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PPL

Pembina Pipeline TSX:PPL Stock Report

Last Price

CA$47.99

Market Cap

CA$26.6b

7D

4.8%

1Y

18.5%

Updated

12 Aug, 2022

Data

Company Financials +
PPL fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance2/6
Financial Health3/6
Dividends4/6

PPL Stock Overview

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

Pembina Pipeline Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Pembina Pipeline
Historical stock prices
Current Share PriceCA$47.99
52 Week HighCA$53.58
52 Week LowCA$37.02
Beta1.62
1 Month Change4.90%
3 Month Change-2.70%
1 Year Change18.52%
3 Year Change-1.96%
5 Year Change21.43%
Change since IPO511.34%

Recent News & Updates

Shareholder Returns

PPLCA Oil and GasCA Market
7D4.8%4.7%3.0%
1Y18.5%48.4%0.7%

Return vs Industry: PPL underperformed the Canadian Oil and Gas industry which returned 47.1% over the past year.

Return vs Market: PPL exceeded the Canadian Market which returned -0.2% over the past year.

Price Volatility

Is PPL's price volatile compared to industry and market?
PPL volatility
PPL Average Weekly Movement3.7%
Oil and Gas Industry Average Movement11.1%
Market Average Movement10.6%
10% most volatile stocks in CA Market19.0%
10% least volatile stocks in CA Market4.3%

Stable Share Price: PPL is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: PPL's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19542,349J. Burrowshttps://www.pembina.com

Pembina Pipeline Corporation provides transportation and midstream services for the energy industry. It operates through three segments: Pipelines, Facilities, and Marketing & New Ventures. The Pipelines segment operates conventional, oil sands and heavy oil, and transmission assets with a transportation capacity of 3.1 millions of barrels of oil equivalent per day, ground storage of 11 millions of barrels, and rail terminalling capacity of approximately 105 thousands of barrels of oil equivalent per day serving markets and basins across North America.

Pembina Pipeline Fundamentals Summary

How do Pembina Pipeline's earnings and revenue compare to its market cap?
PPL fundamental statistics
Market CapCA$26.63b
Earnings (TTM)CA$1.43b
Revenue (TTM)CA$10.84b

18.6x

P/E Ratio

2.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PPL income statement (TTM)
RevenueCA$10.84b
Cost of RevenueCA$8.12b
Gross ProfitCA$2.73b
Other ExpensesCA$1.30b
EarningsCA$1.43b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.58
Gross Margin25.14%
Net Profit Margin13.20%
Debt/Equity Ratio75.3%

How did PPL perform over the long term?

See historical performance and comparison

Dividends

5.3%

Current Dividend Yield

97%

Payout Ratio

Does PPL pay a reliable dividends?

See PPL dividend history and benchmarks
When do you need to buy PPL by to receive an upcoming dividend?
Pembina Pipeline dividend dates
Ex Dividend DateAug 24 2022
Dividend Pay DateSep 15 2022
Days until Ex dividend10 days
Days until Dividend pay date32 days

Does PPL pay a reliable dividends?

See PPL dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is PPL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PPL?

Other financial metrics that can be useful for relative valuation.

PPL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.8x
Enterprise Value/EBITDA13.8x
PEG Ratio10.1x

Price to Earnings Ratio vs Peers

How does PPL's PE Ratio compare to its peers?

PPL PE Ratio vs Peers
The above table shows the PE ratio for PPL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average20.4x
TRP TC Energy
21x15.5%CA$66.1b
KEY Keyera
16x-3.2%CA$7.2b
ENB Enbridge
23x13.2%CA$112.5b
GEI Gibson Energy
21.6x1.9%CA$3.6b
PPL Pembina Pipeline
18.6x1.8%CA$26.6b

Price-To-Earnings vs Peers: PPL is good value based on its Price-To-Earnings Ratio (18.6x) compared to the peer average (20.4x).


Price to Earnings Ratio vs Industry

How does PPL's PE Ratio compare vs other companies in the CA Oil and Gas Industry?

Price-To-Earnings vs Industry: PPL is expensive based on its Price-To-Earnings Ratio (18.6x) compared to the Canadian Oil and Gas industry average (5.4x)


Price to Earnings Ratio vs Fair Ratio

What is PPL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PPL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.6x
Fair PE Ratio14.6x

Price-To-Earnings vs Fair Ratio: PPL is expensive based on its Price-To-Earnings Ratio (18.6x) compared to the estimated Fair Price-To-Earnings Ratio (14.6x).


Share Price vs Fair Value

What is the Fair Price of PPL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PPL (CA$47.99) is trading below our estimate of fair value (CA$59.37)

Significantly Below Fair Value: PPL is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Pembina Pipeline forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


1.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PPL's forecast earnings growth (1.8% per year) is above the savings rate (1.6%).

Earnings vs Market: PPL's earnings (1.8% per year) are forecast to grow slower than the Canadian market (8% per year).

High Growth Earnings: PPL's earnings are forecast to grow, but not significantly.

Revenue vs Market: PPL's revenue is expected to decline over the next 3 years (-10.7% per year).

High Growth Revenue: PPL's revenue is forecast to decline over the next 3 years (-10.7% 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 (12.3%).


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Past Performance

How has Pembina Pipeline performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-8.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PPL has high quality earnings.

Growing Profit Margin: PPL became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: PPL's earnings have declined by 8.1% per year over the past 5 years.

Accelerating Growth: PPL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: PPL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (173.6%).


Return on Equity

High ROE: PPL's Return on Equity (10.6%) is considered low.


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Financial Health

How is Pembina Pipeline's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: PPL's short term assets (CA$4.5B) exceed its short term liabilities (CA$3.5B).

Long Term Liabilities: PPL's short term assets (CA$4.5B) do not cover its long term liabilities (CA$13.4B).


Debt to Equity History and Analysis

Debt Level: PPL's net debt to equity ratio (74.8%) is considered high.

Reducing Debt: PPL's debt to equity ratio has increased from 57.1% to 75.3% over the past 5 years.

Debt Coverage: PPL's debt is well covered by operating cash flow (25.8%).

Interest Coverage: PPL's interest payments on its debt are well covered by EBIT (5.4x coverage).


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


5.25%

Current Dividend Yield

Upcoming Dividend Payment

TodayAug 13 2022Ex Dividend DateAug 24 2022Dividend Pay DateSep 15 202222 days from Ex DividendBuy in the next 10 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: PPL's dividend (5.25%) is higher than the bottom 25% of dividend payers in the Canadian market (1.82%).

High Dividend: PPL's dividend (5.25%) is low compared to the top 25% of dividend payers in the Canadian market (5.32%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (97%), PPL's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (65.8%), PPL's dividend payments are covered by cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average management tenure


CEO

J. Burrows (42 yo)

0.75

Tenure

CA$7,580,585

Compensation

Mr. J. Scott Burrows has been Chief Executive Officer, President and Director at Pembina Pipeline Corporation since February 22, 2022. Mr. Burrows served as Interim President & Chief Executive Officer at P...


CEO Compensation Analysis

Compensation vs Market: J.'s total compensation ($USD5.92M) is about average for companies of similar size in the Canadian market ($USD7.39M).

Compensation vs Earnings: J.'s compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: PPL's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: PPL's board of directors are considered experienced (5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PPL insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Pembina Pipeline Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Pembina Pipeline Corporation
  • Ticker: PPL
  • Exchange: TSX
  • Founded: 1954
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Implied Market Cap: CA$26.633b
  • Shares outstanding: 554.98m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/12 00:00
End of Day Share Price2022/08/12 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.