PEMBINA PIPELINE CORP (PBA) Stock Fundamental Analysis
NYSE:PBA - New York Stock Exchange, Inc. - CA7063271034 - Common Stock
We assign a fundamental rating of 3 out of 10 to PBA. PBA was compared to 210 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 valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year PBA was profitable.
PBA had a positive operating cash flow in the past year.
Of the past 5 years PBA 4 years were profitable.
PBA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PBA's Return On Assets of 5.23% is in line compared to the rest of the industry. PBA outperforms 50.97% of its industry peers.
With a Return On Equity value of 10.88%, PBA perfoms like the industry average, outperforming 49.03% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.04%, PBA is in line with its industry, outperforming 50.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PBA is significantly below the industry average of 28.71%.
| 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
The Profit Margin of PBA (24.04%) is better than 71.36% 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 70.87% of its industry peers.
PBA's Operating Margin has been stable in the last couple of years.
PBA's Gross Margin of 40.78% is in line compared to the rest of the industry. PBA outperforms 47.09% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PBA is still creating some value.
The number of shares outstanding for PBA has been increased compared to 1 year ago.
PBA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PBA has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.38, we must say that PBA is in the distress zone and has some risk of bankruptcy.
PBA has a Altman-Z score of 1.38. This is comparable to the rest of the industry: PBA outperforms 44.66% of its industry peers.
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.
PBA has a Debt to FCF ratio (5.82) which is in line with its industry peers.
PBA has a Debt/Equity ratio of 0.73. This is a neutral value indicating 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: 67.48% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 5.82 | ||
| Altman-Z | 1.38 |
ROIC/WACC0.99
WACC7.1%
2.3 Liquidity
PBA has a Current Ratio of 0.65. This is a bad value and indicates that PBA is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of PBA (0.65) is worse than 81.55% of its industry peers.
A Quick Ratio of 0.51 indicates that PBA may have some problems paying its short term obligations.
PBA has a Quick ratio of 0.51. This is amonst the worse of the industry: PBA underperforms 84.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 51.61% over the past year.
PBA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.66% yearly.
The Revenue for PBA has decreased by -17.66% in the past year. This is quite bad
Measured over the past years, PBA shows a small growth in Revenue. The Revenue has been growing by 4.42% on average per year.
EPS 1Y (TTM)51.61%
EPS 3YN/A
EPS 5Y5.66%
EPS Q2Q%5.26%
Revenue 1Y (TTM)-17.66%
Revenue growth 3Y13.74%
Revenue growth 5Y4.42%
Sales Q2Q%-19.55%
3.2 Future
PBA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.93% yearly.
Based on estimates for the next years, PBA will show a decrease in Revenue. The Revenue will decrease by -1.17% on average per year.
EPS Next Y0.02%
EPS Next 2Y2.61%
EPS Next 3Y3.19%
EPS Next 5Y2.93%
Revenue Next Year-18.36%
Revenue Next 2Y-4.24%
Revenue Next 3Y-1.4%
Revenue Next 5Y-1.17%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.34 indicates a correct valuation of PBA.
Compared to the rest of the industry, the Price/Earnings ratio of PBA is on the same level as its industry peers.
When comparing the Price/Earnings ratio of PBA to the average of the S&P500 Index (28.19), we can say PBA is valued slightly cheaper.
The Price/Forward Earnings ratio is 17.10, which indicates a rather expensive current valuation of PBA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PBA is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.37, PBA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.34 | ||
| Fwd PE | 17.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PBA is valued a bit more expensive than 66.02% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as PBA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.57 | ||
| EV/EBITDA | 12.84 |
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)801.03
PEG (5Y)2.89
EPS Next 2Y2.61%
EPS Next 3Y3.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.17%, PBA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.39, PBA pays a bit more dividend than its industry peers.
PBA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.17% |
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.
PBA has decreased its dividend in the last 3 years.
