TC Energy (TRP) AI Stock Analysis

• Market Cap: C$78.81B
• Dividend Yield: 4.5%
• Average Volume (3M): 3.44M
• Price to Earnings (P/E): 23.2
• Beta (1Y): 0.53
• Revenue Growth: -3.98%
• EPS Growth: -33.45%
• Country: CA
• Employees: 6,668
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.77
• Shares Outstanding: 1,040,595,700
• 10 Day Avg. Volume: 3,380,010
• 30 Day Avg. Volume: 3,444,401
• PEG Ratio: 0.24
• Price to Book (P/B): 2.52
• Price to Sales (P/S): 5.05
• P/FCF Ratio: 51.97
• 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$81.11
• Price Target Upside: 8.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 3.55
• Revenue Forecast (FY): C$15.16B

• Rating: 70 Outperform
• Price Target: C$83.00 ▲(10.73% Upside)

TC Energy's overall stock score reflects strong earnings call performance and corporate events, which are the most significant factors. Financial performance is solid but challenged by high leverage and revenue decline. Technical analysis and valuation suggest moderate growth potential with attractive dividends.

Positive Factors

Strong Project Execution

Efficient project execution enhances TC Energy's reputation and operational efficiency, supporting long-term growth and profitability.

Supportive Policy Environment

A supportive regulatory environment facilitates infrastructure development, reducing barriers to project completion and enhancing growth prospects.

Long-term Contractual Stability

Long-term contracts provide TC Energy with stable and predictable cash flows, reducing risk and supporting sustained financial health.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase vulnerability to economic downturns, impacting long-term stability.

Decline in Revenue Growth

A decline in revenue growth may indicate challenges in market expansion or competitive pressures, potentially affecting future profitability.

Regulatory Challenges

Ongoing regulatory challenges can delay project timelines, increasing costs and impacting the company's ability to capitalize on growth opportunities.

TC Energy Business Overview & Revenue Model

Company Description

TC Energy Corporation is a North American energy infrastructure company headquartered in Calgary, Alberta. It operates across three key segments: Natural Gas Pipelines, Liquids Pipelines, and Power and Storage. The company is primarily engaged in the development and operation of energy infrastructure assets, including a vast network of natural gas pipelines, liquids pipelines for crude oil transportation, and power generation facilities. TC Energy focuses on providing reliable energy solutions to meet the growing demand for energy while maintaining safety and environmental stewardship.

How the Company Makes Money

TC Energy generates revenue primarily through the transportation and storage of natural gas and liquids, as well as power generation. The company earns a significant portion of its income from its regulated natural gas and liquids pipelines, which operate under long-term contracts that provide stable cash flows. Additionally, TC Energy's power generation segment contributes revenue through the sale of electricity in regulated and competitive markets. Key revenue streams include fees charged for the transportation of natural gas and crude oil, and revenue from the sale of electricity. The company also engages in partnerships and joint ventures to expand its infrastructure and services, which can enhance its earnings potential and operational efficiency.

TC Energy Financial Statement Overview

Summary

TC Energy demonstrates strong profitability and operational efficiency, with robust EBIT and EBITDA margins. However, the high leverage indicated by the debt-to-equity ratio could be a potential risk. The company shows promising cash flow growth, which supports its financial stability. Continued focus on revenue growth and debt management will be crucial for sustaining long-term financial health.

Income Statement

TC Energy's income statement shows a strong EBIT and EBITDA margin, indicating efficient operations. However, the company experienced a decline in revenue growth rate, which is a concern. The net profit margin remains healthy, reflecting good profitability despite the revenue dip.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, suggesting significant leverage, which could pose risks if not managed well. However, the return on equity is solid, indicating effective use of equity to generate profits. The equity ratio is moderate, reflecting a balanced asset structure.

