TransCanada PipeLines Limited 6 (TCPA) 10-Year Financial Performance & Capital Metrics

TCPA • • Industrial / General

IndustrialsMidstream Oil & GasIntegrated Midstream OperationsDiversified Midstream Infrastructure

AboutTransCanada PipeLines Ltd. provides pipeline services for the gas and oil industries. It operates through the following segments: Natural Gas Pipelines, Liquids Pipelines and Power and Storage. The company was founded on March 21, 1951 and is headquartered in Calgary, Canada.Show more

Revenue $10.02B +3.9%
EBITDA $6.16B +11.5%
Net Income $3.19B +17.8%
EPS (Diluted) 3.29 +14.6%
Gross Margin 48.11% +10.0%
EBITDA Margin 61.48% +7.3%
Operating Margin 42.52% +7.8%
Net Margin 31.86% +13.4%
ROE 13.39% +9.1%
ROIC 5.24% +5.1%
Debt/Equity 1.56 -4.0%
Interest Coverage 2.20 -4.7%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓High quality earnings: Operating CF exceeds net income
✓Healthy 5Y average net margin of 15.1%
✓Trading near 52-week high
✓Trading at only 0.9x book value

✗Weaknesses

✗Negative free cash flow
✗Low asset turnover indicates capital-intensive operations

Price & Volume

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Growth Metrics

Revenue CAGR

10Y1.6%

5Y2.52%

3Y1.82%

TTM6.68%

Profit (Net Income) CAGR

10Y9.27%

5Y14.94%

3Y137.15%

TTM-58.77%

EPS CAGR

10Y-

5Y9.92%

3Y122.17%

TTM-62.02%

ROCE

10Y Avg6.24%

5Y Avg6.23%

3Y Avg6.29%

Latest6.58%

Peer Comparison

Diversified Midstream Infrastructure

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
TCPATransCanada PipeLines Limited 6		24.82	7.54	3.91%	13.5%	5.28%		1.56

