PEMBINA PIPELINE CORP (PPL.CA) Stock Fundamental Analysis
TSX:PPL - Toronto Stock Exchange - CA7063271034 - Common Stock - Currency: CAD
Overall PPL gets a fundamental rating of 5 out of 10. We evaluated PPL against 214 industry peers in the Oil, Gas & Consumable Fuels industry. PPL has an excellent profitability rating, but there are concerns on its financial health. PPL has a valuation in line with the averages, but on the other hand it scores bad on growth. 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.
Of the past 5 years PPL 4 years were profitable.
In the past 5 years PPL always reported a positive cash flow from operatings.
1.2 Ratios
PPL has a Return On Assets of 4.99%. This is in the better half of the industry: PPL outperforms 78.97% of its industry peers.
With a decent Return On Equity value of 10.14%, PPL is doing good in the industry, outperforming 75.23% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.38%, PPL is doing good in the industry, outperforming 78.50% of the companies in the same industry.
PPL had an Average Return On Invested Capital over the past 3 years of 6.98%. This is in line with the industry average of 7.31%.
The 3 year average ROIC (6.98%) for PPL 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
The Profit Margin of PPL (21.92%) is better than 79.44% of its industry peers.
PPL's Profit Margin has improved in the last couple of years.
PPL has a better Operating Margin (37.52%) than 84.58% of its industry peers.
In the last couple of years the Operating Margin of PPL has grown nicely.
With a decent Gross Margin value of 43.24%, PPL is doing good in the industry, outperforming 64.49% of the companies in the same industry.
PPL'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
PPL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
PPL has less shares outstanding than it did 1 year ago.
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 1.40, we must say that PPL is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.40, PPL is doing good in the industry, outperforming 63.55% of the companies in the same industry.
The Debt to FCF ratio of PPL is 4.91, which is a neutral value as it means it would take PPL, 4.91 years of fcf income to pay off all of its debts.
PPL has a Debt to FCF ratio of 4.91. This is in the better half of the industry: PPL outperforms 72.43% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that PPL is somewhat dependend on debt financing.
PPL's Debt to Equity ratio of 0.69 is on the low side compared to the rest of the industry. PPL is outperformed by 60.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 4.91 | ||
| Altman-Z | 1.4 |
ROIC/WACC1.02
WACC7.24%
2.3 Liquidity
PPL has a Current Ratio of 0.64. This is a bad value and indicates that PPL is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of PPL (0.64) is worse than 71.03% of its industry peers.
PPL has a Quick Ratio of 0.64. This is a bad value and indicates that PPL is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.52, PPL is doing worse than 73.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The earnings per share for PPL have decreased by -1.29% in the last year.
PPL shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.52% yearly.
PPL shows a decrease in Revenue. In the last year, the revenue decreased by -2.89%.
Measured over the past years, PPL shows a small growth in Revenue. The Revenue has been growing by 0.42% on average per year.
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 6.90% on average over the next years.
Based on estimates for the next years, PPL 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
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 17.02, PPL is valued on the expensive side.
60.28% of the companies in the same industry are more expensive than PPL, based on the Price/Earnings ratio.
PPL is valuated rather cheaply when we compare the Price/Earnings ratio to 26.32, which is the current average of the S&P500 Index.
PPL is valuated correctly with a Price/Forward Earnings ratio of 15.71.
PPL's Price/Forward Earnings ratio is in line with the industry average.
PPL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.02 | ||
| Fwd PE | 15.71 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PPL is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, PPL is valued a bit cheaper than the industry average as 72.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.35 | ||
| EV/EBITDA | 10.87 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PPL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.77
PEG (5Y)N/A
EPS Next 2Y5.29%
EPS Next 3Y6.23%
5. Dividend
5.1 Amount
PPL has a Yearly Dividend Yield of 5.49%, which is a nice return.
PPL's Dividend Yield is rather good when compared to the industry average which is at 6.18. PPL pays more dividend than 81.31% of the companies in the same industry.
PPL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.49% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.11%
Div Incr Years3
Div Non Decr Years26
5.3 Sustainability
97.64% 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.
DP97.64%
EPS Next 2Y5.29%
EPS Next 3Y6.23%
TSX:PPL (6/13/2025, 7:00:00 PM)
52.26
+0.51 (+0.99%)
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 Cap30.36B
Analysts78.18
Price Target62.73 (20.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.49% |
Yearly Dividend2.78
Dividend Growth(5Y)2.11%
DP97.64%
Div Incr Years3
Div Non Decr Years26
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)-0.81%
PT rev (3m)-0.3%
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)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.02 | ||
| Fwd PE | 15.71 | ||
| P/S | 3.74 | ||
| P/FCF | 11.35 | ||
| P/OCF | 8.39 | ||
| P/B | 1.73 | ||
| P/tB | 2.74 | ||
| EV/EBITDA | 10.87 |
EPS(TTM)3.07
EY5.87%
EPS(NY)3.33
Fwd EY6.36%
FCF(TTM)4.6
FCFY8.81%
OCF(TTM)6.23
OCFY11.92%
SpS13.99
BVpS30.25
TBVpS19.06
PEG (NY)3.77
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 | 1.4 |
F-Score4
WACC7.24%
ROIC/WACC1.02
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%