TC Energy (TRP) AI Stock Analysis

• Market Cap: $72.21B
• Dividend Yield: 5.1%
• Average Volume (3M): 3.13M
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.73
• Revenue Growth: 0.72%
• EPS Growth: 60.40%
• Country: CA
• Employees: 6,668
• Sector: Energy
• Sector Strength: 42
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.95
• Shares Outstanding: 1,039,287,700
• 10 Day Avg. Volume: 3,230,636
• 30 Day Avg. Volume: 3,132,937
• PEG Ratio: -3.22
• Price to Book (P/B): 2.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 103.69
• 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: $77.13
• Price Target Upside: 13.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 74 Outperform
• Price Target: ―

TC Energy's overall score reflects its strong financial performance and operational efficiency, bolstered by robust profitability and strategic project completions. However, challenges in revenue growth and high leverage, coupled with technical indicators nearing overbought conditions, temper the score. The company's positive earnings call sentiment and fair valuation provide additional support for the stock's outlook.

Positive Factors

Project Expansion

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

Risk Mitigation

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

Negative Factors

Earnings Forecast

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

Earnings Performance

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 generates revenue through several key streams, primarily from its natural gas pipelines, liquids pipelines, and power and storage segments. The natural gas pipelines segment involves the transportation of natural gas through an extensive network of pipelines, where the company earns fees based on the volume of gas transported and the distance covered. The liquids pipelines segment works similarly but focuses on crude oil and other liquid hydrocarbons. The power and storage segment generates revenue through the operation of power generation facilities and the provision of energy storage solutions. Additionally, TC Energy benefits from long-term contracts and regulatory frameworks that provide stable and predictable cash flows. Strategic partnerships and joint ventures with other energy companies also enhance its business operations and revenue potential through shared infrastructure and resources.

TC Energy Financial Statement Overview

Summary

TC Energy demonstrates strong profitability but faces challenges with revenue growth and high leverage. The company maintains robust operating margins and satisfactory return on equity. Cash flow management shows potential weaknesses with declining free cash flow. The financial stability is influenced by high debt levels, posing potential risks if revenue contraction persists.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
13.15B	13.77B	15.93B	14.98B	13.39B	13.00B
	Gross Profit
6.36B	6.61B	7.75B	6.93B	6.68B	6.53B
	EBIT
5.54B	5.79B	6.86B	7.28B	7.25B	7.00B
	EBITDA
11.05B	11.45B	8.66B	5.48B	6.39B	8.87B
	Net Income Common Stockholders
4.48B	4.70B	2.92B	748.00M	1.96B	4.62B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.96B	801.00M	3.68B	620.00M	673.00M	1.53B
	Total Assets
120.55B	118.24B	125.03B	114.35B	104.22B	100.30B
	Total Debt
61.99B	59.88B	63.66B	58.30B	52.77B	49.56B
	Net Debt
60.03B	59.08B	59.98B	57.68B	52.09B	48.03B
	Total Liabilities
82.11B	79.88B	86.03B	80.23B	70.82B	66.83B
	Stockholders Equity
27.69B	27.59B	29.55B	33.99B	33.27B	31.40B
Cash Flow		Free Cash Flow
690.00M	1.34B	-881.00M	-352.00M	966.00M	-1.08B
	Operating Cash Flow
7.01B	7.70B	7.27B	6.38B	6.89B	7.06B
	Investing Cash Flow
-6.79B	-6.91B	-12.29B	-7.01B	-7.71B	-6.05B
	Financing Cash Flow
-1.65B	-3.87B	8.09B	487.00M	-88.00M	-800.00M

TC Energy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 67.66
• 50DMA: Negative
• 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 67.66 is below the 20-day moving average (MA) of 69.19, below the 50-day MA of 68.44, and above the 200-day MA of 64.68, indicating a neutral trend. The MACD of 0.22 indicates Positive momentum. The RSI at 40.59 is Neutral, neither overbought nor oversold. The STOCH value of 34.69 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
TRP	74 Outperform	$72.21B	16.51	15.89%	5.10%	0.72%	60.40%
Sector *	57 Neutral	$7.22B	3.15	-4.49%	5.63%	0.82%	-49.15%
ENB		$101.51B	23.92	9.51%	5.70%	―	―
PBA		$21.80B	17.06	11.55%	5.28%	―	―
GBNXF		$2.80B	23.88	17.23%	6.98%	―	―
ATGFF		$8.34B	21.06	6.56%	3.12%	―	―
KEY	76 Outperform	C$9.58B	17.55	19.55%	4.92%	8.00%	52.89%

TC Energy Corporate Events

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.

TC Energy to Announce Q1 2025 Results and Hold Virtual Annual Meeting

TC Energy announced that it will release its first quarter 2025 financial results on May 1, followed by its annual meeting of common shareholders on May 8, which will be held virtually. The financial results will be discussed by the company’s executive leadership, providing insights into recent company developments. This announcement is significant for stakeholders as it offers an opportunity to assess the company’s financial health and strategic direction. The virtual format of the annual meeting ensures broader accessibility for shareholders, reflecting TC Energy’s commitment to transparency and stakeholder engagement.