Profit & Loss

	Dec 2010	Dec 2011	Dec 2012	Dec 2013	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019
Sales/Revenue+	8.13B	7.74B	8.03B	8.32B	8.85B	8.14B	9.49B	10.77B	9.64B	10.02B
Revenue Growth %	-0.05%	-0.05%	0.04%	0.04%	0.06%	-0.08%	0.17%	0.13%	-0.1%	0.04%
Cost of Goods Sold+	4.5B	4.59B	5.02B	5.15B	5.54B	5.11B	5.9B	6.66B	5.42B	5.2B
COGS % of Revenue	0.55%	0.59%	0.63%	0.62%	0.63%	0.63%	0.62%	0.62%	0.56%	0.52%
Gross Profit+	3.63B	3.15B	3B	3.16B	3.3B	3.03B	3.59B	4.12B	4.22B	4.82B
Gross Margin %	0.45%	0.41%	0.37%	0.38%	0.37%	0.37%	0.38%	0.38%	0.44%	0.48%
Gross Profit Growth %	-0.1%	-0.13%	-0.05%	0.05%	0.04%	-0.08%	0.19%	0.15%	0.02%	0.14%
Operating Expenses+	919.84M	441.93M	452.95M	418.82M	408.37M	372.18M	413.85M	454.13M	416.61M	560.63M
OpEx % of Revenue	0.11%	0.06%	0.06%	0.05%	0.05%	0.05%	0.04%	0.04%	0.04%	0.06%
Selling, General & Admin	0	0	0	0	0	0	0	0	0	0
SG&A % of Revenue	-	-	-	-	-	-	-	-	-	-
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	919.84M	441.93M	452.95M	418.82M	408.37M	372.18M	413.85M	454.13M	416.61M	560.63M
Operating Income+	2.71B	2.7B	2.55B	2.74B	2.9B	2.66B	3.18B	3.66B	3.8B	4.26B
Operating Margin %	0.33%	0.35%	0.32%	0.33%	0.33%	0.33%	0.33%	0.34%	0.39%	0.43%
Operating Income Growth %	0.05%	-0%	-0.06%	0.08%	0.06%	-0.08%	0.2%	0.15%	0.04%	0.12%
EBITDA+	4.08B	4.01B	3.93B	4.14B	4.29B	3.93B	4.62B	5.3B	5.52B	6.16B
EBITDA Margin %	0.5%	0.52%	0.49%	0.5%	0.48%	0.48%	0.49%	0.49%	0.57%	0.61%
EBITDA Growth %	0.05%	-0.02%	-0.02%	0.05%	0.04%	-0.08%	0.18%	0.15%	0.04%	0.12%
D&A (Non-Cash Add-back)	1.36B	1.3B	1.38B	1.4B	1.39B	1.27B	1.45B	1.64B	1.72B	1.9B
EBIT	2.51B	2.79B	2.69B	2.79B	3.52B	230.36M	1.75B	3.66B	4.01B	5.23B
Net Interest Income+	-663.21M	-999.75M	-966.15M	-936.47M	-931.58M	-1.03B	-1.35B	-1.53B	-1.5B	-1.58B
Interest Income	94.6M	54.01M	60.26M	67.76M	151.95M	0	97.68M	108.54M	147.17M	354.73M
Interest Expense	757.81M	1.05B	1.03B	1B	1.08B	1.03B	1.44B	1.64B	1.65B	1.94B
Other Income/Expense	-988.28M	-565.68M	-625.69M	-391.53M	-457.59M	-3.45B	-2.49B	-1.02B	-911.55M	-260.65M
Pretax Income+	1.72B	2.14B	1.93B	2.35B	2.44B	-795.48M	687.52M	2.64B	2.89B	4B
Pretax Margin %	0.21%	0.28%	0.24%	0.28%	0.28%	-0.1%	0.07%	0.24%	0.3%	0.4%
Income Tax+	367.33M	536.21M	462.99M	569.41M	716.6M	25.2M	260.24M	-71.03M	316.3M	581.45M
Effective Tax Rate %	0.73%	0.7%	0.71%	0.72%	0.65%	1.04%	0.35%	0.95%	0.94%	0.8%
Net Income+	1.26B	1.5B	1.37B	1.68B	1.59B	-824.99M	239.36M	2.52B	2.71B	3.19B
Net Margin %	0.16%	0.19%	0.17%	0.2%	0.18%	-0.1%	0.03%	0.23%	0.28%	0.32%
Net Income Growth %	-0.04%	0.18%	-0.09%	0.23%	-0.05%	-1.52%	1.29%	9.53%	0.08%	0.18%
Net Income (Continuing)	1.36B	1.6B	1.46B	1.78B	1.72B	-820.68M	427.28M	2.71B	2.58B	3.42B
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	772.91M	1.06B	1.04B	1.33B	1.37B	1.24B	1.29B	1.48B	1.21B	1.26B
EPS (Diluted)+	0.00	2.01	1.82	2.22	2.05	-1.06	0.30	2.75	2.87	3.29
EPS Growth %	-	-	-0.09%	0.22%	-0.08%	-1.52%	1.28%	8.17%	0.04%	0.15%
EPS (Basic)	0.00	2.01	1.82	2.22	2.05	-1.06	0.30	2.75	2.87	3.30
Diluted Shares Outstanding	0	732M	738.38M	749.58M	775M	779M	0	881M	918M	931M
Basic Shares Outstanding	0	732M	738.38M	749.58M	775M	779M	806M	872M	902M	929M
Dividend Payout Ratio	0.87%	0.78%	0.92%	0.54%	0.73%	-	5.02%	0.42%	0.42%	0.43%

