Pembina Pipeline Stock Analysis:
Â
This week CIBC maintained Pembina Pipeline Stock with a Neutral rating. With a target price of $49 on Pembina Pipeline Stock.
Â
Pembina Pipeline stock average 12-month target price is CAD 48.37. The average analyst rating for Pembina Pipeline Corp. is Buy. Pembina Pipeline stock analysis by Stock Target Advisor is Slightly Bullish. Based on 9 positive and 7 negative signals. The stock price of Pembina Pipeline Corp. was CAD 47.46 at the most recent closing. The stock price of Pembina Pipeline Corp has changed by +1.58% in the last week, +7.33% in the last month, and +17.19% in the last year.
Â
About Pembina Pipeline Corporation (PPL:CA:TSX)
Â
For the energy sector, Pembina Pipeline Corporation offers midstream and transportation services. Facilities, Marketing & New Ventures, and Pipelines make up its three operating segments. They have:
-
A transportation capacity of 3.1 million barrels of oil equal per day,
-
Ground storage of 11 million barrels
-
Rail terminal capacity of roughly 105 thousand barrels of oil equal per day,
The Pipelines segment operates and serves markets and basins across North America. :
-
Conventional
-
Oil sands
-
Heavy oil
-
Transmission Assets
Â
The Facilities segment provides:
-
Infrastructure that supplies customers with natural gas,
-
Condensate,
-
Natural gas liquids (NGLs), such as ethane, propane, butane, and condensate.
-
Associated pipeline and
-
Rail terminal facilities.
Â
NGL fractionation capacity is 354 thousand barrels per day.
Natural gas and hydrocarbon liquids get sold by the Marketing & New Ventures segment. These originate in the Western Canadian Sedimentary Basin and other basins.
Â
Calgary, Canada serves as the corporate headquarters for Pembina Pipeline. It got established in 1954.
Â
Fundamental Stock Analysis of Pembina Pipeline Stock:
Â
Positive Fundamentals:
Â
Outstanding total returns
The stock is in the top quartile. It beat its sector rivals over the previous five years (for a hold duration of at least 12 months).
Â
Priced below what the book would bear
On a price-to-book value metric, the stock is trading at a low price compared to its peers and is in the top quartile. Be sure there isn’t a specific explanation by looking at its financial performance.
Â
Excellent return on equity
The management of the company has outperformed its competitors. Return on equity over the last four quarters, ranking it in the top quartile.
Â
Excellent return on assets
Outperformed its counterparts for return on assets over the last four quarters. Putting it in the top quartile.
Â
Small debt
The company is more flexible since it is less leveraged than its competitors and is in the top quartile. Keep an eye on the news and consider the industry. This is low because there is no room for future expansion at the organization.
Â
A healthy cash flow
The last four quarters saw positive total cash flow for the organization.
Â
A favourable free cash flow
The last four quarters saw the company generate positive total free cash flow.
Â
Very cheap based on free cash flow
On a price-to-free cash flow ratio, pembina pipeline stock is trading at a low price. In comparison to its peers and is in the top quartile. Be sure there isn’t a specific explanation by looking at its financial performance.
Â
Superior growth in revenue
Pembina pipeline stock revenue growth has been in the top quartile. This is for the past five years.
Â
Negative Fundamentals:
Â
Low market capitalization
This is one of the less significant companies in its industry. With a market capitalization below the average. If it doesn’t have a distinct technology or market that can help it develop. Or help get purchased in the future, it may make it less stable in the long run.
Â
Inadequate risk-adjusted returns
In comparison to its rivals, this company’s risk-adjusted return performance is below average. The returns are unpredictable, even if it is outperforming returns. Be careful as you go.
Â
High turbulence
Over the past five years, this company’s total returns have been erratic. They are higher than the industry average. If you plan to invest in such a stock, be sure your risk tolerance is adequate.
Â
Excessive in comparison to wages
The stock is trading above the sector median and at a premium to its peers’ price to earnings.
Â
Inadequate capitalization
The company produced a lower median return on invested capital. In comparison to peers during the past four quarters.
Â
Priced excessively based on free cash flow
On a price-to-free cash flow basis, the stock is trading at a premium to that of its competitors. Its pricing is higher than the sector median.
Â
Low growth in earnings
Pembina pipeline stock five-year median earnings growth was lower than average. As compared to the industry competitors.
Â
Conclusion of Analysis
Â
The fundamental analysis for Pembina Pipeline stock is Slightly Bullish with a score of 5.6 out of 10.
