TransCanada PipeLines Limited 6 Fundamental Analysis
TransCanada PipeLines Limited 6 (TCPA) shows moderate financial fundamentals with a PE ratio of 6.96, profit margin of 31.86%, and ROE of 14.13%. The company generates $10.9B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TCPA's fundamental strength across five key dimensions:
Efficiency Score
WeakTCPA struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTCPA trades at attractive valuation levels.
Growth Score
WeakTCPA faces weak or negative growth trends.
Financial Health Score
WeakTCPA carries high financial risk with limited liquidity.
Profitability Score
WeakTCPA struggles to sustain strong margins.
Key Financial Metrics
Is TCPA Expensive or Cheap?
P/E Ratio
TCPA trades at 6.96 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TCPA's PEG of 0.07 indicates potential undervaluation.
Price to Book
The market values TransCanada PipeLines Limited 6 at 0.90 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -2.05 times EBITDA. This is generally considered low.
How Well Does TCPA Make Money?
Net Profit Margin
For every $100 in sales, TransCanada PipeLines Limited 6 keeps $31.86 as profit after all expenses.
Operating Margin
Core operations generate 42.52 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.13 in profit for every $100 of shareholder equity.
ROA
TransCanada PipeLines Limited 6 generates $4.17 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
TransCanada PipeLines Limited 6 generates strong operating cash flow of $6.11B, reflecting robust business health.
Free Cash Flow
TransCanada PipeLines Limited 6 generates weak or negative free cash flow of $-173.89M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.17 in free cash annually.
FCF Yield
TCPA converts -0.69% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.96
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.90
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.32
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.64
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.59
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How TCPA Stacks Against Its Sector Peers
| Metric | TCPA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.96 | 22.48 | Better (Cheaper) |
| ROE | 14.13% | 1115.00% | Weak |
| Net Margin | 31.86% | 1194.00% | Weak |
| Debt/Equity | 1.64 | 2.83 | Strong (Low Leverage) |
| Current Ratio | 0.59 | 3.01 | Weak Liquidity |
| ROA | 4.17% | 469.00% | Weak |
TCPA outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews TransCanada PipeLines Limited 6's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Commodity
EPS CAGR
N/A
Industry Style: Cyclical, Value, Commodity
FCF CAGR
N/A
Industry Style: Cyclical, Value, Commodity