NYSE
TCPA
Last Price
US $23.04
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
TransCanada PipeLines Limited 6 cash flow to debt ratio of 14.41% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial stability - Healthy cash flow growth.
TransCanada PipeLines Limited 6's free cash flow has increased -92.05% from $-2.01G last year to $-159.63M, signaling increasing performance
Financial risk - Healthy debt to equity ratio.
TransCanada PipeLines Limited 6's debt to equity ratio is 1.64, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial stability - Healthy debt to equity ratio development.
TransCanada PipeLines Limited 6's debt has decreased relative to shareholder equity from 1.71 last year to 1.64 today, signaling strengthened financials
Financial risk - Net debt/EBITDA.
TransCanada PipeLines Limited 6 has a net debt to EBITDA ratio of 5.31x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk
Financial stability - ICR.
TransCanada PipeLines Limited 6's interest coverage ratio of 2.20 indicates that earnings with margin can cover interest payments on company debt
Financial stability - Profit margin growth.
TransCanada PipeLines Limited 6's profit margin has increased (13.35%) in the last year from 28.11% to 31.86%, signaling increasing performance
Financial risk - Short term assets vs short term liabilities.
TransCanada PipeLines Limited 6's short-term liabilities of $9.95G exceed its short-term assets of $5.90G, signaling financial risk
Decreasing performance - ROA.
TransCanada PipeLines Limited 6's return on assets of 4.17% is lower than the 5.00% threshold, indicating inefficient asset utilization
Decreasing performance - Absolute return on equity.
TransCanada PipeLines Limited 6's return on equity of 14.13%, is lower than 15.00%, indicating bad performance
Increasing performance - Earnings quality.
TransCanada PipeLines Limited 6's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
TransCanada PipeLines Limited 6 had positive net income in 4.00 out of 5 years, indicating stable and consistent earnings
Decreasing performance - Free cash flow.
TransCanada PipeLines Limited 6 has negative free cash flow, indicating the company is burning cash rather than generating it
Decreasing performance - FCF yield.
TransCanada PipeLines Limited 6 has negative free cash flow, indicating cash burn
Increasing performance - Healthy earnings growth.
TransCanada PipeLines Limited 6's yearly earnings has increased 17.79% since last year from $2.71G to $3.19G, signaling increasing performance
Increasing performance - Healthy revenue growth.
TransCanada PipeLines Limited 6's yearly revenue has increased 3.91% since last year from $9.64G to $10.02G, signaling increasing performance
Increasing performance - ROIC.
ROIC 5.05% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
Increasing performance - 3-year revenue CAGR.
TransCanada PipeLines Limited 6's 3-year revenue CAGR of 1.82% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
TransCanada PipeLines Limited 6 had revenue growth in 3.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
TransCanada PipeLines Limited 6 had positive ROE in 4.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
TransCanada PipeLines Limited 6 has insufficient data to evaluate this check.
Undervalued - Earnings yield.
TransCanada PipeLines Limited 6 has an earnings yield of 14.86%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
TransCanada PipeLines Limited 6 is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model
Undervalued - EV/EBITDA.
TransCanada PipeLines Limited 6 has an EV/EBITDA ratio of 8.59x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Undervalued - PEG ratio value.
TransCanada PipeLines Limited 6 has a PEG-ratio under 1 which is considered undervalued
Undervalued - P/B ratio.
TransCanada PipeLines Limited 6 has a price-to-book ratio of 0.91x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
TransCanada PipeLines Limited 6 has a price-to-sales ratio of 2.33x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue
Profit margin
Current Ratio
Capital Returns
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Return on equity
ROIC: -
Valuation History
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Price to Earnings
EV/EBITDA: -
Cash flow
Profit margin
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(FY vs FY)
Cash flow Y/Y
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(FY vs FY)
Fair Value
Market $23.04
97.48%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.