Stock

Pembina Pipeline Corporation

PBA
44
Oil & Gas Midstream · Energy
Price
$50.10
+1.91 (+3.96%)
Market Cap
$29.14B
Exchange
New York Stock Exchange
Winston Score
44
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Oct 18, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Good
17/30
Growth
Weak
2/20
Cash Flow
Exceptional
10/10
Stability
Good
6/10
Valuation
Mixed
4/10
Ownership
Weak
1/15
Dividends
Strong
4/5

44 of 100 counted points = Winston Score 44.

Share count rising — dilution

+5.6% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 551.0M (2021) → 582.0M (2025)

§Winston Score History

The full picture

Pembina Pipeline Corporation is a Canadian energy infrastructure company that moves oil, natural gas, and natural gas liquids from where they are produced to where they are processed or sold. Its main customers are oil and gas producers in western Canada, particularly in Alberta and British Columbia. Pembina owns and operates pipelines, processing facilities, and storage terminals, making it one of the largest midstream energy companies in Canada.

Pembina earns most of its revenue through long-term, fee-based contracts, meaning it gets paid for moving and processing energy regardless of whether commodity prices are high or low. This contract structure provides stable, predictable cash flow and is a key part of its competitive position. The company operates almost entirely in Canada, with some export-linked exposure to US markets. Its main growth driver is expanding capacity to serve growing oil sands and liquefied natural gas development in western Canada, while its main risk is a slowdown in upstream production that reduces demand for its infrastructure.

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Score breakdown

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Quality

Profit per sale
Gross Margin
36.3%
Modest — 36.3% gross margin
Profit after running costs
Operating Margin
30.7%
Excellent — 30.7% operating margin
Return on the money invested
ROCE
8.3%
Below par — 8.3% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
-3.0%
Shrinking sales (-3.0% YoY)
Profit growth
EPS YoY
-4.7%
Earnings shrinking (-4.7% YoY)

Slight earnings drop. Typical near a cyclical low.

How steady the profit is
EPS Consistency
3/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
162%
Turns 162% of profit into real cash
Spare cash per sale
FCF Margin
26.4%
Converts sales into free cash efficiently (26.4%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns
Debt / Equity
0.78
Moderate — manageable debt (0.78)
Covers its interest
Interest Cover
4.17x
Adequate interest coverage (4.2x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
17.7x
Fair value — P/E 17.7

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
-3.0
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend
Dividend Yield
4.73%
Healthy income — 4.73% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend record
Dividend Growth
+4.1%
Dividend growing modestly (4.1% YoY)
Payout Ratio
100%
no trend
Paying out more than the last 12 months of profit. The dividend is being funded from cash or borrowing, not this year’s earnings.

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