TC Energy Corporation
Find Ratings ReportsTC ENERGY CORP's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the subsector, the net income growth has not. TC ENERGY CORP has weak liquidity. Currently, the Quick Ratio is 0.71 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has decreased by 13.05% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 4236.0 | 4041.0 |
EBITDA ($mil) | 2599.0 | 2440.0 |
EBIT ($mil) | 1882.0 | 1770.0 |
Net Income ($mil) | 1487.0 | -1425.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 3984.0 | 911.0 |
Total Assets ($mil) | 125034.0 | 114348.0 |
Total Debt ($mil) | 63660.0 | 58733.0 |
Equity ($mil) | 29553.0 | 33990.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 61.36 | 60.38 |
EBITDA Margin | 61.35 | 60.38 |
Operating Margin | 44.43 | 43.8 |
Sales Turnover | 0.13 | 0.13 |
Return on Assets | 2.33 | 0.65 |
Return on Equity | 9.57 | 1.89 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 0.96 | 0.43 |
Debt/Capital | 0.68 | 0.63 |
Interest Expense | 897.0 | 738.0 |
Interest Coverage | 2.1 | 2.4 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 1037.49 | 1017.96 |
Div / share | 0.7 | 0.66 |
EPS | 1.42 | -1.42 |
Book value / share | 28.49 | 33.39 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 2369910.0 | 2839124.0 |
BUY. This stock's P/E ratio indicates a discount compared to an average of 14.76 for the Pipeline Transportation subsector and a significant discount compared to the S&P 500 average of 28.36. Conducting a second comparison, its price-to-book ratio of 1.41 indicates a significant discount versus the S&P 500 average of 4.75 and a discount versus the subsector average of 2.57. The current price-to-sales ratio is below the S&P 500 average, but above the subsector average. Upon assessment of these and other key valuation criteria, TC ENERGY CORP proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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TRP 14.52 | Peers 14.76 | TRP 5.72 | Peers 6.98 | |||||||||||||||||||||
Average. An average P/E ratio can signify an subsector neutral price for a stock and an average growth expectation. TRP is trading at a valuation on par with its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. TRP is trading at a discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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TRP NA | Peers 12.61 | TRP NA | Peers 6.33 | |||||||||||||||||||||
Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential. Ratio not available. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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Price/Book |
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Earnings Growth |
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TRP 1.41 | Peers 2.57 | TRP 305.88 | Peers 41.82 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. TRP is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. TRP is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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TRP 2.61 | Peers 2.52 | TRP 6.38 | Peers -6.43 | |||||||||||||||||||||
Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. TRP is trading at a valuation on par with its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. TRP has a sales growth rate that significantly exceeds its peers. |
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