Executive Summary
Pembina Pipeline Corporation provides transportation and midstream services for the energy industry in North America. More Details
Rewards
Risk Analysis
Dividend of 7.14% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
Average dividend payer and slightly overvalued.
Similar Companies
Share Price & News
How has Pembina Pipeline's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: PPL is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: PPL's weekly volatility has decreased from 11% to 5% over the past year.
Market Performance
7 Day Return
3.1%
PPL
2.4%
CA Oil and Gas
-0.3%
CA Market
1 Year Return
-29.7%
PPL
-22.5%
CA Oil and Gas
2.6%
CA Market
Return vs Industry: PPL underperformed the Canadian Oil and Gas industry which returned -22.5% over the past year.
Return vs Market: PPL underperformed the Canadian Market which returned 2.6% over the past year.
Shareholder returns
| PPL | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.1% | 2.4% | -0.3% |
| 30 Day | 5.0% | 5.5% | 3.7% |
| 90 Day | 23.1% | 27.9% | 12.4% |
| 1 Year | -24.0%-29.7% | -18.1%-22.5% | 6.3%2.6% |
| 3 Year | -3.7%-19.4% | -18.9%-29.0% | 14.7%3.7% |
| 5 Year | 61.3%23.0% | 11.3%-8.5% | 72.4%45.9% |
Long-Term Price Volatility Vs. Market
How volatile is Pembina Pipeline's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Pembina Pipeline Corporation's (TSE:PPL) Stock Going Strong But Fundamentals Look Weak: What Implications Could This Have On The Stock?2 weeks ago | Simply Wall St
Don't Race Out To Buy Pembina Pipeline Corporation (TSE:PPL) Just Because It's Going Ex-Dividend3 weeks ago | Simply Wall St
Would Shareholders Who Purchased Pembina Pipeline's (TSE:PPL) Stock Year Be Happy With The Share price Today?Valuation
Is Pembina Pipeline undervalued compared to its fair value and its price relative to the market?
37.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PPL (CA$35.27) is trading below our estimate of fair value (CA$56.79)
Significantly Below Fair Value: PPL is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: PPL's PE Ratio (21.8x) is in line with the CA Oil and Gas industry average.
PE vs Market: PPL is poor value based on its PE Ratio (21.8x) compared to the Canadian market (16.9x).
Price to Earnings Growth Ratio
PEG Ratio: PPL is poor value based on its PEG Ratio (1.8x)
Price to Book Ratio
PB vs Industry: PPL is overvalued based on its PB Ratio (1.4x) compared to the CA Oil and Gas industry average (1.2x).
Next Steps
Future Growth
How is Pembina Pipeline forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
12.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PPL's forecast earnings growth (12.2% per year) is above the savings rate (1.5%).
Earnings vs Market: PPL's earnings (12.2% per year) are forecast to grow slower than the Canadian market (25.9% per year).
High Growth Earnings: PPL's earnings are forecast to grow, but not significantly.
Revenue vs Market: PPL's revenue (9.2% per year) is forecast to grow faster than the Canadian market (7.8% per year).
High Growth Revenue: PPL's revenue (9.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: PPL's Return on Equity is forecast to be low in 3 years time (9.3%).
Next Steps
Past Performance
How has Pembina Pipeline performed over the past 5 years?
27.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PPL has high quality earnings.
Growing Profit Margin: PPL's current net profit margins (14%) are lower than last year (22%).
Past Earnings Growth Analysis
Earnings Trend: PPL's earnings have grown significantly by 27.9% per year over the past 5 years.
Accelerating Growth: PPL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: PPL had negative earnings growth (-44.6%) over the past year, making it difficult to compare to the Oil and Gas industry average (-52.6%).
Return on Equity
High ROE: PPL's Return on Equity (6.1%) is considered low.
Next Steps
Financial Health
How is Pembina Pipeline's financial position?
Financial Position Analysis
Short Term Liabilities: PPL's short term assets (CA$916.0M) do not cover its short term liabilities (CA$1.3B).
Long Term Liabilities: PPL's short term assets (CA$916.0M) do not cover its long term liabilities (CA$15.9B).
Debt to Equity History and Analysis
Debt Level: PPL's debt to equity ratio (65.5%) is considered high.
Reducing Debt: PPL's debt to equity ratio has increased from 53.7% to 65.5% over the past 5 years.
Debt Coverage: PPL's debt is well covered by operating cash flow (20.2%).
Interest Coverage: PPL's interest payments on its debt are well covered by EBIT (4.8x coverage).
Balance Sheet
Next Steps
Dividend
What is Pembina Pipeline current dividend yield, its reliability and sustainability?
7.14%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: PPL's dividend (7.14%) is higher than the bottom 25% of dividend payers in the Canadian market (1.55%).
High Dividend: PPL's dividend (7.14%) is in the top 25% of dividend payers in the Canadian market (5%)
Stability and Growth of Payments
Stable Dividend: PPL's dividends per share have been stable in the past 10 years.
Growing Dividend: PPL's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (153.9%), PPL's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: PPL's dividends in 3 years are not forecast to be well covered by earnings (110.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.0yrs
Average management tenure
CEO
Mick Dilger (57 yo)
7yrs
Tenure
CA$7,998,233
Compensation
Mr. Michael H. Dilger, also known as Mick, has been the Chief Executive Officer and President of Pembina NGL Corporation since January 2014 and serves as its President since February 15, 2012. Mr. Dilger h...
