PEMBINA PIPELINE CORP (PPL.CA) Stock Fundamental Analysis
Canada - TSX:PPL - CA7063271034 - Common Stock
53.2 CAD
-1.13 (-2.08%)
PPL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 216 industry peers in the Oil, Gas & Consumable Fuels industry. PPL scores excellent on profitability, but there are concerns on its financial health. PPL has a decent growth rate and is not valued too expensively. PPL also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
PPL had positive earnings in the past year.
In the past year PPL had a positive cash flow from operations.
PPL had positive earnings in 4 of the past 5 years.
PPL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.87%, PPL is doing good in the industry, outperforming 78.70% of the companies in the same industry.
With a decent Return On Equity value of 10.12%, PPL is doing good in the industry, outperforming 77.31% of the companies in the same industry.
PPL has a better Return On Invested Capital (7.24%) than 80.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PPL is in line with the industry average of 6.93%.
The 3 year average ROIC (6.98%) for PPL is below the current ROIC(7.24%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.87% | ||
| ROE | 10.12% | ||
| ROIC | 7.24% |
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 PPL (21.39%) is better than 80.09% of its industry peers.
In the last couple of years the Profit Margin of PPL has grown nicely.
Looking at the Operating Margin, with a value of 37.24%, PPL belongs to the top of the industry, outperforming 86.11% of the companies in the same industry.
In the last couple of years the Operating Margin of PPL has grown nicely.
With a decent Gross Margin value of 43.15%, PPL is doing good in the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Gross Margin of PPL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.24% | ||
| PM (TTM) | 21.39% | ||
| GM | 43.15% |
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 PPL is destroying value.
Compared to 1 year ago, PPL has less shares outstanding
The number of shares outstanding for PPL has been increased compared to 5 years ago.
The debt/assets ratio for PPL is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.41, we must say that PPL is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of PPL (1.41) is better than 63.43% of its industry peers.
PPL has a debt to FCF ratio of 5.19. This is a neutral value as PPL would need 5.19 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.19, PPL is in the better half of the industry, outperforming 76.39% of the companies in the same industry.
PPL has a Debt/Equity ratio of 0.75. This is a neutral value indicating PPL is somewhat dependend on debt financing.
The Debt to Equity ratio of PPL (0.75) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 5.19 | ||
| Altman-Z | 1.41 |
ROIC/WACC0.95
WACC7.62%
2.3 Liquidity
A Current Ratio of 0.77 indicates that PPL may have some problems paying its short term obligations.
PPL has a Current ratio of 0.77. This is comparable to the rest of the industry: PPL outperforms 49.54% of its industry peers.
A Quick Ratio of 0.62 indicates that PPL may have some problems paying its short term obligations.
PPL's Quick ratio of 0.62 is on the low side compared to the rest of the industry. PPL is outperformed by 64.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
PPL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.90%.
The Earnings Per Share has been decreasing by -0.52% on average over the past years.
Looking at the last year, PPL shows a decrease in Revenue. The Revenue has decreased by -1.10% in the last year.
PPL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.42% yearly.
EPS 1Y (TTM)-8.9%
EPS 3Y14.66%
EPS 5Y-0.52%
EPS Q2Q%-13.33%
Revenue 1Y (TTM)-1.1%
Revenue growth 3Y-5.05%
Revenue growth 5Y0.42%
Sales Q2Q%-3.4%
3.2 Future
PPL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.21% yearly.
PPL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.13% yearly.
EPS Next Y-0.53%
EPS Next 2Y0.97%
EPS Next 3Y2.38%
EPS Next 5Y11.21%
Revenue Next Year6.78%
Revenue Next 2Y7.29%
Revenue Next 3Y5.6%
Revenue Next 5Y2.13%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.91, which indicates a rather expensive current valuation of PPL.
Based on the Price/Earnings ratio, PPL is valued a bit cheaper than 60.65% of the companies in the same industry.
When comparing the Price/Earnings ratio of PPL to the average of the S&P500 Index (27.27), we can say PPL is valued slightly cheaper.
PPL is valuated rather expensively with a Price/Forward Earnings ratio of 17.39.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PPL is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.77, PPL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.91 | ||
| Fwd PE | 17.39 |
4.2 Price Multiples
PPL's Enterprise Value to EBITDA is on the same level as the industry average.
PPL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PPL is cheaper than 73.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.98 | ||
| EV/EBITDA | 11.13 |
4.3 Compensation for Growth
PPL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.97%
EPS Next 3Y2.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.64%, PPL is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.90, PPL pays a better dividend. On top of this PPL pays more dividend than 83.33% of the companies listed in the same industry.