Dividend Growth(5Y)1.44%
Div Incr Years2
Div Non Decr Years2
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 2Y2.61%
EPS Next 3Y3.19%
PEMBINA PIPELINE CORP
NYSE:PBA (1/22/2025, 8:04:00 PM)
After market: 37.26 0 (0%)37.26
-0.42 (-1.11%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners64.56%
Inst Owner Change0%
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap21.63B
Analysts76.19
Price Target43.75 (17.42%)
Short Float %0.7%
Short Ratio3.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.17% |
Yearly Dividend2.65
Dividend Growth(5Y)1.44%
DP89.79%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-9.06%
Min EPS beat(2)-17.44%
Max EPS beat(2)-0.69%
EPS beat(4)1
Avg EPS beat(4)4.91%
Min EPS beat(4)-17.44%
Max EPS beat(4)39.7%
EPS beat(8)2
Avg EPS beat(8)-7.25%
EPS beat(12)4
Avg EPS beat(12)18.55%
EPS beat(16)5
Avg EPS beat(16)-16.35%
Revenue beat(2)0
Avg Revenue beat(2)-7.28%
Min Revenue beat(2)-8.58%
Max Revenue beat(2)-5.98%
Revenue beat(4)0
Avg Revenue beat(4)-14.56%
Min Revenue beat(4)-40.66%
Max Revenue beat(4)-3.03%
Revenue beat(8)2
Avg Revenue beat(8)-7.28%
Revenue beat(12)6
Avg Revenue beat(12)2.99%
Revenue beat(16)9
Avg Revenue beat(16)5.91%
PT rev (1m)-3.12%
PT rev (3m)-0.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.49%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-32.94%
Revenue NY rev (1m)2.34%
Revenue NY rev (3m)-5.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.34 | ||
| Fwd PE | 17.1 | ||
| P/S | 4.06 | ||
| P/FCF | 13.57 | ||
| P/OCF | 9.79 | ||
| P/B | 1.84 | ||
| P/tB | 2.96 | ||
| EV/EBITDA | 12.84 |
EPS(TTM)2.28
EY6.12%
EPS(NY)2.18
Fwd EY5.85%
FCF(TTM)2.75
FCFY7.37%
OCF(TTM)3.81
OCFY10.22%
SpS9.19
BVpS20.3
TBVpS12.6
PEG (NY)801.03
PEG (5Y)2.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.23% | ||
| ROE | 10.88% | ||
| ROCE | 8.12% | ||
| ROIC | 7.04% | ||
| ROICexc | 7.07% | ||
| ROICexgc | 8.79% | ||
| OM | 34.91% | ||
| PM (TTM) | 24.04% | ||
| GM | 40.78% | ||
| FCFM | 29.88% |
ROA(3y)5.86%
ROA(5y)4.05%
ROE(3y)12.06%
ROE(5y)8.23%
ROIC(3y)7.51%
ROIC(5y)6.91%
ROICexc(3y)7.53%
ROICexc(5y)6.93%
ROICexgc(3y)10.33%
ROICexgc(5y)9.26%
ROCE(3y)8.66%
ROCE(5y)7.97%
ROICexcg growth 3Y5.03%
ROICexcg growth 5Y1.28%
ROICexc growth 3Y5.35%
ROICexc growth 5Y0.5%
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%
F-Score5
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 5.82 | ||
| Debt/EBITDA | 3.54 | ||
| Cap/Depr | 110.56% | ||
| Cap/Sales | 11.55% | ||
| Interest Coverage | 5.32 | ||
| Cash Conversion | 91.33% | ||
| Profit Quality | 124.3% | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 1.38 |
F-Score5
WACC7.1%
ROIC/WACC0.99
Cap/Depr(3y)90.33%
Cap/Depr(5y)147.98%
Cap/Sales(3y)6.49%
Cap/Sales(5y)11.76%
Profit Quality(3y)128.77%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)51.61%
EPS 3YN/A
EPS 5Y5.66%
EPS Q2Q%5.26%
EPS Next Y0.02%
EPS Next 2Y2.61%
EPS Next 3Y3.19%
EPS Next 5Y2.93%
Revenue 1Y (TTM)-17.66%
Revenue growth 3Y13.74%
Revenue growth 5Y4.42%
Sales Q2Q%-19.55%
Revenue Next Year-18.36%
Revenue Next 2Y-4.24%
Revenue Next 3Y-1.4%
Revenue Next 5Y-1.17%
EBIT growth 1Y24.13%
EBIT growth 3Y5%
EBIT growth 5Y3.7%
EBIT Next Year49.38%
EBIT Next 3Y17.03%
EBIT Next 5Y12.12%
FCF growth 1Y10.41%
FCF growth 3Y18.38%
FCF growth 5Y14.52%
OCF growth 1Y17.22%
OCF growth 3Y5.37%
OCF growth 5Y3.15%