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Relative valuation derived from Utilities sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 35.6GRADE D
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
78.0%
Sector: 9.9%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, TC ENERGY CORP (TRP) receives a "Buy" rating with a composite score of 53.1/100, ranked #97 out of 4446 stocks. Key factor scores: Quality 36/100, Value 72/100, Momentum 59/100. This is quantitative analysis only — not investment advice.
TC ENERGY CORP (TRP) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does TC ENERGY CORP Do?
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. TC ENERGY CORP (TRP) is classified as a large-cap stock in the Utilities sector. The company is led by CEO Francois L. Poirier and employs approximately 7,480 people, headquartered in CALGARY ALBERTA, Alberta. With a market capitalization of $64.8B, TRP is one of the prominent companies in the Utilities sector.
TC ENERGY CORP (TRP) Stock Rating — Buy (April 2026)
As of April 2026, TC ENERGY CORP receives a Buy rating with a composite score of 53.1/100 and 4 out of 5 stars from the Blank Capital Research quantitative model.TRP ranks #97 out of 4,446 stocks in our coverage universe. Within the Utilities sector, TC ENERGY CORP ranks #5 of 112 stocks, placing it in the top 10% of its Utilities peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
TRP Stock Price and 52-Week Range
TC ENERGY CORP (TRP) currently trades at $63.83. The stock lost $0.35 (0.5%) in the most recent trading session. The 52-week high for TRP is $65.12, which means the stock is currently trading -2.0% from its annual peak. The 52-week low is $43.59, putting the stock 46.4% above its annual trough. Recent trading volume was 2.1M shares, reflecting moderate market activity.
Is TRP Overvalued or Undervalued? — Valuation Analysis
TC ENERGY CORP (TRP) carries a value factor score of 72/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 20.75x, compared to the Utilities sector average of 23.47x — a discount of 12%. The price-to-book ratio stands at 3.47x, versus the sector average of 1.98x. The price-to-sales ratio is 1.74x, compared to 0.82x for the average Utilities stock. On an enterprise value basis, TRP trades at 3.80x EV/EBITDA, versus 4.75x for the sector. The EV/EBIT multiple is 30.71x.
Based on these multiples, TC ENERGY CORP appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
TC ENERGY CORP Profitability — ROE, Margins, and Quality Score
TC ENERGY CORP (TRP) earns a quality factor score of 36/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 78.0%, compared to the Utilities sector average of 9.9%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 18.2% versus the sector average of 3.1%.
On a margin basis, TC ENERGY CORP reports gross margins of 98.4%, compared to 53.1% for the sector. The operating margin is 42.0% (sector: 21.5%). Net profit margin stands at 39.1%, versus 12.8% for the average Utilities stock. Revenue growth is running at 16.2% on a trailing basis, compared to 20.1% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
TRP Debt, Balance Sheet, and Financial Health
TC ENERGY CORP has a debt-to-equity ratio of 215.0%, compared to the Utilities sector average of 164.5%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. Total debt on the balance sheet is $41.23B. Cash and equivalents stand at $556M.
TRP has a beta of 0.36, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for TC ENERGY CORP is 95/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
TC ENERGY CORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, TC ENERGY CORP reported revenue of $9.56B and earnings per share (EPS) of $3.08. Net income for the quarter was $3.74B. Gross margin was 98.4%. Operating income came in at $4.02B.
In FY 2024, TC ENERGY CORP reported revenue of $9.56B and earnings per share (EPS) of $3.08. Net income for the quarter was $3.74B. Gross margin was 98.4%. Revenue grew -20.8% year-over-year compared to FY 2023. Operating income came in at $4.02B.
In FY 2023, TC ENERGY CORP reported revenue of $12.07B and earnings per share (EPS) of $2.75. Net income for the quarter was $2.32B. Gross margin was 99.4%. Revenue grew 32.7% year-over-year compared to FY 2022. Operating income came in at $5.20B.
In FY 2022, TC ENERGY CORP reported revenue of $9.10B and earnings per share (EPS) of $0.47. Net income for the quarter was $580M. Gross margin was 99.8%. Revenue grew -13.2% year-over-year compared to FY 2021. Operating income came in at $3.32B.
Over the past 8 quarters, TC ENERGY CORP has experienced revenue contraction from $10.02B to $9.56B. Investors analyzing TRP stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
TRP Dividend Yield and Income Analysis
TC ENERGY CORP (TRP) does not currently pay a dividend. This is common among growth-oriented companies in the Utilities industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Utilities dividend stocks may want to explore other Utilities stocks or use the stock screener to filter by dividend yield.
TRP Momentum and Technical Analysis Profile
TC ENERGY CORP (TRP) has a momentum factor score of 59/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 69/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 5/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
TRP vs Competitors — Utilities Sector Ranking and Peer Comparison
Comparing TRP against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full TRP vs S&P 500 (SPY) comparison to assess how TC ENERGY CORP stacks up against the broader market across all factor dimensions.
