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 213 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 valuation in line with the averages, but it does not seem to be growing.
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.
Of the past 5 years PBA 4 years were profitable.
Each year in the past 5 years PBA had a positive operating cash flow.
1.2 Ratios
PBA has a better Return On Assets (4.99%) than 60.56% of its industry peers.
The Return On Equity of PBA (10.14%) is comparable to the rest of the industry.
PBA has a Return On Invested Capital of 7.38%. This is in the better half of the industry: PBA outperforms 62.91% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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
Looking at the Profit Margin, with a value of 21.92%, PBA is in the better half of the industry, outperforming 73.24% 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 82.16% of its industry peers.
In the last couple of years the Operating Margin of PBA has grown nicely.
PBA has a Gross Margin (43.24%) which is in line with its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PBA is creating some value.
PBA has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, PBA has more shares outstanding
PBA has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.39, we must say that PBA is in the distress zone and has some risk of bankruptcy.
PBA has a Altman-Z score of 1.39. This is comparable to the rest of the industry: PBA outperforms 53.05% of its industry peers.
PBA has a debt to FCF ratio of 4.91. This is a neutral value as PBA would need 4.91 years to pay back of all of its debts.
PBA has a Debt to FCF ratio of 4.91. This is in the better half of the industry: PBA outperforms 64.32% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that PBA is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.69, PBA is not doing good in the industry: 61.03% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 4.91 | ||
| Altman-Z | 1.39 |
ROIC/WACC1.01
WACC7.32%
2.3 Liquidity
A Current Ratio of 0.64 indicates that PBA may have some problems paying its short term obligations.
PBA has a worse Current ratio (0.64) than 79.34% 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's Quick ratio of 0.52 is on the low side compared to the rest of the industry. PBA is outperformed by 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.
Measured over the past years, PBA shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.52% on average per year.
The Revenue has decreased by -2.89% in the past year.
PBA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.42% yearly.
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 a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.90% yearly.
Based on estimates for the next years, PBA will show a small growth in Revenue. The Revenue will grow by 1.73% on average per year.
EPS Next Y4.51%
EPS Next 2Y5.29%
EPS Next 3Y6.23%
EPS Next 5Y6.9%
Revenue Next Year9.26%
Revenue Next 2Y4.85%
Revenue Next 3Y3.17%
Revenue Next 5Y1.73%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.61 indicates a correct valuation of PBA.
The rest of the industry has a similar Price/Earnings ratio as PBA.
The average S&P500 Price/Earnings ratio is at 26.92. PBA is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.32, the valuation of PBA can be described as correct.
PBA's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of PBA to the average of the S&P500 Index (21.49), we can say PBA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.61 | ||
| Fwd PE | 15.32 |
4.2 Price Multiples
PBA's Enterprise Value to EBITDA is on the same level as the industry average.
69.48% 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 | 11.06 | ||
| EV/EBITDA | 10.81 |
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.
The decent profitability rating of PBA may justify a higher PE ratio.
PEG (NY)3.68
PEG (5Y)N/A
EPS Next 2Y5.29%
EPS Next 3Y6.23%
5. Dividend
5.1 Amount
PBA has a Yearly Dividend Yield of 6.33%, which is a nice return.
Compared to an average industry Dividend Yield of 6.42, PBA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, PBA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.33% |
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.
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
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%
37.21
-0.68 (-1.79%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners63.9%
Inst Owner Change0.66%
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap21.62B
Analysts78.18
Price Target45.46 (22.17%)
Short Float %1.11%
Short Ratio5.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.33% |
Yearly Dividend2.04
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)-0.75%
PT rev (3m)4.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.71%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.96%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.61 | ||
| Fwd PE | 15.32 | ||
| P/S | 3.64 | ||
| P/FCF | 11.06 | ||
| P/OCF | 8.18 | ||
| P/B | 1.68 | ||
| P/tB | 2.67 | ||
| EV/EBITDA | 10.81 |
EPS(TTM)2.24
EY6.02%
EPS(NY)2.43
Fwd EY6.53%
FCF(TTM)3.36
FCFY9.04%
OCF(TTM)4.55
OCFY12.23%
SpS10.22
BVpS22.1
TBVpS13.92
PEG (NY)3.68
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
WACC7.32%
ROIC/WACC1.01
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 5Y6.9%
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 5Y10.01%
FCF growth 1Y23.33%
FCF growth 3Y4.28%
FCF growth 5Y20.56%
OCF growth 1Y32.43%
OCF growth 3Y6.64%
OCF growth 5Y4.89%