PEMBINA PIPELINE CORP (PBA) Stock Fundamental Analysis
NYSE:PBA - New York Stock Exchange, Inc. - CA7063271034 - Common Stock - Currency: USD
Taking everything into account, PBA scores 4 out of 10 in our fundamental rating. PBA was compared to 208 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
PBA had positive earnings in the past year.
PBA had a positive operating cash flow in the past year.
Of the past 5 years PBA 4 years were profitable.
PBA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.99%, PBA is doing good in the industry, outperforming 60.58% of the companies in the same industry.
PBA's Return On Equity of 10.14% is in line compared to the rest of the industry. PBA outperforms 59.62% of its industry peers.
With a decent Return On Invested Capital value of 7.38%, PBA is doing good in the industry, outperforming 63.46% 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 23.87%.
The 3 year average ROIC (6.98%) for PBA is below the current ROIC(7.38%), indicating increased profibility in the last year.
| 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 72.60% of the companies in the same industry.
PBA's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 37.52%, PBA belongs to the best of the industry, outperforming 82.69% of the companies in the same industry.
In the last couple of years the Operating Margin of PBA has grown nicely.
PBA has a Gross Margin (43.24%) which is comparable to the rest of the industry.
PBA's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for PBA has been reduced compared to 1 year ago.
PBA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PBA has a worse debt to assets ratio.
2.2 Solvency
PBA has an Altman-Z score of 1.36. This is a bad value and indicates that PBA is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.36, PBA perfoms like the industry average, outperforming 50.48% 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 63.46% of the companies in the same industry.
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 61.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 4.91 | ||
| Altman-Z | 1.36 |
ROIC/WACC0.92
WACC8.01%
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's Current ratio of 0.64 is on the low side compared to the rest of the industry. PBA is outperformed by 80.77% 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.
The Quick ratio of PBA (0.52) is worse than 81.73% 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 -1.29%.
PBA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.52% yearly.
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
PBA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.34% yearly.
PBA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.73% yearly.
EPS Next Y4.51%
EPS Next 2Y5.29%
EPS Next 3Y6.23%
EPS Next 5Y8.34%
Revenue Next Year9.26%
Revenue Next 2Y4.85%
Revenue Next 3Y3.17%
Revenue Next 5Y1.73%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.43, PBA is valued correctly.
PBA's Price/Earnings ratio is in line with the industry average.
PBA is valuated rather cheaply when we compare the Price/Earnings ratio to 27.93, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.14, which indicates a correct valuation of PBA.
The rest of the industry has a similar Price/Forward Earnings ratio as PBA.
When comparing the Price/Forward Earnings ratio of PBA to the average of the S&P500 Index (37.78), we can say PBA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.43 | ||
| Fwd PE | 15.14 |
4.2 Price Multiples
PBA's Enterprise Value to EBITDA is on the same level as the industry average.
71.63% 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 | 10.93 | ||
| EV/EBITDA | 10.58 |
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)3.64
PEG (5Y)N/A
EPS Next 2Y5.29%
EPS Next 3Y6.23%
5. Dividend
5.1 Amount
PBA has a Yearly Dividend Yield of 6.24%, which is a nice return.
PBA's Dividend Yield is a higher than the industry average which is at 6.37.
PBA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.24% |
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.
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
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%
36.81
+0.04 (+0.11%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners63.9%
Inst Owner Change0.03%
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap21.38B
Analysts79.09
Price Target45.34 (23.17%)
Short Float %1%
Short Ratio4.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.24% |
Yearly Dividend2.03
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)-0.27%
PT rev (3m)-0.95%
EPS NQ rev (1m)-6.54%
EPS NQ rev (3m)-10.79%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-9.27%
Revenue NQ rev (3m)-7.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.43 | ||
| Fwd PE | 15.14 | ||
| P/S | 3.6 | ||
| P/FCF | 10.93 | ||
| P/OCF | 8.08 | ||
| P/B | 1.66 | ||
| P/tB | 2.64 | ||
| EV/EBITDA | 10.58 |
EPS(TTM)2.24
EY6.09%
EPS(NY)2.43
Fwd EY6.61%
FCF(TTM)3.37
FCFY9.15%
OCF(TTM)4.55
OCFY12.37%
SpS10.23
BVpS22.11
TBVpS13.93
PEG (NY)3.64
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 | 1.36 |
F-Score4
WACC8.01%
ROIC/WACC0.92
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 5Y8.34%
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 5Y1.73%
EBIT growth 1Y23.19%
EBIT growth 3Y3.82%
EBIT growth 5Y6.33%
EBIT Next Year36.53%
EBIT Next 3Y13.23%
EBIT Next 5Y10.22%
FCF growth 1Y23.33%
FCF growth 3Y4.28%
FCF growth 5Y20.56%
OCF growth 1Y32.43%
OCF growth 3Y6.64%
OCF growth 5Y4.89%