PEMBINA PIPELINE CORP (PPL.CA) Stock Fundamental Analysis
TSX:PPL - Toronto Stock Exchange - CA7063271034 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to PPL. 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 correct valuation and a medium growth rate. 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.
PPL had positive earnings in 4 of the past 5 years.
PPL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PPL has a better Return On Assets (4.99%) than 79.05% of its industry peers.
The Return On Equity of PPL (10.14%) is better than 74.76% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.38%, PPL is in the better half of the industry, outperforming 78.10% of the companies in the same industry.
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 3 year average ROIC (6.98%) for PPL is below the current ROIC(7.38%), indicating increased profibility in the last year.
| 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 Profit Margin of 21.92%. This is in the better half of the industry: PPL outperforms 79.52% of its industry peers.
In the last couple of years the Profit Margin of PPL has grown nicely.
PPL has a Operating Margin of 37.52%. This is amongst the best in the industry. PPL outperforms 84.76% 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 63.81% 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
PPL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for PPL is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.37, we must say that PPL is in the distress zone and has some risk of bankruptcy.
PPL has a better Altman-Z score (1.37) than 64.29% of its industry peers.
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.
PPL has a better Debt to FCF ratio (4.91) than 70.95% 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.
Looking at the Debt to Equity ratio, with a value of 0.69, PPL is doing worse than 60.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 4.91 | ||
| Altman-Z | 1.37 |
ROIC/WACC0.94
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 71.43% of its industry peers.
A Quick Ratio of 0.52 indicates that PPL may have some problems paying its short term obligations.
PPL has a worse Quick ratio (0.52) than 73.33% 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.
The Earnings Per Share has been decreasing by -0.52% on average over the past years.
PPL shows a decrease in Revenue. In the last year, the revenue decreased by -2.89%.
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)-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
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.
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
With a Price/Earnings ratio of 16.52, PPL is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as PPL.
PPL is valuated rather cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 15.25, the valuation of PPL can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PPL is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of PPL to the average of the S&P500 Index (21.90), we can say PPL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.52 | ||
| Fwd PE | 15.25 |
4.2 Price Multiples
PPL's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PPL indicates a somewhat cheap valuation: PPL is cheaper than 70.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.02 | ||
| EV/EBITDA | 10.65 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PPL does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of PPL may justify a higher PE ratio.
PEG (NY)3.66
PEG (5Y)N/A
EPS Next 2Y5.29%
EPS Next 3Y6.23%
5. Dividend
5.1 Amount
PPL has a Yearly Dividend Yield of 6.24%, which is a nice return.
Compared to an average industry Dividend Yield of 6.26, PPL pays a better dividend. On top of this PPL pays more dividend than 81.43% 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.24% |
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 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
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 (7/4/2025, 7:00:00 PM)
50.73
+0.22 (+0.44%)
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 Cap29.47B
Analysts79.09
Price Target62.28 (22.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.24% |
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)-1.51%
PT rev (3m)-1.81%
EPS NQ rev (1m)-2.39%
EPS NQ rev (3m)-8.95%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.2%
Revenue NQ rev (1m)-9.27%
Revenue NQ rev (3m)-5.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.52 | ||
| Fwd PE | 15.25 | ||
| P/S | 3.63 | ||
| P/FCF | 11.02 | ||
| P/OCF | 8.15 | ||
| P/B | 1.68 | ||
| P/tB | 2.66 | ||
| EV/EBITDA | 10.65 |
EPS(TTM)3.07
EY6.05%
EPS(NY)3.33
Fwd EY6.56%
FCF(TTM)4.6
FCFY9.08%
OCF(TTM)6.23
OCFY12.28%
SpS13.99
BVpS30.25
TBVpS19.06
PEG (NY)3.66
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
WACC7.89%
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%