TSX:PPL

Stock Analysis Report

Pembina Pipeline

Executive Summary

Pembina Pipeline Corporation provides transportation and midstream services for the energy industry in North America.

Snowflake

Fundamentals

Proven track record average dividend payer.


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


Market Performance


7 Day Return

1.4%

PPL

3.1%

CA Oil and Gas

1.3%

CA Market


1 Year Return

14.1%

PPL

-10.7%

CA Oil and Gas

-0.1%

CA Market

PPL outperformed the Oil and Gas industry which returned -11.2% over the past year.

PPL outperformed the Market in Canada which returned -0.4% over the past year.


Share holder returns

PPLIndustryMarket
7 Day1.4%3.1%1.3%
30 Day2.5%8.4%4.2%
90 Day1.6%0.8%1.6%
1 Year19.9%14.1%-6.6%-10.7%3.4%-0.1%
3 Year44.1%24.9%-5.2%-15.0%19.1%8.4%
5 Year33.2%4.6%-24.1%-35.3%23.2%5.7%

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

Valuation

Is Pembina Pipeline undervalued based on future cash flows and its price relative to the stock market?

32%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Pembina Pipeline's share price is below the future cash flow value, and at a moderate discount (> 20%).

Pembina Pipeline's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Pembina Pipeline is overvalued based on earnings compared to the CA Oil and Gas industry average.

Pembina Pipeline is overvalued based on earnings compared to the Canada market.


Price Based on Expected Growth

Pembina Pipeline is poor value based on expected growth next year.


Price Based on Value of Assets

Pembina Pipeline is overvalued based on assets compared to the CA Oil and Gas industry average.


Next Steps

Future Growth

How is Pembina Pipeline expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

2.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Pembina Pipeline's revenue is expected to grow by 6.3% yearly, however this is not considered high growth (20% yearly).

Pembina Pipeline's earnings are expected to grow by 2.4% yearly, however this is not considered high growth (20% yearly).

Pembina Pipeline's revenue growth is expected to exceed the Canada market average.

Pembina Pipeline's earnings growth is positive but not above the Canada market average.

Pembina Pipeline's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Pembina Pipeline is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Pembina Pipeline performed over the past 5 years?

34.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Pembina Pipeline has delivered over 20% year on year earnings growth in the past 5 years.

Pembina Pipeline's 1-year earnings growth exceeds its 5-year average (51.9% vs 34.5%)

Pembina Pipeline's earnings growth has not exceeded the CA Oil and Gas industry average in the past year (51.9% vs 62.2%).


Return on Equity

Pembina Pipeline has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Pembina Pipeline used its assets more efficiently than the CA Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

Pembina Pipeline has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Pembina Pipeline's financial position?


Financial Position Analysis

Pembina Pipeline's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Pembina Pipeline's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Pembina Pipeline's level of debt (53.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (42.3% vs 53.1% today).

Debt is well covered by operating cash flow (31%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

What is Pembina Pipeline's current dividend yield, its reliability and sustainability?

4.99%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Pembina Pipeline before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Pembina Pipeline's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (1.95%).

Pembina Pipeline's dividend is below the markets top 25% of dividend payers in Canada (5.78%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are not well covered by earnings (1.1x coverage).


Next Steps

Management

What is the CEO of Pembina Pipeline's salary, the management and board of directors tenure and is there insider trading?

4.7yrs

Average management tenure


CEO

Mick Dilger (56yo)

5.7yrs

Tenure

CA$7,131,203

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

Mick's remuneration is about average for companies of similar size in Canada.

Mick's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.7yrs

Average Tenure

The tenure for the Pembina Pipeline management team is about average.


Board Age and Tenure

5.5yrs

Average Tenure

62.5yo

Average Age

The tenure for the Pembina Pipeline board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellCA$1,981,85201 Apr 19
Michael Dilger
EntityIndividual
Role
Chief Executive Officer
President
Shares40,000
Max PriceCA$49.55
BuyCA$2,454,78328 Mar 19
Michael Dilger
EntityIndividual
Role
Chief Executive Officer
President
Shares50,000
Max PriceCA$49.22
SellCA$84,35001 Mar 19
Tracy Hecker
EntityIndividual
Shares1,754
Max PriceCA$48.09
SellCA$24,11028 Feb 19
John De la Mare
EntityIndividual
Shares500
Max PriceCA$48.22
BuyCA$18,12315 Jan 19
Robert Michaleski
EntityIndividual
Role
Member of the Board of Directors
Director
Shares416
Max PriceCA$43.57
SellCA$23,59204 Jan 19
Robert Michaleski
EntityIndividual
Role
Member of the Board of Directors
Director
Shares570
Max PriceCA$41.39
BuyCA$19,65326 Dec 18
J. Burrows
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares500
Max PriceCA$39.31
BuyCA$79,20026 Dec 18
Cameron Goldade
EntityIndividual
Shares2,000
Max PriceCA$39.60
BuyCA$179,40919 Nov 18
Bruce Rubin
EntityIndividual
Role
Member of the Board of Directors
Director
Shares4,000
Max PriceCA$44.85

