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. While PPL has a great profitability rating, there are quite some 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.
Each year in the past 5 years PPL had a positive operating cash flow.
1.2 Ratios
The Return On Assets of PPL (4.99%) is better than 79.91% of its industry peers.
PPL's Return On Equity of 10.14% is fine compared to the rest of the industry. PPL outperforms 75.70% of its industry peers.
PPL has a better Return On Invested Capital (7.38%) than 78.97% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PPL is in line with the industry average of 7.31%.
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's Profit Margin of 21.92% is amongst the best of the industry. PPL outperforms 80.37% of its industry peers.
In the last couple of years the Profit Margin of PPL has grown nicely.
PPL's Operating Margin of 37.52% is amongst the best of the industry. PPL outperforms 85.51% of its industry peers.
PPL's Operating Margin has improved in the last couple of years.
PPL has a Gross Margin of 43.24%. This is in the better half of the industry: PPL outperforms 64.95% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PPL is destroying value.
The number of shares outstanding for PPL has been reduced compared to 1 year ago.
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 1.38, we must say that PPL is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.38, PPL is in the better half of the industry, outperforming 64.02% 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.
The Debt to FCF ratio of PPL (4.91) is better than 71.96% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that PPL is somewhat dependend on debt financing.
PPL has a Debt to Equity ratio (0.69) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 4.91 | ||
| Altman-Z | 1.38 |
ROIC/WACC0.94
WACC7.89%
2.3 Liquidity
A Current Ratio of 0.64 indicates that PPL may have some problems paying its short term obligations.
PPL has a worse Current ratio (0.64) than 70.09% 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.
With a Quick ratio value of 0.52, PPL is not doing good in the industry: 71.96% of the companies in the same industry are doing better.
| 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%.
PPL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.42% yearly.
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
Based on estimates for the next years, PPL will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.34% on average per year.
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 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.
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 16.64, which indicates a correct valuation of PPL.
61.22% 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 27.19, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.36, which indicates a correct valuation of PPL.
The rest of the industry has a similar Price/Forward Earnings ratio as PPL.
The average S&P500 Price/Forward Earnings ratio is at 35.33. PPL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.64 | ||
| Fwd PE | 15.36 |
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 73.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.09 | ||
| EV/EBITDA | 10.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of PPL may justify a higher PE ratio.
PEG (NY)3.69
PEG (5Y)N/A
EPS Next 2Y5.29%
EPS Next 3Y6.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.22%, PPL is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.24, PPL pays a better dividend. On top of this PPL pays more dividend than 82.24% 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 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.22% |
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 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
PPL pays out 97.64% of its income as dividend. This is not a sustainable payout ratio.
The dividend of PPL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP97.64%
EPS Next 2Y5.29%
EPS Next 3Y6.23%
TSX:PPL (7/14/2025, 7:00:00 PM)
51.08
+0.65 (+1.29%)
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 Cap29.67B
Analysts79.09
Price Target62.28 (21.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.22% |
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)-0.71%
PT rev (3m)-1.81%
EPS NQ rev (1m)-2.39%
EPS NQ rev (3m)-6.83%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.2%
Revenue NQ rev (1m)-9.27%
Revenue NQ rev (3m)-7.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.64 | ||
| Fwd PE | 15.36 | ||
| P/S | 3.65 | ||
| P/FCF | 11.09 | ||
| P/OCF | 8.2 | ||
| P/B | 1.69 | ||
| P/tB | 2.68 | ||
| EV/EBITDA | 10.7 |
EPS(TTM)3.07
EY6.01%
EPS(NY)3.33
Fwd EY6.51%
FCF(TTM)4.6
FCFY9.02%
OCF(TTM)6.23
OCFY12.19%
SpS13.99
BVpS30.25
TBVpS19.06
PEG (NY)3.69
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 | 1.38 |
F-Score4
WACC7.89%
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)-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 5Y8.34%
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 5Y10.22%
FCF growth 1Y23.33%
FCF growth 3Y4.28%
FCF growth 5Y20.56%
OCF growth 1Y32.43%
OCF growth 3Y6.64%
OCF growth 5Y4.89%