PEMBINA PIPELINE CORP (PPL.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:PPL - CA7063271034 - Common Stock
53.78 CAD
-0.57 (-1.05%)
We assign a fundamental rating of 5 out of 10 to PPL. PPL was compared to 215 industry peers in the Oil, Gas & Consumable Fuels industry. PPL scores excellent on profitability, but there are concerns on its financial health. PPL has a correct valuation and a medium growth rate. Finally PPL also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
PPL had positive earnings in the past year.
PPL had a positive operating cash flow in the past year.
Of the past 5 years PPL 4 years were profitable.
Each year in the past 5 years PPL had a positive operating cash flow.
1.2 Ratios
PPL's Return On Assets of 4.60% is fine compared to the rest of the industry. PPL outperforms 78.60% of its industry peers.
PPL has a Return On Equity of 9.59%. This is in the better half of the industry: PPL outperforms 76.74% of its industry peers.
PPL's Return On Invested Capital of 7.22% is amongst the best of the industry. PPL outperforms 83.72% 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 6.62%.
The last Return On Invested Capital (7.22%) for PPL is above the 3 year average (6.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.6% | ||
| ROE | 9.59% | ||
| ROIC | 7.22% |
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 20.35%. This is amongst the best in the industry. PPL outperforms 80.93% of its industry peers.
In the last couple of years the Profit Margin of PPL has grown nicely.
Looking at the Operating Margin, with a value of 36.59%, PPL belongs to the top of the industry, outperforming 86.51% of the companies in the same industry.
PPL's Operating Margin has improved in the last couple of years.
PPL has a Gross Margin of 42.32%. This is in the better half of the industry: PPL outperforms 66.05% of its industry peers.
In the last couple of years the Gross Margin of PPL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.59% | ||
| PM (TTM) | 20.35% | ||
| GM | 42.32% |
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.
Compared to 1 year ago, PPL has less shares outstanding
Compared to 5 years ago, PPL has more shares outstanding
The debt/assets ratio for PPL is higher compared to a year ago.
2.2 Solvency
PPL has an Altman-Z score of 1.38. This is a bad value and indicates that PPL is not financially healthy and even 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 64.65% of the companies in the same industry.
The Debt to FCF ratio of PPL is 5.21, which is a neutral value as it means it would take PPL, 5.21 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PPL (5.21) is better than 77.67% of its industry peers.
PPL has a Debt/Equity ratio of 0.71. This is a neutral value indicating PPL is somewhat dependend on debt financing.
PPL has a Debt to Equity ratio (0.71) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 5.21 | ||
| Altman-Z | 1.38 |
ROIC/WACC0.98
WACC7.33%
2.3 Liquidity
PPL has a Current Ratio of 0.53. 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 Current ratio (0.53) than 72.56% of its industry peers.
PPL has a Quick Ratio of 0.53. This is a bad value and indicates that PPL is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of PPL (0.41) is worse than 75.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
PPL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.89%.
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 small growth in Revenue. In the last year, the Revenue has grown by 3.96%.
The Revenue has been growing slightly by 0.42% on average over the past years.
EPS 1Y (TTM)-14.89%
EPS 3Y14.66%
EPS 5Y-0.52%
EPS Q2Q%-28.33%
Revenue 1Y (TTM)3.96%
Revenue growth 3Y-5.05%
Revenue growth 5Y0.42%
Sales Q2Q%-2.87%
3.2 Future
The Earnings Per Share is expected to grow by 5.40% on average over the next years.
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 Y-1.51%
EPS Next 2Y1.6%
EPS Next 3Y2.54%
EPS Next 5Y5.4%
Revenue Next Year7.08%
Revenue Next 2Y7.39%
Revenue Next 3Y5.66%
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
A Price/Earnings ratio of 19.21 indicates a rather expensive valuation of PPL.
Based on the Price/Earnings ratio, PPL is valued a bit cheaper than the industry average as 63.26% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.47. PPL is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 17.37 indicates a rather expensive valuation of PPL.
The rest of the industry has a similar Price/Forward Earnings ratio as PPL.
When comparing the Price/Forward Earnings ratio of PPL to the average of the S&P500 Index (34.42), we can say PPL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.21 | ||
| Fwd PE | 17.37 |
4.2 Price Multiples
PPL's Enterprise Value to EBITDA is on the same level as 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 74.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.25 | ||
| EV/EBITDA | 11.39 |
4.3 Compensation for Growth
PPL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.6%
EPS Next 3Y2.54%
5. Dividend
5.1 Amount
PPL has a Yearly Dividend Yield of 5.23%, which is a nice return.
Compared to an average industry Dividend Yield of 5.81, PPL pays a better dividend. On top of this PPL pays more dividend than 81.40% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, PPL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.23% |
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
108.16% of the earnings are spent on dividend by PPL. This is not a sustainable payout ratio.
