PBAPembina Pipeline Corporation
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.5×).
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Margins have held roughly steady, a stable cost structure.
Margin-driven, fat margins on slower asset turns. ROE 10% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is PBA?
Pembina Pipeline Corporation earns 7.7% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 1.3 points below what the capital costs: growth destroys value
- Operating margin
- 36%
Operating margin · Oil & Gas Midstream median 30% · fiscal year to FY2025
- Cash conversion
- 1.53×
Cash conversion · 1.78× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +1.4%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 0.07% |
| FY2021 | 25% |
| FY2022 | 32% |
| FY2023 | 42% |
| FY2024 | 31% |
| FY2025 | 36% |
Details›
- Gross marginfiscal year to FY2025
- 41%
- Operating marginfiscal year to FY2025
- 36%
- Net marginfiscal year to FY2025
- 22%
- Revenue, trailing twelve months
- $7.78B
- Net income, trailing twelve months
- $1.69B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 7.7%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.