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HYPOTHETICAL PERFORMANCE RESULTS: The "timing scores" and "regime signals" displayed are based on quantitative models. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.
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Relative valuation derived from Energy sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 26.6GRADE F
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
—
Sector: 6.7%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, PEMBINA PIPELINE CORP (PBA) receives a "Hold" rating with a composite score of 44.2/100, ranked #405 out of 4446 stocks. Key factor scores: Quality 27/100, Value 64/100, Momentum 50/100. This is quantitative analysis only — not investment advice.
PEMBINA PIPELINE CORP (PBA) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does PEMBINA PIPELINE CORP Do?
Pembina Pipeline Corporation provides transportation and midstream services for the energy industry. It operates through three segments: Pipelines, Facilities, and Marketing & New Ventures. The Pipelines segment operates conventional, oil sands and heavy oil, and transmission assets with a transportation capacity of 3.1 millions of barrels of oil equivalent per day, ground storage of 11 millions of barrels, and rail terminalling capacity of approximately 105 thousands of barrels of oil equivalent per day serving markets and basins across North America. The Facilities segment offers infrastructure that provides customers with natural gas, condensate, and natural gas liquids (NGLs), including ethane, propane, butane, and condensate; and includes 354 thousands of barrels per day of NGL fractionation capacity, 21 millions of barrels of cavern storage capacity, and associated pipeline and rail terminalling facilities. The Marketing & New Ventures segment buys and sells hydrocarbon liquids and natural gas originating in the Western Canadian sedimentary basin and other basins. Pembina Pipeline Corporation was incorporated in 1954 and is headquartered in Calgary, Canada. PEMBINA PIPELINE CORP (PBA) is classified as a large-cap stock in the Energy sector, specifically within the Petroleum And Natural Gas industry. The company is led by CEO J. Scott Burrows and employs approximately 2,670 people, headquartered in Calgary, Alberta. With a market capitalization of $25.4B, PBA is one of the prominent companies in the Energy sector.
PEMBINA PIPELINE CORP (PBA) Stock Rating — Hold (April 2026)
As of April 2026, PEMBINA PIPELINE CORP receives a Hold rating with a composite score of 44.2/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.PBA ranks #405 out of 4,446 stocks in our coverage universe. Within the Energy sector, PEMBINA PIPELINE CORP ranks #51 of 128 stocks, placing it in the upper half of its Energy peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
PBA Stock Price and 52-Week Range
PEMBINA PIPELINE CORP (PBA) currently trades at $44.34. The stock lost $0.31 (0.7%) in the most recent trading session. The 52-week high for PBA is $45.07, which means the stock is currently trading -1.6% from its annual peak. The 52-week low is $34.13, putting the stock 29.9% above its annual trough. Recent trading volume was 760K shares, suggesting relatively thin trading activity.
Is PBA Overvalued or Undervalued? — Valuation Analysis
PEMBINA PIPELINE CORP (PBA) carries a value factor score of 64/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The price-to-sales ratio is 1.26x, compared to 0.47x for the average Energy stock. On an enterprise value basis, PBA trades at 4.35x EV/EBITDA, versus 3.50x for the sector.
Overall, PBA's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
PEMBINA PIPELINE CORP Profitability — ROE, Margins, and Quality Score
PEMBINA PIPELINE CORP (PBA) earns a quality factor score of 27/100, signaling below-average profitability metrics relative to the broader market. Return on assets (ROA) comes in at 20.8% versus the sector average of 3.7%.
On a margin basis, PEMBINA PIPELINE CORP reports gross margins of 44.9%, compared to 52.7% for the sector. The operating margin is 34.8% (sector: 10.7%). Net profit margin stands at 25.4%, versus 6.4% for the average Energy stock. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
PBA Debt, Balance Sheet, and Financial Health
Balance sheet data for PBA is evaluated through our stability factor. Total debt on the balance sheet is $8.78B.
PBA has a beta of 0.28, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for PEMBINA PIPELINE CORP is 93/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
PEMBINA PIPELINE CORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, PEMBINA PIPELINE CORP reported revenue of $5.13B. Net income for the quarter was $1.30B. Gross margin was 44.9%. Operating income came in at $1.78B.
In FY 2024, PEMBINA PIPELINE CORP reported revenue of $5.13B. Net income for the quarter was $1.30B. Gross margin was 44.9%. Revenue grew -25.8% year-over-year compared to FY 2023. Operating income came in at $1.78B.
In FY 2023, PEMBINA PIPELINE CORP reported revenue of $6.91B and earnings per share (EPS) of $3.00. Net income for the quarter was $1.35B. Gross margin was 44.9%. Revenue grew -21.9% year-over-year compared to FY 2022. Operating income came in at $2.01B.
In FY 2022, PEMBINA PIPELINE CORP reported revenue of $8.85B. Net income for the quarter was $2.20B. Gross margin was 24.6%. Revenue grew 30.9% year-over-year compared to FY 2021. Operating income came in at $2.74B.
Over the past 8 quarters, PEMBINA PIPELINE CORP has experienced revenue contraction from $5.69B to $5.13B. Investors analyzing PBA stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
PBA Dividend Yield and Income Analysis
PEMBINA PIPELINE CORP (PBA) does not currently pay a dividend. This is common among growth-oriented companies in the Petroleum And Natural Gas industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Energy dividend stocks may want to explore other Energy stocks or use the stock screener to filter by dividend yield.
PBA Momentum and Technical Analysis Profile
PEMBINA PIPELINE CORP (PBA) has a momentum factor score of 50/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 40/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 9/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
PBA vs Competitors — Energy Sector Ranking and Peer Comparison
Comparing PBA against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full PBA vs S&P 500 (SPY) comparison to assess how PEMBINA PIPELINE CORP stacks up against the broader market across all factor dimensions.
PBA Next Earnings Date
No upcoming earnings date has been announced for PEMBINA PIPELINE CORP (PBA) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy PBA? — Investment Thesis Summary
PEMBINA PIPELINE CORP presents a balanced picture with arguments on both sides. The quality score of 27/100 flags below-average profitability. The value score of 64/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 93/100) reduces downside risk.
In summary, PEMBINA PIPELINE CORP (PBA) earns a Hold rating with a composite score of 44.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on PBA stock.
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Institutional Research Dossier
PEMBINA PIPELINE CORP (PBA) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Pembina Pipeline Corporation (PBA) currently receives a Hold rating, reflecting a balanced view of its strengths and weaknesses. While the company benefits from a stable business model in the energy infrastructure sector and demonstrates strong operating margins, concerns arise from its negative free cash flow and relatively high valuation compared to its peers. The key takeaway is that while Pembina offers stability and potential for long-term growth, its current financial metrics warrant caution, justifying the neutral rating.
Pembina's strategic positioning within the North American energy landscape provides a degree of resilience, but its capital allocation decisions, particularly concerning growth projects, require close monitoring. The company's ability to improve its free cash flow generation and maintain its competitive edge in a dynamic energy market will be crucial in determining its future performance. Investors should carefully weigh the company's strengths in operational efficiency against its challenges in capital management before making investment decisions.
Business Strategy & Overview
Pembina Pipeline Corporation operates as a critical midstream player in the North American energy sector, focusing on the transportation and processing of hydrocarbons. The company's revenue streams are primarily derived from its Pipelines segment, which transports crude oil, natural gas, and natural gas liquids (NGLs) across its extensive network. The Facilities segment contributes by providing processing and fractionation services for NGLs, as well as storage solutions. The Marketing & New Ventures segment engages in the buying and selling of hydrocarbons, adding another layer of revenue generation.
Pembina's strategic positioning centers on providing essential infrastructure to connect producers with end-markets. This involves securing long-term contracts with producers, ensuring stable cash flows and mitigating volume risk. The company also focuses on expanding its infrastructure footprint through organic growth projects and strategic acquisitions, aiming to capitalize on increasing energy production in the Western Canadian Sedimentary Basin and other key regions. A key element of their strategy involves optimizing existing assets to improve efficiency and reduce operating costs.
