Pembina Pipeline Corp
🇨🇦 PPL.TO · Toronto · CA7063271034
Infrastructure
CAD 62.07 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
21.3
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 62.07 ÷ 2.91 = 21.3
TTM period through: 2025-12-31
Forward P/E (estimated): 21.1
Based on analyst estimates
Reference: Provider P/E (Trailing): 23.3
Yield (Fwd)
4.58%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 4.67%
Net Debt/EBITDA (TTM)
4.0x
Latest quarter: 16.5x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 16.5x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
97.5%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 104.6%
Cash Flow Payout (TTM): 54.1%
FCF Coverage (TTM): 1.40x
ROE
9.9%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
13.2x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Pembina Pipeline is a high-quality energy infrastructure provider with a strong competitive moat and highly reliable cash flows. While the business fundamentals are exceptionally solid and the 4.67% dividend is safely covered by free cash flow, the current valuation around $62 (P/E 21.3x) offers limited upside for new capital. Existing shareholders should maintain positions to collect the reliable income, but new investors may want to wait for a better entry point.
Sector Context
Pembina Pipeline operates essential energy infrastructure, providing transportation, gas gathering, and processing services across North America. For dividend investors, these contracted, midstream assets function like 'toll roads,' generating highly predictable cash flows that are largely insulated from the direct volatility of underlying oil and gas prices.
📊 Strategy Analysis
- • Operates highly essential 'toll road' energy infrastructure, generating reliable fee-based revenues that protect against commodity price volatility
- • Despite a high accounting payout ratio, the 4.67% dividend is safely covered with a Cash Flow Payout ratio of 54.14%
- • Perfect 100/100 dividend consistency score over the last 10 years with a robust 15.0% historical growth rate
⚠ What to Watch
- • Trailing P/E of 21.32x is stretched and sits well above the strategy's ideal 8-15x range
- • Current share price of 62.07 CAD reflects an elevated valuation premium, trading significantly above the calculated monopoly fair value upper bound of 52.39 CAD
- • Net Debt/EBITDA of 4.04x sits slightly above conservative thresholds, though generally acceptable for capital-intensive midstream operators
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-05
Disclaimer: This information is for educational purposes only. Not financial advice.