TC Energy Corp
🇨🇦 TRP.TO · Toronto · CA87807B1076
Infrastructure
CAD 88.16 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
26.1
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 88.16 ÷ 3.38 = 26.1
TTM period through: 2025-12-31
Forward P/E (estimated): 23.8
Based on analyst estimates
Reference: Provider P/E (Trailing): 25.4
Yield (Fwd)
3.98%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 3.93%
Net Debt/EBITDA (TTM)
6.4x
Latest quarter: 24.1x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 24.1x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
103.7%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 102.9%
Cash Flow Payout (TTM): 49.3%
FCF Coverage (TTM): 0.57x
ROE
11.4%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
14.0x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
TC Energy is a major North American energy infrastructure provider operating essential pipeline networks with highly contracted cash flows. While the company possesses quality monopolistic assets and is shifting toward a lower-risk utility model, the currently stretched valuation (P/E 26) and elevated debt profile make it unsuitable for new investment. Better opportunities exist in infrastructure companies with stronger free cash flow coverage and more conservative leverage.
Sector Context
TC Energy operates an extensive network of natural gas pipelines, liquids pipelines, and power generation facilities across North America. In the infrastructure sector, while stable regulated or contracted cash flows allow for higher leverage than typical industrials, a Net Debt/EBITDA above 5x still warrants caution, particularly when heavy capital expenditures consume most operating cash flow.
📊 Strategy Analysis
- • Operates critical, hard-to-replicate North American energy infrastructure assets generating stable, contracted operating cash flows.
- • Executing a strategic transition toward a lower-risk, utility-like business model, highlighted by recent business spin-offs.
⚠ What to Watch
- • Valuation is significantly stretched with a trailing P/E of 26.1, far exceeding conservative value ranges for infrastructure assets.
- • Net Debt/EBITDA of 6.4x remains well above the conservative 4x threshold, creating refinancing risks in a higher interest rate environment.
- • Heavy ongoing capital expenditures result in weak Free Cash Flow coverage (0.57x), limiting post-capex financial flexibility.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-05
Disclaimer: This information is for educational purposes only. Not financial advice.