Balance Sheet

	Dec 2010	Dec 2011	Dec 2012	Dec 2013	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019
Total Current Assets+	4.63B	3.78B	3.84B	5.53B	5.56B	4.58B	6B	3.74B	3.76B	5.9B
Cash & Short-Term Investments	756.81M	972.26M	799.44M	1.21B	1.14B	1.32B	1.23B	948.16M	366.82M	1.08B
Cash Only	756.81M	617.73M	539.32M	842.35M	783.08M	1.01B	954.48M	948.16M	366.82M	1.08B
Short-Term Investments	0	354.53M	260.12M	371.76M	353.12M	318.19M	280.38M	264.98M	0	0
Accounts Receivable	2.66B	1.83B	2.12B	3.7B	3.64B	2.79B	1.56B	2.01B	1.97B	1.99B
Days Sales Outstanding	119.42	86.28	96.55	162.3	150.1	125.21	60.01	68.2	74.66	72.33
Inventory	427.72M	243.56M	224.97M	236.24M	252.1M	232.53M	274.41M	301.69M	315.57M	348.56M
Days Inventory Outstanding	34.72	19.35	16.35	16.73	16.6	16.62	16.97	16.54	21.24	24.47
Other Current Assets	781.97M	729.68M	695.99M	383.06M	529.25M	234.68M	2.84B	385.49M	1.07B	2.44B
Total Non-Current Assets+	44.49B	43.43B	45.7B	47.76B	47.83B	43.6B	59.57B	64.98B	68.67B	70.66B
Property, Plant & Equipment	36.48B	31.89B	33.86B	35.39B	36.07B	32.26B	40.62B	45.71B	48.69B	50.5B
Fixed Asset Turnover	0.22x	0.24x	0.24x	0.23x	0.25x	0.25x	0.23x	0.24x	0.20x	0.20x
Goodwill	3.59B	3.47B	3.47B	3.48B	3.48B	3.46B	10.41B	10.44B	10.38B	9.94B
Intangible Assets	542.44M	420.33M	377.62M	842.35M	1.35B	1.46B	1.56B	475.68M	769.51M	1.32B
Long-Term Investments	697.43M	5.4B	5.77B	5.7B	5.06B	4.96B	5.46B	6.6B	7.1B	7.33B
Other Non-Current Assets	2.32B	2.13B	2.12B	2.14B	1.73B	1.44B	1.29B	1.5B	1.49B	1.54B
Total Assets+	49.11B	47.2B	49.55B	53.3B	53.39B	48.18B	65.58B	68.72B	72.43B	76.56B
Asset Turnover	0.17x	0.16x	0.16x	0.16x	0.17x	0.17x	0.14x	0.16x	0.13x	0.13x
Asset Growth %	0.15%	-0.04%	0.05%	0.08%	0%	-0.1%	0.36%	0.05%	0.05%	0.06%
Total Current Liabilities+	5.7B	5.4B	5.9B	6.38B	7.3B	5.48B	7.47B	7.88B	9.48B	9.95B
Accounts Payable	2.26B	683.53M	926.99M	815.06M	1.4B	1.08B	1.82B	2.27B	2.36B	2.56B
Days Payables Outstanding	183.07	54.32	67.37	57.72	92.33	77.48	112.67	124.6	158.85	179.41
Short-Term Debt	3.07B	2.75B	3.18B	4B	4.43B	2.93B	3.71B	3.69B	4.56B	5.45B
Deferred Revenue (Current)	0	0	0	0	0	0	0	1000K	1000K	0
Other Current Liabilities	369.35M	1.97B	1.79B	1.54B	1.46B	1.46B	1.94B	1.9B	2.55B	1.95B
Current Ratio	0.81x	0.70x	0.65x	0.87x	0.76x	0.84x	0.80x	0.47x	0.40x	0.59x
Quick Ratio	0.74x	0.65x	0.61x	0.83x	0.73x	0.79x	0.77x	0.44x	0.36x	0.56x
Cash Conversion Cycle	-28.93	51.32	45.53	121.31	74.37	64.35	-35.69	-39.86	-62.96	-82.61
Total Non-Current Liabilities+	26.8B	23.13B	24.22B	26.73B	26.51B	28.09B	39.68B	39.37B	40.26B	41.63B
Long-Term Debt	21.65B	18.4B	19.1B	21.6B	20.82B	22.65B	31.5B	31.03B	32.23B	33.08B
Capital Lease Obligations	0	172.85M	0	0	0	0	0	0	0	367.07M
Deferred Tax Liabilities	4.13B	3.53B	3.97B	4.3B	4.55B	3.7B	5.71B	4.31B	4.41B	4.4B
Other Non-Current Liabilities	917.83M	932.97M	1.15B	832.94M	1.14B	1.74B	2.46B	4.03B	3.53B	3.61B
Total Liabilities	32.49B	28.54B	30.12B	33.12B	33.81B	33.57B	47.15B	47.26B	49.73B	51.58B
Total Debt+	24.73B	21.32B	22.28B	25.61B	25.25B	25.58B	35.21B	34.73B	36.79B	38.89B
Net Debt	23.97B	20.71B	21.74B	24.77B	24.47B	24.57B	34.25B	33.78B	36.42B	37.81B
Debt / Equity	1.49x	1.14x	1.15x	1.27x	1.29x	1.75x	2.01x	1.62x	1.62x	1.56x
Debt / EBITDA	6.07x	5.32x	5.67x	6.18x	5.89x	6.51x	7.61x	6.55x	6.66x	6.31x
Net Debt / EBITDA	5.88x	5.17x	5.53x	5.98x	5.71x	6.26x	7.41x	6.37x	6.59x	6.14x
Interest Coverage	3.58x	2.57x	2.49x	2.73x	2.67x	2.59x	2.20x	2.23x	2.31x	2.20x
Total Equity+	16.62B	18.67B	19.42B	20.18B	19.58B	14.61B	17.55B	21.46B	22.69B	24.98B
Equity Growth %	0.11%	0.12%	0.04%	0.04%	-0.03%	-0.25%	0.2%	0.22%	0.06%	0.1%
Book Value per Share	-	25.50	26.31	26.92	25.26	18.76	-	24.36	24.72	26.83
Total Shareholders' Equity	15.85B	17.61B	18.38B	18.84B	18.21B	13.38B	16.26B	19.98B	21.48B	23.72B
Common Stock	11.71B	13.79B	14.37B	14.31B	14.09B	11.75B	15.65B	16.89B	16.97B	18.81B
Retained Earnings	4.29B	4.48B	4.68B	4.82B	4.84B	2.15B	1.18B	1.3B	2.03B	3.05B
Treasury Stock	0	0	0	0	0	0	0	0	0	0
Accumulated OCI	-882.6M	-2.05B	0	-879.06M	-1.07B	-675.98M	-715.86M	-1.38B	-443.7M	-1.2B
Minority Interest	772.91M	1.06B	1.04B	1.33B	1.37B	1.24B	1.29B	1.48B	1.21B	1.26B

