PEMBINA PIPELINE CORP (PPL.CA) Stock Fundamental Analysis
TSX:PPL - Toronto Stock Exchange - CA7063271034 - Common Stock - Currency: CAD
PPL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 214 industry peers in the Oil, Gas & Consumable Fuels industry. While PPL belongs to the best of the industry regarding profitability, 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
PPL's Return On Assets of 4.99% is fine compared to the rest of the industry. PPL outperforms 79.91% of its industry peers.
PPL has a Return On Equity of 10.14%. This is in the better half of the industry: PPL outperforms 75.70% of its industry peers.
PPL's Return On Invested Capital of 7.38% is fine compared to the rest 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 7.31%.
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 has a better Profit Margin (21.92%) than 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 better Gross Margin (43.24%) than 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PPL is destroying value.
PPL has less shares outstanding than it did 1 year ago.
PPL has more shares outstanding than it did 5 years ago.
The debt/assets ratio for PPL is higher compared to a year ago.
2.2 Solvency
PPL has an Altman-Z score of 1.37. This is a bad value and indicates that PPL is not financially healthy and even has some risk of bankruptcy.
PPL's Altman-Z score of 1.37 is fine compared to the rest of the industry. PPL outperforms 64.49% 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 71.96% 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 40.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 4.91 | ||
| Altman-Z | 1.37 |
ROIC/WACC0.93
WACC7.92%
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.
PPL has a Current ratio of 0.64. This is in the lower half of the industry: PPL underperforms 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.
PPL has a worse Quick ratio (0.52) than 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 -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.
The Revenue has decreased by -2.89% in the past 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)-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 8.34% on average over the next years. This is quite good.
PPL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.73% yearly.
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.
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 correctly with a Price/Earnings ratio of 16.55.
PPL's Price/Earnings ratio is a bit cheaper when compared to the industry. PPL is cheaper than 61.22% of the companies in the same industry.
PPL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.29.
A Price/Forward Earnings ratio of 15.28 indicates a correct valuation of PPL.
PPL's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.06, PPL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.55 | ||
| Fwd PE | 15.28 |
4.2 Price Multiples
PPL's Enterprise Value to EBITDA ratio is in line with the industry average.
74.30% of the companies in the same industry are more expensive than PPL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.03 | ||
| EV/EBITDA | 10.66 |
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)3.67
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.
PPL's Dividend Yield is rather good when compared to the industry average which is at 6.24. PPL pays more dividend than 82.24% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, PPL pays a better dividend.
| 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 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.
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 (7/16/2025, 7:00:00 PM)
50.8
-0.24 (-0.47%)
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 Cap29.51B
Analysts79.09
Price Target62.28 (22.6%)
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 | 16.55 | ||
| Fwd PE | 15.28 | ||
| P/S | 3.63 | ||
| P/FCF | 11.03 | ||
| P/OCF | 8.16 | ||
| P/B | 1.68 | ||
| P/tB | 2.67 | ||
| EV/EBITDA | 10.66 |
EPS(TTM)3.07
EY6.04%
EPS(NY)3.33
Fwd EY6.55%
FCF(TTM)4.6
FCFY9.06%
OCF(TTM)6.23
OCFY12.26%
SpS13.99
BVpS30.25
TBVpS19.06
PEG (NY)3.67
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
WACC7.92%
ROIC/WACC0.93
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%