Pembina Pipeline Corporation
Pembina Pipeline Corporation Fundamental Analysis
Pembina Pipeline Corporation (PBA) shows strong financial fundamentals with a PE ratio of 22.37, profit margin of 22.10%, and ROE of 10.28%. The company generates $7.0B in annual revenue with strong year-over-year growth of 16.63%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze PBA's fundamental strength across five key dimensions:
Efficiency Score
WeakPBA struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPBA trades at attractive valuation levels.
Growth Score
ModeratePBA shows steady but slowing expansion.
Financial Health Score
ModeratePBA shows balanced financial health with some risks.
Profitability Score
ModeratePBA maintains healthy but balanced margins.
Key Financial Metrics
Is PBA Expensive or Cheap?
P/E Ratio
PBA trades at 22.37 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PBA's PEG of -2.86 indicates potential undervaluation.
Price to Book
The market values Pembina Pipeline Corporation at 2.34 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.55 times EBITDA. This is generally considered low.
How Well Does PBA Make Money?
Net Profit Margin
For every $100 in sales, Pembina Pipeline Corporation keeps $22.10 as profit after all expenses.
Operating Margin
Core operations generate 36.46 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.28 in profit for every $100 of shareholder equity.
ROA
Pembina Pipeline Corporation generates $5.01 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Pembina Pipeline Corporation generates strong operating cash flow of $2.69B, reflecting robust business health.
Free Cash Flow
Pembina Pipeline Corporation generates strong free cash flow of $2.04B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.51 in free cash annually.
FCF Yield
PBA converts 6.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.37
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.86
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.34
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.32
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.78
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.53
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How PBA Stacks Against Its Sector Peers
| Metric | PBA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.37 | 20.19 | Worse (Expensive) |
| ROE | 10.28% | 1019.00% | Weak |
| Net Margin | 22.10% | -44017.00% (disorted) | Strong |
| Debt/Equity | 0.78 | -0.65 (disorted) | Distorted |
| Current Ratio | 0.53 | 4.60 | Weak Liquidity |
| ROA | 5.01% | -11655350.00% (disorted) | Weak |
PBA outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Pembina Pipeline Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-8.74%
Industry Style: Cyclical, Value, Commodity
DecliningEPS CAGR
10.52%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
14.40%
Industry Style: Cyclical, Value, Commodity
High Growth