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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Pembina Pipeline Corp.

Enbridge, Inc.

TC Energy Corp.

Keyera Corp.

Why is TC Energy Corp. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 4.15% and Operating profit at 4.98% over the last 5 years
The company is Net-Debt Free
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 4.15% and Operating profit at 4.98% over the last 5 years

Flat results in Jun 26

DIVIDEND PAYOUT RATIO(Y) Lowest at 92.64%
DEBT-EQUITY RATIO (HY) Highest at 222.16 %

With ROE of 15.46%, it has a very expensive valuation with a 3.73 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 30.90%, its profits have fallen by -20.8%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is TC Energy Corp. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

TC Energy Corp.

29.05%

4.09

18.37%

S&P/TSX 60

29.63%

2.33

12.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.15%

EBIT Growth (5y)

4.98%

EBIT to Interest (avg)

2.05

Debt to EBITDA (avg)

6.79

Net Debt to Equity (avg)

2.17

Sales to Capital Employed (avg)

0.16

Tax Ratio

20.42%

Dividend Payout Ratio

104.00%

Pledged Shares

Institutional Holding

75.27%

ROCE (avg)

6.78%

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

3.73

EV to EBIT

22.85

EV to EBITDA

16.40

EV to Capital Employed

1.85

EV to Sales

10.41

PEG Ratio

Dividend Yield

0.04%

ROCE (Latest)

8.10%

ROE (Latest)

15.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

Mildly Bullish

Mildly Bearish

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -5.73% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 5.73 times

NET PROFIT(Q)

At CAD 1,062.53 MM has Grown at 57.18%

EPS(Q)

Highest at CAD 0.95

-2What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 92.64%

DEBT-EQUITY RATIO (HY)

Highest at 222.16 %

Here's what is working for TC Energy Corp.

Net Profit

At CAD 1,062.53 MM has Grown at 57.18%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

EPS

Highest at CAD 0.95

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Debtors Turnover Ratio

Highest at 5.73 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -5.73% (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

Depreciation

Highest at CAD 737 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

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

Debt-Equity Ratio

Highest at 222.16 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Dividend Payout Ratio

Lowest at 92.64%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)