Pembina Pipeline Corp. Ordinary Shares (Canada) (PBA)

FairStock Score: 47/100 — MIXED

Key Financials

Strengths

• Generates $1.9 billion in annual free cash flow (7.4% yield on market cap)
• Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Attractive 4.8% dividend yield providing steady income returns

Concerns

• Revenue declining at 10.8% year-over-year signals potential demand weakness or market share loss
• Altman Z-Score of 0.8 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Pembina Pipeline Corp. Ordinary Shares (Canada) is a mid-cap energy company valued at $25.1 billion. The business generates $7.8 billion in annual revenue with a 5.4% net margin and $1.9 billion in free cash flow. From a quality standpoint, Pembina shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and distressed Altman Z-Score of 0.8 warrants caution. On valuation, the stock is reasonably priced at 22.1x earnings, with trades above its Graham Number with a negative 21% margin. Growth dynamics show revenue growing at -10.8% and profit growth of -14.5%. The 4.8% dividend yield adds an income component for patient holders. Our composite FairStock Score of 50/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $1.9 billion in annual free cash flow (7.4% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the energy space. Sluggish -11% growth in a large-cap company leaves the stock vulnerable to de-rating if the market rotates toward higher-growth opportunities.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer