Latest Ratios: P/E Ratio 7.0x · EV/EBITDA 9.9x · ROE 13.4%. (2006–2019 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 | FY 2014 | FY 2013 | FY 2012 | FY 2011 | FY 2010 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $23.4B | — | — | — | — | — | — | — | — | — | — |
| Enterprise Value | $61.2B | — | — | — | — | — | — | — | — | — | — |
| P/E Ratio → | 7.03 | — | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 2.33 | — | — | — | — | — | — | — | — | — | — |
| P/B Ratio | 0.86 | — | — | — | — | — | — | — | — | — | — |
| P/FCF | — | — | — | — | — | — | — | — | — | — | — |
| P/OCF | 4.17 | — | — | — | — | — | — | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 | FY 2014 | FY 2013 | FY 2012 | FY 2011 | FY 2010 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | — | — | — | — | — | — | — | — | — | — |
| EV / EBITDA | 9.94 | — | — | — | — | — | — | — | — | — | — |
| EV / EBIT | 14.37 | — | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | — | — | — | — | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 | FY 2014 | FY 2013 | FY 2012 | FY 2011 | FY 2010 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 48.1% | 48.1% | 43.8% | 38.2% | 37.8% | 37.2% | 37.3% | 38.0% | 37.4% | 40.7% | 44.7% |
| Operating Margin | 42.5% | 42.5% | 39.4% | 34.0% | 33.5% | 32.6% | 32.7% | 33.0% | 31.8% | 34.9% | 33.4% |
| Net Profit Margin | 31.9% | 31.9% | 28.1% | 23.4% | 2.5% | -10.1% | 18.0% | 20.2% | 17.0% | 19.4% | 15.5% |
| Metric | TTM | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 | FY 2014 | FY 2013 | FY 2012 | FY 2011 | FY 2010 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 13.4% | 13.4% | 12.3% | 12.9% | 1.5% | -4.8% | 8.0% | 8.5% | 7.2% | 8.5% | 8.0% |
| ROA | 4.3% | 4.3% | 3.8% | 3.8% | 0.4% | -1.6% | 3.0% | 3.3% | 2.8% | 3.1% | 2.8% |
| ROIC | 5.2% | 5.2% | 5.0% | 5.1% | 5.2% | 4.8% | 4.9% | 4.8% | 4.8% | 5.1% | 5.4% |
| ROCE | 6.6% | 6.6% | 6.1% | 6.2% | 6.3% | 6.0% | 6.2% | 6.1% | 6.0% | 6.3% | 6.7% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 | FY 2014 | FY 2013 | FY 2012 | FY 2011 | FY 2010 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.56 | 1.56 | 1.62 | 1.62 | 2.01 | 1.75 | 1.29 | 1.27 | 1.15 | 1.14 | 1.49 |
| Debt / EBITDA | 6.31 | 6.31 | 6.66 | 6.55 | 7.61 | 6.51 | 5.89 | 6.18 | 5.67 | 5.32 | 6.07 |
| Net Debt / Equity | — | 1.51 | 1.60 | 1.57 | 1.95 | 1.68 | 1.25 | 1.23 | 1.12 | 1.11 | 1.44 |
| Net Debt / EBITDA | 6.14 | 6.14 | 6.59 | 6.37 | 7.41 | 6.26 | 5.71 | 5.98 | 5.53 | 5.17 | 5.88 |
| Debt / FCF | — | — | — | — | 52.43 | 144.65 | 53.68 | — | 22.76 | 20.00 | — |
| Interest Coverage | 2.70 | 2.70 | 2.44 | 2.23 | 1.21 | 0.22 | 3.25 | 2.78 | 2.62 | 2.64 | 3.31 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 | FY 2014 | FY 2013 | FY 2012 | FY 2011 | FY 2010 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.59 | 0.59 | 0.40 | 0.47 | 0.80 | 0.84 | 0.76 | 0.87 | 0.65 | 0.70 | 0.81 |
| Quick Ratio | 0.56 | 0.56 | 0.36 | 0.44 | 0.77 | 0.79 | 0.73 | 0.83 | 0.61 | 0.65 | 0.74 |
| Cash Ratio | 0.11 | 0.11 | 0.04 | 0.15 | 0.17 | 0.24 | 0.16 | 0.19 | 0.14 | 0.18 | 0.13 |
| Asset Turnover | — | 0.13 | 0.13 | 0.16 | 0.14 | 0.17 | 0.17 | 0.16 | 0.16 | 0.16 | 0.17 |
| Inventory Turnover | 14.92 | 14.92 | 17.19 | 22.06 | 21.51 | 21.97 | 21.99 | 21.82 | 22.33 | 18.86 | 10.51 |
| Days Sales Outstanding | — | 72.33 | 74.66 | 68.20 | 60.01 | 125.21 | 150.10 | 162.30 | 96.55 | 86.28 | 119.42 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 | FY 2014 | FY 2013 | FY 2012 | FY 2011 | FY 2010 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 6.4% | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | 43.4% | 43.4% | 42.4% | 42.4% | 502.2% | — | 73.0% | 53.8% | 91.8% | 77.7% | 86.5% |
| Metric | TTM | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 | FY 2014 | FY 2013 | FY 2012 | FY 2011 | FY 2010 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 14.2% | — | — | — | — | — | — | — | — | — | — |
| FCF Yield | — | — | — | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | — | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 6.4% | — | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $931M | $918M | $881M | $0 | $779M | $775M | $750M | $738M | $732M | $0 |
Capital intensity and leverage
