Skip to Content

TC Energy Corp TRP

Morningstar Rating
CAD 49.73 −0.54 (1.07%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

TC Energy Is Getting Ready for LNG Canada's Startup

TC Energy faces many of the same challenges as Canadian pipeline peer Enbridge but also offers important contrasts. Both firms offer a 5%-7% growth profile and a utilitylike 95%-98% of earnings that are highly regulated or contracted, with several years of project backlog, despite Enbridge largely focusing on oil assets, while TC’s focus is natural gas. However, we also anticipate that any major new pipeline project for either firm will face substantial stakeholder challenges from a legal, regulatory, or community perspective, raising the risks and costs. We see this in the rather painful Coastal GasLink project for TC Energy, where capital costs have soared.

Price vs Fair Value

TRP is trading at a 21% discount.
Price
CAD 49.73
Fair Value
CAD 36.00
Uncertainty
Medium
1-Star Price
CAD 31.85
5-Star Price
CAD 15.60
Economic Moat
Qhwtg
Capital Allocation
Gkydqds

Bulls Say, Bears Say

Bulls

TC Energy has strong growth opportunities in Mexican natural gas as well as liquefied natural gas.

Bears

The firm is still expected to rely on capital markets for about 20% of its spending program, while Canadian and US peers are already generating free cash flow after dividends.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if TRP is a good fit for your portfolio.

News

Trading Information

Previous Close Price
CAD 50.27
Day Range
CAD 49.6550.65
52-Week Range
CAD 43.7057.02
Bid/Ask
CAD 49.66 / CAD 49.80
Market Cap
CAD 51.59 Bil
Volume/Avg
11.1 Mil / 6.9 Mil

Key Statistics

Price/Earnings (Normalized)
11.88
Price/Sales
3.29
Dividend Yield (Trailing)
7.21%
Dividend Yield (Forward)
7.38%
Total Yield
7.38%

Company Profile

TC Energy operates natural gas, oil, and power generation assets in Canada and the United States. The firm operates more than 60,000 miles of oil and gas pipelines, more than 650 billion cubic feet of natural gas storage, and about 4,300 megawatts of electric power.
Sector
Energy
Industry
Oil & Gas Midstream
Stock Style Box
Large Value
Total Number of Employees
7,415

Competitors

Valuation

Metric
TRP
WMB
ENB
Price/Earnings (Normalized)
11.8820.3617.07
Price/Book Value
1.953.821.82
Price/Sales
3.294.362.25
Price/Cash Flow
7.418.138.26
Price/Earnings
TRP
WMB
ENB

Financial Strength

Metric
TRP
WMB
ENB
Quick Ratio
0.680.650.62
Current Ratio
0.960.770.83
Interest Coverage
2.464.503.04
Quick Ratio
TRP
WMB
ENB

Profitability

Metric
TRP
WMB
ENB
Return on Assets (Normalized)
3.89%4.67%3.23%
Return on Equity (Normalized)
15.19%19.77%10.46%
Return on Invested Capital (Normalized)
6.59%8.25%6.00%
Return on Assets
TRP
WMB
ENB
See how this stock stacks up to its competitors with Morningstar Investor

Oil & Gas Midstream Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
ENB
Enbridge IncHvtcpzrxsKzrtmb$73.4 Bil
EPD
Enterprise Products Partners LPNmmxqbjfJqqz$63.4 Bil
ET
Energy Transfer LPQjvvLrlm$51.9 Bil
OKE
ONEOK IncDhtrjmjhNcpwtvn$46.6 Bil
WMB
Williams Companies IncVwmlcywfPwncg$46.4 Bil
MPLX
MPLX LP Partnership UnitsZmttyqypShzvfjz$41.8 Bil
KMI
Kinder Morgan Inc Class PJnblnzwwRtgwm$41.0 Bil
TRP
TC Energy CorpGwqjhbtnpMczdx$37.7 Bil
LNG
Cheniere Energy IncZzftwpwfvTxsg$36.8 Bil
TRGP
Targa Resources CorpHzlgfdvrYjwgm$25.5 Bil

Sponsor Center