Ownership Breakdown


Management Team

  • Paul Murphy

    Senior VP & Corporate Services Officer

    • Tenure: 6yrs
    • Compensation: CA$2.27m
  • Mick Dilger (56yo)

    President

    • Tenure: 5.7yrs
    • Compensation: CA$7.13m
  • Stu Taylor

    Senior VP of Marketing & New Ventures and Corporate Development Officer

    • Tenure: 1.7yrs
    • Compensation: CA$2.39m
  • Allan Charlesworth

    Vice President of Technical Services

    • Tenure: 0yrs
  • Harry Andersen

    Senior VP of External Affairs & Chief Legal Officer

    • Tenure: 6.4yrs
    • Compensation: CA$1.65m
  • Claudia D'Orazio

    Vice President of Human Resources

    • Tenure: 0yrs
  • J. Burrows

    Senior VP & CFO

    • Tenure: 4.7yrs
    • Compensation: CA$2.32m
  • Jason Wiun

    Senior VP & COO of Pipelines

    • Tenure: 1.7yrs
  • Jaret Sprott

    Senior VP & COO of Facilities

    • Tenure: 1.7yrs
  • Ian McAvity

    Investor Relations Analyst

    • Tenure: 0yrs

Board Members

  • Leslie O'Donoghue (56yo)

    Director

    • Tenure: 10.8yrs
    • Compensation: CA$215.01k
  • Randy Findlay (69yo)

    Chairman of the Board

    • Tenure: 5.4yrs
    • Compensation: CA$372.51k
  • Gordon Kerr (65yo)

    Director

    • Tenure: 4.7yrs
    • Compensation: CA$230.99k
  • Jeffrey Smith (71yo)

    Director

    • Tenure: 7.4yrs
    • Compensation: CA$220.00k
  • David Malcolm LeGresley (60yo)

    Director

    • Tenure: 9.1yrs
    • Compensation: CA$227.49k
  • Bob Michaleski (66yo)

    Director

    • Tenure: 19.7yrs
    • Compensation: CA$211.27k
  • Bruce Rubin (62yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: CA$284.76k
  • Mick Dilger (56yo)

    President

    • Tenure: 5.7yrs
    • Compensation: CA$7.13m
  • Maureen Howe (61yo)

    Director

    • Tenure: 1.9yrs
    • Compensation: CA$207.50k
  • Anne-Marie Ainsworth (63yo)

    Director

    • Tenure: 4.9yrs
    • Compensation: CA$291.71k

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$25.479b
  • Shares outstanding: 511.62m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PPLTSX (The Toronto Stock Exchange)YesCommon SharesCACADOct 1998
PBANYSE (New York Stock Exchange)YesCommon SharesUSUSDOct 1998
P5PDB (Deutsche Boerse AG)YesCommon SharesDEEUROct 1998
PPL.PRATSX (The Toronto Stock Exchange)PFD 5 YR CL A 1CACADJul 2013
PPL.PRCTSX (The Toronto Stock Exchange)PFD CL A SER 3CACADOct 2013
PPL.PRETSX (The Toronto Stock Exchange)CUM RE CL A PFD5CACADJan 2014
PPL.PRGTSX (The Toronto Stock Exchange)PFD CL A SER 7CACADSep 2014
PPL.PRITSX (The Toronto Stock Exchange)PFD CL A SER 9CACADApr 2015
PPL.PRKTSX (The Toronto Stock Exchange)PFD CL A SER 11CACADJan 2016
PPL.PRMTSX (The Toronto Stock Exchange)CUM REDM PFD ACACADApr 2016
PPL.PROTSX (The Toronto Stock Exchange)PFD CL A SER 15CACADOct 2017
PPL.PRSTSX (The Toronto Stock Exchange)PFD CL A SER 19CACADOct 2017
PPL.PRQTSX (The Toronto Stock Exchange)PFD CL A SER 17CACADOct 2017

Biography

Pembina Pipeline Corporation provides transportation and midstream services for the energy industry in North America. It operates through three divisions: Pipelines, Facilities, and Marketing & New Venture ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 01:00
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.