PEMBINA PIPELINE CORP (PBA)
CA7063271034 - Common Stock
We assign a fundamental rating of 4 out of 10 to PBA. PBA was compared to 204 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of PBA while its profitability can be described as average. PBA is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
PBA had positive earnings in the past year.
PBA had a positive operating cash flow in the past year.
PBA had positive earnings in 4 of the past 5 years.
Each year in the past 5 years PBA had a positive operating cash flow.
1.2 Ratios
PBA's Return On Assets of 5.23% is in line compared to the rest of the industry. PBA outperforms 47.78% of its industry peers.
PBA has a Return On Equity (10.88%) which is comparable to the rest of the industry.
PBA has a Return On Invested Capital (7.04%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for PBA is significantly below the industry average of 22.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.23% | ||
| ROE | 10.88% | ||
| ROIC | 7.04% |
ROA(3y)5.86%
ROA(5y)4.05%
ROE(3y)12.06%
ROE(5y)8.23%
ROIC(3y)7.51%
ROIC(5y)6.91%
1.3 Margins
PBA has a Profit Margin of 24.04%. This is in the better half of the industry: PBA outperforms 70.94% of its industry peers.
In the last couple of years the Profit Margin of PBA has grown nicely.
PBA's Operating Margin of 34.91% is fine compared to the rest of the industry. PBA outperforms 69.46% of its industry peers.
In the last couple of years the Operating Margin of PBA has remained more or less at the same level.
PBA's Gross Margin of 40.78% is in line compared to the rest of the industry. PBA outperforms 46.80% of its industry peers.
In the last couple of years the Gross Margin of PBA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.91% | ||
| PM (TTM) | 24.04% | ||
| GM | 40.78% |
OM growth 3Y-7.68%
OM growth 5Y-0.68%
PM growth 3YN/A
PM growth 5Y2.86%
GM growth 3Y-5.97%
GM growth 5Y-0.34%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PBA is creating some value.
The number of shares outstanding for PBA has been increased compared to 1 year ago.
Compared to 5 years ago, PBA has more shares outstanding
Compared to 1 year ago, PBA has an improved debt to assets ratio.
2.2 Solvency
PBA has an Altman-Z score of 1.49. This is a bad value and indicates that PBA is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.49, PBA is in line with its industry, outperforming 47.29% of the companies in the same industry.
The Debt to FCF ratio of PBA is 5.82, which is a neutral value as it means it would take PBA, 5.82 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 5.82, PBA perfoms like the industry average, outperforming 55.66% of the companies in the same industry.
A Debt/Equity ratio of 0.73 indicates that PBA is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.73, PBA is not doing good in the industry: 66.01% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 5.82 | ||
| Altman-Z | 1.49 |
ROIC/WACC1.02
WACC6.88%
2.3 Liquidity
A Current Ratio of 0.65 indicates that PBA may have some problems paying its short term obligations.
With a Current ratio value of 0.65, PBA is not doing good in the industry: 82.27% of the companies in the same industry are doing better.
A Quick Ratio of 0.51 indicates that PBA may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.51, PBA is doing worse than 86.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
PBA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 52.00%, which is quite impressive.
Measured over the past 5 years, PBA shows a small growth in Earnings Per Share. The EPS has been growing by 5.66% on average per year.
Looking at the last year, PBA shows a very negative growth in Revenue. The Revenue has decreased by -17.66% in the last year.
PBA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.42% yearly.
EPS 1Y (TTM)52%
EPS 3YN/A
EPS 5Y5.66%
EPS Q2Q%6.72%
Revenue 1Y (TTM)-17.66%
Revenue growth 3Y13.74%
Revenue growth 5Y4.42%
Sales Q2Q%-18.46%
3.2 Future
PBA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.23% yearly.
Based on estimates for the next years, PBA will show a small growth in Revenue. The Revenue will grow by 6.06% on average per year.
EPS Next Y7.41%
EPS Next 2Y5.63%
EPS Next 3Y5.27%
EPS Next 5Y10.23%
Revenue Next Year-14.63%
Revenue Next 2Y-2.65%
Revenue Next 3Y-0.85%
Revenue Next 5Y6.06%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 18.29, PBA is valued on the expensive side.
PBA's Price/Earnings ratio is a bit more expensive when compared to the industry. PBA is more expensive than 60.10% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.96, PBA is valued a bit cheaper.
PBA is valuated rather expensively with a Price/Forward Earnings ratio of 18.07.
PBA's Price/Forward Earnings ratio is in line with the industry average.
PBA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.29 | ||
| Fwd PE | 18.07 |
4.2 Price Multiples
PBA's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. PBA is more expensive than 70.94% of the companies in the same industry.
PBA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.2 | ||
| EV/EBITDA | 13.82 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PBA does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.47
PEG (5Y)3.23
EPS Next 2Y5.63%
EPS Next 3Y5.27%
5. Dividend
5.1 Amount
PBA has a Yearly Dividend Yield of 4.70%, which is a nice return.
Compared to an average industry Dividend Yield of 6.45, PBA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.23, PBA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.7% |
5.2 History
The dividend of PBA has a limited annual growth rate of 1.44%.
PBA has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of PBA decreased recently.
Dividend Growth(5Y)1.44%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
89.79% of the earnings are spent on dividend by PBA. This is not a sustainable payout ratio.
PBA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP89.79%
EPS Next 2Y5.63%
EPS Next 3Y5.27%
PEMBINA PIPELINE CORP
NYSE:PBA (11/21/2024, 8:04:00 PM)
After market: 43.17 0 (0%)43.17
+0.7 (+1.65%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap25.06B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.7% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.29 | ||
| Fwd PE | 18.07 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.47
PEG (5Y)3.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.23% | ||
| ROE | 10.88% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 34.91% | ||
| PM (TTM) | 24.04% | ||
| GM | 40.78% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)52%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y7.41%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-17.66%
Revenue growth 3Y13.74%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y