Revenue growth remains volatile, oscillating between a 10.4% contraction and 12.7% expansion, while the company maintains structural resilience with gross margins consistently hovering near 48%.
| 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 |
|---|
| Sales/Revenue | 10.02B | 10.02B | 9.64B | 10.77B | 9.49B | 8.14B | 8.85B | 8.32B | 8.03B | 7.74B | 8.13B | 8.55B | 6.98B | 8.94B | 6.46B |
| Revenue Growth % | 6.68% | 3.91% | -10.48% | 13.48% | 16.68% | -8.03% | 6.38% | 3.61% | 3.71% | -4.8% | -4.94% | 22.5% | -21.95% | 38.42% | - |
| Cost of Goods Sold | 5.13B | 5.2B | 5.42B | 6.66B | 5.9B | 5.11B | 5.54B | 5.15B | 5.02B | 4.59B | 4.5B | 4.53B | 4.67B | 4.26B | 2.98B |
| COGS % of Revenue | - | 51.89% | 56.24% | 61.79% | 62.16% | 62.78% | 62.65% | 61.97% | 62.58% | 59.35% | 55.31% | 52.91% | 66.85% | 47.68% | 46.14% |
| Gross Profit | 4.89B | 4.82B | 4.22B | 4.12B | 3.59B | 3.03B | 3.3B | 3.16B | 3B | 3.15B | 3.63B | 4.03B | 2.31B | 4.68B | 3.48B |
| Gross Margin % | 48.77% | 48.11% | 43.76% | 38.21% | 37.84% | 37.22% | 37.35% | 38.03% | 37.42% | 40.65% | 44.69% | 47.09% | 33.15% | 52.32% | 53.86% |
| Gross Profit Growth % | - | 14.26% | 2.5% | 14.61% | 18.6% | -8.34% | 4.48% | 5.27% | -4.53% | -13.39% | -9.79% | 74.02% | -50.55% | 34.47% | - |
| Operating Expenses | 595.04M | 560.63M | 416.61M | 454.13M | 413.85M | 372.18M | 408.37M | 418.82M | 452.95M | 441.93M | 919.84M | 1.44B | 0 | 1.98B | 1.47B |
| OpEx % of Revenue | - | 5.59% | 4.32% | 4.22% | 4.36% | 4.57% | 4.62% | 5.04% | 5.64% | 5.71% | 11.31% | 16.85% | - | 22.19% | 22.7% |
| Selling, General & Admin | 0 | 0 | 0 | 0 | 0 | 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 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 560.63M | 416.61M | 454.13M | 413.85M | 372.18M | 408.37M | 418.82M | 452.95M | 441.93M | 919.84M | 1.44B | 0 | 1.98B | 1.47B |
| Operating Income | 4.29B | 4.26B | 3.8B | 3.66B | 3.18B | 2.66B | 2.9B | 2.74B | 2.55B | 2.7B | 2.71B | 2.59B | 2.31B | 2.7B | 2.01B |
| Operating Margin % | 42.83% | 42.52% | 39.44% | 34% | 33.48% | 32.65% | 32.73% | 32.99% | 31.78% | 34.94% | 33.37% | 30.24% | 33.15% | 30.13% | 31.16% |
| Operating Income Growth % | - | 12.04% | 3.83% | 15.24% | 19.64% | -8.27% | 5.55% | 7.55% | -5.68% | -0.32% | 4.92% | 11.74% | -14.13% | 33.86% | - |
| EBITDA | 6.3B | 6.16B | 5.52B | 5.3B | 4.62B | 3.93B | 4.29B | 4.14B | 3.93B | 4.01B | 4.08B | 3.9B | 3.28B | 3.95B | 2.97B |
| EBITDA Margin % | 62.88% | 61.48% | 57.28% | 49.22% | 48.71% | 48.27% | 48.45% | 49.8% | 48.99% | 51.8% | 50.14% | 45.59% | 46.94% | 44.14% | 46.01% |
| EBITDA Growth % | 6.21% | 11.54% | 4.16% | 14.68% | 17.75% | -8.39% | 3.51% | 5.32% | -1.92% | -1.64% | 4.52% | 18.98% | -17% | 32.8% | - |
| D&A (Non-Cash Add-back) | 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 |
| EBIT | 2.52B | 5.23B | 4.01B | 3.66B | 1.75B | 230.36M | 3.52B | 2.79B | 2.69B | 2.79B | 2.51B | 2.75B | 2.58B | 2.86B | 2.17B |
| Net Interest Income | -1.43B | -1.58B | -1.5B | -1.53B | -1.35B | -1.03B | -931.58M | -936.47M | -966.15M | -999.75M | -663.21M | -888.06M | -747.67M | -914.94M | -684.88M |
