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

Enbridge, Inc.

Pembina Pipeline Corp.

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

With ROE of 15.46%, it has a very expensive valuation with a 3.52 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 48.20%, 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.

48.2%

5.14

17.21%

S&P/TSX 60

29.6%

2.31

12.81%

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)

2.15

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

104.00%

Pledged Shares

Institutional Holding

75.27%

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

3.52

EV to EBIT

22.03

EV to EBITDA

15.81

EV to Capital Employed

1.79

EV to Sales

10.04

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

10What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 350.78

RAW MATERIAL COST(Y)

Fallen by -6.46% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 9.41 times

DEBTORS TURNOVER RATIO(HY)

Highest at 5.71 times

NET SALES(Q)

Highest at CAD 4,233 MM

OPERATING PROFIT(Q)

Highest at CAD 2,929 MM

OPERATING PROFIT MARGIN(Q)

Highest at 69.19 %

PRE-TAX PROFIT(Q)

Highest at CAD 1,599 MM

NET PROFIT(Q)

Highest at CAD 1,085.93 MM

-3What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 220.58 %

CASH AND EQV(HY)

Lowest at CAD 1,344 MM

Here's what is working for TC Energy Corp.

Interest Coverage Ratio

Highest at 350.78

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at CAD 4,233 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Profit

Highest at CAD 2,929 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Operating Profit Margin

Highest at 69.19 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CAD 1,599 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

Highest at CAD 1,085.93 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Inventory Turnover Ratio

Highest at 9.41 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 5.71 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 -6.46% (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 723 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 220.58 % and Grown

In each half year 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

Cash and Eqv

Lowest at CAD 1,344 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents