TC Energy (TRP) AI Stock Analysis

• Market Cap: $67.99B
• Dividend Yield: 5.63%
• Average Volume (3M): 8.61M
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.75
• Revenue Growth: 5.31%
• EPS Growth: 61.02%
• Country: CA
• Employees: 6,668
• Sector: Energy
• Sector Strength: 61
• Industry: Oil & Gas Midstream
• EPS (TTM): 4.43
• Shares Outstanding: 1,039,287,700
• 10 Day Avg. Volume: 13,841,576
• 30 Day Avg. Volume: 8,605,436
• PEG Ratio: 0.24
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.25
• Price to Cash Flow (P/CF): 8.70
• P/FCF Ratio: 15.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$72.82
• Price Target Upside: 11.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

TC Energy scores well due to its strong operational performance and attractive dividend yield. Financial stability is evident, though challenges remain in maintaining revenue growth and optimizing cash flow. Technical analysis is neutral, while positive earnings call sentiment enhances the outlook. Attention to managing leverage and financial flexibility is crucial.

Positive Factors

Dividend Increase

The quarterly dividend was increased ~3.3% to $0.85/quarter.

Growth Potential

The secured growth program is now ~$25B, indicating robust growth potential.

Market Reception

TRP's defensive characteristics and high-return project backlog should garner positive market reception.

Negative Factors

Earnings Outlook

TRP expects EPS to be lower than 2024 due to various financial impacts such as increased depreciation rates and higher effective tax rates.

Earnings Report Reaction

The share reaction appears overdone despite the slight wrinkles in the earnings report.

Valuation Concerns

While TRP has a robust growth program and higher exposure to natural gas pipeline assets, this is largely reflected in the premium valuation.

TC Energy Business Overview & Revenue Model

Company Description

TC Energy Corporation operates as an energy infrastructure company in North America. It operates through five segments: Canadian Natural Gas Pipelines; U.S. Natural Gas Pipelines; Mexico Natural Gas Pipelines; Liquids Pipelines; and Power and Storage. The company builds and operates 93,300 km network of natural gas pipelines, which transports natural gas from supply basins to local distribution companies, power generation plants, industrial facilities, interconnecting pipelines, LNG export terminals, and other businesses. It also has regulated natural gas storage facilities with a total working gas capacity of 535 billion cubic feet. In addition, it has approximately 4,900 km liquids pipeline system that connects Alberta crude oil supplies to refining markets in Illinois, Oklahoma, Texas, and the U.S. Gulf Coast. Further, the company owns or has interests in seven power generation facilities with a combined capacity of approximately 4,300 megawatts that are powered by natural gas and nuclear fuel sources located in Alberta, Ontario, Québec, and New Brunswick; and owns and operates approximately 118 billion cubic feet of non-regulated natural gas storage capacity in Alberta. The company was formerly known as TransCanada Corporation and changed its name to TC Energy Corporation in May 2019. TC Energy Corporation was incorporated in 1951 and is headquartered in Calgary, Canada.

How the Company Makes Money

TC Energy generates revenue primarily through its extensive network of natural gas and liquids pipelines, which transport these commodities across vast distances. The company earns income by charging fees for the transportation and storage of natural gas and crude oil under long-term contracts, ensuring a stable and predictable cash flow. Additionally, TC Energy owns and operates power generation facilities, contributing to its revenue through the sale of electricity. Significant partnerships with energy producers and utilities, as well as regulatory frameworks that support infrastructure investment, also play a crucial role in the company's earnings.

TC Energy Financial Statement Overview

Summary

TC Energy exhibits financial stability with solid gross profit margins but faces challenges with volatile net profit margins and revenue growth. The balance sheet shows manageable leverage, yet declining stockholders' equity is a concern. Cash flow remains stable, though the low free cash flow to net income ratio suggests limited financial flexibility.

Income Statement

TC Energy's income statement shows a mixed performance. Gross profit margin is solid, demonstrating cost control, but there is volatility in net profit margins and revenue growth. The recent decline in revenue and EBIT margins suggests potential challenges in maintaining operational efficiency.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio, indicating manageable leverage but also a potential risk if revenue declines persist. The equity ratio is reasonable, showing a fair balance between equity and liabilities. However, the decline in stockholders' equity over time is a concern.

Cash Flow

Cash flow analysis shows fluctuating free cash flow with periods of negative growth, though operating cash flow remains stable. The low free cash flow to net income ratio highlights challenges in converting income into cash, affecting financial flexibility.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
13.77B	15.93B	14.98B	13.39B	13.00B
	Gross Profit
6.61B	7.75B	6.93B	6.68B	6.53B
	EBIT
0.00	6.86B	7.28B	7.25B	7.00B
	EBITDA
11.22B	8.66B	5.48B	6.39B	8.87B
	Net Income Common Stockholders
4.70B	2.92B	748.00M	1.96B	4.62B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
801.00M	3.68B	620.00M	673.00M	1.53B
	Total Assets
118.24B	125.03B	114.35B	104.22B	100.30B
	Total Debt
59.88B	63.66B	58.30B	52.77B	49.56B
	Net Debt
59.08B	59.98B	57.68B	52.09B	48.03B
	Total Liabilities
79.88B	86.03B	80.23B	70.82B	66.83B
	Stockholders Equity
27.59B	29.55B	33.99B	33.27B	31.40B
Cash Flow		Free Cash Flow
1.34B	-881.00M	-352.00M	966.00M	-1.08B
	Operating Cash Flow
7.70B	7.27B	6.38B	6.89B	7.06B
	Investing Cash Flow
-6.91B	-12.29B	-7.01B	-7.71B	-6.05B
	Financing Cash Flow
-3.87B	8.09B	487.00M	-88.00M	-800.00M

TC Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 65.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TRP, the sentiment is Negative. The current price of 65.42 is below the 20-day moving average (MA) of 67.82, below the 50-day MA of 66.05, and above the 200-day MA of 60.37, indicating a neutral trend. The MACD of 0.88 indicates Negative momentum. The RSI at 56.81 is Neutral, neither overbought nor oversold. The STOCH value of 21.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TRP.

TC Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KEY	78 Outperform	C$9.59B	19.70	17.35%	4.92%	2.89%	14.76%
TRP	71 Outperform	$67.99B	14.78	16.85%	5.63%	5.31%	61.02%
Sector *	57 Neutral	$7.71B	4.16	-3.52%	8.32%	0.35%	-64.68%

TC Energy Corporate Events

TC Energy to Announce Q4 2024 Financial Results on February 14

TC Energy announced that it will release its fourth quarter 2024 financial results on February 14, 2025, with a teleconference and webcast scheduled for the same day. This announcement is significant as it provides stakeholders and investors with an opportunity to gain insights into the company’s financial performance and strategic developments, potentially impacting its market positioning and investor confidence.