PEMBINA PIPELINE CORP (PPL.CA) Stock Fundamental Analysis
Canada - TSX:PPL - CA7063271034 - Common Stock
55.15 CAD
+0.22 (+0.4%)
We assign a fundamental rating of 5 out of 10 to PPL. PPL was compared to 216 industry peers in the Oil, Gas & Consumable Fuels industry. While PPL belongs to the best of the industry regarding profitability, there are concerns on its financial health. PPL is not valued too expensively and it also shows a decent growth rate. Finally PPL also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year PPL was profitable.
PPL had a positive operating cash flow in the past year.
PPL had positive earnings in 4 of the past 5 years.
PPL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.87%, PPL is doing good in the industry, outperforming 78.70% of the companies in the same industry.
The Return On Equity of PPL (10.12%) is better than 77.31% of its industry peers.
PPL has a Return On Invested Capital of 7.24%. This is amongst the best in the industry. PPL outperforms 80.56% 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 6.93%.
The 3 year average ROIC (6.98%) for PPL is below the current ROIC(7.24%), indicating increased profibility in the last year.
| 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
PPL's Profit Margin of 21.39% is amongst the best of the industry. PPL outperforms 80.09% of its industry peers.
PPL's Profit Margin has improved in the last couple of years.
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's Gross Margin of 43.15% is fine compared to the rest of the industry. PPL outperforms 66.67% of its industry peers.
In the last couple of years the Gross Margin of PPL has grown nicely.
| 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.
Compared to 1 year ago, PPL has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.45, we must say that PPL is in the distress zone and has some risk of bankruptcy.
PPL has a better Altman-Z score (1.45) than 64.81% of its industry peers.
PPL has a debt to FCF ratio of 5.19. This is a neutral value as PPL would need 5.19 years to pay back of all of its debts.
PPL has a better Debt to FCF ratio (5.19) than 76.39% of its industry peers.
A Debt/Equity ratio of 0.75 indicates that PPL is somewhat dependend on debt financing.
PPL has a Debt to Equity ratio of 0.75. This is comparable to the rest of the industry: PPL outperforms 41.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 5.19 | ||
| Altman-Z | 1.45 |
ROIC/WACC0.95
WACC7.6%
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.
The Current ratio of PPL (0.77) is comparable to the rest of the industry.
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
PPL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.90%.
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 decreased by -1.10% in the past 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
The Earnings Per Share is expected to grow by 11.21% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.13% on average over the next years.
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
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
The Price/Earnings ratio is 18.57, which indicates a rather expensive current valuation of PPL.
Based on the Price/Earnings ratio, PPL is valued a bit cheaper than 60.65% of the companies in the same industry.
PPL is valuated rather cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.03, the valuation of PPL can be described as rather expensive.
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 (22.86), we can say PPL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.57 | ||
| Fwd PE | 18.03 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PPL indicates a somewhat cheap valuation: PPL is cheaper than 72.69% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.42 | ||
| EV/EBITDA | 11.39 |
4.3 Compensation for Growth
The excellent profitability rating of PPL 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
PPL has a Yearly Dividend Yield of 6.64%, which is a nice return.
PPL's Dividend Yield is rather good when compared to the industry average which is at 5.90. PPL pays more dividend than 83.33% of the companies in the same industry.
PPL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| 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 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
101.62% 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.
DP101.62%
EPS Next 2Y0.97%
EPS Next 3Y2.38%
TSX:PPL (9/19/2025, 7:00:00 PM)
55.15
+0.22 (+0.4%)
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 Cap32.04B
Analysts76.36
Price Target60.24 (9.23%)
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 | 18.57 | ||
| Fwd PE | 18.03 | ||
| P/S | 3.97 | ||
| P/FCF | 12.42 | ||
| P/OCF | 9.28 | ||
| P/B | 1.88 | ||
| P/tB | 3.01 | ||
| EV/EBITDA | 11.39 |
EPS(TTM)2.97
EY5.39%
EPS(NY)3.06
Fwd EY5.55%
FCF(TTM)4.44
FCFY8.05%
OCF(TTM)5.95
OCFY10.78%
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
WACC7.6%
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%