Pembina Pipeline Corporation
Pembina Pipeline Corporation Fundamental Analysis
Pembina Pipeline Corporation (PMBPF) shows strong financial fundamentals with a PE ratio of 8.48, profit margin of 21.69%, and ROE of 9.91%. The company generates $7.8B 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 62.8/100 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 PMBPF's fundamental strength across five key dimensions:
Efficiency Score
WeakPMBPF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPMBPF trades at attractive valuation levels.
Growth Score
ModeratePMBPF shows steady but slowing expansion.
Financial Health Score
ModeratePMBPF shows balanced financial health with some risks.
Profitability Score
ModeratePMBPF maintains healthy but balanced margins.
Key Financial Metrics
Is PMBPF Expensive or Cheap?
P/E Ratio
PMBPF trades at 8.48 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PMBPF's PEG of -1.30 indicates potential undervaluation.
Price to Book
The market values Pembina Pipeline Corporation at 0.86 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.16 times EBITDA. This is generally considered low.
How Well Does PMBPF Make Money?
Net Profit Margin
For every $100 in sales, Pembina Pipeline Corporation keeps $21.69 as profit after all expenses.
Operating Margin
Core operations generate 33.25 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.91 in profit for every $100 of shareholder equity.
ROA
Pembina Pipeline Corporation generates $4.77 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 $3.29B, reflecting robust business health.
Free Cash Flow
Pembina Pipeline Corporation generates strong free cash flow of $2.50B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.31 in free cash annually.
FCF Yield
PMBPF converts 17.42% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.48
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.30
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.86
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.84
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.83
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.61
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
0.08
vs 25 benchmark
How PMBPF Stacks Against Its Sector Peers
| Metric | PMBPF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.48 | 19.95 | Better (Cheaper) |
| ROE | 9.91% | 963.00% | Weak |
| Net Margin | 21.69% | -48347.00% (disorted) | Strong |
| Debt/Equity | 0.83 | -0.54 (disorted) | Distorted |
| Current Ratio | 0.61 | 4.82 | Weak Liquidity |
| ROA | 4.77% | -2296.00% (disorted) | Weak |
PMBPF outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
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