PPL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP108.16%
EPS Next 2Y1.6%
EPS Next 3Y2.54%
TSX:PPL (11/21/2025, 7:00:00 PM)
53.78
-0.57 (-1.05%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners63.71%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap31.25B
Revenue(TTM)8.01B
Net Income(TTM)1.63B
Analysts76.36
Price Target61.08 (13.57%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.23% |
Yearly Dividend2.78
Dividend Growth(5Y)2.11%
DP108.16%
Div Incr Years3
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-17.23%
Min EPS beat(2)-33.88%
Max EPS beat(2)-0.58%
EPS beat(4)1
Avg EPS beat(4)-6.91%
Min EPS beat(4)-33.88%
Max EPS beat(4)8.17%
EPS beat(8)2
Avg EPS beat(8)-1%
EPS beat(12)3
Avg EPS beat(12)-7.14%
EPS beat(16)5
Avg EPS beat(16)12.19%
Revenue beat(2)0
Avg Revenue beat(2)-10.34%
Min Revenue beat(2)-11.59%
Max Revenue beat(2)-9.09%
Revenue beat(4)2
Avg Revenue beat(4)4.44%
Min Revenue beat(4)-11.59%
Max Revenue beat(4)34.95%
Revenue beat(8)2
Avg Revenue beat(8)-5.06%
Revenue beat(12)4
Avg Revenue beat(12)-3.38%
Revenue beat(16)8
Avg Revenue beat(16)3.35%
PT rev (1m)1.5%
PT rev (3m)1.07%
EPS NQ rev (1m)-0.94%
EPS NQ rev (3m)-0.61%
EPS NY rev (1m)-0.81%
EPS NY rev (3m)-0.99%
Revenue NQ rev (1m)-2.77%
Revenue NQ rev (3m)-7.44%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)2.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.21 | ||
| Fwd PE | 17.37 | ||
| P/S | 3.9 | ||
| P/FCF | 12.25 | ||
| P/OCF | 9.35 | ||
| P/B | 1.84 | ||
| P/tB | 2.95 | ||
| EV/EBITDA | 11.39 |
EPS(TTM)2.8
EY5.21%
EPS(NY)3.1
Fwd EY5.76%
FCF(TTM)4.39
FCFY8.16%
OCF(TTM)5.75
OCFY10.69%
SpS13.79
BVpS29.26
TBVpS18.24
PEG (NY)N/A
PEG (5Y)N/A
Graham Number42.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.6% | ||
| ROE | 9.59% | ||
| ROCE | 8.9% | ||
| ROIC | 7.22% | ||
| ROICexc | 7.25% | ||
| ROICexgc | 9.01% | ||
| OM | 36.59% | ||
| PM (TTM) | 20.35% | ||
| GM | 42.32% | ||
| FCFM | 31.85% |
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%
ROICexgc growth 3Y-1.14%
ROICexgc 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-Score7
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 5.21 | ||
| Debt/EBITDA | 3.11 | ||
| Cap/Depr | 81.88% | ||
| Cap/Sales | 9.88% | ||
| Interest Coverage | 4.82 | ||
| Cash Conversion | 85.76% | ||
| Profit Quality | 156.5% | ||
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z | 1.38 |
F-Score7
WACC7.33%
ROIC/WACC0.98
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)-14.89%
EPS 3Y14.66%
EPS 5Y-0.52%
EPS Q2Q%-28.33%
EPS Next Y-1.51%
EPS Next 2Y1.6%
EPS Next 3Y2.54%
EPS Next 5Y5.4%
Revenue 1Y (TTM)3.96%
Revenue growth 3Y-5.05%
Revenue growth 5Y0.42%
Sales Q2Q%-2.87%
Revenue Next Year7.08%
Revenue Next 2Y7.39%
Revenue Next 3Y5.66%
Revenue Next 5Y1.73%
EBIT growth 1Y8.96%
EBIT growth 3Y3.82%
EBIT growth 5Y6.33%
EBIT Next Year34.71%
EBIT Next 3Y12.48%
EBIT Next 5Y9.84%
FCF growth 1Y22.29%
FCF growth 3Y4.28%
FCF growth 5Y20.56%
OCF growth 1Y25.73%
OCF growth 3Y6.64%
OCF growth 5Y4.89%
PEMBINA PIPELINE CORP / PPL.CA FAQ
What is the ChartMill fundamental rating of PEMBINA PIPELINE CORP (PPL.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to PPL.CA.
What is the valuation status for PPL stock?
ChartMill assigns a valuation rating of 4 / 10 to PEMBINA PIPELINE CORP (PPL.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for PEMBINA PIPELINE CORP?
PEMBINA PIPELINE CORP (PPL.CA) has a profitability rating of 8 / 10.
How financially healthy is PEMBINA PIPELINE CORP?
The financial health rating of PEMBINA PIPELINE CORP (PPL.CA) is 3 / 10.
Can you provide the expected EPS growth for PPL stock?
The Earnings per Share (EPS) of PEMBINA PIPELINE CORP (PPL.CA) is expected to decline by -1.51% in the next year.