PEMBINA PIPELINE CORP (PBA) Stock Fundamental Analysis
NYSE:PBA - New York Stock Exchange, Inc. - CA7063271034 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to PBA. PBA was compared to 213 industry peers in the Oil, Gas & Consumable Fuels industry. PBA has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
PBA had a positive operating cash flow in the past year.
Of the past 5 years PBA 4 years were profitable.
In the past 5 years PBA always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 4.78%, PBA perfoms like the industry average, outperforming 54.46% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.83%, PBA is in line with its industry, outperforming 54.93% of the companies in the same industry.
PBA has a Return On Invested Capital (7.11%) which is comparable to the rest of the industry.
PBA had an Average Return On Invested Capital over the past 3 years of 6.98%. This is significantly below the industry average of 25.70%.
The last Return On Invested Capital (7.11%) for PBA is above the 3 year average (6.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.78% | ||
| ROE | 9.83% | ||
| ROIC | 7.11% |
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 (23.31%) is better than 75.12% of its industry peers.
In the last couple of years the Profit Margin of PBA has grown nicely.
The Operating Margin of PBA (39.23%) is better than 83.57% of its industry peers.
In the last couple of years the Operating Margin of PBA has grown nicely.
PBA has a Gross Margin (44.91%) 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 | 39.23% | ||
| PM (TTM) | 23.31% | ||
| GM | 44.91% |
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) below the Cost of Capital (WACC), PBA is destroying value.
Compared to 1 year ago, PBA has less shares outstanding
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.
PBA has a Altman-Z score (1.36) which is comparable to the rest of the industry.
PBA has a debt to FCF ratio of 5.90. This is a neutral value as PBA would need 5.90 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.90, PBA is in the better half of the industry, outperforming 61.50% of the companies in the same industry.
A Debt/Equity ratio of 0.67 indicates that PBA is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.67, PBA is not doing good in the industry: 63.38% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.9 | ||
| Altman-Z | 1.36 |
ROIC/WACC0.79
WACC8.97%
2.3 Liquidity
PBA has a Current Ratio of 0.54. 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 0.54 is on the low side compared to the rest of the industry. PBA is outperformed by 84.04% of its industry peers.
A Quick Ratio of 0.44 indicates that PBA may have some problems paying its short term obligations.
PBA's Quick ratio of 0.44 is on the low side compared to the rest of the industry. PBA is outperformed by 85.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
PBA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.33%.
PBA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.52% yearly.
PBA shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -19.08%.
Measured over the past years, PBA shows a small growth in Revenue. The Revenue has been growing by 0.42% on average per year.
EPS 1Y (TTM)0.33%
EPS 3Y14.66%
EPS 5Y-0.52%
EPS Q2Q%-23.97%
Revenue 1Y (TTM)-19.08%
Revenue growth 3Y-5.05%
Revenue growth 5Y0.42%
Sales Q2Q%-13.02%
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 17.97, which indicates a rather expensive current 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 28.10.
PBA is valuated rather expensively with a Price/Forward Earnings ratio of 17.18.
PBA's Price/Forward Earnings is on the same level as the industry average.
PBA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.97 | ||
| Fwd PE | 17.18 |
4.2 Price Multiples
PBA's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. PBA is more expensive than 60.56% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PBA indicates a somewhat cheap valuation: PBA is cheaper than 62.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.85 | ||
| EV/EBITDA | 11.85 |
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)3.98
PEG (5Y)N/A
EPS Next 2Y5.29%
EPS Next 3Y6.23%
5. Dividend
5.1 Amount
PBA has a Yearly Dividend Yield of 5.17%, which is a nice return.
Compared to an average industry Dividend Yield of 7.27, PBA pays a bit more dividend than its industry peers.
PBA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.17% |
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
98.84% 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.
