Cash conversion efficiency is frequently masked by accruals, with OCF/NI ratios ranging from -1.63 to 2.11, reflecting the heavy burden of capital expenditures that often consume over 60% of quarterly revenue.
| Metric | TTM | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 |
|---|
| Cash from Operations | 5.39B | 5.6B | 4.89B | 4.46B | 4.39B | 2.99B | 3.52B | 3.43B | 3.56B | 3.5B | 3.04B | 2.82B | 2.3B | 2.86B | 1.78B |
| Operating CF Margin % | - | 55.93% | 50.69% | 41.43% | 46.21% | 36.75% | 39.8% | 41.23% | 44.37% | 45.26% | 37.42% | 32.97% | 32.95% | 31.92% | 27.58% |
| Operating CF Growth % | 38.77% | 14.66% | 9.52% | 1.74% | 46.7% | -15.06% | 2.69% | -3.72% | 1.66% | 15.14% | 7.9% | 22.57% | -19.43% | 60.21% | - |
| Net Income | 1.35B | 3.19B | 2.71B | 2.52B | 239.36M | -824.99M | 1.59B | 1.68B | 1.37B | 1.5B | 1.26B | 1.32B | 1.17B | 1.25B | 920.34M |
| Depreciation & Amortization | 2.01B | 1.9B | 1.72B | 1.64B | 1.45B | 1.27B | 1.39B | 1.4B | 1.38B | 1.3B | 1.36B | 1.31B | 963.14M | 1.25B | 959.87M |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -390.52M | 42.41M | 85.66M | -189.95M | 143.17M | -73.43M | 590.55M | 528.94M | 277.19M | 345.69M | 510.24M | 328.13M | 61.56M | 54.71M | 150.38M |
| Other Non-Cash Items | 2.36B | 243.69M | 445.89M | 711.12M | 2.37B | 2.88B | 111.37M | 132.71M | 249.07M | 152.22M | 163.04M | -53.42M | 255.97M | 81.06M | 9.45M |
| Working Capital Changes | 62.37M | 225.95M | -74.68M | -217.89M | 187.17M | -258.44M | -163.18M | -314.35M | 288.24M | 203.29M | -257.64M | -83.94M | -146.62M | 217.84M | -257.8M |
| Change in Receivables | 0 | 23.91M | -50.52M | -459.72M | -363.15M | -14.4M | -176.99M | -56.47M | 50.22M | -33.39M | -313.99M | 300.47M | -159.58M | 49.65M | -159.84M |
| Change in Inventory | 0 | -32.39M | -35.88M | -30.33M | -64.87M | -2.16M | -23.31M | -28.24M | 27.12M | 2.95M | 70.45M | -18.12M | 66.42M | -6.08M | -92.81M |
| Change in Payables | 0 | 271.45M | -51.25M | 120.52M | 322.14M | -114.46M | 339.3M | -273.88M | 146.63M | 238.64M | 92.59M | -145.94M | -14.58M | 64.85M | -35.23M |
| Cash from Investing | -7.13B | -5.44B | -7.42B | -3.24B | -14.55B | -3.32B | -3.58B | -4.82B | -3.27B | -3B | -5.45B | -6.57B | -5.27B | -6.27B | -1.82B |
| Capital Expenditures | -4.97B | -6.31B | -7.26B | -6.01B | -3.95B | -3.19B | -3.76B | -4.2B | -2.61B | -2.47B | -5.07B | -5.17B | -2.54B | -1.67B | -1.35B |
| CapEx % of Revenue | 49.64% | 62.97% | 75.27% | 55.78% | 41.65% | 39.19% | 42.52% | 50.49% | 32.47% | 31.89% | 62.34% | 60.42% | 36.36% | 18.7% | 20.9% |
| Acquisitions | -118.9M | 1.85B | 449.55M | 3.74B | -10.14B | -169.89M | -38.85M | -203.29M | -214.92M | 0 | 0 | -860.4M | -2.62B | -4.24B | -384.12M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -477.19M | -518.22M | 128.13M | 371.92M | 118.56M | 395.94M | 443.77M | -263.53M | 205.89M | 90.35M | -386.45M | -544.67M | -113.41M | -353.61M | -81.64M |
| Cash from Financing | 2.2B | 534.41M | 2.01B | -1.13B | 10.37B | 483.05M | -297.86M | 1.7B | -368.58M | -526.39M | 2.19B | 3.55B | 3.54B | 3.57B | 189.05M |
| Debt Issued (Net) | 5.3B | 2.02B | 2.57B | 849.2M | 4.77B | 1.78B | 758.04M | 2.05B | 964.15M | 123.74M | 2.41B | 2.79B | 2.19B | 2.65B | 781.13M |
| Equity Issued (Net) | 53.45M | 195.1M | 840.53M | -743.05M | 3.48B | 0 | 789.98M | 1.21B | 270.16M | 2.67B | 993.31M | 1.78B | 1.93B | 1.37B | 0 |
| Dividends Paid | -2.65B | -1.51B | -1.27B | -1.19B | -1.2B | -1.04B | -1.16B | -1.42B | -1.25B | -1.16B | -1.12B | -951.97M | -467.4M | -734.59M | -549.11M |
| Share Repurchases | 0 | 0 | 0 | -961.73M | 0 | 0 | -172.67M | 0 | 0 | 0 | 0 | 0 | 0 | -494.45M | 0 |
| Other Financing | -507.06M | -166.57M | -128.86M | -46.29M | 3.33B | -257.72M | -681.2M | -137.41M | -349.5M | -2.16B | -90.58M | -74.4M | -114.22M | 285.73M | -42.97M |
| Net Change in Cash | 769.51M | 708.95M | -581.34M | -6.31M | -51.93M | 223.33M | -59.28M | 303.03M | -78.41M | -139.08M | -177.04M | -125.69M | 548.87M | 166.07M | 344.59M |
| Free Cash Flow | 418.11M | -159.63M | -2.01B | -1.43B | 653.22M | 169.89M | 455.86M | -769.88M | 955.11M | 1.04B | -2.03B | -2.35B | -238.15M | 1.18B | 431.38M |
| FCF Margin % | 4.17% | -1.59% | -20.82% | -13.27% | 6.88% | 2.09% | 5.15% | -9.26% | 11.9% | 13.37% | -24.92% | -27.45% | -3.41% | 13.22% | 6.68% |
| FCF Growth % | 150.49% | 92.05% | -40.45% | -318.83% | 284.49% | -62.73% | 159.21% | -180.61% | -7.73% | 151.09% | 13.7% | -885.71% | -120.14% | 174.1% | - |
| FCF per Share | 0.43 | -0.17 | -2.19 | -1.62 | - | 0.22 | 0.59 | -1.03 | 1.29 | 1.41 | - | - | -0.42 | - | - |
| FCF Conversion (FCF/Net Income) | 0.31x | 1.76x | 1.80x | 1.77x | 18.33x | -3.62x | 2.21x | 2.04x | 2.61x | 2.34x | 2.41x | 2.14x | 1.97x | 2.29x | 1.89x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Capital intensity and execution
According to the provided quarterly data, the relationship between net income and operating cash flow is highly volatile, with OCF/NI ratios ranging from -1.63 to 2.11, suggesting that reported earnings frequently diverge from the actual cash-generating capacity of the underlying pipeline infrastructure assets.
The significant variance between net income and operating cash flow indicates that non-cash items and regulatory accounting adjustments play a dominant role in headline profitability. Investors should monitor whether this divergence stems from timing differences in regulatory recovery or more persistent issues regarding the quality of earnings.
As reported in financial statements, TCPA's free cash flow trajectory remains inconsistent, with margins fluctuating from a low of -12.2% in 2020Q2 to a peak of 16.1% in 2021Q2, reflecting the heavy burden of capital expenditure on the company's ability to generate surplus cash.
The frequent negative free cash flow periods suggest that the company is in a perpetual state of reinvestment, which may limit its ability to self-fund dividends without external financing. This pattern warrants further investigation into whether the current capital expenditure cycle will eventually yield a sustainable inflection in cash flow generation.
Based on reported figures, TCPA maintains a high capital intensity, with CapEx/Revenue ratios frequently exceeding 60%, indicating that a substantial portion of top-line revenue is immediately consumed by the maintenance and expansion of its extensive North American pipeline network.
The persistent level of capital spending suggests that the company's infrastructure requires constant, significant investment to maintain operational integrity and support growth. This high barrier to entry appears to be a double-edged sword, as it secures the competitive moat while simultaneously suppressing free cash flow availability.
Data indicates that TCPA consistently pays out significant dividends, often exceeding the quarterly free cash flow, which suggests that the company relies on debt or asset recycling to maintain its payout profile during periods of heavy capital investment.
The disconnect between free cash flow and dividend payments implies a reliance on external capital markets to bridge the funding gap. Investors should monitor whether this capital allocation strategy remains viable if project execution delays continue to pressure the company's overall liquidity position.
Quick answers to the most common questions about buying TCPA stock.
TransCanada PipeLines Limited 6 (TCPA) generated $5.60B in net cash from operating activities in 2019. This reflects the cash generated directly from core business operations.
TransCanada PipeLines Limited 6 (TCPA) reported negative free cash flow of $159.6M in 2019, indicating capital requirements exceeded cash from operations.
TransCanada PipeLines Limited 6 (TCPA) spent $6.31B on capital expenditures in 2019. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2019, TransCanada PipeLines Limited 6 (TCPA) returned $1.51B to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.