PEMBINA PIPELINE CORP (PPL.CA) Stock Fundamental Analysis
TSX:PPL - Toronto Stock Exchange - CA7063271034 - Common Stock - Currency: CAD
Taking everything into account, PPL scores 5 out of 10 in our fundamental rating. PPL was compared to 219 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.
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
Looking at the Return On Assets, with a value of 4.78%, PPL is in the better half of the industry, outperforming 75.57% of the companies in the same industry.
PPL has a Return On Equity of 9.83%. This is in the better half of the industry: PPL outperforms 73.76% of its industry peers.
The Return On Invested Capital of PPL (7.11%) is better than 75.57% 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 7.60%.
The last Return On Invested Capital (7.11%) for PPL is above the 3 year average (6.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.78% | ||
| ROE | 9.83% | ||
| ROIC | 7.11% |
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 23.31%, PPL belongs to the best of the industry, outperforming 82.81% of the companies in the same industry.
PPL's Profit Margin has improved in the last couple of years.
The Operating Margin of PPL (39.23%) is better than 85.97% of its industry peers.
In the last couple of years the Operating Margin of PPL has grown nicely.
PPL has a Gross Margin of 44.91%. This is comparable to the rest of the industry: PPL outperforms 55.66% of its industry peers.
In the last couple of years the Gross Margin of PPL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.23% | ||
| PM (TTM) | 23.31% | ||
| GM | 44.91% |
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 just above the Cost of Capital (WACC), which means it is creating some value.
PPL has less shares outstanding than it did 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
PPL has an Altman-Z score of 1.36. This is a bad value and indicates that PPL is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of PPL (1.36) is better than 66.97% of its industry peers.
PPL has a debt to FCF ratio of 5.90. This is a neutral value as PPL would need 5.90 years to pay back of all of its debts.
The Debt to FCF ratio of PPL (5.90) is better than 74.21% of its industry peers.
A Debt/Equity ratio of 0.67 indicates that PPL is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.67, PPL is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.9 | ||
| Altman-Z | 1.36 |
ROIC/WACC1.01
WACC7.07%
2.3 Liquidity
PPL has a Current Ratio of 0.54. 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 (0.54) than 72.40% of its industry peers.
PPL has a Quick Ratio of 0.54. This is a bad value and indicates that PPL is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.44, PPL is doing worse than 75.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
PPL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.44%.
PPL shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.31% yearly.
Looking at the last year, PPL shows a very negative growth in Revenue. The Revenue has decreased by -19.08% in the last 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)1.44%
EPS 3Y15.08%
EPS 5Y-0.31%
EPS Q2Q%-21.24%
Revenue 1Y (TTM)-19.08%
Revenue growth 3Y-5.05%
Revenue growth 5Y0.42%
Sales Q2Q%-10.23%
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 4.44% on average per year.
The Revenue is expected to grow by 6.58% on average over the next years.
EPS Next Y3.63%
EPS Next 2Y4.45%
EPS Next 3Y2.89%
EPS Next 5Y4.44%
Revenue Next Year8.6%
Revenue Next 2Y4%
Revenue Next 3Y3.2%
Revenue Next 5Y6.58%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 17.94 indicates a rather expensive valuation of PPL.
Compared to the rest of the industry, the Price/Earnings ratio of PPL is on the same level as its industry peers.
PPL is valuated rather cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
PPL is valuated rather expensively with a Price/Forward Earnings ratio of 17.30.
PPL's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.10. PPL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.94 | ||
| Fwd PE | 17.3 |
4.2 Price Multiples
PPL's Enterprise Value to EBITDA is on the same level as the industry average.
PPL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PPL is cheaper than 64.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.97 | ||
| EV/EBITDA | 11.9 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of PPL may justify a higher PE ratio.
PEG (NY)4.94
PEG (5Y)N/A
EPS Next 2Y4.45%
EPS Next 3Y2.89%
5. Dividend
5.1 Amount
PPL has a Yearly Dividend Yield of 5.12%, which is a nice return.