DP98.84%
EPS Next 2Y5.29%
EPS Next 3Y6.23%
38.99
-0.09 (-0.23%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners64.19%
Inst Owner Change-0.13%
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap22.64B
Analysts78.18
Price Target45.77 (17.39%)
Short Float %0.73%
Short Ratio3.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.17% |
Yearly Dividend2.01
Dividend Growth(5Y)2.11%
DP98.84%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.64%
Min EPS beat(2)-17.44%
Max EPS beat(2)8.17%
EPS beat(4)1
Avg EPS beat(4)-2.97%
Min EPS beat(4)-17.44%
Max EPS beat(4)8.17%
EPS beat(8)3
Avg EPS beat(8)-0.22%
EPS beat(12)5
Avg EPS beat(12)26.55%
EPS beat(16)6
Avg EPS beat(16)14.16%
Revenue beat(2)1
Avg Revenue beat(2)-2.55%
Min Revenue beat(2)-8.58%
Max Revenue beat(2)3.47%
Revenue beat(4)1
Avg Revenue beat(4)-12.93%
Min Revenue beat(4)-40.66%
Max Revenue beat(4)3.47%
Revenue beat(8)2
Avg Revenue beat(8)-8%
Revenue beat(12)6
Avg Revenue beat(12)-1.18%
Revenue beat(16)10
Avg Revenue beat(16)6.44%
PT rev (1m)3.04%
PT rev (3m)4.61%
EPS NQ rev (1m)1.54%
EPS NQ rev (3m)6.64%
EPS NY rev (1m)-1.2%
EPS NY rev (3m)-0.25%
Revenue NQ rev (1m)-19.97%
Revenue NQ rev (3m)-11.05%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)-3.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.97 | ||
| Fwd PE | 17.18 | ||
| P/S | 4.24 | ||
| P/FCF | 13.85 | ||
| P/OCF | 9.74 | ||
| P/B | 1.79 | ||
| P/tB | 2.85 | ||
| EV/EBITDA | 11.85 |
EPS(TTM)2.17
EY5.57%
EPS(NY)2.27
Fwd EY5.82%
FCF(TTM)2.82
FCFY7.22%
OCF(TTM)4.01
OCFY10.27%
SpS9.2
BVpS21.82
TBVpS13.69
PEG (NY)3.98
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.78% | ||
| ROE | 9.83% | ||
| ROCE | 8.76% | ||
| ROIC | 7.11% | ||
| ROICexc | 7.14% | ||
| ROICexgc | 8.91% | ||
| OM | 39.23% | ||
| PM (TTM) | 23.31% | ||
| GM | 44.91% | ||
| FCFM | 30.59% |
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 Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.9 | ||
| Debt/EBITDA | 3.11 | ||
| Cap/Depr | 110.79% | ||
| Cap/Sales | 12.93% | ||
| Interest Coverage | 5.49 | ||
| Cash Conversion | 85.5% | ||
| Profit Quality | 131.26% | ||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 1.36 |
F-Score4
WACC8.97%
ROIC/WACC0.79
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)0.33%
EPS 3Y14.66%
EPS 5Y-0.52%
EPS Q2Q%-23.97%
EPS Next Y4.51%
EPS Next 2Y5.29%
EPS Next 3Y6.23%
EPS Next 5Y5.28%
Revenue 1Y (TTM)-19.08%
Revenue growth 3Y-5.05%
Revenue growth 5Y0.42%
Sales Q2Q%-13.02%
Revenue Next Year9.26%
Revenue Next 2Y4.85%
Revenue Next 3Y3.17%
Revenue Next 5Y0.1%
EBIT growth 1Y19.51%
EBIT growth 3Y3.82%
EBIT growth 5Y6.33%
EBIT Next Year37.79%
EBIT Next 3Y13.72%
EBIT Next 5Y9.74%
FCF growth 1Y11.34%
FCF growth 3Y4.28%
FCF growth 5Y20.56%
OCF growth 1Y21.97%
OCF growth 3Y6.64%
OCF growth 5Y4.89%