CEO Compensation Analysis
Compensation vs Market: Mick's total compensation ($USD6.33M) is about average for companies of similar size in the Canadian market ($USD6.61M).
Compensation vs Earnings: Mick's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 7yrs | CA$8.00m | 0.036% CA$ 6.8m | |
| Senior VP & CFO | 6yrs | CA$2.58m | 0.0023% CA$ 436.7k | |
| Senior VP of External Affairs & Chief Legal Officer | 9.08yrs | CA$1.93m | 0.0017% CA$ 324.2k | |
| Senior VP of Marketing & New Ventures and Corporate Development Officer | 3yrs | CA$2.63m | 0.0040% CA$ 755.3k | |
| Senior VP & Corporate Services Officer | 7.33yrs | CA$2.37m | 0.0035% CA$ 659.7k | |
| Vice President of Technical Services | no data | no data | 0.0016% CA$ 292.4k | |
| Manager of Investor Relations | no data | no data | no data | |
| Vice President of Human Resources | no data | no data | 0.0013% CA$ 239.9k | |
| Senior VP & COO of Pipelines | 3yrs | no data | 0.0027% CA$ 515.4k | |
| Senior VP & COO of Facilities | 3yrs | no data | 0.0025% CA$ 474.2k | |
| General Counsel and Vice President | no data | no data | no data | |
| VP & Controller | no data | no data | 0.0016% CA$ 307.4k |
6.0yrs
Average Tenure
Experienced Management: PPL's management team is seasoned and experienced (6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 7yrs | CA$8.00m | 0.036% CA$ 6.8m | |
| Independent Director | 3.25yrs | CA$232.48k | 0.0024% CA$ 453.6k | |
| Director | 0.67yr | no data | no data | |
| Independent Director | 0.67yr | no data | no data | |
| Independent Director | 12.08yrs | CA$230.02k | 0.0059% CA$ 1.1m | |
| Independent Chairman of the Board | 6.75yrs | CA$412.51k | 0.026% CA$ 4.8m | |
| Independent Director | 6yrs | CA$246.01k | 0.0019% CA$ 354.2k | |
| Independent Director | 10.42yrs | CA$242.51k | 0.011% CA$ 2.0m | |
| Independent Director | 3.67yrs | CA$304.84k | 0.0036% CA$ 682.2k | |
| Independent Director | 3.25yrs | CA$232.52k | 0.0043% CA$ 804.0k | |
| Independent Director | 6.25yrs | CA$308.18k | 0.0041% CA$ 764.7k |
6.0yrs
Average Tenure
62yo
Average Age
Experienced Board: PPL's board of directors are considered experienced (6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: PPL insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.4%.
Top Shareholders
Company Information
Pembina Pipeline Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Pembina Pipeline Corporation
- Ticker: PPL
- Exchange: TSX
- Founded: 1997
- Industry: Oil and Gas Storage and Transportation
- Sector: Energy
- Market Cap: CA$18.742b
- Shares outstanding: 549.94m
- Website: https://www.pembina.com
Number of Employees
Location
- Pembina Pipeline Corporation
- 585 - 8th Avenue South West
- Suite 4000
- Calgary
- Alberta
- T2P 1G1
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| PPL | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Oct 1998 |
| P5P | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Oct 1998 |
| PBA | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Oct 1998 |
| PPL.PRA | TSX (The Toronto Stock Exchange) | PFD 5 YR CL A 1 | CA | CAD | Jul 2013 | |
| PBNA.F | OTCPK (Pink Sheets LLC) | PFD 5 YR CL A 1 | US | USD | Jul 2013 | |
| PPL.PRC | TSX (The Toronto Stock Exchange) | PFD CL A SER 3 | CA | CAD | Oct 2013 | |
| PPL.PRE | TSX (The Toronto Stock Exchange) | CUM RE CL A PFD5 | CA | CAD | Jan 2014 | |
| PPL.PRG | TSX (The Toronto Stock Exchange) | 4.5 % PFD CL A 7 | CA | CAD | Sep 2014 | |
| PMBP.F | OTCPK (Pink Sheets LLC) | 4.5 % PFD CL A 7 | US | USD | Sep 2014 | |
| PPL.PRI | TSX (The Toronto Stock Exchange) | PFD CL A SER 9 | CA | CAD | Apr 2015 | |
| PPL.PRK | TSX (The Toronto Stock Exchange) | PFD CL A SER 11 | CA | CAD | Jan 2016 | |
| PPL.PRM | TSX (The Toronto Stock Exchange) | CUM REDM PFD A | CA | CAD | Apr 2016 | |
| PPL.PRO | TSX (The Toronto Stock Exchange) | PFD CL A SER 15 | CA | CAD | Oct 2017 | |
| PPL.PRS | TSX (The Toronto Stock Exchange) | PFD CL A SER 19 | CA | CAD | Oct 2017 | |
| PPL.PRQ | TSX (The Toronto Stock Exchange) | PFD CL A SER 17 | CA | CAD | Oct 2017 | |
| PPL.PFE | TSX (The Toronto Stock Exchange) | 5.2% CUM PFD 25 | CA | CAD | Dec 2019 | |
| PPL.PFC | TSX (The Toronto Stock Exchange) | 5.25% CUM PFD 23 | CA | CAD | Dec 2019 |
Biography
Pembina Pipeline Corporation provides transportation and midstream services for the energy industry in North America. It operates through three segments: Pipelines, Facilities, and Marketing & New Ventures...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/14 23:54 |
| End of Day Share Price | 2021/01/14 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.