PPL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.64% |
5.2 History
The dividend of PPL has a limited annual growth rate of 2.11%.
PPL has been paying a dividend for at least 10 years, so it has a reliable track record.
PPL has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.11%
Div Incr Years3
Div Non Decr Years26
5.3 Sustainability
101.62% of the earnings are spent on dividend by PPL. This is not a sustainable payout ratio.
PPL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP101.62%
EPS Next 2Y0.97%
EPS Next 3Y2.38%
TSX:PPL (9/15/2025, 7:00:00 PM)
53.2
-1.13 (-2.08%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners63.9%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap30.91B
Analysts76.36
Price Target60.24 (13.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.64% |
Yearly Dividend2.78
Dividend Growth(5Y)2.11%
DP101.62%
Div Incr Years3
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.97%
Min EPS beat(2)-1.36%
Max EPS beat(2)-0.58%
EPS beat(4)1
Avg EPS beat(4)-2.8%
Min EPS beat(4)-17.44%
Max EPS beat(4)8.17%
EPS beat(8)2
Avg EPS beat(8)1.27%
EPS beat(12)4
Avg EPS beat(12)26.5%
EPS beat(16)6
Avg EPS beat(16)17.31%
Revenue beat(2)1
Avg Revenue beat(2)11.68%
Min Revenue beat(2)-11.59%
Max Revenue beat(2)34.95%
Revenue beat(4)2
Avg Revenue beat(4)4.56%
Min Revenue beat(4)-11.59%
Max Revenue beat(4)34.95%
Revenue beat(8)3
Avg Revenue beat(8)-3.41%
Revenue beat(12)5
Avg Revenue beat(12)-1.89%
Revenue beat(16)9
Avg Revenue beat(16)5.47%
PT rev (1m)-1.66%
PT rev (3m)-3.96%
EPS NQ rev (1m)0.41%
EPS NQ rev (3m)-10.84%
EPS NY rev (1m)-4.82%
EPS NY rev (3m)-4.82%
Revenue NQ rev (1m)-4.03%
Revenue NQ rev (3m)-3.04%
Revenue NY rev (1m)1.36%
Revenue NY rev (3m)-2.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.91 | ||
| Fwd PE | 17.39 | ||
| P/S | 3.83 | ||
| P/FCF | 11.98 | ||
| P/OCF | 8.95 | ||
| P/B | 1.81 | ||
| P/tB | 2.9 | ||
| EV/EBITDA | 11.13 |
EPS(TTM)2.97
EY5.58%
EPS(NY)3.06
Fwd EY5.75%
FCF(TTM)4.44
FCFY8.34%
OCF(TTM)5.95
OCFY11.18%
SpS13.88
BVpS29.33
TBVpS18.32
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.87% | ||
| ROE | 10.12% | ||
| ROCE | 8.93% | ||
| ROIC | 7.24% | ||
| ROICexc | 7.29% | ||
| ROICexgc | 9.01% | ||
| OM | 37.24% | ||
| PM (TTM) | 21.39% | ||
| GM | 43.15% | ||
| FCFM | 31.99% |
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-Score6
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 5.19 | ||
| Debt/EBITDA | 3.21 | ||
| Cap/Depr | 91.53% | ||
| Cap/Sales | 10.85% | ||
| Interest Coverage | 4.96 | ||
| Cash Conversion | 87.24% | ||
| Profit Quality | 149.51% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 1.41 |
F-Score6
WACC7.62%
ROIC/WACC0.95
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)-8.9%
EPS 3Y14.66%
EPS 5Y-0.52%
EPS Q2Q%-13.33%
EPS Next Y-0.53%
EPS Next 2Y0.97%
EPS Next 3Y2.38%
EPS Next 5Y11.21%
Revenue 1Y (TTM)-1.1%
Revenue growth 3Y-5.05%
Revenue growth 5Y0.42%
Sales Q2Q%-3.4%
Revenue Next Year6.78%
Revenue Next 2Y7.29%
Revenue Next 3Y5.6%
Revenue Next 5Y2.13%
EBIT growth 1Y13.79%
EBIT growth 3Y3.82%
EBIT growth 5Y6.33%
EBIT Next Year36.53%
EBIT Next 3Y13.23%
EBIT Next 5Y9.71%
FCF growth 1Y7.73%
FCF growth 3Y4.28%
FCF growth 5Y20.56%
OCF growth 1Y17.96%
OCF growth 3Y6.64%
OCF growth 5Y4.89%