PEMBINA PIPELINE CORP (PPL.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:PPL - CA7063271034 - Common Stock
55.92 CAD
+0.26 (+0.47%)
Overall PPL gets a fundamental rating of 5 out of 10. We evaluated PPL against 206 industry peers in the Oil, Gas & Consumable Fuels industry. PPL scores excellent on profitability, but there are concerns on its financial health. PPL is not valued too expensively and it also shows a decent 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.
- 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 78.64% of its industry peers.
- With a decent Return On Equity value of 9.59%, PPL is doing good in the industry, outperforming 77.67% of the companies in the same industry.
- The Return On Invested Capital of PPL (7.22%) is better than 85.92% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for PPL 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 better Profit Margin (20.35%) than 82.52% of its industry peers.
- PPL's Profit Margin has improved in the last couple of years.
- PPL has a Operating Margin of 36.59%. This is amongst the best in the industry. PPL outperforms 88.83% of its industry peers.
- PPL's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 42.32%, PPL is doing good in the industry, outperforming 67.96% of the companies in the same industry.
- PPL's Gross Margin has improved in the last couple of years.
| 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.
- The number of shares outstanding for PPL has been reduced compared to 1 year ago.
- Compared to 5 years ago, PPL has more shares outstanding
- Compared to 1 year ago, PPL has a worse debt to assets ratio.
2.2 Solvency
- PPL has an Altman-Z score of 1.42. This is a bad value and indicates that PPL is not financially healthy and even has some risk of bankruptcy.
- PPL has a Altman-Z score of 1.42. This is in the better half of the industry: PPL outperforms 62.14% of its industry peers.
- PPL has a debt to FCF ratio of 5.21. This is a neutral value as PPL would need 5.21 years to pay back of all of its debts.
- The Debt to FCF ratio of PPL (5.21) is better than 76.21% of its industry peers.
- A Debt/Equity ratio of 0.71 indicates that PPL is somewhat dependend on debt financing.
- The Debt to Equity ratio of PPL (0.71) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 5.21 | ||
| Altman-Z | 1.42 |
ROIC/WACC0.96
WACC7.5%
2.3 Liquidity
- A Current Ratio of 0.53 indicates that PPL may have some problems paying its short term obligations.
- PPL has a worse Current ratio (0.53) than 70.39% of its industry peers.
- A Quick Ratio of 0.41 indicates that PPL may have some problems paying its short term obligations.
- The Quick ratio of PPL (0.41) is worse than 72.33% 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.
- The Revenue has been growing slightly by 3.96% in the past year.
- 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)-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
- Based on estimates for the next years, PPL will show a small growth in Earnings Per Share. The EPS will grow by 5.95% on average per year.
- Based on estimates for the next years, PPL will show a small growth in Revenue. The Revenue will grow by 1.80% on average per year.
EPS Next Y-8.89%
EPS Next 2Y-3.01%
EPS Next 3Y0.74%
EPS Next 5Y5.95%
Revenue Next Year3.51%
Revenue Next 2Y3.69%
Revenue Next 3Y5%
Revenue Next 5Y1.8%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- Based on the Price/Earnings ratio of 19.97, the valuation of PPL can be described as rather expensive.
- PPL's Price/Earnings ratio is a bit cheaper when compared to the industry. PPL is cheaper than 64.08% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, PPL is valued a bit cheaper.
- The Price/Forward Earnings ratio is 19.81, which indicates a rather expensive current valuation of PPL.
- Based on the Price/Forward Earnings ratio, PPL is valued a bit cheaper than the industry average as 60.68% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. PPL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.97 | ||
| Fwd PE | 19.81 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PPL is on the same level as its industry peers.
- PPL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PPL is cheaper than 76.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.74 | ||
| EV/EBITDA | 11.71 |
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 2Y-3.01%
EPS Next 3Y0.74%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.19%, PPL is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 3.29, PPL pays a better dividend. On top of this PPL pays more dividend than 82.04% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, PPL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.19% |
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
- 108.16% 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.
DP108.16%
EPS Next 2Y-3.01%
EPS Next 3Y0.74%
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 of PEMBINA PIPELINE CORP (PPL.CA) 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.
What are the PE and PB ratios of PEMBINA PIPELINE CORP (PPL.CA) stock?
The Price/Earnings (PE) ratio for PEMBINA PIPELINE CORP (PPL.CA) is 19.97 and the Price/Book (PB) ratio is 1.91.
Can you provide the financial health for PPL stock?
The financial health rating of PEMBINA PIPELINE CORP (PPL.CA) is 3 / 10.