| Interest Income | 296.48M | 354.73M | 147.17M | 108.54M | 97.68M | 0 | 151.95M | 67.76M | 60.26M | 54.01M | 94.6M | 113.51M | 74.52M | 134.76M | 105.7M |
| Interest Expense | 1.73B | 1.94B | 1.65B | 1.64B | 1.44B | 1.03B | 1.08B | 1B | 1.03B | 1.05B | 757.81M | 1B | 822.2M | 1.05B | 790.58M |
| Other Income/Expense | -2.8B | -260.65M | -911.55M | -1.02B | -2.49B | -3.45B | -457.59M | -391.53M | -625.69M | -565.68M | -988.28M | -841.32M | -554.88M | -881.5M | -636.76M |
| Pretax Income | 1.49B | 4B | 2.89B | 2.64B | 687.52M | -795.48M | 2.44B | 2.35B | 1.93B | 2.14B | 1.72B | 1.74B | 1.76B | 1.81B | 1.38B |
| Pretax Margin % | 14.85% | 39.92% | 29.98% | 24.49% | 7.24% | -9.78% | 27.56% | 28.28% | 23.99% | 27.64% | 21.22% | 20.4% | 25.2% | 20.28% | 21.3% |
| Income Tax | 17.28M | 581.45M | 316.3M | -71.03M | 260.24M | 25.2M | 716.6M | 569.41M | 462.99M | 536.21M | 367.33M | 358.66M | 487.65M | 489.39M | 408.18M |
| Effective Tax Rate % | 1.16% | 14.54% | 10.94% | -2.69% | 37.85% | -3.17% | 29.39% | 24.21% | 24.05% | 25.07% | 21.3% | 20.56% | 27.72% | 26.98% | 29.65% |
| 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 | 944.4M |
| Net Margin % | 13.5% | 31.86% | 28.11% | 23.39% | 2.52% | -10.14% | 17.99% | 20.25% | 17.02% | 19.35% | 15.55% | 15.38% | 16.71% | 13.96% | 14.61% |
| Net Income Growth % | -58.77% | 17.79% | 7.57% | 952.64% | 129.01% | -151.85% | -5.5% | 23.27% | -8.8% | 18.48% | -3.91% | 12.77% | -6.55% | 32.18% | - |
| Net Income (Continuing) | 1.47B | 3.42B | 2.58B | 2.71B | 427.28M | -820.68M | 1.72B | 1.78B | 1.46B | 1.6B | 1.36B | 1.39B | 1.27B | 1.32B | 968.46M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 24.06M |
| Minority Interest | 97.74M | 1.26B | 1.21B | 1.48B | 1.29B | 1.24B | 1.37B | 1.33B | 1.04B | 1.06B | 772.91M | 748.8M | 967.19M | 618.07M | 314.51M |
| EPS (Diluted) | 1.38 | 3.29 | 2.87 | 2.75 | 0.30 | -1.06 | 2.05 | 2.22 | 1.82 | 2.01 | 0.00 | 0.00 | 2.04 | 0.00 | 0.00 |
| EPS Growth % | -62.02% | 14.63% | 4.36% | 816.67% | 128.3% | -151.71% | -7.66% | 21.98% | -9.45% | - | - | -100% | - | - | - |
| EPS (Basic) | - | 3.30 | 2.87 | 2.75 | 0.30 | -1.06 | 2.05 | 2.22 | 1.82 | 2.01 | 0.00 | 0.00 | 2.05 | 0.00 | 0.00 |
| Diluted Shares Outstanding | 979M | 931M | 918M | 881M | 0 | 779M | 775M | 749.58M | 738.38M | 732M | 0 | 0 | 571.5M | 0 | 0 |
| Basic Shares Outstanding | 979M | 929M | 902M | 872M | 806M | 779M | 775M | 749.58M | 738.38M | 732M | 0 | 0 | 569.6M | 0 | 0 |
| Dividend Payout Ratio | - | 43.43% | 42.44% | 42.41% | 502.18% | - | 72.98% | 53.77% | 91.76% | 77.7% | 86.54% | 70.78% | 40.07% | 58.85% | 58.14% |
Regulatory and project execution
Based on the provided quarterly data, TCPA's revenue growth has exhibited significant volatility, oscillating between a 10.4% contraction in 2020Q1 and a 12.7% expansion by 2021Q1, suggesting that top-line performance remains highly sensitive to project-specific milestones rather than steady, organic volume-driven demand across its pipeline network.
