PEMBINA PIPELINE CORP (PBA) Stock Fundamental Analysis
NYSE:PBA - New York Stock Exchange, Inc. - CA7063271034 - Common Stock - Currency: USD
Overall PBA gets a fundamental rating of 4 out of 10. We evaluated PBA against 213 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 valuation in line with the averages, but on the other hand it scores bad on growth.
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's Return On Assets of 4.99% is fine compared to the rest of the industry. PBA outperforms 60.09% of its industry peers.
With a Return On Equity value of 10.14%, PBA perfoms like the industry average, outperforming 59.15% of the companies in the same industry.
PBA has a Return On Invested Capital of 7.38%. This is in the better half of the industry: PBA outperforms 61.03% 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 23.60%.
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
The Profit Margin of PBA (21.92%) is better than 73.24% of its industry peers.
In the last couple of years the Profit Margin of PBA has grown nicely.
PBA's Operating Margin of 37.52% is amongst the best of the industry. PBA outperforms 81.22% 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 in line with its industry peers.
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
PBA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
PBA has less shares outstanding than it did 1 year ago.
The number of shares outstanding for PBA has been increased compared to 5 years ago.
The debt/assets ratio for PBA is higher compared to a year ago.
2.2 Solvency
PBA has an Altman-Z score of 1.39. This is a bad value and indicates that PBA is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.39, PBA is in line with its industry, outperforming 53.52% 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.
The Debt to FCF ratio of PBA (4.91) is better than 64.79% of its industry peers.
PBA has a Debt/Equity ratio of 0.69. This is a neutral value indicating PBA is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.69, PBA is doing worse than 61.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 4.91 | ||
| Altman-Z | 1.39 |
ROIC/WACC0.96
WACC7.71%
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 worse Current ratio (0.64) than 79.34% of its industry peers.
A Quick Ratio of 0.52 indicates that PBA may have some problems paying its short term obligations.
PBA has a worse Quick ratio (0.52) than 80.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The earnings per share for PBA have decreased by -1.29% in the last year.
The Earnings Per Share has been decreasing by -0.52% on average over the past years.
Looking at the last year, PBA shows a decrease in Revenue. The Revenue has decreased by -2.89% in the last year.
The Revenue has been growing slightly by 0.42% on average over the past years.
EPS 1Y (TTM)-1.29%
EPS 3Y14.66%
EPS 5Y-0.52%
EPS Q2Q%9.59%
Revenue 1Y (TTM)-2.89%
Revenue growth 3Y-5.05%
Revenue growth 5Y0.42%
Sales Q2Q%48.18%
3.2 Future
The Earnings Per Share is expected to grow by 5.28% on average over the next years.
The Revenue is expected to grow by 0.10% on average over the next years.
EPS Next Y4.51%
EPS Next 2Y5.29%
EPS Next 3Y6.23%
EPS Next 5Y5.28%
Revenue Next Year9.26%
Revenue Next 2Y4.85%
Revenue Next 3Y3.17%
Revenue Next 5Y0.1%
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.
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
The Price/Earnings ratio is 16.78, which indicates a correct valuation of PBA.
PBA's Price/Earnings ratio is in line with the industry average.
PBA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.30.
The Price/Forward Earnings ratio is 15.51, which indicates a correct valuation of PBA.
The rest of the industry has a similar Price/Forward Earnings ratio as PBA.
The average S&P500 Price/Forward Earnings ratio is at 22.06. PBA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.78 | ||
| Fwd PE | 15.51 |
4.2 Price Multiples
PBA's Enterprise Value to EBITDA ratio is in line with the industry average.
68.54% of the companies in the same industry are more expensive than PBA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.2 | ||
| EV/EBITDA | 10.77 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PBA does not grow enough to justify the current Price/Earnings ratio.
PBA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.72
PEG (5Y)N/A
EPS Next 2Y5.29%
EPS Next 3Y6.23%
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 6.81.
PBA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.52% |
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
97.64% 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.
DP97.64%
EPS Next 2Y5.29%
EPS Next 3Y6.23%
37.76
-0.01 (-0.03%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners64.19%
Inst Owner Change0.66%
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap21.93B
Analysts78.18
Price Target45.81 (21.32%)
Short Float %0.71%
Short Ratio3.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.52% |
Yearly Dividend2.01
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)0.08%
PT rev (3m)4.69%
EPS NQ rev (1m)-4.55%
EPS NQ rev (3m)-2.75%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.25%
Revenue NQ rev (1m)1.73%
Revenue NQ rev (3m)12.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.78 | ||
| Fwd PE | 15.51 | ||
| P/S | 3.69 | ||
| P/FCF | 11.2 | ||
| P/OCF | 8.28 | ||
| P/B | 1.71 | ||
| P/tB | 2.71 | ||
| EV/EBITDA | 10.77 |
EPS(TTM)2.25
EY5.96%
EPS(NY)2.43
Fwd EY6.45%
FCF(TTM)3.37
FCFY8.93%
OCF(TTM)4.56
OCFY12.08%
SpS10.24
BVpS22.14
TBVpS13.95
PEG (NY)3.72
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 | 1.39 |
F-Score4
WACC7.71%
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)-1.29%
EPS 3Y14.66%
EPS 5Y-0.52%
EPS Q2Q%9.59%
EPS Next Y4.51%
EPS Next 2Y5.29%
EPS Next 3Y6.23%
EPS Next 5Y5.28%
Revenue 1Y (TTM)-2.89%
Revenue growth 3Y-5.05%
Revenue growth 5Y0.42%
Sales Q2Q%48.18%
Revenue Next Year9.26%
Revenue Next 2Y4.85%
Revenue Next 3Y3.17%
Revenue Next 5Y0.1%
EBIT growth 1Y23.19%
EBIT growth 3Y3.82%
EBIT growth 5Y6.33%
EBIT Next Year36.53%
EBIT Next 3Y13.23%
EBIT Next 5Y9.74%
FCF growth 1Y23.33%
FCF growth 3Y4.28%
FCF growth 5Y20.56%
OCF growth 1Y32.43%
OCF growth 3Y6.64%
OCF growth 5Y4.89%