-01-23 4.000 12.287
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
2009-01-20 2.820 10.549
2008-10-17 2.820 12.014
2008-07-22 2.820 9.048
2008-07-18 2.800 8.133

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 TC PipeLines's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by net profit (0.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by net profit (1x 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 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 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.
  • TC PipeLines has no CEO, or we have no data on them.
Management Team Tenure

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

2.4
Average Tenure
53
Average Age
  • The tenure for the TC PipeLines management team is about average.
Management Team

Nathan Brown

TITLE
President & Director of TC PipeLines GP
AGE
41
TENURE
0.2 yrs

Jon Dobson

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

Janine Watson

TITLE
VP & GM of TC Pipelines GP Inc.
AGE
48
TENURE
2.8 yrs

Chuck Morris

TITLE
VP, Principal Financial Officer & Treasurer
COMPENSATION
$153K
AGE
55
TENURE
0.2 yrs

Rhonda Amundson

TITLE
Manager of Investor Relations
COMPENSATION
$118K
AGE
56

Nancy Priemer

TITLE
Vice President of Taxation - TC Pipelines GP Inc.
AGE
59
TENURE
2.4 yrs
Board of Directors Tenure

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

2.8
Average Tenure
61
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

Karl Johannson

TITLE
Chairman of TC PipeLines GP
AGE
57
TENURE
5.3 yrs

Nathan Brown

TITLE
President & Director of TC PipeLines GP
AGE
41
TENURE
0.2 yrs

Jack Jenkins-Stark

TITLE
Lead Director of TC PipeLines GP
COMPENSATION
$178K
AGE
67

Malyn Malquist

TITLE
Independent Director of TC PipeLines GP
COMPENSATION
$178K
AGE
65
TENURE
7.3 yrs

Val Mirosh

TITLE
Independent Director of TC PipeLines GP
COMPENSATION
$163K
AGE
72
TENURE
13.8 yrs

Sean Brett

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

Nadine Berge

TITLE
Director of TC PipeLines GP Inc
TENURE
0.2 yrs
Recent Insider Trading
  • No 3 month insider trading information.
Who owns this company?
X
Management checks
We assess TC PipeLines's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of 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

External News
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Simply Wall St News

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 -

Should You Buy TC PipeLines LP (NYSE:TCP) Now?

TC PipeLines LP (NYSE:TCP), an energy company based in United States, saw significant share price volatility over the past couple of months on the NYSE, rising to the highs of $56.55 and falling to the lows of $48.9. … TCP’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. … Will you have enough confidence to invest in the company should the price drop below its fair value?

Simply Wall St -

Company Info

Map
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 10.4 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
$1,905,306,901
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: 2018/07/17 21:28
End of day share price update: 2018/07/17 00:00
Last estimates confirmation: 2018/06/28
Last earnings update: 2018/03/31
Last annual earnings update: 2017/12/31


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.