TRP Next Earnings Date
No upcoming earnings date has been announced for TC ENERGY CORP (TRP) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy TRP? — Investment Thesis Summary
The bull case for TC ENERGY CORP rests on several quantitative strengths. The quality score of 36/100 flags below-average profitability. The value score of 72/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 95/100) reduces downside risk.
In summary, TC ENERGY CORP (TRP) earns a Buy rating with a composite score of 53.1/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on TRP stock.
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Institutional Research Dossier
TC ENERGY CORP (TRP) Deep Dive Analysis
Published on March 24, 2026
Action RatingBuy
Sections
Executive Summary
TC Energy Corporation (TRP) is a well-diversified energy infrastructure company that operates an extensive network of natural gas and liquids pipelines across North America. The BCR proprietary model rates TRP as a 4-star Buy, primarily driven by its strong financial stability, attractive valuation, and robust capital allocation practices. The key takeaway is that TRP's defensive business model, dominant market position, and prudent management make it a compelling long-term investment opportunity in the utilities sector.
Despite facing some regulatory and competitive headwinds, TRP's established asset base, disciplined growth strategy, and shareholder-friendly policies position it well to continue generating stable cash flows and delivering consistent returns to investors over the long run.
Business Strategy & Overview
TC Energy Corporation is a leading energy infrastructure company that primarily transports and stores natural gas, crude oil, and other liquids across North America. The company operates through five key business segments: Canadian Natural Gas Pipelines, U.S. Natural Gas Pipelines, Mexico Natural Gas Pipelines, Liquids Pipelines, and Power and Storage.
The core of TC Energy's business model is its extensive network of approximately 93,300 km of natural gas pipelines, which transport natural gas from supply basins to end-users such as local distribution companies, power plants, and industrial facilities. This network is further bolstered by the company's regulated natural gas storage facilities with a total working gas capacity of 535 billion cubic feet. In addition, TC Energy owns and operates a liquids pipeline system of around 4,900 km that connects Alberta's crude oil supplies to refining markets in the U.S. Midwest and Gulf Coast.
Beyond its pipeline and storage assets, TC Energy also has ownership interests in several power generation facilities with a combined capacity of approximately 4,300 megawatts, primarily fueled by natural gas and nuclear sources. This diversified asset base, combined with the company's strategic focus on fee-based and regulated revenue streams, provides a high degree of cash flow stability and resilience to market volatility.
TC Energy's growth strategy centers on disciplined capital allocation, targeted expansion of its existing infrastructure, and strategic acquisitions that enhance its competitive position and geographic reach. The company has a robust project pipeline, including several major growth initiatives such as the Coastal GasLink pipeline in British Columbia and the Keystone XL pipeline expansion, which aim to capitalize on emerging energy demand trends and infrastructure needs across North America.
Overall, TC Energy's diversified business model, extensive asset network, and prudent growth strategy position it as a leading player in the North American energy infrastructure landscape, with the potential to deliver stable returns to investors over the long term.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
16.2%
Sector: 20.1%
-19% VS SCTR
Economic Moat Analysis
TC Energy possesses a wide economic moat, underpinned by its dominant market position, substantial scale advantages, and high barriers to entry in the energy infrastructure industry.
The company's extensive network of natural gas and liquids pipelines, as well as its regulated storage facilities, benefit from significant scale and density advantages. TC Energy's vast infrastructure footprint, which spans across Canada, the United States, and Mexico, allows it to leverage economies of scale in operations, maintenance, and capital expenditures. This translates into cost advantages over smaller, regional competitors, reinforcing the company's competitive positioning.
Additionally, the highly regulated nature of the energy infrastructure industry and the significant upfront capital required to build new pipelines and storage assets create high barriers to entry. Securing the necessary regulatory approvals, rights-of-way, and financing to construct new energy infrastructure projects is a complex and time-consuming process, further entrenching TC Energy's market dominance.
The company's long-term customer contracts, which typically span 10-20 years, also contribute to its wide economic moat. These long-dated agreements provide a stable, recurring revenue stream and foster strong customer relationships, making it challenging for competitors to displace TC Energy's incumbency advantage.
Furthermore, TC Energy's expertise in project development, operational efficiency, and risk management further solidifies its competitive positioning. The company's track record of successfully completing large-scale infrastructure projects and its ability to navigate the regulatory environment add to the durability of its economic moat.
Overall, TC Energy's extensive asset base, scale advantages, high barriers to entry, and long-term customer relationships collectively create a wide and sustainable economic moat that should allow the company to maintain its market leadership and pricing power over the long term.
Financial Health & Profitability
TC Energy has demonstrated a strong financial profile, with a history of consistent revenue growth, expanding margins, and robust cash flow generation. Over the past five fiscal years, the company's revenue has remained relatively stable, ranging between $9.1 billion and $12.1 billion, showcasing the resilience of its diversified business model.
