PEMBINA PIPELINE CORP (PBA) Stock Fundamental Analysis
USA - NYSE:PBA - CA7063271034 - Common Stock
39.35 USD
+0.73 (+1.89%)
39.35 USD
0 (0%)
PBA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 210 industry peers in the Oil, Gas & Consumable Fuels industry. PBA scores excellent on profitability, but there are concerns on its financial health. PBA has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year PBA was profitable.
PBA had a positive operating cash flow in the past year.
PBA had positive earnings in 4 of the past 5 years.
PBA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PBA has a Return On Assets of 4.87%. This is in the better half of the industry: PBA outperforms 62.38% of its industry peers.
PBA has a better Return On Equity (10.12%) than 60.95% of its industry peers.
The Return On Invested Capital of PBA (7.24%) is better than 64.29% of its industry peers.
PBA had an Average Return On Invested Capital over the past 3 years of 6.98%. This is significantly below the industry average of 21.90%.
The 3 year average ROIC (6.98%) for PBA is below the current ROIC(7.24%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.87% | ||
| ROE | 10.12% | ||
| ROIC | 7.24% |
ROA(3y)6.29%
ROA(5y)4.17%
ROE(3y)12.77%
ROE(5y)8.56%
ROIC(3y)6.98%
ROIC(5y)6.78%
1.3 Margins
With a decent Profit Margin value of 21.39%, PBA is doing good in the industry, outperforming 74.76% of the companies in the same industry.
PBA's Profit Margin has improved in the last couple of years.
PBA's Operating Margin of 37.24% is amongst the best of the industry. PBA outperforms 83.33% of its industry peers.
In the last couple of years the Operating Margin of PBA has grown nicely.
PBA has a Gross Margin of 43.15%. This is comparable to the rest of the industry: PBA outperforms 51.90% of its industry peers.
PBA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.24% | ||
| PM (TTM) | 21.39% | ||
| GM | 43.15% |
OM growth 3Y9.34%
OM growth 5Y5.89%
PM growth 3Y22.34%
PM growth 5Y4.14%
GM growth 3Y13.54%
GM growth 5Y5.86%
2. Health
2.1 Basic Checks
PBA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for PBA has been reduced compared to 1 year ago.
Compared to 5 years ago, PBA has more shares outstanding
Compared to 1 year ago, PBA has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.42, we must say that PBA is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.42, PBA perfoms like the industry average, outperforming 52.86% of the companies in the same industry.
PBA has a debt to FCF ratio of 5.19. This is a neutral value as PBA would need 5.19 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.19, PBA is doing good in the industry, outperforming 63.33% of the companies in the same industry.
PBA has a Debt/Equity ratio of 0.75. This is a neutral value indicating PBA is somewhat dependend on debt financing.
PBA has a Debt to Equity ratio of 0.75. This is in the lower half of the industry: PBA underperforms 62.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 5.19 | ||
| Altman-Z | 1.42 |
ROIC/WACC0.96
WACC7.56%
2.3 Liquidity
PBA has a Current Ratio of 0.77. This is a bad value and indicates that PBA is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.77, PBA is doing worse than 70.48% of the companies in the same industry.
PBA has a Quick Ratio of 0.77. This is a bad value and indicates that PBA is not financially healthy enough and could expect problems in meeting its short term obligations.
PBA has a Quick ratio of 0.62. This is in the lower half of the industry: PBA underperforms 74.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
The earnings per share for PBA have decreased by -8.90% in the last year.
PBA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.52% yearly.
PBA shows a decrease in Revenue. In the last year, the revenue decreased by -1.10%.
PBA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.42% yearly.
EPS 1Y (TTM)-8.9%
EPS 3Y14.66%
EPS 5Y-0.52%
EPS Q2Q%-13.33%
Revenue 1Y (TTM)-1.1%
Revenue growth 3Y-5.05%
Revenue growth 5Y0.42%
Sales Q2Q%-3.4%
3.2 Future
The Earnings Per Share is expected to grow by 11.21% on average over the next years. This is quite good.
PBA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.13% yearly.
EPS Next Y-0.53%
EPS Next 2Y0.97%
EPS Next 3Y2.38%
EPS Next 5Y11.21%
Revenue Next Year6.78%
Revenue Next 2Y7.29%
Revenue Next 3Y5.6%
Revenue Next 5Y2.13%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.30 indicates a rather expensive valuation of PBA.
The rest of the industry has a similar Price/Earnings ratio as PBA.
When comparing the Price/Earnings ratio of PBA to the average of the S&P500 Index (27.20), we can say PBA is valued slightly cheaper.
A Price/Forward Earnings ratio of 17.78 indicates a rather expensive valuation of PBA.
The rest of the industry has a similar Price/Forward Earnings ratio as PBA.
PBA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.3 | ||
| Fwd PE | 17.78 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PBA is on the same level as its industry peers.
PBA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PBA is cheaper than 69.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.25 | ||
| EV/EBITDA | 11.16 |
4.3 Compensation for Growth
PBA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.97%
EPS Next 3Y2.38%
5. Dividend
5.1 Amount
PBA has a Yearly Dividend Yield of 6.64%, which is a nice return.
PBA's Dividend Yield is a higher than the industry average which is at 6.18.
Compared to an average S&P500 Dividend Yield of 2.38, PBA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.64% |
5.2 History
The dividend of PBA has a limited annual growth rate of 2.11%.
