TRPTC Energy Corporation
Is the business good?
The checks split: earnings fully cash-backed (1.2×) and margins widening, but returns that lean on debt.
Operating profit is fully backed by cash.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 13% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is TRP?
TC Energy Corporation earns 8.3% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 0.73 points below what the capital costs: growth destroys value
- Operating margin
- 53%
Operating margin · Oil & Gas Midstream median 30% · fiscal year to FY2025
- Cash conversion
- 1.16×
Cash conversion · 1.15× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.19%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 52% |
| FY2021 | 30% |
| FY2022 | 20% |
| FY2023 | 38% |
| FY2024 | 58% |
| FY2025 | 53% |
Details›
- Gross marginfiscal year to FY2025
- 99%
- Operating marginfiscal year to FY2025
- 53%
- Net marginfiscal year to FY2025
- 23%
- Revenue, trailing twelve months
- $15.2B
- Net income, trailing twelve months
- $3.52B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.3%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.