Pembina Pipeline (PPL) AI Stock Analysis

• Market Cap: $29.52B
• Dividend Yield: 5.47%
• Average Volume (3M): 4.24M
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.69
• Revenue Growth: -5.42%
• EPS Growth: -1.70%
• Country: CA
• Employees: 2,997
• Sector: Energy
• Sector Strength: 48
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.80
• Shares Outstanding: 580,908,000
• 10 Day Avg. Volume: 2,434,340
• 30 Day Avg. Volume: 4,235,952
• PEG Ratio: 7.67
• Price to Book (P/B): 1.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.04
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $59.13
• Price Target Upside: 16.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 74 Outperform
• Price Target: C$57.00 ▲(12.18%Upside)

Pembina Pipeline's overall stock score reflects strong financial performance and strategic corporate actions. The main strengths include robust profitability and efficient cash management, alongside a stable dividend yield. Technical analysis presents some bearish signals, indicating caution in the short term. While earnings call highlights and corporate events support a positive outlook, market volatility and project delays pose risks. The stock is fairly valued, offering balanced prospects for investors.

Positive Factors

Earnings

Strong Q4 results with a record $1,254M adjusted EBITDA, surpassing consensus estimates of $1,128M, indicate robust financial performance.

Growth Projects

PPL unveiled a suite of potential new organic-growth projects, including gas power for a data center, straddle plant, and de-ethanizer, which are not yet included in the current valuation.

Negative Factors

Project Risks

Cedar LNG is still expected to be in service in late 2028 and could face further de-risking challenges despite receiving non-binding proposals exceeding its contracted capacity.

Pembina Pipeline Business Overview & Revenue Model

Company Description

Pembina Pipeline Corporation is a leading transportation and midstream service provider based in Calgary, Alberta, Canada. The company operates primarily in the energy infrastructure sector, focusing on the transportation, storage, and processing of hydrocarbons. Pembina serves a diverse range of customers in the conventional and oil sands sectors, providing essential services that facilitate the movement of energy products across North America. Its core offerings include pipeline transportation systems, natural gas processing facilities, and logistics services.

How the Company Makes Money

Pembina Pipeline Corporation generates revenue through several key streams. The company earns money primarily by charging fees for the transportation of crude oil, natural gas, and natural gas liquids (NGLs) through its extensive network of pipelines. Additionally, Pembina operates natural gas processing facilities, where it derives income from processing fees. The company also engages in marketing and logistics services, including storage and terminal operations, which provide additional revenue. Strategic partnerships and joint ventures with other energy companies enhance Pembina's service offerings and market reach, contributing to its financial performance. Long-term contracts with customers provide stable and predictable cash flows, underpinning the company's earnings.

Pembina Pipeline Financial Statement Overview

Summary

Pembina Pipeline demonstrates strong financial health across all verticals. The income statement highlights profitability and operational efficiency, though with some revenue volatility. The balance sheet shows a solid financial position with manageable debt levels. Cash flow metrics reflect robust cash generation and effective cash management, supporting continued investment and operational stability.

Income Statement

The company's income statement shows strong profitability metrics with a TTM gross profit margin of 41.93% and a net profit margin of 23.73%. Both EBIT margin at 36.01% and EBITDA margin at 41.10% reflect efficient operations. Revenue growth has been volatile, with a decrease of 36.78% in 2024 from 2023 but a recovery in TTM revenue growth of 10.06% compared to the 2024 annual figure. Overall, the income statement indicates robust profitability and operational efficiency despite some fluctuations in revenue.

Balance Sheet

The balance sheet is strong with a moderate debt-to-equity ratio of 0.75, indicating a stable capital structure. The return on equity (ROE) for TTM stands at 10.97%, showing effective use of equity to generate profits. The equity ratio is 49.20%, reflecting a solid equity base. The balance sheet suggests financial stability with manageable leverage, which is crucial for sustaining operations in the capital-intensive oil & gas industry.

Cash Flow

The cash flow statement displays healthy cash flow management with a robust operating cash flow to net income ratio of 1.87, indicating strong cash generation relative to net income. The free cash flow growth rate of 17.77% from 2024 to TTM demonstrates effective cash flow management. The free cash flow to net income ratio of 1.38 underscores efficient cash conversion mechanisms. Overall, the cash flow metrics suggest a strong ability to generate and manage cash effectively.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.38B	9.13B	11.61B	8.63B	6.20B
Gross Profit	3.32B	2.84B	3.12B	2.65B	2.01B
EBITDA	3.18B	3.01B	4.00B	2.55B	418.00M
Net Income	1.86B	1.78B	2.97B	1.24B	-316.00M
Balance Sheet
Total Assets	35.97B	32.62B	31.48B	31.46B	31.42B
Cash, Cash Equivalents and Short-Term Investments	141.00M	137.00M	94.00M	43.00M	81.00M
Total Debt	13.32B	11.14B	11.28B	11.96B	11.65B
Total Liabilities	18.46B	16.80B	15.69B	17.09B	16.40B
Stockholders Equity	17.51B	15.81B	15.73B	14.30B	14.96B
Cash Flow
Free Cash Flow	2.26B	2.03B	2.32B	1.99B	1.22B
Operating Cash Flow	3.21B	2.63B	2.93B	2.65B	2.25B
Investing Cash Flow	-3.89B	-789.00M	-154.00M	-1.04B	-1.48B
Financing Cash Flow	678.00M	-1.80B	-2.72B	-1.67B	-809.00M

Pembina Pipeline Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 50.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PPL, the sentiment is Negative. The current price of 50.81 is above the 20-day moving average (MA) of 50.68, below the 50-day MA of 50.90, and below the 200-day MA of 52.80, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 48.29 is Neutral, neither overbought nor oversold. The STOCH value of 51.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:PPL.

