TC Energy Corp. (TRP) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Pembina Pipeline Corp.

TC Energy Corp.

Enbridge, Inc.

Keyera Corp.

Why is TC Energy Corp. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 3.63% and Operating profit at 3.24% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Capital Employed (avg) of 6.67% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 3.63% and Operating profit at 3.24% over the last 5 years

Flat results in Jun 25

DIVIDEND PER SHARE(HY) Lowest at CAD 4.33
PRE-TAX PROFIT(Q) Lowest at CAD 1,053 MM
NET PROFIT(Q) Lowest at CAD 675.98 MM

With ROE of 18.56%, it has a very attractive valuation with a 2.71 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 27.51%, its profits have fallen by -3.8%

High Institutional Holdings at 79.25%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 5.34% over the previous quarter.

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to TC Energy Corp. should be less than 10%
Overall Portfolio exposure to Oil should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is TC Energy Corp. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

TC Energy Corp.

10.99%

2.26

20.60%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.63%

EBIT Growth (5y)

3.24%

EBIT to Interest (avg)

2.15

Debt to EBITDA (avg)

6.63

Net Debt to Equity (avg)

2.17

Sales to Capital Employed (avg)

0.16

Tax Ratio

16.88%

Dividend Payout Ratio

83.66%

Pledged Shares

Institutional Holding

79.25%

ROCE (avg)

6.67%

ROE (avg)

15.47%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.74

EV to EBIT

20.48

EV to EBITDA

14.48

EV to Capital Employed

1.56

EV to Sales

8.78

PEG Ratio

Dividend Yield

0.05%

ROCE (Latest)

7.62%

ROE (Latest)

18.56%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 11,192 MM

RAW MATERIAL COST(Y)

Fallen by -7.57% (YoY

-4What is not working for the Company

DIVIDEND PER SHARE(HY)

Lowest at CAD 4.33

PRE-TAX PROFIT(Q)

Lowest at CAD 1,053 MM

NET PROFIT(Q)

Lowest at CAD 675.98 MM

EPS(Q)

Lowest at CAD 0.8

Here's what is working for TC Energy Corp.

Operating Cash Flow

Highest at CAD 11,192 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Raw Material Cost

Fallen by -7.57% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for TC Energy Corp.

Pre-Tax Profit

Lowest at CAD 1,053 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

Lowest at CAD 675.98 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

EPS

Lowest at CAD 0.8

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)

Dividend per share

Lowest at CAD 4.33

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (CAD)