TC Energy's profitability metrics are also impressive, with the company consistently outperforming its industry peers. The company's gross margin has averaged around 98.4% in the trailing twelve months, significantly higher than the sector average of 53.3%. Similarly, TC Energy's operating margin of 42.0% is nearly double the industry average of 21.7%, demonstrating its ability to translate revenue into efficient and profitable operations.
The company's return on equity (ROE) of 78.0% is also notably strong, far exceeding the sector average of 10.0%. This high level of profitability and capital efficiency underscores TC Energy's effective deployment of its asset base and disciplined capital allocation strategies.
Despite a relatively high debt load, with a debt-to-equity ratio of 215.0% compared to the sector average of 165.0%, TC Energy's balance sheet remains healthy. The company's stable cash flow generation, with free cash flow of $2.83 billion in the trailing twelve months, provides sufficient coverage for its debt servicing and capital expenditures.
Looking at the quarterly financial history, TC Energy has maintained a consistent track record of profitability, with only a few quarters of net income declines. The company's strong financial fundamentals, including its ability to generate substantial free cash flow, support its growth initiatives, dividend payouts, and overall financial resilience.
Valuation Assessment
TC Energy's valuation appears attractive relative to its growth profile and industry peers. The company's current P/E ratio of 20.6x is lower than the sector average of 22.7x, suggesting that the stock is trading at a slight discount. Similarly, TC Energy's EV/EBITDA multiple of 3.8x is well below the industry average of 4.8x, indicating that the company's underlying cash flow generation is not fully reflected in its stock price.
Furthermore, TC Energy's free cash flow yield of 4.3% is notably higher than the sector average of 3.6%, underscoring the company's ability to consistently generate substantial free cash flow. This strong cash flow profile provides a solid foundation for the company to fund its growth initiatives, maintain its dividend payments, and potentially engage in shareholder-friendly actions such as share buybacks.
When compared to its own historical valuation multiples, TC Energy's current valuation also appears reasonably priced. Over the past five years, the company's P/E ratio has ranged between 18.0x and 23.6x, with the current multiple falling within this historical band.
Considering TC Energy's diversified business model, stable cash flow generation, and favorable competitive positioning, the current valuation seems to offer an attractive entry point for long-term investors. The company's focus on disciplined capital allocation, strategic growth initiatives, and shareholder-friendly policies further support the case for its stock being a compelling investment opportunity in the utilities sector.
Risk & Uncertainty
While TC Energy's business model and financial profile are generally robust, the company faces several key risks and uncertainties that investors should consider.
Regulatory risk is a significant concern, as the energy infrastructure industry is heavily regulated. Changes in government policies, environmental regulations, or permitting processes could adversely impact TC Energy's ability to develop new projects or maintain its existing assets. For example, the company's Keystone XL pipeline project was recently canceled due to regulatory challenges, underscoring the potential for such risks to materialize.
Additionally, TC Energy faces competitive pressures from other energy infrastructure players, as well as potential disruptive technologies or shifts in energy demand patterns. The company's ability to maintain its market share and pricing power may be challenged by the emergence of new pipelines, storage facilities, or alternative energy solutions that could erode its competitive advantage.
Furthermore, TC Energy's significant debt load, with a debt-to-equity ratio of 215.0%, exposes the company to interest rate risk and potential refinancing challenges. A rise in interest rates or a tightening of credit markets could increase the company's borrowing costs and strain its financial flexibility.
Bulls Say / Bears Say
The Bull Case
BULL VIEWTC Energy's extensive pipeline network, regulated assets, and diversified business model provide a high degree of cash flow stability and resilience, making it a defensive investment in the utilities sector.
BULL VIEWThe company's focus on disciplined capital allocation, strategic growth initiatives, and shareholder-friendly policies, including its attractive dividend yield, position it well to deliver consistent returns to investors over the long term.
BULL VIEWTC Energy's wide economic moat, driven by its scale advantages, high barriers to entry, and long-term customer relationships, should allow it to maintain its market leadership and pricing power in the energy infrastructure industry.
The Bear Case
BEAR VIEWRegulatory risks, such as changes in government policies or permitting processes, pose a significant threat to TC Energy's ability to develop new projects and maintain its existing asset base, which could impede the company's growth prospects.
BEAR VIEWThe company's high debt levels, with a debt-to-equity ratio significantly above the industry average, make it vulnerable to rising interest rates and potential refinancing challenges, potentially straining its financial flexibility.
BEAR VIEWIncreased competition from other energy infrastructure players, as well as the emergence of disruptive technologies or shifts in energy demand patterns, could erode TC Energy's market share and pricing power, undermining its long-term profitability.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score TRP and 4,400+ other equities.
TC ENERGY CORP exhibits a 39% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
18.2%
Sector: 3.1%
Gross Margin
Pricing power and cost efficiency
98.4%
Sector: 53.1%
Operating Margin
Core business profitability
42.0%
Sector: 21.5%
Net Margin
Bottom-line profitability
39.1%
Sector: 12.8%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
