PEMBINA PIPELINE CORP (PPL.CA) Stock Fundamental Analysis
Canada - TSX:PPL - CA7063271034 - Common Stock
54.93 CAD
+0.5 (+0.92%)
PPL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 216 industry peers in the Oil, Gas & Consumable Fuels industry. PPL has an excellent profitability rating, 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
PPL had positive earnings in the past year.
PPL had a positive operating cash flow in the past year.
PPL had positive earnings in 4 of the past 5 years.
Each year in the past 5 years PPL had a positive operating cash flow.
1.2 Ratios
PPL has a better Return On Assets (4.87%) than 78.70% of its industry peers.
The Return On Equity of PPL (10.12%) is better than 77.31% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.24%, PPL belongs to the top of the industry, outperforming 80.56% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PPL is in line with the industry average of 6.93%.
The last Return On Invested Capital (7.24%) for PPL is above the 3 year average (6.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.87% | ||
| ROE | 10.12% | ||
| ROIC | 7.24% |
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
With an excellent Profit Margin value of 21.39%, PPL belongs to the best of the industry, outperforming 80.09% of the companies in the same industry.
In the last couple of years the Profit Margin of PPL has grown nicely.
PPL has a better Operating Margin (37.24%) than 86.11% of its industry peers.
PPL's Operating Margin has improved in the last couple of years.
PPL has a better Gross Margin (43.15%) than 66.67% of its industry peers.
PPL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.24% | ||
| PM (TTM) | 21.39% | ||
| GM | 43.15% |
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.
Compared to 1 year ago, PPL has less shares outstanding
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
PPL has an Altman-Z score of 1.45. 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 1.45, PPL is in the better half of the industry, outperforming 64.81% of the companies in the same industry.
The Debt to FCF ratio of PPL is 5.19, which is a neutral value as it means it would take PPL, 5.19 years of fcf income to pay off all of its debts.
PPL's Debt to FCF ratio of 5.19 is fine compared to the rest of the industry. PPL outperforms 76.39% of its industry peers.
PPL has a Debt/Equity ratio of 0.75. This is a neutral value indicating PPL is somewhat dependend on debt financing.
PPL has a Debt to Equity ratio (0.75) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 5.19 | ||
| Altman-Z | 1.45 |
ROIC/WACC0.95
WACC7.61%
2.3 Liquidity
PPL has a Current Ratio of 0.77. 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 Current ratio (0.77) which is in line with its industry peers.
A Quick Ratio of 0.62 indicates that PPL may have some problems paying its short term obligations.
PPL's Quick ratio of 0.62 is on the low side compared to the rest of the industry. PPL is outperformed by 64.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
The earnings per share for PPL have decreased by -8.90% in the last year.
Measured over the past years, PPL shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.52% on average per year.
Looking at the last year, PPL shows a decrease in Revenue. The Revenue has decreased by -1.10% in the last year.
The Revenue has been growing slightly by 0.42% on average over the past years.
EPS 1Y (TTM)-8.9%
EPS 3Y14.66%
EPS 5Y-0.52%
EPS Q2Q%-13.33%
Revenue 1Y (TTM)-1.1%
Revenue growth 3Y-5.05%
Revenue growth 5Y0.42%
Sales Q2Q%-3.4%
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 11.21% on average per year.
Based on estimates for the next years, PPL will show a small growth in Revenue. The Revenue will grow by 2.13% on average per year.
EPS Next Y-0.53%
EPS Next 2Y0.97%
EPS Next 3Y2.38%
EPS Next 5Y11.21%
Revenue Next Year6.78%
Revenue Next 2Y7.29%
Revenue Next 3Y5.6%
Revenue Next 5Y2.13%
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
PPL is valuated rather expensively with a Price/Earnings ratio of 18.49.
60.65% of the companies in the same industry are more expensive than PPL, based on the Price/Earnings ratio.
PPL is valuated rather cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.96, the valuation of PPL can be described as rather expensive.
PPL's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, PPL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.49 | ||
| Fwd PE | 17.96 |
4.2 Price Multiples
PPL's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, PPL is valued a bit cheaper than 72.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.37 | ||
| 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 2Y0.97%
EPS Next 3Y2.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.64%, PPL is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.90, PPL pays a better dividend. On top of this PPL pays more dividend than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, PPL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.64% |
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
PPL pays out 101.62% of its income as dividend. This is not a sustainable payout ratio.