Based on reported figures, TCPA trades at a P/E of 7.03 and an EV/EBITDA of 9.94, which suggests that the market is discounting the company's growth prospects relative to peers like WMB or ENB, likely due to concerns regarding capital intensity and project execution risks.
The current valuation multiples appear to reflect a market skepticism toward the company's ability to convert massive infrastructure spending into sustainable earnings growth. Investors should monitor whether the current discount to sector peers is a temporary reaction to recent project cost overruns or a structural re-rating of the company's long-term utility-like cash flow profile.
According to historical data, TCPA's ROIC has consistently hovered near the 1.2% to 1.5% range, which indicates that the company's massive capital deployment is struggling to generate returns that exceed the cost of capital, a trend that warrants further investigation by long-term fundamental investors.
The persistent gap between invested capital and returns suggests that the company's growth strategy may be value-destructive if not offset by significant regulatory rate adjustments. This low return profile appears to be a structural consequence of the high-fixed-cost nature of midstream assets and the heavy burden of ongoing project development.
As reported in financial statements, TCPA's asset turnover remains extremely low at approximately 0.03, highlighting the company's reliance on massive, long-lived infrastructure assets that require significant time to generate revenue, which is typical for the midstream sector but limits short-term operational agility.
The negative cash conversion cycle, often exceeding -100 days, suggests that the company effectively utilizes its scale to delay payments to suppliers, providing a modest liquidity buffer. However, this efficiency metric should be interpreted with caution, as it primarily reflects the company's dominant market position rather than superior operational management.
Based on reported figures, TCPA maintains a debt-to-equity ratio consistently above 1.50, which, when combined with interest coverage ratios that have occasionally dipped toward 2.0x, suggests that the company's balance sheet is highly sensitive to interest rate volatility and potential credit rating pressures.
The persistent reliance on debt to fund capital-intensive projects appears to limit the company's ability to navigate periods of economic stress without external financing. Investors should monitor the company's debt-to-EBITDA trajectory, as any sustained increase could jeopardize the sustainability of the current dividend payout profile.
The P/E ratio is frequently misapplied to TCPA, as it fails to account for the significant non-cash depreciation and regulatory accounting adjustments that distort headline earnings, making the company appear cheaper or more expensive than its actual cash-generating capacity would suggest to a fundamental analyst.
Instead of relying on P/E, investors should focus on EV/EBITDA or free cash flow yield to better capture the underlying economics of the pipeline network. These metrics provide a clearer view of the company's ability to service its debt and fund dividends, which are the primary drivers of value for this business model.
Includes 30+ ratios · 14 years · Updated daily
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Quick answers to the most common questions about buying TCPA stock.
TransCanada PipeLines Limited 6's current P/E ratio is 7.0x. This places it at the 50th percentile of its historical range.
TransCanada PipeLines Limited 6's current EV/EBITDA is 9.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA.
TransCanada PipeLines Limited 6's return on equity (ROE) is 13.4%. The historical average is 8.8%.
Based on historical data, TransCanada PipeLines Limited 6 is trading at a P/E of 7.0x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
TransCanada PipeLines Limited 6's current dividend yield is 6.44% with a payout ratio of 43.4%.
TransCanada PipeLines Limited 6 has 48.1% gross margin and 42.5% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
TransCanada PipeLines Limited 6's Debt/EBITDA ratio is 6.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.