TransCanada PipeLines Limited 6 (TCPA)
Valuation Overview•Is TransCanada PipeLines Limited 6 Overvalued or Undervalued?
Trading at a discount across both intrinsic cash flow and relative peer multiples, indicating a strong margin of safety.
Moderate quality score of 52/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street sentiment is generally neutral. This outlook is strongly supported by highly attractive capital returns, anchored by a strong, well-covered dividend yield.
TCPA demonstrates adequate business quality with stable profitability. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company exhibits steady, low-single-digit revenue growth paired with highly explosive earnings growth (122.2% EPS 3Y CAGR). This growth is supported by elite operational efficiency, sustaining an impressive 42.8% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $2.6B | +3.9% | +1.8% | +2.5% | +1.6% | |
| EBITDA | $1.5B | — | +10.0% | — | — | |
| Net Income | $638.4M | +17.8% | +137.2% | — | +9.3% | |
| EPS (Diluted) | $0.63 | +14.6% | +122.2% | +9.9% | — | |
| Free Cash Flow | $209.7M | +92.0% | — | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 48.8% | 43.4% | 41.0% | 40.3% |
| Operating Margin | 42.8% | 38.7% | 36.4% | 34.8% |
| Net Margin | 13.5% | 27.8% | 15.1% | 16.6% |
| FCF Margin | 4.2% | -11.9% | -5.3% | -3.0% |
Total return is -3.7% (1Y), lagging the benchmark by -24.6%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -3.7% | -11.1% | — |
| 1Y | -3.7% | -24.6% | +2.0% |
| 3YCAGR | -1.3% | -20.5% | +2.0% |
| 5YCAGR | -0.8% | -12.2% | +2.0% |
| 10YCAGR | -0.4% | -14.0% | — |
The S&P 500 is at 30.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about TransCanada PipeLines Limited 6 (TCPA) valuation, health, and returns.
TransCanada PipeLines Limited 6 is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. undervalued (implying +225.1% upside to DCF intrinsic value of $75.16)
TransCanada PipeLines Limited 6 has multiple valuation anchors: DCF Intrinsic Value: $75.16 | Peer Relative Fair Value: $37.06. A convergence of these signals offers higher conviction.
TransCanada PipeLines Limited 6 displays fair financial health with a composite quality score of 52/100, supported by a Altman Z-Score of -0.1 (distress zone), Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 5.2%.
TransCanada PipeLines Limited 6 pays a 6.4% dividend yield, covered by a 43% payout ratio with 0 years of growth, supplemented by a 0.0% buyback yield.
TransCanada PipeLines Limited 6's current growth trajectory is Accelerating. The company achieved +3.9% 1Y revenue growth and +14.6% 1Y EPS growth, compared to its 3Y revenue CAGR of +1.8%.
Wall Street consensus is Hold based on 0 analysts. The consensus price target represents a N/A change from current levels.
Investment risks for TransCanada PipeLines Limited 6 include: -74.8% 1-year max drawdown, elevated distress risk. Volatility risk is characterized by a beta of 0.88x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.