The company's product pipeline includes expansions of its existing pipeline network, development of new processing facilities, and investments in alternative energy infrastructure. These projects are designed to meet the evolving needs of the energy industry and support the transition towards lower-carbon energy sources. Pembina is also exploring opportunities in carbon capture and storage, recognizing the growing importance of environmental sustainability.
Pembina operates within a competitive landscape that includes other major midstream companies, such as Enbridge and TC Energy. The company differentiates itself through its integrated service offerings, its focus on operational excellence, and its commitment to safety and environmental stewardship. The energy industry is subject to cyclical fluctuations in commodity prices and regulatory changes, which can impact Pembina's profitability and growth prospects. The company actively manages these risks through hedging strategies and proactive engagement with regulators.
Execution Benchmarks audit
Gross Margin
Core pricing power
44.9%
Sector: 52.7%
-15% VS SCTR
Economic Moat Analysis
Pembina Pipeline Corporation possesses a narrow economic moat, primarily derived from its efficient scale and, to a lesser extent, its network effects. The efficient scale advantage stems from the high capital costs and regulatory hurdles associated with building new pipeline infrastructure. This creates a barrier to entry for new competitors, particularly in established regions where Pembina already has a significant presence. While not insurmountable, these barriers provide Pembina with a degree of pricing power and protect its market share.
The network effect is evident in Pembina's pipeline network, where the value of the network increases as more producers and end-users connect to it. This creates a positive feedback loop, attracting more customers and strengthening Pembina's competitive position. However, the network effect is not as strong as in other industries, as producers can often choose between multiple pipeline operators, and the cost of switching between them is not prohibitively high.
Pembina's intangible assets, such as its reputation for reliability and safety, also contribute to its moat. These assets are built over time through consistent performance and adherence to high standards. However, they are not as durable as patents or trademarks, and can be eroded by operational failures or environmental incidents.
The company's cost advantages are primarily derived from its scale of operations and its efficient management of its assets. Pembina is able to spread its fixed costs over a large volume of throughput, resulting in lower per-unit costs. However, these cost advantages are not unique to Pembina, and other large midstream companies also benefit from similar economies of scale.
Overall, Pembina's economic moat is narrow, as its competitive advantages are not particularly strong or durable. While the company benefits from efficient scale and network effects, these advantages are not sufficient to prevent competition from other midstream operators. The company's moat could widen over time if it is able to further expand its network, develop new technologies, and strengthen its relationships with its customers.
Financial Health & Profitability
Pembina's financial health presents a mixed picture. The company's revenue has fluctuated significantly over the past several years, with a notable decline in FY2020 followed by a strong recovery in subsequent years. The revenue of $5.13B in FY2024 is lower than the $6.91B in FY2023 and the $8.85B in FY2022, indicating a recent downward trend. Gross margins have improved significantly from 23.5% in FY2016 to 44.9% in FY2024, suggesting improved operational efficiency. Operating margins have also shown a positive trend, increasing from 20.6% in FY2016 to 34.8% in FY2024, further reinforcing the improvement in operational performance.
However, Pembina's free cash flow (FCF) is a cause for concern. The company reported a negative FCF of $-2.79B in FY2024, a significant decline from the positive FCF of $2.27B in FY2023 and $5.14B in FY2022. This negative FCF raises questions about the company's ability to fund its capital expenditures and dividend payments without relying on external financing. The negative FCF in FY2024 is particularly concerning given the improved gross and operating margins.
Pembina's debt levels are also worth noting. With a total debt of $8.78B, the company has a significant amount of leverage on its balance sheet. While the company's EBITDA of $1.99B provides some comfort, the debt-to-EBITDA ratio is relatively high, indicating a potential risk. The absence of current ratio data makes it difficult to assess the company's short-term liquidity position.
