$TC Energy (TRP.US)$The listed company that went public in 1...

In the past 5 years, the revenue has slightly fluctuated with a small growth of an average rate of 2.2%. The operating profit has been steadily growing at a slow pace with an average growth rate of 6% over the past 5 years. However, the net income has shrunk significantly in the past two years due to the impairment of capital assets and write-offs. In 2022, interest expenses accounted for 34% of operating profit, indicating a heavy interest burden. The return on equity is at a very low level of 2.1%.

In the first three quarters of 2023, the revenue grew by 7%, the operating profit grew by 13.9%, and the net income shrank by 34% due to increased interest expenses and significant write-offs.

In the past 5 years, the asset-liability ratio has decreased from 68.7% to 66.6%, and then increased to 70.2%. The accounts receivable reached 3.779 billion, accounting for 25% of the revenue that year, which is relatively high. The proportion and growth rate of inventory are relatively normal. Goodwill is 12.843 billion, accounting for 38% of the net assets of 34.116 billion. Long-term loans amount to 50.14 billion, which is 1.5 times the net assets, indicating a high level of leverage. The share capital has been increasing.

In the past 5 years, the net cash flow from operations has been lower than the net investment, and no shareholder surplus has been generated.

Currently, the pe is 81.44, pe TTM is in a loss state, dividend yield is 7%, 5-year average net income is 3.1 billion, corresponding pe ratio is 12.6. From a cyclical stock perspective, the valuation is not low, and the attractiveness is not high for now.