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. ?

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.

29.24%

2.26

20.60%

S&P/TSX 60

23.72%

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)

3.42%

EBIT Growth (5y)

3.54%

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

79.74%

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

3.21

EV to EBIT

21.99

EV to EBITDA

15.57

EV to Capital Employed

1.69

EV to Sales

9.72

PEG Ratio

Dividend Yield

0.05%

ROCE (Latest)

7.69%

ROE (Latest)

15.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bearish

Mildly Bullish

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

5What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 90.29%

INVENTORY TURNOVER RATIO(HY)

Highest at 9.94 times

DEBTORS TURNOVER RATIO(HY)

Highest at 5.25 times

NET SALES(Q)

Highest at CAD 4,075 MM

EPS(Q)

Highest at CAD 0.94

-10What is not working for the Company

INTEREST(HY)

At CAD 1,714 MM has Grown at 18.21%

CASH AND EQV(HY)

Lowest at CAD 2,063 MM

DEBT-EQUITY RATIO (HY)

Highest at 220.94 %

PRE-TAX PROFIT(Q)

Fallen at -26.63%

NET PROFIT(Q)

Fallen at -32.62%

Here's what is working for TC Energy Corp.

Net Sales

Highest at CAD 4,075 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

EPS

Highest at CAD 0.94

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Inventory Turnover Ratio

Highest at 9.94 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 5.25 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 90.29%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at CAD 719 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.

Interest

At CAD 1,714 MM has Grown at 18.21%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Pre-Tax Profit

Fallen at -26.63%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

Fallen at -32.62%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Cash and Eqv

Lowest at CAD 2,063 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 220.94 %

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