PPL's Dividend Yield is a higher than the industry average which is at 6.94.
PPL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.12% |
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
PPL pays out 98.84% 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.
DP98.84%
EPS Next 2Y4.45%
EPS Next 3Y2.89%
TSX:PPL (3/7/2025, 7:00:00 PM)
54.36
+0.41 (+0.76%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners64.19%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap31.56B
Analysts75.45
Price Target62.92 (15.75%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.12% |
Yearly Dividend2.78
Dividend Growth(5Y)2.11%
DP98.84%
Div Incr Years3
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.53%
Min EPS beat(2)-17.44%
Max EPS beat(2)12.38%
EPS beat(4)1
Avg EPS beat(4)-1.92%
Min EPS beat(4)-17.44%
Max EPS beat(4)12.38%
EPS beat(8)3
Avg EPS beat(8)0.3%
EPS beat(12)5
Avg EPS beat(12)26.9%
EPS beat(16)6
Avg EPS beat(16)14.43%
Revenue beat(2)1
Avg Revenue beat(2)-0.9%
Min Revenue beat(2)-8.58%
Max Revenue beat(2)6.79%
Revenue beat(4)1
Avg Revenue beat(4)-12.11%
Min Revenue beat(4)-40.66%
Max Revenue beat(4)6.79%
Revenue beat(8)2
Avg Revenue beat(8)-7.59%
Revenue beat(12)6
Avg Revenue beat(12)-0.91%
Revenue beat(16)10
Avg Revenue beat(16)6.65%
PT rev (1m)0.1%
PT rev (3m)-0.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.46%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.8%
Revenue NY rev (1m)-4.29%
Revenue NY rev (3m)-3.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.94 | ||
| Fwd PE | 17.3 | ||
| P/S | 4.27 | ||
| P/FCF | 13.97 | ||
| P/OCF | 9.82 | ||
| P/B | 1.8 | ||
| P/tB | 2.87 | ||
| EV/EBITDA | 11.9 |
EPS(TTM)3.03
EY5.57%
EPS(NY)3.14
Fwd EY5.78%
FCF(TTM)3.89
FCFY7.16%
OCF(TTM)5.54
OCFY10.18%
SpS12.72
BVpS30.16
TBVpS18.92
PEG (NY)4.94
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.78% | ||
| ROE | 9.83% | ||
| ROCE | 8.76% | ||
| ROIC | 7.11% | ||
| ROICexc | 7.14% | ||
| ROICexgc | 8.91% | ||
| OM | 39.23% | ||
| PM (TTM) | 23.31% | ||
| GM | 44.91% | ||
| FCFM | 30.59% |
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 Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.9 | ||
| Debt/EBITDA | 3.11 | ||
| Cap/Depr | 110.79% | ||
| Cap/Sales | 12.93% | ||
| Interest Coverage | 5.49 | ||
| Cash Conversion | 85.5% | ||
| Profit Quality | 131.26% | ||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 1.36 |
F-Score4
WACC7.07%
ROIC/WACC1.01
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)1.44%
EPS 3Y15.08%
EPS 5Y-0.31%
EPS Q2Q%-21.24%
EPS Next Y3.63%
EPS Next 2Y4.45%
EPS Next 3Y2.89%
EPS Next 5Y4.44%
Revenue 1Y (TTM)-19.08%
Revenue growth 3Y-5.05%
Revenue growth 5Y0.42%
Sales Q2Q%-10.23%
Revenue Next Year8.6%
Revenue Next 2Y4%
Revenue Next 3Y3.2%
Revenue Next 5Y6.58%
EBIT growth 1Y19.51%
EBIT growth 3Y3.82%
EBIT growth 5Y6.33%
EBIT Next Year38.96%
EBIT Next 3Y14.63%
EBIT Next 5Y9.38%
FCF growth 1Y11.34%
FCF growth 3Y4.28%
FCF growth 5Y20.56%
OCF growth 1Y21.97%
OCF growth 3Y6.64%
OCF growth 5Y4.89%