Pembina Pipeline Corp. (PPL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Pembina Pipeline Corp.

TC Energy Corp.

Enbridge, Inc.

Keyera Corp.

Why is Pembina Pipeline Corp. ?

Poor Management Efficiency with a low ROCE of 8.24%

The company has been able to generate a Return on Capital Employed (avg) of 8.24% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Operating profit has grown by an annual rate 8.71% of over the last 5 years

Flat results in Jun 25

INTEREST(9M) At CAD 440 MM has Grown at 13.4%
ROCE(HY) Lowest at 10.94%
RAW MATERIAL COST(Y) Grown by 7.84% (YoY)

With ROE of 10.92%, it has a very attractive valuation with a 1.84 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 2.07%, its profits have fallen by -2.6%

High Institutional Holdings at 59.19%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Underperformed the market in the last 1 year

The stock has generated a return of 2.07% in the last 1 year, much lower than market (S&P/TSX 60) returns of 22.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Pembina Pipeline Corp. should be less than 10%
Overall Portfolio exposure to Oil should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Pembina Pipeline Corp. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Pembina Pipeline Corp.

-1.6%

2.98

20.36%

S&P/TSX 60

21.35%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.65%

EBIT Growth (5y)

8.36%

EBIT to Interest (avg)

4.71

Debt to EBITDA (avg)

3.74

Net Debt to Equity (avg)

0.71

Sales to Capital Employed (avg)

0.29

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

91.14%

Pledged Shares

Institutional Holding

62.53%

ROCE (avg)

8.24%

ROE (avg)

13.45%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.84

EV to EBIT

17.03

EV to EBITDA

12.35

EV to Capital Employed

1.48

EV to Sales

5.59

PEG Ratio

Dividend Yield

ROCE (Latest)

8.72%

ROE (Latest)

10.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Sideways

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 3,432 MM

DIVIDEND PER SHARE(HY)

Highest at CAD 8.28

-8What is not working for the Company

INTEREST(9M)

At CAD 440 MM has Grown at 13.4%

ROCE(HY)

Lowest at 10.94%

RAW MATERIAL COST(Y)

Grown by 7.84% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 77.26 %

NET SALES(Q)

Lowest at CAD 1,723 MM

Here's what is working for Pembina Pipeline Corp.

Operating Cash Flow

Highest at CAD 3,432 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Dividend per share

Highest at CAD 8.28

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Depreciation

Highest at CAD 263 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for Pembina Pipeline Corp.

Interest

At CAD 440 MM has Grown at 13.4%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Net Sales

Lowest at CAD 1,723 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Net Sales

At CAD 1,723 MM has Fallen at -13.5%

over average net sales of the previous four periods of CAD 1,992 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Debt-Equity Ratio

Highest at 77.26 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 7.84% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales