PEMBINA PIPELINE CORP (PBA) Stock Fundamental Analysis
NYSE:PBA - New York Stock Exchange, Inc. - CA7063271034 - Common Stock - Currency: USD
PBA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 209 industry peers in the Oil, Gas & Consumable Fuels industry. While PBA belongs to the best of the industry regarding profitability, 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.
In the past year PBA had a positive cash flow from operations.
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 better Return On Assets (4.99%) than 61.24% of its industry peers.
Looking at the Return On Equity, with a value of 10.14%, PBA is in line with its industry, outperforming 59.81% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.38%, PBA is doing good in the industry, outperforming 66.03% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PBA is significantly below the industry average of 23.54%.
The last Return On Invested Capital (7.38%) for PBA is above the 3 year average (6.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.99% | ||
| ROE | 10.14% | ||
| ROIC | 7.38% |
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 21.92%, PBA is doing good in the industry, outperforming 73.21% of the companies in the same industry.
PBA's Profit Margin has improved in the last couple of years.
The Operating Margin of PBA (37.52%) is better than 83.73% of its industry peers.
PBA's Operating Margin has improved in the last couple of years.
PBA has a Gross Margin (43.24%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of PBA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.52% | ||
| PM (TTM) | 21.92% | ||
| GM | 43.24% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PBA is destroying value.
Compared to 1 year ago, PBA has less shares outstanding
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 1.37, we must say that PBA is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.37, PBA is in line with its industry, outperforming 53.59% of the companies in the same industry.
The Debt to FCF ratio of PBA is 4.91, which is a neutral value as it means it would take PBA, 4.91 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.91, PBA is in the better half of the industry, outperforming 62.68% of the companies in the same industry.
A Debt/Equity ratio of 0.69 indicates that PBA is somewhat dependend on debt financing.
PBA has a worse Debt to Equity ratio (0.69) than 60.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 4.91 | ||
| Altman-Z | 1.37 |
ROIC/WACC0.96
WACC7.68%
2.3 Liquidity
PBA has a Current Ratio of 0.64. 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 Current ratio of 0.64. This is in the lower half of the industry: PBA underperforms 78.95% of its industry peers.
PBA has a Quick Ratio of 0.64. 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 worse Quick ratio (0.52) than 80.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
PBA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.90%.
The Earnings Per Share has been decreasing by -0.52% on average over the past years.
PBA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.63%.
The Revenue has been growing slightly by 0.42% on average over the past years.
EPS 1Y (TTM)-8.9%
EPS 3Y14.66%
EPS 5Y-0.52%
EPS Q2Q%-13.33%
Revenue 1Y (TTM)16.63%
Revenue growth 3Y-5.05%
Revenue growth 5Y0.42%
Sales Q2Q%-3.4%
3.2 Future
PBA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.30% yearly.
The Revenue is expected to grow by 2.21% on average over the next years.
EPS Next Y4.51%
EPS Next 2Y5.29%
EPS Next 3Y6.23%
EPS Next 5Y11.3%
Revenue Next Year5.34%
Revenue Next 2Y3.26%
Revenue Next 3Y1.87%
Revenue Next 5Y2.21%
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
The Price/Earnings ratio is 17.49, which indicates a rather expensive current valuation of PBA.
The rest of the industry has a similar Price/Earnings ratio as PBA.
PBA is valuated rather cheaply when we compare the Price/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.61, PBA is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PBA is on the same level as its industry peers.
PBA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.49 | ||
| Fwd PE | 15.61 |
4.2 Price Multiples
PBA's Enterprise Value to EBITDA ratio is in line with the industry average.
PBA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PBA is cheaper than 71.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.28 | ||
| EV/EBITDA | 10.69 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PBA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.88
PEG (5Y)N/A
EPS Next 2Y5.29%
EPS Next 3Y6.23%
5. Dividend
5.1 Amount
PBA has a Yearly Dividend Yield of 6.21%, which is a nice return.
Compared to an average industry Dividend Yield of 6.32, PBA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, PBA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.21% |
5.2 History
The dividend of PBA has a limited annual growth rate of 2.11%.