Cash Flow

	Dec 2010	Dec 2011	Dec 2012	Dec 2013	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019
Cash from Operations+	3.04B	3.5B	3.56B	3.43B	3.52B	2.99B	4.39B	4.46B	4.89B	5.6B
Operating CF Margin %	0.37%	0.45%	0.44%	0.41%	0.4%	0.37%	0.46%	0.41%	0.51%	0.56%
Operating CF Growth %	0.08%	0.15%	0.02%	-0.04%	0.03%	-0.15%	0.47%	0.02%	0.1%	0.15%
Net Income	1.26B	1.5B	1.37B	1.68B	1.59B	-824.99M	239.36M	2.52B	2.71B	3.19B
Depreciation & Amortization	1.36B	1.3B	1.38B	1.4B	1.39B	1.27B	1.45B	1.64B	1.72B	1.9B
Stock-Based Compensation	0	0	0	0	0	0	0	0	0	0
Deferred Taxes	510.24M	345.69M	277.19M	528.94M	590.55M	-73.43M	143.17M	-189.95M	85.66M	42.41M
Other Non-Cash Items	163.04M	152.22M	249.07M	132.71M	111.37M	2.88B	2.37B	711.12M	445.89M	243.69M
Working Capital Changes	-257.64M	203.29M	288.24M	-314.35M	-163.18M	-258.44M	187.17M	-217.89M	-74.68M	225.95M
Change in Receivables	-313.99M	-33.39M	50.22M	-56.47M	-176.99M	-14.4M	-363.15M	-459.72M	-50.52M	23.91M
Change in Inventory	70.45M	2.95M	27.12M	-28.24M	-23.31M	-2.16M	-64.87M	-30.33M	-35.88M	-32.39M
Change in Payables	92.59M	238.64M	146.63M	-273.88M	339.3M	-114.46M	322.14M	120.52M	-51.25M	271.45M
Cash from Investing+	-5.45B	-3B	-3.27B	-4.82B	-3.58B	-3.32B	-14.55B	-3.24B	-7.42B	-5.44B
Capital Expenditures	-5.07B	-2.47B	-2.61B	-4.2B	-3.76B	-3.19B	-3.95B	-6.01B	-7.26B	-6.31B
CapEx % of Revenue	0.62%	0.32%	0.32%	0.5%	0.43%	0.39%	0.42%	0.56%	0.75%	0.63%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	-386.45M	90.35M	205.89M	-263.53M	443.77M	395.94M	118.56M	371.92M	128.13M	-518.22M
Cash from Financing+	2.19B	-526.39M	-368.58M	1.7B	-297.86M	483.05M	10.37B	-1.13B	2.01B	534.41M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-1.12B	-1.16B	-1.25B	-1.42B	-1.16B	-1.04B	-1.2B	-1.19B	-1.27B	-1.51B
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	-90.58M	-2.16B	-349.5M	-137.41M	-681.2M	-257.72M	3.33B	-46.29M	-128.86M	-166.57M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	-2.03B	1.04B	955.11M	-769.88M	455.86M	169.89M	653.22M	-1.43B	-2.01B	-159.63M
FCF Margin %	-0.25%	0.13%	0.12%	-0.09%	0.05%	0.02%	0.07%	-0.13%	-0.21%	-0.02%
FCF Growth %	0.14%	1.51%	-0.08%	-1.81%	1.59%	-0.63%	2.84%	-3.19%	-0.4%	0.92%
FCF per Share	-	1.41	1.29	-1.03	0.59	0.22	-	-1.62	-2.19	-0.17
FCF Conversion (FCF/Net Income)	2.41x	2.34x	2.61x	2.04x	2.21x	-3.62x	18.33x	1.77x	1.80x	1.76x
Interest Paid	0	0	0	0	0	0	0	0	0	0
Taxes Paid	0	0	0	0	0	0	0	0	0	0