The dividend of PPL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP101.62%
EPS Next 2Y0.97%
EPS Next 3Y2.38%
TSX:PPL (9/18/2025, 7:00:00 PM)
54.93
+0.5 (+0.92%)
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 Cap31.91B
Analysts76.36
Price Target60.24 (9.67%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.64% |
Yearly Dividend2.78
Dividend Growth(5Y)2.11%
DP101.62%
Div Incr Years3
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.97%
Min EPS beat(2)-1.36%
Max EPS beat(2)-0.58%
EPS beat(4)1
Avg EPS beat(4)-2.8%
Min EPS beat(4)-17.44%
Max EPS beat(4)8.17%
EPS beat(8)2
Avg EPS beat(8)1.27%
EPS beat(12)4
Avg EPS beat(12)26.5%
EPS beat(16)6
Avg EPS beat(16)17.31%
Revenue beat(2)1
Avg Revenue beat(2)11.68%
Min Revenue beat(2)-11.59%
Max Revenue beat(2)34.95%
Revenue beat(4)2
Avg Revenue beat(4)4.56%
Min Revenue beat(4)-11.59%
Max Revenue beat(4)34.95%
Revenue beat(8)3
Avg Revenue beat(8)-3.41%
Revenue beat(12)5
Avg Revenue beat(12)-1.89%
Revenue beat(16)9
Avg Revenue beat(16)5.47%
PT rev (1m)-1.66%
PT rev (3m)-3.96%
EPS NQ rev (1m)0.41%
EPS NQ rev (3m)-10.84%
EPS NY rev (1m)-4.82%
EPS NY rev (3m)-4.82%
Revenue NQ rev (1m)-4.03%
Revenue NQ rev (3m)-3.04%
Revenue NY rev (1m)1.36%
Revenue NY rev (3m)-2.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.49 | ||
| Fwd PE | 17.96 | ||
| P/S | 3.96 | ||
| P/FCF | 12.37 | ||
| P/OCF | 9.24 | ||
| P/B | 1.87 | ||
| P/tB | 3 | ||
| EV/EBITDA | 11.39 |
EPS(TTM)2.97
EY5.41%
EPS(NY)3.06
Fwd EY5.57%
FCF(TTM)4.44
FCFY8.08%
OCF(TTM)5.95
OCFY10.82%
SpS13.88
BVpS29.33
TBVpS18.32
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.87% | ||
| ROE | 10.12% | ||
| ROCE | 8.93% | ||
| ROIC | 7.24% | ||
| ROICexc | 7.29% | ||
| ROICexgc | 9.01% | ||
| OM | 37.24% | ||
| PM (TTM) | 21.39% | ||
| GM | 43.15% | ||
| FCFM | 31.99% |
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-Score6
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 5.19 | ||
| Debt/EBITDA | 3.21 | ||
| Cap/Depr | 91.53% | ||
| Cap/Sales | 10.85% | ||
| Interest Coverage | 4.96 | ||
| Cash Conversion | 87.24% | ||
| Profit Quality | 149.51% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 1.45 |
F-Score6
WACC7.61%
ROIC/WACC0.95
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)-8.9%
EPS 3Y14.66%
EPS 5Y-0.52%
EPS Q2Q%-13.33%
EPS Next Y-0.53%
EPS Next 2Y0.97%
EPS Next 3Y2.38%
EPS Next 5Y11.21%
Revenue 1Y (TTM)-1.1%
Revenue growth 3Y-5.05%
Revenue growth 5Y0.42%
Sales Q2Q%-3.4%
Revenue Next Year6.78%
Revenue Next 2Y7.29%
Revenue Next 3Y5.6%
Revenue Next 5Y2.13%
EBIT growth 1Y13.79%
EBIT growth 3Y3.82%
EBIT growth 5Y6.33%
EBIT Next Year36.53%
EBIT Next 3Y13.23%
EBIT Next 5Y9.71%
FCF growth 1Y7.73%
FCF growth 3Y4.28%
FCF growth 5Y20.56%
OCF growth 1Y17.96%
OCF growth 3Y6.64%
OCF growth 5Y4.89%