PEMBINA PIPELINE CORP (PPL.CA) Stock Fundamental Analysis
Canada - TSX:PPL - CA7063271034 - Common Stock
53.32 CAD
-0.75 (-1.39%)
Taking everything into account, PPL scores 5 out of 10 in our fundamental rating. PPL was compared to 210 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 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.
PPL had a positive operating cash flow in the past year.
PPL had positive earnings in 4 of the past 5 years.
Each year in the past 5 years PPL had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.87%, PPL is doing good in the industry, outperforming 77.62% 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 76.19% of the companies in the same industry.
PPL has a better Return On Invested Capital (7.24%) than 80.48% 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 6.85%.
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
With a decent Profit Margin value of 21.39%, PPL is doing good in the industry, outperforming 79.05% of the companies in the same industry.
In the last couple of years the Profit Margin of PPL has grown nicely.
PPL's Operating Margin of 37.24% is amongst the best of the industry. PPL outperforms 86.19% of its industry peers.
PPL's Operating Margin has improved in the last couple of years.
The Gross Margin of PPL (43.15%) is better than 66.19% of its industry peers.
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
PPL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, PPL has less shares outstanding
PPL has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PPL has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.42, we must say that PPL is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of PPL (1.42) is better than 61.90% of its industry peers.
The Debt to FCF ratio of PPL is 5.19, which is a neutral value as it means it would take PPL, 5.19 years of fcf income to pay off all of its debts.
PPL has a Debt to FCF ratio of 5.19. This is in the better half of the industry: PPL outperforms 76.67% of its industry peers.
A Debt/Equity ratio of 0.75 indicates that PPL is somewhat dependend on debt financing.
PPL has a Debt to Equity ratio (0.75) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 5.19 | ||
| Altman-Z | 1.42 |
ROIC/WACC0.96
WACC7.57%
2.3 Liquidity
PPL has a Current Ratio of 0.77. This is a bad value and indicates that PPL is not financially healthy enough and could expect problems in meeting its short term obligations.
PPL has a Current ratio (0.77) which is in line with its industry peers.
A Quick Ratio of 0.62 indicates that PPL may have some problems paying its short term obligations.
With a Quick ratio value of 0.62, PPL is not doing good in the industry: 64.76% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
The earnings per share for PPL have decreased by -8.90% in the last year.
Measured over the past years, PPL shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.52% on average per year.
The Revenue has decreased by -1.10% in the past year.
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)-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 11.57% yearly.
PPL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.45% yearly.
EPS Next Y-0.71%
EPS Next 2Y1.47%
EPS Next 3Y2.9%
EPS Next 5Y11.57%
Revenue Next Year7.09%
Revenue Next 2Y7.32%
Revenue Next 3Y5.59%
Revenue Next 5Y2.45%
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
PPL is valuated rather expensively with a Price/Earnings ratio of 17.95.
PPL's Price/Earnings is on the same level as the industry average.
PPL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.29.
Based on the Price/Forward Earnings ratio of 17.26, the valuation of PPL can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as PPL.
PPL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.95 | ||
| Fwd PE | 17.26 |
4.2 Price Multiples
PPL's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, PPL is valued a bit cheaper than the industry average as 72.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.01 | ||
| EV/EBITDA | 11.15 |
4.3 Compensation for Growth
The excellent profitability rating of PPL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.47%
EPS Next 3Y2.9%
5. Dividend
5.1 Amount
PPL has a Yearly Dividend Yield of 5.11%, which is a nice return.
PPL's Dividend Yield is rather good when compared to the industry average which is at 7.51. PPL pays more dividend than 80.95% of the companies in the same industry.
PPL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.11% |
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
PPL pays out 101.62% of its income as dividend. 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 2Y1.47%
EPS Next 3Y2.9%
TSX:PPL (10/16/2025, 7:00:00 PM)
53.32
-0.75 (-1.39%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners63.71%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap30.98B
Analysts76.36
Price Target60.18 (12.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.11% |
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)-0.11%
PT rev (3m)-3.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.6%
EPS NY rev (1m)-0.19%
EPS NY rev (3m)-5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.03%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)-1.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.95 | ||
| Fwd PE | 17.26 | ||
| P/S | 3.84 | ||
| P/FCF | 12.01 | ||
| P/OCF | 8.97 | ||
| P/B | 1.82 | ||
| P/tB | 2.91 | ||
| EV/EBITDA | 11.15 |
EPS(TTM)2.97
EY5.57%
EPS(NY)3.09
Fwd EY5.79%
FCF(TTM)4.44
FCFY8.33%
OCF(TTM)5.95
OCFY11.15%
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 | 1.42 |
F-Score6
WACC7.57%
ROIC/WACC0.96
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-0.71%
EPS Next 2Y1.47%
EPS Next 3Y2.9%
EPS Next 5Y11.57%
Revenue 1Y (TTM)-1.1%
Revenue growth 3Y-5.05%
Revenue growth 5Y0.42%
Sales Q2Q%-3.4%
Revenue Next Year7.09%
Revenue Next 2Y7.32%
Revenue Next 3Y5.59%
Revenue Next 5Y2.45%
EBIT growth 1Y13.79%
EBIT growth 3Y3.82%
EBIT growth 5Y6.33%
EBIT Next Year34.71%
EBIT Next 3Y12.48%
EBIT Next 5Y10.06%
FCF growth 1Y7.73%
FCF growth 3Y4.28%
FCF growth 5Y20.56%
OCF growth 1Y17.96%
OCF growth 3Y6.64%
OCF growth 5Y4.89%