Key Ratios

Metric	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019
Return on Equity (ROE)	8.01%	8.49%	7.17%	8.5%	8%	-4.83%	1.49%	12.92%	12.28%	13.39%
Return on Invested Capital (ROIC)	5.36%	5.07%	4.75%	4.78%	4.88%	4.79%	5.24%	5.13%	4.99%	5.24%
Gross Margin	44.69%	40.65%	37.42%	38.03%	37.35%	37.22%	37.84%	38.21%	43.76%	48.11%
Net Margin	15.55%	19.35%	17.02%	20.25%	17.99%	-10.14%	2.52%	23.39%	28.11%	31.86%
Debt / Equity	1.49x	1.14x	1.15x	1.27x	1.29x	1.75x	2.01x	1.62x	1.62x	1.56x
Interest Coverage	3.58x	2.57x	2.49x	2.73x	2.67x	2.59x	2.20x	2.23x	2.31x	2.20x
FCF Conversion	2.41x	2.34x	2.61x	2.04x	2.21x	-3.62x	18.33x	1.77x	1.80x	1.76x
Revenue Growth	-4.94%	-4.8%	3.71%	3.61%	6.38%	-8.03%	16.68%	13.48%	-10.48%	3.91%

Frequently Asked Questions

Valuation & Price

TransCanada PipeLines Limited 6 (TCPA) has a price-to-earnings (P/E) ratio of 7.5x. This may indicate the stock is undervalued or faces growth challenges.

Growth & Financials

TransCanada PipeLines Limited 6 (TCPA) reported $10.02B in revenue for fiscal year 2019. This represents a 55% increase from $6.46B in 2006.

TransCanada PipeLines Limited 6 (TCPA) grew revenue by 3.9% over the past year. Growth has been modest.

Yes, TransCanada PipeLines Limited 6 (TCPA) is profitable, generating $1.35B in net income for fiscal year 2019 (31.9% net margin).

Dividend & Returns

Yes, TransCanada PipeLines Limited 6 (TCPA) pays a dividend with a yield of 6.00%. This makes it attractive for income-focused investors.

TransCanada PipeLines Limited 6 (TCPA) has a return on equity (ROE) of 13.4%. This is reasonable for most industries.

TransCanada PipeLines Limited 6 (TCPA) generated $418.1M in free cash flow for fiscal year 2019. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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