TC Energy (TRP) AI Stock Analysis

• Market Cap: $72.01B
• Dividend Yield: 5.17%
• Average Volume (3M): 9.81M
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.75
• Revenue Growth: 5.31%
• EPS Growth: 61.02%
• Country: CA
• Employees: 6,668
• Sector: Energy
• Sector Strength: 47
• Industry: Oil & Gas Midstream
• EPS (TTM): 4.43
• Shares Outstanding: 1,039,287,700
• 10 Day Avg. Volume: 5,792,386
• 30 Day Avg. Volume: 9,810,230
• PEG Ratio: 0.26
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: $74.32
• Price Target Upside: 5.66% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

TC Energy shows a strong operational outlook with positive earnings call sentiment highlighting significant project completions and future growth potential. However, financial performance is mixed, with concerns over revenue consistency and cash flow. Technical indicators show strong momentum, and the valuation is balanced with a reasonable P/E ratio and an attractive dividend yield.

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.

Project Announcements

New US Gas Project Announcements Likely Over The Coming Quarters.

Negative Factors

Earnings Impact

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

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 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

Overall, TC Energy displays financial stability with areas needing improvement, particularly in maintaining consistent revenue and optimizing cash flow. The company's leverage is manageable but requires careful monitoring to avoid future financial strain. The mixed performance across financial metrics suggests a need for strategic adjustments to sustain growth and profitability.

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
5.79B	6.86B	7.28B	7.25B	7.00B
	EBITDA
11.45B	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: Positive
• Last Price: 70.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TRP, the sentiment is Positive. The current price of 70.34 is above the 20-day moving average (MA) of 67.38, above the 50-day MA of 66.81, and above the 200-day MA of 62.44, indicating a bullish trend. The MACD of 0.81 indicates Negative momentum. The RSI at 62.62 is Neutral, neither overbought nor oversold. The STOCH value of 83.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TRP.

TC Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KEY	79 Outperform	C$9.91B	20.37	17.35%	4.82%	2.89%	14.76%
TRP	74 Outperform	$72.01B	15.66	16.85%	5.17%	5.31%	61.02%
Sector *	56 Neutral	$6.99B	3.72	-4.39%	5.96%	-0.24%	-48.44%

TC Energy Corporate Events

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.

Spark’s Take on TSE:TRP Stock

According to Spark, TipRanks’ AI Analyst, TSE:TRP is a Outperform.

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.

To see Spark’s full report on TSE:TRP stock, click here.