NYSE:TCP

Stock Analysis Report

Executive Summary

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

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Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-2.6%

TCP

1.7%

US Oil and Gas

1.0%

US Market


1 Year Return

31.4%

TCP

-21.2%

US Oil and Gas

6.7%

US Market

Return vs Industry: TCP exceeded the US Oil and Gas industry which returned -21.2% over the past year.

Return vs Market: TCP exceeded the US Market which returned 6.7% over the past year.


Share holder returns

TCPIndustryMarket
7 Day-2.6%1.7%1.0%
30 Day-4.0%-3.7%-1.8%
90 Day-3.1%-8.3%-1.8%
1 Year41.7%31.4%-18.3%-21.2%9.1%6.7%
3 Year-15.1%-32.3%-5.7%-14.1%46.1%36.6%
5 Year-13.6%-39.2%-21.8%-32.6%66.9%48.6%

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: TCP ($38.69) is trading below our estimate of fair value ($126.11)

Significantly Undervalued: TCP is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: TCP is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: TCP is unprofitable, so we can't compare its PE Ratio to the US market.


Price Based on Expected Growth

Low PEG Ratio: Insufficient data to calculate TCP's PEG Ratio to determine if it is good value.


Price Based on Value of Assets

PB vs Industry: TCP is overvalued based on its PB Ratio (4.6x) compared to the US Oil and Gas industry average (0.9x).

Future Growth

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

41.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: TCP is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: TCP is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: TCP is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: TCP's revenue is expected to decline over the next 3 years (-4.2% per year).

High Growth Revenue: TCP's revenue is forecast to decline over the next 3 years (-4.2%).


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: TCP's Return on Equity is forecast to be high in 3 years time (31.1%)

Past Performance

How has TC PipeLines performed over the past 5 years?

-19.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TCP is unprofitable, and losses have increased over the past 5 years at a rate of -19.4% per year.

Accelerating Growth: Unable to compare TCP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TCP is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (22.6%).


Return on Equity

High ROE: TCP has a negative Return on Equity (-25.69%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: TCP is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: TCP is currently unprofitable, so its Return on Capital Employed is negative.

Financial Health

How is TC PipeLines's financial position?


Financial Position Analysis

Short Term Liabilities: TCP's short term assets ($90.0M) do not cover its short term liabilities ($144.0M)

Long Term Liabilities: TCP's short term assets (90.0M) do not cover its long term liabilities (1.9B)


Debt to Equity History and Analysis

Debt Level: TCP's debt to equity ratio (276.8%) is considered high

Reducing Debt: TCP's debt to equity ratio has increased from 88.4% to 276.8% over the past 5 years.

Debt Coverage: TCP's debt is well covered by operating cash flow (27.3%).

Interest Coverage: TCP is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: TCP has a high level of physical assets or inventory.

Debt Coverage by Assets: TCP's debt is not covered by short term assets (assets are 0x debt).

Dividend

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

6.79%

Expected Dividend Yield


Dividend Yield vs Market

company6.7%marketbottom25%1.5%markettop25%3.8%industryaverage3.9%forecastin3Years6.8%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: TCP's dividend (6.72%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: TCP's dividend (6.72%) is in the top 25% of dividend payers in the US market (3.77%)

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: TCP is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: TCP's dividends in 3 years are forecast to be covered by earnings (74.1% payout ratio).

Management

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

1.7yrs

Average management tenure


CEO

Nathan Brown (42yo)

1.4yrs

Tenure

0

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 ($USD0.00) is too low to compare against companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

1.7yrs

Average Tenure

50.5yo

Average Age

Experienced Management: TCP's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

1.4yrs

Average Tenure

53yo

Average Age

Experienced Board: TCP's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Rhonda Amundson (57yo)

    Manager

    • Tenure: 0yrs
    • Compensation: US$117.85k
  • Chuck Morris (56yo)

    VP, Principal Financial Officer & Treasurer

    • Tenure: 1.7yrs
  • Jon Dobson (52yo)

    Secretary of TC Pipelines GP Inc

    • Tenure: 5.4yrs
  • Nathan Brown (42yo)

    President

    • Tenure: 1.4yrs
  • Janine Watson (49yo)

    VP & GM of TC Pipelines GP Inc.

    • Tenure: 4yrs
  • Burton Cole (44yo)

    Controller of TC Pipelines GP

    • Tenure: 0.3yrs

Board Members

  • Val Mirosh (73yo)

    Independent Director of TC PipeLines GP

    • Tenure: 15.1yrs
    • Compensation: US$153.50k
  • Jack Jenkins-Stark (68yo)

    Lead Director of TC PipeLines GP

    • Tenure: 0yrs
    • Compensation: US$168.50k
  • Malyn Malquist (66yo)

    Independent Director of TC PipeLines GP

    • Tenure: 8.5yrs
    • Compensation: US$168.50k
  • Sean Brett (53yo)

    Director of TC PipeLines GP Inc

    • Tenure: 1.4yrs
  • Nathan Brown (42yo)

    President

    • Tenure: 1.4yrs
  • Stan Chapman (53yo)

    Chairman of TC PipeLines GP

    • Tenure: 0.8yrs
  • Nadine Berge (46yo)

    Director of TC PipeLines GP Inc

    • Tenure: 1.4yrs

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$2.759b
  • Shares outstanding: 71.31m
  • Website: https://www.tcpipelineslp.com

Location

  • TC PipeLines, LP
  • 700 Louisiana Street
  • Suite 700
  • Houston
  • Texas
  • 77002
  • 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 Analysis2019/10/14 01:23
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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