The inconsistent revenue trajectory implies that the company's reliance on large-scale infrastructure projects introduces lumpy recognition patterns that complicate trend analysis. Investors should monitor whether the transition toward a pure-play natural gas focus stabilizes these fluctuations or if project-based revenue remains inherently unpredictable.
As reported in the financial statements, TCPA maintains a robust gross margin profile, frequently hovering near the 48% level, which underscores the company's ability to preserve pricing power despite the inherent operational complexities and regulatory constraints typical of the North American midstream energy sector's current landscape.
The stability of these margins suggests that the company's tolling-based business model effectively insulates it from direct commodity price volatility. However, the occasional compression observed in specific quarters warrants further investigation into whether rising maintenance costs or regulatory adjustments are beginning to erode the efficiency of its core assets.
According to the historical income statement data, TCPA demonstrates strong operating leverage, with operating margins consistently tracking closely to gross margins, indicating that the company successfully manages its overhead costs even as it scales its massive, capital-intensive infrastructure footprint across diverse geographic and regulatory jurisdictions.
This high flow-through efficiency suggests that once the initial capital is deployed, the incremental cost of moving additional volumes is relatively low. Analysts should remain cautious, however, as the lack of explicit SG&A reporting in the provided data may mask underlying administrative cost pressures that could impact future profitability.
Based on reported figures, TCPA's net income has experienced extreme swings, including a notable net loss in 2021Q1, which suggests that headline earnings are frequently impacted by non-operating items or accounting adjustments that do not necessarily reflect the underlying cash-generating capability of the firm's core pipeline operations.
The disconnect between operating income and net income implies that investors should prioritize cash flow metrics over EPS when evaluating the company's performance. The presence of such significant bottom-line volatility warrants further investigation into the specific non-recurring charges or regulatory accounting treatments that may be obscuring the true earnings power.
While the company's infrastructure moat is significant, the historical data suggests that the massive capital requirements for project execution may be creating a drag on long-term value, as evidenced by the inconsistent EPS growth and the potential for cost overruns to impair the overall return on invested capital.
Short-term observers might focus on the company's ability to maintain dividend payouts despite these capital-intensive pressures. There is a risk that the reliance on debt-funded growth could lead to a valuation de-rating if the market perceives that the returns on new projects are failing to exceed the cost of capital.
Quick answers to the most common questions about buying TCPA stock.
For fiscal year 2019, TransCanada PipeLines Limited 6 (TCPA) reported total revenue of $10.02B. This represents a 55.1% increase compared to $6.46B in 2006.
TransCanada PipeLines Limited 6 (TCPA) is profitable, generating $3.19B in net income for the fiscal year ending 2019 with a net profit margin of 31.9%.
TransCanada PipeLines Limited 6 (TCPA) reported an operating income of $4.26B, resulting in an operating profit margin of 42.5%. This margin reflects the operational efficiency of the business before interest and taxes.
TransCanada PipeLines Limited 6 (TCPA) generated $4.82B in gross profit for the year, representing a gross profit margin of 48.1%. This demonstrates the company's core pricing power and production efficiency.