PEMBINA PIPELINE CORP (PBA)
CA7063271034 - Common Stock
PBA gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 214 industry peers in the Oil, Gas & Consumable Fuels industry. While PBA is still in line with the averages on profitability rating, there are concerns on its financial health. PBA does not seem to be growing, but still is valued 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.
In the past 5 years PBA always reported a positive cash flow from operatings.
1.2 Ratios
PBA has a Return On Assets of 5.06%. This is comparable to the rest of the industry: PBA outperforms 40.65% of its industry peers.
Looking at the Return On Equity, with a value of 10.43%, PBA is doing worse than 61.22% of the companies in the same industry.
PBA has a Return On Invested Capital of 7.15%. This is comparable to the rest of the industry: PBA outperforms 43.46% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PBA is significantly below the industry average of 44.55%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.06% | ||
| ROE | 10.43% | ||
| ROIC | 7.15% |
ROA(3y)5.86%
ROA(5y)4.05%
ROE(3y)12.06%
ROE(5y)8.23%
ROIC(3y)7.51%
ROIC(5y)6.91%
1.3 Margins
PBA has a Profit Margin (18.07%) which is in line with its industry peers.
PBA's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 26.56%, PBA is in line with its industry, outperforming 51.87% of the companies in the same industry.
In the last couple of years the Operating Margin of PBA has remained more or less at the same level.
The Gross Margin of PBA (31.12%) is worse than 61.68% of its industry peers.
PBA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.56% | ||
| PM (TTM) | 18.07% | ||
| GM | 31.12% |
OM growth 3Y-7.68%
OM growth 5Y-0.68%
PM growth 3YN/A
PM growth 5Y2.86%
GM growth 3Y-5.97%
GM growth 5Y-0.34%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PBA is creating some value.
The number of shares outstanding for PBA has been increased compared to 1 year ago.
Compared to 5 years ago, PBA has more shares outstanding
PBA has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.35, we must say that PBA is in the distress zone and has some risk of bankruptcy.
PBA has a Altman-Z score (1.35) which is in line with its industry peers.
PBA has a debt to FCF ratio of 5.49. This is a neutral value as PBA would need 5.49 years to pay back of all of its debts.
PBA has a Debt to FCF ratio (5.49) which is comparable to the rest of the industry.
PBA has a Debt/Equity ratio of 0.66. This is a neutral value indicating PBA is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.66, PBA is not doing good in the industry: 61.22% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 5.49 | ||
| Altman-Z | 1.35 |
ROIC/WACC1.06
WACC6.75%
2.3 Liquidity
A Current Ratio of 0.82 indicates that PBA may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.82, PBA is doing worse than 73.83% of the companies in the same industry.
PBA has a Quick Ratio of 0.82. 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's Quick ratio of 0.71 is on the low side compared to the rest of the industry. PBA is outperformed by 72.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The earnings per share for PBA have decreased strongly by -41.60% in the last year.
PBA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.66% yearly.
The Revenue for PBA has decreased by -21.41% in the past year. This is quite bad
Measured over the past years, PBA shows a small growth in Revenue. The Revenue has been growing by 4.42% on average per year.
EPS 1Y (TTM)-41.6%
EPS 3YN/A
EPS 5Y5.66%
EPS growth Q2Q210.26%
Revenue 1Y (TTM)-21.41%
Revenue growth 3Y13.74%
Revenue growth 5Y4.42%
Revenue growth Q2Q-8.63%
3.2 Future
The Earnings Per Share is expected to grow by 6.58% on average over the next years.
PBA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.20% yearly.
EPS Next Y3.19%
EPS Next 2Y5.42%
EPS Next 3Y6.5%
EPS Next 5Y6.58%
Revenue Next Year6.46%
Revenue Next 2Y4.65%
Revenue Next 3Y-2.63%
Revenue Next 5Y2.2%
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 stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.29 indicates a correct valuation of PBA.
Based on the Price/Earnings ratio, PBA is valued a bit more expensive than 65.89% of the companies in the same industry.
When comparing the Price/Earnings ratio of PBA to the average of the S&P500 Index (28.28), we can say PBA is valued slightly cheaper.
A Price/Forward Earnings ratio of 15.79 indicates a correct valuation of PBA.
The rest of the industry has a similar Price/Forward Earnings ratio as PBA.
PBA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.29 | ||
| Fwd PE | 15.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PBA is valued a bit more expensive than 72.43% of the companies in the same industry.
PBA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.19 | ||
| EV/EBITDA | 12.21 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)5.1
PEG (5Y)2.88
EPS Next 2Y5.42%
EPS Next 3Y6.5%
5. Dividend
5.1 Amount
PBA has a Yearly Dividend Yield of 5.52%, which is a nice return.
PBA's Dividend Yield is a higher than the industry average which is at 5.78.
Compared to an average S&P500 Dividend Yield of 2.41, PBA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.52% |
5.2 History
The dividend of PBA has a limited annual growth rate of 1.44%.
PBA has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of PBA decreased in the last 3 years.
Dividend Growth(5Y)1.44%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
95.76% of the earnings are spent on dividend by PBA. This is not a sustainable payout ratio.
PBA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP95.76%
EPS Next 2Y5.42%
EPS Next 3Y6.5%
PEMBINA PIPELINE CORP
NYSE:PBA (5/3/2024, 7:11:08 PM)
After market: 35.51 0 (0%)35.51
+0.13 (+0.37%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap19.51B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.52% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.29 | ||
| Fwd PE | 15.79 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)5.1
PEG (5Y)2.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.06% | ||
| ROE | 10.43% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 26.56% | ||
| PM (TTM) | 18.07% | ||
| GM | 31.12% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-41.6%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y3.19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-21.41%
Revenue growth 3Y13.74%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y