Cash Flow

Cash flow analysis shows a strong free cash flow growth rate, which is a positive indicator for future investments and debt repayment. The operating cash flow to net income ratio is healthy, but the free cash flow to net income ratio is relatively low, suggesting limited cash available after capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.43B	13.77B	13.27B	12.31B	13.39B	13.00B
Gross Profit	6.30B	6.61B	6.67B	5.80B	6.68B	6.53B
EBITDA	10.25B	11.22B	8.66B	5.24B	6.70B	9.53B
Net Income	3.50B	4.70B	2.92B	748.00M	1.96B	4.62B
Balance Sheet
Total Assets	120.23B	118.24B	125.03B	114.35B	104.22B	100.30B
Cash, Cash Equivalents and Short-Term Investments	1.80B	801.00M	3.68B	620.00M	673.00M	1.53B
Total Debt	61.36B	59.88B	63.66B	58.68B	53.15B	49.99B
Total Liabilities	82.66B	79.88B	86.03B	80.23B	70.82B	66.83B
Stockholders Equity	27.46B	27.59B	29.55B	33.99B	33.27B	31.40B
Cash Flow
Free Cash Flow	1.95B	1.34B	-881.00M	-352.00M	966.00M	-1.08B
Operating Cash Flow	7.54B	7.70B	7.27B	6.38B	6.89B	7.06B
Investing Cash Flow	-7.33B	-6.91B	-12.29B	-7.01B	-7.71B	-6.05B
Financing Cash Flow	-8.57B	-3.87B	8.09B	487.00M	-88.00M	-800.00M

TC Energy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 74.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 74.96 is below the 20-day moving average (MA) of 75.98, above the 50-day MA of 74.13, and above the 200-day MA of 68.70, indicating a neutral trend. The MACD of 0.49 indicates Positive momentum. The RSI at 49.82 is Neutral, neither overbought nor oversold. The STOCH value of 37.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:TRP.

TC Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KEY	77 Outperform	C$9.28B	17.49	15.28%	4.66%	-4.09%	-3.57%
TRP	70 Outperform	C$78.81B	23.22	12.96%	4.50%	-3.98%	-33.45%
PPL	70 Outperform	$31.79B	19.50	10.22%	5.11%	2.81%	-14.92%
GEI	69 Neutral	$4.24B	28.10	16.47%	6.58%	-12.18%	-29.17%
ENB	69 Neutral	C$145.73B	26.07	8.98%	5.72%	33.06%	-12.36%
ALA	66 Neutral	C$12.55B	16.78	9.01%	3.01%	-0.68%	49.61%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

TC Energy Corporate Events

TC Energy Extends Financial Outlook Amid Strong Q3 Performance

TC Energy has reported strong third-quarter results and extended its financial outlook through 2028, driven by robust North American energy fundamentals and effective project execution. The company has sanctioned over $5 billion in new growth projects over the past year, including three natural gas pipeline projects, which are expected to deliver consistent value without additional risk. Despite a decrease in net income compared to the previous year, TC Energy’s strategy continues to focus on low-risk capital allocation and high-return projects, ensuring stable growth and performance.

TC Energy Declares Quarterly Dividends and Redeems Series 11 Shares

TC Energy Corporation has announced a quarterly dividend of $0.85 per common share for the quarter ending December 31, 2025, payable on January 30, 2026. The company also declared dividends on its Cumulative First Preferred Shares, with specific amounts for each series. Notably, the Series 11 Shares will be redeemed on November 28, 2025, marking the final dividend for these shares. This announcement reflects TC Energy’s ongoing commitment to providing returns to its shareholders and may impact its market positioning by maintaining investor confidence.

TC Energy Closes $350 Million Notes Offering and Plans Share Redemption

TC Energy announced the successful closing of a US$350 million Junior Subordinated Notes offering by TransCanada PipeLines Limited. The proceeds will be used to redeem the company’s Cumulative Redeemable First Preferred Shares, Series 11, and for other corporate purposes. This financial maneuver is part of TC Energy’s strategy to manage its capital structure and reduce indebtedness, potentially impacting its financial stability and market positioning. The redemption will result in the delisting of the Series 11 Shares from the Toronto Stock Exchange, affecting shareholders holding these shares.

TC Energy Considers U.S. Junior Subordinated Notes Offering

TC Energy announced that its subsidiary, TransCanada PipeLines Limited, is considering an offering of U.S. Junior Subordinated Notes. If successful, the proceeds from this offering will be used to redeem outstanding preferred shares, reduce indebtedness, and for general corporate purposes. The announcement highlights the company’s ongoing financial strategies to manage its capital structure effectively, although the completion, timing, or terms of the offering remain uncertain.