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 207 industry peers in the Oil, Gas & Consumable Fuels industry. While PPL has a great profitability rating, there are quite some 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.
PPL had positive earnings in 4 of the past 5 years.
In the past 5 years PPL always reported a positive cash flow from operatings.
1.2 Ratios
PPL has a Return On Assets of 4.99%. This is in the better half of the industry: PPL outperforms 79.23% of its industry peers.
PPL has a better Return On Equity (10.14%) than 75.36% of its industry peers.
PPL's Return On Invested Capital of 7.38% is fine compared to the rest of the industry. PPL outperforms 78.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PPL is in line with the industry average of 7.39%.
The last Return On Invested Capital (7.38%) for PPL is above the 3 year average (6.98%), which is a sign of increasing profitability.
| 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 amongst the best in the industry. PPL outperforms 80.19% of its industry peers.
PPL's Profit Margin has improved in the last couple of years.
PPL has a Operating Margin of 37.52%. This is amongst the best in the industry. PPL outperforms 85.51% of its industry peers.
PPL's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 43.24%, PPL is in the better half of the industry, outperforming 64.73% of the companies in the same industry.
In the last couple of years the Gross Margin of PPL has grown nicely.
| 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.
PPL has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, PPL has more shares outstanding
PPL has a worse debt/assets ratio than last year.
2.2 Solvency
PPL has an Altman-Z score of 1.35. 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 1.35, PPL is in the better half of the industry, outperforming 66.18% of the companies in the same industry.
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 71.50% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that PPL is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.69, PPL perfoms like the industry average, outperforming 40.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 4.91 | ||
| Altman-Z | 1.35 |
ROIC/WACC0.93
WACC7.92%
2.3 Liquidity
A Current Ratio of 0.64 indicates that PPL may have some problems paying its short term obligations.
The Current ratio of PPL (0.64) is worse than 70.05% of its industry peers.
A Quick Ratio of 0.52 indicates that PPL may have some problems paying its short term obligations.
The Quick ratio of PPL (0.52) is worse than 71.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
PPL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.29%.
The Earnings Per Share has been decreasing by -0.52% on average over the past years.
Looking at the last year, PPL shows a decrease in Revenue. The Revenue has decreased by -2.89% 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)-1.29%
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
PPL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.34% yearly.
PPL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.73% yearly.
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 16.15, PPL is valued correctly.
PPL's Price/Earnings ratio is a bit cheaper when compared to the industry. PPL is cheaper than 61.35% of the companies in the same industry.
PPL is valuated rather cheaply when we compare the Price/Earnings ratio to 27.29, which is the current average of the S&P500 Index.
PPL is valuated correctly with a Price/Forward Earnings ratio of 14.91.
The rest of the industry has a similar Price/Forward Earnings ratio as PPL.
PPL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.15 | ||
| Fwd PE | 14.91 |
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 the industry average as 72.46% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.76 | ||
| EV/EBITDA | 10.48 |
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.
PPL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.58
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 6.35, PPL pays a better dividend. On top of this PPL pays more dividend than 82.61% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, PPL pays a better dividend.
| 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
PPL pays out 97.64% of its income as dividend. This is not a sustainable payout ratio.
PPL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP97.64%
EPS Next 2Y5.29%
EPS Next 3Y6.23%
TSX:PPL (7/7/2025, 7:00:00 PM)
49.57
-1.16 (-2.29%)
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 Cap28.80B
Analysts79.09
Price Target62.28 (25.64%)
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 | 16.15 | ||
| Fwd PE | 14.91 | ||
| P/S | 3.54 | ||
| P/FCF | 10.76 | ||
| P/OCF | 7.96 | ||
| P/B | 1.64 | ||
| P/tB | 2.6 | ||
| EV/EBITDA | 10.48 |
EPS(TTM)3.07
EY6.19%
EPS(NY)3.33
Fwd EY6.71%
FCF(TTM)4.6
FCFY9.29%
OCF(TTM)6.23
OCFY12.56%
SpS13.99
BVpS30.25
TBVpS19.06
PEG (NY)3.58
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 | 1.35 |
F-Score4
WACC7.92%
ROIC/WACC0.93
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%