PEMBINA PIPELINE CORP (PPL.CA) Stock Fundamental Analysis
TSX:PPL - Toronto Stock Exchange - CA7063271034 - Common Stock - Currency: CAD
Taking everything into account, PPL scores 5 out of 10 in our fundamental rating. PPL was compared to 215 industry peers in the Oil, Gas & Consumable Fuels industry. PPL has an excellent profitability rating, but there are concerns on its financial health. PPL is not valued too expensively and it also shows a decent growth rate. Finally PPL also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year PPL was profitable.
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
The Return On Assets of PPL (4.99%) is better than 78.50% of its industry peers.
Looking at the Return On Equity, with a value of 10.14%, PPL is in the better half of the industry, outperforming 75.23% of the companies in the same industry.
PPL has a Return On Invested Capital of 7.38%. This is in the better half of the industry: PPL outperforms 78.97% of its industry peers.
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 7.26%.
The last Return On Invested Capital (7.38%) for PPL 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
PPL has a Profit Margin of 21.92%. This is in the better half of the industry: PPL outperforms 79.91% of its industry peers.
In the last couple of years the Profit Margin of PPL has grown nicely.
PPL has a better Operating Margin (37.52%) than 85.98% 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 65.42% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PPL is destroying value.
The number of shares outstanding for PPL has been reduced compared to 1 year ago.
Compared to 5 years ago, PPL has more shares outstanding
The debt/assets ratio for PPL is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.37, we must say that PPL is in the distress zone and has some risk of bankruptcy.
PPL has a Altman-Z score of 1.37. This is in the better half of the industry: PPL outperforms 63.08% of its industry peers.
PPL has a debt to FCF ratio of 4.91. This is a neutral value as PPL would need 4.91 years to pay back of 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.
PPL has a Debt/Equity ratio of 0.69. This is a neutral value indicating PPL is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.69, PPL perfoms like the industry average, outperforming 41.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 4.91 | ||
| Altman-Z | 1.37 |
ROIC/WACC0.94
WACC7.88%
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.
With a Current ratio value of 0.64, PPL is not doing good in the industry: 69.16% of the companies in the same industry are doing better.
A Quick Ratio of 0.52 indicates that PPL may have some problems paying its short term obligations.
PPL has a Quick ratio of 0.52. This is in the lower half of the industry: PPL underperforms 71.96% 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 PPL have decreased by -9.02% in the last year.
The Earnings Per Share has been decreasing by -0.52% on average over the past years.
Looking at the last year, PPL shows a quite strong growth in Revenue. The Revenue has grown by 16.63% in the last year.
The Revenue has been growing slightly by 0.42% on average over the past years.
EPS 1Y (TTM)-9.02%
EPS 3Y14.66%
EPS 5Y-0.52%
EPS Q2Q%-13.88%
Revenue 1Y (TTM)16.63%
Revenue growth 3Y-5.05%
Revenue growth 5Y0.42%
Sales Q2Q%-4.05%
3.2 Future
The Earnings Per Share is expected to grow by 8.34% on average over the next years. This is quite good.
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 5Y8.34%
Revenue Next Year5.34%
Revenue Next 2Y3.26%
Revenue Next 3Y1.87%
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.
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
PPL is valuated correctly with a Price/Earnings ratio of 16.46.
PPL's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of PPL to the average of the S&P500 Index (26.48), we can say PPL is valued slightly cheaper.
With a Price/Forward Earnings ratio of 14.70, PPL is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PPL is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of PPL to the average of the S&P500 Index (34.04), we can say PPL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.46 | ||
| Fwd PE | 14.7 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PPL indicates a somewhat cheap valuation: PPL is cheaper than 72.90% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.62 | ||
| EV/EBITDA | 10.65 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PPL does not grow enough to justify the current Price/Earnings ratio.
PPL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.65
PEG (5Y)N/A
EPS Next 2Y5.29%
EPS Next 3Y6.23%
5. Dividend
5.1 Amount
PPL has a Yearly Dividend Yield of 6.15%, which is a nice return.
Compared to an average industry Dividend Yield of 5.82, PPL pays a better dividend. On top of this PPL pays more dividend than 92.06% 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 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.15% |
5.2 History
The dividend of PPL has a limited annual growth rate of 2.11%.
PPL has paid a dividend for at least 10 years, which is 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
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 (8/8/2025, 7:00:00 PM)
48.9
-1.83 (-3.61%)
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 Cap28.41B
Analysts79.09
Price Target62.22 (27.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.15% |
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)-0.1%
PT rev (3m)-1.61%
EPS NQ rev (1m)-5.54%
EPS NQ rev (3m)-12%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.7%
Revenue NY rev (1m)-3.58%
Revenue NY rev (3m)-3.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.46 | ||
| Fwd PE | 14.7 | ||
| P/S | 3.5 | ||
| P/FCF | 10.62 | ||
| P/OCF | 7.85 | ||
| P/B | 1.62 | ||
| P/tB | 2.57 | ||
| EV/EBITDA | 10.65 |
EPS(TTM)2.97
EY6.07%
EPS(NY)3.33
Fwd EY6.8%
FCF(TTM)4.6
FCFY9.42%
OCF(TTM)6.23
OCFY12.74%
SpS13.99
BVpS30.25
TBVpS19.06
PEG (NY)3.65
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 | 1.37 |
F-Score4
WACC7.88%
ROIC/WACC0.94
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)-9.02%
EPS 3Y14.66%
EPS 5Y-0.52%
EPS Q2Q%-13.88%
EPS Next Y4.51%
EPS Next 2Y5.29%
EPS Next 3Y6.23%
EPS Next 5Y8.34%
Revenue 1Y (TTM)16.63%
Revenue growth 3Y-5.05%
Revenue growth 5Y0.42%
Sales Q2Q%-4.05%
Revenue Next Year5.34%
Revenue Next 2Y3.26%
Revenue Next 3Y1.87%
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%