PBA has been paying a dividend for at least 10 years, so it has a reliable track record.
PBA has decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.11%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
101.62% of the earnings are spent on dividend by PBA. This is not a sustainable payout ratio.
The dividend of PBA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP101.62%
EPS Next 2Y0.97%
EPS Next 3Y2.38%
39.35
+0.73 (+1.89%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners63.9%
Inst Owner Change1.29%
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap22.86B
Analysts76.36
Price Target43.57 (10.72%)
Short Float %1.92%
Short Ratio9.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.64% |
Yearly Dividend2.01
Dividend Growth(5Y)2.11%
DP101.62%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.97%
Min EPS beat(2)-1.36%
Max EPS beat(2)-0.58%
EPS beat(4)1
Avg EPS beat(4)-2.8%
Min EPS beat(4)-17.44%
Max EPS beat(4)8.17%
EPS beat(8)2
Avg EPS beat(8)1.27%
EPS beat(12)4
Avg EPS beat(12)26.5%
EPS beat(16)6
Avg EPS beat(16)17.31%
Revenue beat(2)1
Avg Revenue beat(2)11.68%
Min Revenue beat(2)-11.59%
Max Revenue beat(2)34.95%
Revenue beat(4)2
Avg Revenue beat(4)4.56%
Min Revenue beat(4)-11.59%
Max Revenue beat(4)34.95%
Revenue beat(8)3
Avg Revenue beat(8)-3.41%
Revenue beat(12)5
Avg Revenue beat(12)-1.89%
Revenue beat(16)9
Avg Revenue beat(16)5.47%
PT rev (1m)-2.09%
PT rev (3m)-4.69%
EPS NQ rev (1m)0.41%
EPS NQ rev (3m)-10.84%
EPS NY rev (1m)-4.82%
EPS NY rev (3m)-4.82%
Revenue NQ rev (1m)-4.03%
Revenue NQ rev (3m)-3.04%
Revenue NY rev (1m)1.36%
Revenue NY rev (3m)-2.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.3 | ||
| Fwd PE | 17.78 | ||
| P/S | 3.92 | ||
| P/FCF | 12.25 | ||
| P/OCF | 9.15 | ||
| P/B | 1.85 | ||
| P/tB | 2.97 | ||
| EV/EBITDA | 11.16 |
EPS(TTM)2.15
EY5.46%
EPS(NY)2.21
Fwd EY5.62%
FCF(TTM)3.21
FCFY8.16%
OCF(TTM)4.3
OCFY10.93%
SpS10.04
BVpS21.22
TBVpS13.25
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.87% | ||
| ROE | 10.12% | ||
| ROCE | 8.93% | ||
| ROIC | 7.24% | ||
| ROICexc | 7.29% | ||
| ROICexgc | 9.01% | ||
| OM | 37.24% | ||
| PM (TTM) | 21.39% | ||
| GM | 43.15% | ||
| FCFM | 31.99% |
ROA(3y)6.29%
ROA(5y)4.17%
ROE(3y)12.77%
ROE(5y)8.56%
ROIC(3y)6.98%
ROIC(5y)6.78%
ROICexc(3y)7.01%
ROICexc(5y)6.8%
ROICexgc(3y)9.56%
ROICexgc(5y)9.04%
ROCE(3y)8.61%
ROCE(5y)8.36%
ROICexcg growth 3Y-1.14%
ROICexcg growth 5Y4.96%
ROICexc growth 3Y-0.45%
ROICexc growth 5Y5.18%
OM growth 3Y9.34%
OM growth 5Y5.89%
PM growth 3Y22.34%
PM growth 5Y4.14%
GM growth 3Y13.54%
GM growth 5Y5.86%
F-Score6
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 5.19 | ||
| Debt/EBITDA | 3.21 | ||
| Cap/Depr | 91.53% | ||
| Cap/Sales | 10.85% | ||
| Interest Coverage | 4.96 | ||
| Cash Conversion | 87.24% | ||
| Profit Quality | 149.51% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 1.42 |
F-Score6
WACC7.56%
ROIC/WACC0.96
Cap/Depr(3y)96.92%
Cap/Depr(5y)105.76%
Cap/Sales(3y)9.24%
Cap/Sales(5y)10.39%
Profit Quality(3y)112.05%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.9%
EPS 3Y14.66%
EPS 5Y-0.52%
EPS Q2Q%-13.33%
EPS Next Y-0.53%
EPS Next 2Y0.97%
EPS Next 3Y2.38%
EPS Next 5Y11.21%
Revenue 1Y (TTM)-1.1%
Revenue growth 3Y-5.05%
Revenue growth 5Y0.42%
Sales Q2Q%-3.4%
Revenue Next Year6.78%
Revenue Next 2Y7.29%
Revenue Next 3Y5.6%
Revenue Next 5Y2.13%
EBIT growth 1Y13.79%
EBIT growth 3Y3.82%
EBIT growth 5Y6.33%
EBIT Next Year36.53%
EBIT Next 3Y13.23%
EBIT Next 5Y9.71%
FCF growth 1Y7.73%
FCF growth 3Y4.28%
FCF growth 5Y20.56%
OCF growth 1Y17.96%
OCF growth 3Y6.64%
OCF growth 5Y4.89%