TC Energy Corporation
TC Energy Corporation Fundamental Analysis
TC Energy Corporation (TRP) shows moderate financial fundamentals with a PE ratio of 25.31, profit margin of 23.23%, and ROE of 12.80%. The company generates $15.1B in annual revenue with moderate year-over-year growth of 3.80%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TRP's fundamental strength across five key dimensions:
Efficiency Score
WeakTRP struggles to generate sufficient returns from assets.
Valuation Score
WeakTRP trades at a premium to fair value.
Growth Score
ModerateTRP shows steady but slowing expansion.
Financial Health Score
WeakTRP carries high financial risk with limited liquidity.
Profitability Score
ModerateTRP maintains healthy but balanced margins.
Key Financial Metrics
Is TRP Expensive or Cheap?
P/E Ratio
TRP trades at 25.31 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, TRP's PEG of 60.28 indicates potential overvaluation.
Price to Book
The market values TC Energy Corporation at 3.26 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 2.65 times EBITDA. This is generally considered low.
How Well Does TRP Make Money?
Net Profit Margin
For every $100 in sales, TC Energy Corporation keeps $23.23 as profit after all expenses.
Operating Margin
Core operations generate 44.03 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.80 in profit for every $100 of shareholder equity.
ROA
TC Energy Corporation generates $2.97 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
TC Energy Corporation generates strong operating cash flow of $7.34B, reflecting robust business health.
Free Cash Flow
TC Energy Corporation generates strong free cash flow of $2.06B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.98 in free cash annually.
FCF Yield
TRP converts 2.32% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.31
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
60.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.26
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.88
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.23
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.63
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How TRP Stacks Against Its Sector Peers
| Metric | TRP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.31 | 20.19 | Worse (Expensive) |
| ROE | 12.80% | 1019.00% | Weak |
| Net Margin | 23.23% | -44017.00% (disorted) | Strong |
| Debt/Equity | 2.23 | -0.65 (disorted) | Distorted |
| Current Ratio | 0.63 | 4.60 | Weak Liquidity |
| ROA | 2.97% | -11655350.00% (disorted) | Weak |
TRP outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews TC Energy Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-7.02%
Industry Style: Cyclical, Value, Commodity
DecliningEPS CAGR
1.56%
Industry Style: Cyclical, Value, Commodity
GrowingFCF CAGR
-2.74%
Industry Style: Cyclical, Value, Commodity
Declining