TC Energy (TRP) AI Stock Analysis

• Market Cap: C$67.28B
• Dividend Yield: 5.38%
• Average Volume (3M): 9.79M
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.72
• Revenue Growth: 0.72%
• EPS Growth: 60.40%
• Country: CA
• Employees: 6,668
• Sector: Energy
• Sector Strength: 51
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.95
• Shares Outstanding: 1,039,287,700
• 10 Day Avg. Volume: 6,465,286
• 30 Day Avg. Volume: 9,786,806
• PEG Ratio: -3.03
• Price to Book (P/B): 2.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 97.63
• 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$77.29
• Price Target Upside: 19.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 64 Neutral
• Price Target: C$70.00 ▲(8.12%Upside)

TC Energy's overall stock score is driven by strong financial performance, particularly in profitability and operating efficiency. The positive earnings call sentiment underscores growth potential through strategic projects. However, technical analysis reveals mixed signals, and high leverage poses financial risks.

Positive Factors

Financial Performance

The settlement with Columbia Gas sets interim transportation rates 26% higher than previous rates, which is beneficial for TRP.

Growth Prospects

TRP is exploring partnerships for data center projects in Alberta, indicating potential growth opportunities in the region.

Project Development

The Southeast Gateway project is ready for service with CFE having agreed to the contracted rate, mitigating a major risk.

Negative Factors

Capital Expenditure

TRP announced a $0.9B USD data center project & signaled there's more to come, leading to an increase in capex estimates.

Earnings

EPS was slightly below consensus, indicating some challenges in meeting earnings expectations.

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 makes money through several key revenue streams, primarily focused on its natural gas pipelines, liquids pipelines, and power and storage segments. The company's natural gas pipelines segment generates revenue by transporting natural gas across its vast network, which includes long-term, fixed-rate contracts that provide a stable income. Its liquids pipelines segment earns money by transporting crude oil and other liquid hydrocarbons, also underpinned by long-term contracts that mitigate market volatility. Additionally, TC Energy's power and storage segment contributes to its earnings through the generation and sale of electricity, as well as providing storage solutions for energy commodities. Significant partnerships with energy producers and long-term agreements with customers are crucial factors that enhance its revenue stability and growth potential.

TC Energy Financial Statement Overview

Summary

TC Energy exhibits strong profitability with robust operating margins and satisfactory return on equity. However, the company faces revenue contraction and high leverage, posing financial risks. Cash flow management shows weaknesses with declining free cash flow, impacting financial stability.

Income Statement

TC Energy shows solid profitability with a TTM gross profit margin of 48.32% and a net profit margin of 34.04%, indicating efficient cost management and strong bottom-line performance. However, the company has faced revenue contraction over the past year, with a decline of 4.50% from 2024 to 2025. The TTM EBIT margin remains robust at 42.11% while the EBITDA margin is at 84.00%, showcasing strong operating efficiency.

Balance Sheet

The debt-to-equity ratio is high at 2.24, reflecting significant leverage, which poses potential financial risk. Return on equity stands strong at 16.16%, demonstrating effective equity utilization to generate profits. The equity ratio is 22.97%, indicating a moderate level of equity funding relative to total assets.

Cash Flow

The free cash flow growth rate is negative, showing a substantial decline from previous periods. The operating cash flow to net income ratio is 1.57, indicating that operating cash flows are well-aligned with net income. However, the free cash flow to net income ratio is lower at 0.15, suggesting limited free cash flow generation relative to net income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.77B	15.03B	12.31B	13.39B	13.00B
Gross Profit	6.61B	6.85B	5.80B	6.68B	6.53B
EBITDA	11.45B	8.66B	5.48B	6.39B	8.87B
Net Income	4.70B	2.92B	748.00M	1.96B	4.62B
Balance Sheet
Total Assets	118.24B	125.03B	114.35B	104.22B	100.30B
Cash, Cash Equivalents and Short-Term Investments	801.00M	3.68B	620.00M	673.00M	1.53B
Total Debt	59.88B	63.66B	58.68B	53.15B	49.99B
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: 64.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 64.74 is below the 20-day moving average (MA) of 65.34, below the 50-day MA of 66.40, and below the 200-day MA of 65.56, indicating a bearish trend. The MACD of -0.25 indicates Negative momentum. The RSI at 44.07 is Neutral, neither overbought nor oversold. The STOCH value of 20.21 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	80 Outperform	C$9.87B	18.07	19.55%	4.83%	8.00%	52.89%
ENB	78 Outperform	$134.46B	22.74	9.51%	6.02%	43.97%	2.65%
ALA	75 Outperform	$12.03B	21.34	6.56%	3.05%	2.27%	-9.19%
PPL	75 Outperform	$29.28B	16.43	11.55%	5.52%	-5.42%	-1.70%
GEI	72 Outperform	C$4.05B	24.92	17.23%	6.79%	-5.85%	-8.05%
Sector *	67 Neutral	$15.15B	9.89	6.22%	5.21%	4.47%	-70.67%
TRP	64 Neutral	C$67.28B	15.38	15.89%	5.38%	0.72%	60.40%

TC Energy Corporate Events

TC Energy to Announce Q2 2025 Financial Results

TC Energy announced it will release its second quarter 2025 financial results on July 31, 2025, with a teleconference and webcast scheduled for the same day. The event will feature discussions by key executives, including the CEO and CFO, on the company’s financial performance and developments. This announcement is significant for stakeholders as it provides insights into the company’s operational and financial health, potentially impacting its market position and investor confidence.

The most recent analyst rating on (TSE:TRP) stock is a Hold with a C$65.00 price target. To see the full list of analyst forecasts on TC Energy stock, see the TSE:TRP Stock Forecast page.

TC Energy Commences Tolls on Under-Budget Southeast Gateway Pipeline

TC Energy has begun collecting tolls on the Southeast Gateway pipeline, a major natural gas infrastructure project completed under budget and ahead of schedule. This pipeline, constructed in partnership with Mexico’s Comisión Federal de Electricidad (CFE), is crucial for supporting Mexico’s energy demand and economic growth. The project underscores TC Energy’s commitment to enhancing energy security and transitioning to more sustainable energy sources in Mexico.

The most recent analyst rating on (TSE:TRP) stock is a Hold with a C$57.00 price target. To see the full list of analyst forecasts on TC Energy stock, see the TSE:TRP Stock Forecast page.

TC Energy Announces Preferred Shares Conversion Options

TC Energy announced that it will not redeem its Series 3 and Series 4 preferred shares on June 30, 2025. Shareholders of these series have options to either retain their shares and receive dividends at new rates or convert them between Series 3 and Series 4 to switch between fixed and floating dividend rates. The decision impacts the company’s financial structuring and offers flexibility to shareholders, with potential implications for market positioning and investor relations.

The most recent analyst rating on (TSE:TRP) stock is a Hold with a C$57.00 price target. To see the full list of analyst forecasts on TC Energy stock, see the TSE:TRP Stock Forecast page.

TC Energy Confirms Board of Directors Election Results at 2025 Annual Meeting

TC Energy announced the election results for its Board of Directors at the 2025 annual meeting, where all 13 nominees were elected to serve until the next meeting. This election solidifies the company’s leadership structure, potentially impacting its strategic direction and stakeholder relationships. The final voting results will be available on SEDAR+ and EDGAR, as well as the company’s website.