PBA has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of PBA decreased in the last 3 years.
Dividend Growth(5Y)2.11%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
PBA pays out 97.64% of its income as dividend. This is not a sustainable payout ratio.
PBA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP97.64%
EPS Next 2Y5.29%
EPS Next 3Y6.23%
37.6
+0.67 (+1.81%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners63.9%
Inst Owner Change1.32%
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap21.84B
Analysts77.27
Price Target44.5 (18.35%)
Short Float %1.1%
Short Ratio5.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.21% |
Yearly Dividend2.02
Dividend Growth(5Y)2.11%
DP97.64%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.4%
Min EPS beat(2)-1.36%
Max EPS beat(2)8.17%
EPS beat(4)1
Avg EPS beat(4)-2.83%
Min EPS beat(4)-17.44%
Max EPS beat(4)8.17%
EPS beat(8)3
Avg EPS beat(8)1.62%
EPS beat(12)4
Avg EPS beat(12)26.32%
EPS beat(16)6
Avg EPS beat(16)15.4%
Revenue beat(2)2
Avg Revenue beat(2)19.21%
Min Revenue beat(2)3.47%
Max Revenue beat(2)34.95%
Revenue beat(4)2
Avg Revenue beat(4)5.97%
Min Revenue beat(4)-8.58%
Max Revenue beat(4)34.95%
Revenue beat(8)3
Avg Revenue beat(8)-2.88%
Revenue beat(12)6
Avg Revenue beat(12)-0.69%
Revenue beat(16)10
Avg Revenue beat(16)7.51%
PT rev (1m)-2.11%
PT rev (3m)-2.84%
EPS NQ rev (1m)-5.54%
EPS NQ rev (3m)-12%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.7%
Revenue NY rev (1m)-3.58%
Revenue NY rev (3m)-3.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.49 | ||
| Fwd PE | 15.61 | ||
| P/S | 3.71 | ||
| P/FCF | 11.28 | ||
| P/OCF | 8.34 | ||
| P/B | 1.72 | ||
| P/tB | 2.72 | ||
| EV/EBITDA | 10.69 |
EPS(TTM)2.15
EY5.72%
EPS(NY)2.41
Fwd EY6.4%
FCF(TTM)3.33
FCFY8.87%
OCF(TTM)4.51
OCFY11.99%
SpS10.13
BVpS21.9
TBVpS13.8
PEG (NY)3.88
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.99% | ||
| ROE | 10.14% | ||
| ROCE | 9.1% | ||
| ROIC | 7.38% | ||
| ROICexc | 7.42% | ||
| ROICexgc | 9.22% | ||
| OM | 37.52% | ||
| PM (TTM) | 21.92% | ||
| GM | 43.24% | ||
| FCFM | 32.92% |
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-Score4
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 4.91 | ||
| Debt/EBITDA | 3.03 | ||
| Cap/Depr | 100.43% | ||
| Cap/Sales | 11.6% | ||
| Interest Coverage | 5.14 | ||
| Cash Conversion | 90.72% | ||
| Profit Quality | 150.2% | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 1.37 |
F-Score4
WACC7.68%
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 Y4.51%
EPS Next 2Y5.29%
EPS Next 3Y6.23%
EPS Next 5Y11.3%
Revenue 1Y (TTM)16.63%
Revenue growth 3Y-5.05%
Revenue growth 5Y0.42%
Sales Q2Q%-3.4%
Revenue Next Year5.34%
Revenue Next 2Y3.26%
Revenue Next 3Y1.87%
Revenue Next 5Y2.21%
EBIT growth 1Y23.19%
EBIT growth 3Y3.82%
EBIT growth 5Y6.33%
EBIT Next Year36.53%
EBIT Next 3Y13.23%
EBIT Next 5Y9.79%
FCF growth 1Y23.33%
FCF growth 3Y4.28%
FCF growth 5Y20.56%
OCF growth 1Y32.43%
OCF growth 3Y6.64%
OCF growth 5Y4.89%