Pembina Pipeline Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENB	78 Outperform	$134.83B	22.80	9.51%	5.99%	43.97%	2.65%
KEY	78 Outperform	C$9.82B	17.99	19.55%	4.85%	8.00%	52.89%
ALA	75 Outperform	$12.07B	21.41	6.56%	3.04%	2.27%	-9.19%
PPL	74 Outperform	$29.52B	16.56	11.55%	5.47%	-5.42%	-1.70%
GEI	72 Outperform	C$4.02B	24.74	17.23%	6.84%	-5.85%	-8.05%
TRP	64 Neutral	C$67.98B	15.54	15.89%	5.37%	0.72%	60.40%
Sector *	57 Neutral	HK$89.26B	4.03	-2.25%	3.05%	-4.44%	-41.07%

Pembina Pipeline Corporate Events

Pembina Pipeline Completes Consent Solicitation for Note Exchange

Pembina Pipeline Corporation announced the successful completion of its solicitation for consent and proxy from holders of its 4.80% Fixed-to-Fixed Rate Subordinated Notes, Series 1. The solicitation received strong support, allowing the company to pass an extraordinary resolution to amend the indenture and exchange the Series 1 Notes for Series 3 Notes. This move is expected to streamline Pembina’s financial operations and potentially enhance its market positioning by aligning its debt structure more effectively.

The most recent analyst rating on (TSE:PPL) stock is a Buy with a C$56.00 price target. To see the full list of analyst forecasts on Pembina Pipeline stock, see the TSE:PPL Stock Forecast page.

Pembina Pipeline Declares Quarterly Dividends and Announces Q2 2025 Results Call

Pembina Pipeline Corporation announced the declaration of quarterly dividends for its preferred shares across various series, with payment dates set for September and October 2025. Additionally, Pembina will release its second quarter 2025 financial results on August 7, 2025, followed by a conference call and webcast on August 8, 2025, providing stakeholders with insights into the company’s financial performance and strategic direction.

The most recent analyst rating on (TSE:PPL) stock is a Buy with a C$56.00 price target. To see the full list of analyst forecasts on Pembina Pipeline stock, see the TSE:PPL Stock Forecast page.

Pembina Pipeline Initiates Consent and Proxy Solicitation for Series 1 Notes

Pembina Pipeline Corporation has initiated a consent and proxy solicitation process for its 4.80% Fixed-to-Fixed Rate Subordinated Notes, Series 1, seeking approval for proposed amendments to the indenture governing these notes. The amendments would allow noteholders to exchange their Series 1 Notes for a new series of subordinated notes, Series 3, which have similar economic terms but differ in bankruptcy provisions. This move could impact the company’s financial structure and offer potential tax implications for stakeholders.

The most recent analyst rating on (TSE:PPL) stock is a Buy with a C$58.00 price target. To see the full list of analyst forecasts on Pembina Pipeline stock, see the TSE:PPL Stock Forecast page.

Pembina Pipeline Announces $200 Million Subordinated Note Offering

Pembina Pipeline Corporation announced a $200 million subordinated note offering, with proceeds intended to fund the redemption of existing preferred shares and for general corporate purposes. This strategic financial move aims to optimize Pembina’s capital structure and enhance its financial flexibility, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (TSE:PPL) stock is a Buy with a C$54.00 price target. To see the full list of analyst forecasts on Pembina Pipeline stock, see the TSE:PPL Stock Forecast page.

Pembina Pipeline to Redeem Series 19 Preferred Shares

Pembina Pipeline Corporation announced its intention to redeem all 8,000,000 of its issued and outstanding Cumulative Redeemable Floating Rate Reset Class A Preferred Shares, Series 19, on June 30, 2025, at a redemption price of $25.00 per share, totaling $200 million. This move is part of Pembina’s strategic financial management, and the final dividend for these shares will be paid on the same date, marking the end of any accrued dividends, which could impact stakeholders by altering the company’s financial structure and investor returns.

The most recent analyst rating on (TSE:PPL) stock is a Buy with a C$54.00 price target. To see the full list of analyst forecasts on Pembina Pipeline stock, see the TSE:PPL Stock Forecast page.

Pembina Pipeline Corporation Announces 2025 Shareholder Meeting Results

Pembina Pipeline Corporation announced the results of its 2025 annual meeting of shareholders, where 63.54% of the company’s common shares were voted. Key outcomes included the election of 11 directors, the appointment of KPMG LLP as auditors, the continuation of the shareholder rights plan, and the approval of the company’s approach to executive compensation. These results reflect strong shareholder support for Pembina’s governance and strategic direction.