Compared to the energy sector, Pembina's operating margin of 34.8% is significantly higher than the sector average of 10.6%, indicating superior operational efficiency. Similarly, its net margin of 25.4% is much higher than the sector average of 6.3%. However, the company's EV/EBITDA of 4.4x is higher than the sector average of 3.5x, suggesting that the company may be overvalued relative to its peers. The absence of data for P/E, ROE, D/E, and revenue growth makes it difficult to provide a comprehensive comparison to the sector.
Valuation Assessment
Pembina's valuation presents a mixed signal. The company's EV/EBITDA of 4.4x is higher than the sector average of 3.5x, suggesting that the market is pricing Pembina at a premium compared to its peers. This premium could be attributed to the company's strong operating margins and its stable business model. However, the higher EV/EBITDA also indicates that the stock may be overvalued, especially considering the company's negative free cash flow.
The absence of a P/E ratio makes it difficult to assess the company's valuation based on earnings. Similarly, the lack of data on free cash flow yield prevents a valuation assessment based on cash flow generation. However, the negative free cash flow in FY2024 raises concerns about the company's ability to generate sufficient cash to support its valuation.
Historically, Pembina's valuation has fluctuated with the overall energy market and the company's financial performance. The company's strong revenue growth and improved margins in recent years have likely contributed to its higher valuation. However, the recent decline in revenue and the negative free cash flow could put downward pressure on the stock price.
Compared to its historical valuation, Pembina's current EV/EBITDA is relatively high. This suggests that the stock may be trading at a premium to its historical average. However, the company's improved operating margins and its strategic positioning in the energy sector could justify a higher valuation.
Overall, Pembina's valuation appears to be fair to slightly expensive, given its higher EV/EBITDA compared to the sector average and its negative free cash flow. Investors should carefully consider the company's financial performance and its growth prospects before making investment decisions.
Risk & Uncertainty
Pembina Pipeline Corporation faces several key risks that could impact its financial performance and stock price. One of the most significant risks is regulatory uncertainty. Changes in government regulations related to pipeline construction, environmental protection, and carbon emissions could increase the company's operating costs and delay or cancel planned projects. The regulatory environment in Canada and the United States is constantly evolving, and Pembina must navigate these changes effectively to maintain its competitive position.
Another significant risk is commodity price volatility. While Pembina's business model is largely fee-based, its profitability is still indirectly affected by fluctuations in commodity prices. Lower oil and gas prices could reduce production volumes, which in turn could decrease the demand for Pembina's transportation and processing services. The company mitigates this risk through long-term contracts and hedging strategies, but it is not completely immune to commodity price volatility.
Competition from other midstream companies is also a risk. Pembina operates in a competitive industry with several other large players, such as Enbridge and TC Energy. These companies compete for customers and projects, which could put pressure on Pembina's pricing and profitability. The company must differentiate itself through its service offerings, its operational efficiency, and its customer relationships to maintain its competitive edge.
Project execution risk is another concern. Pembina is involved in several large-scale construction projects, which are subject to delays, cost overruns, and technical challenges. These projects could negatively impact the company's financial performance if they are not executed successfully. The company must carefully manage its projects to minimize these risks.
Finally, leverage is a risk. Pembina has a significant amount of debt on its balance sheet, which could increase its financial vulnerability in a downturn. The company must manage its debt levels prudently to avoid financial distress.
Bulls Say / Bears Say
The Bull Case
BULL VIEWPembina's stable, fee-based business model provides consistent cash flow, making it a reliable investment in the volatile energy sector.
BULL VIEWThe company's strategic investments in expanding its pipeline network and processing facilities will drive long-term growth and increase shareholder value.
BULL VIEWPembina's commitment to environmental sustainability and its exploration of opportunities in carbon capture position it favorably in the evolving energy landscape.
The Bear Case
BEAR VIEWPembina's negative free cash flow raises concerns about its ability to fund its capital expenditures and dividend payments without relying on external financing.
BEAR VIEWThe company's relatively high valuation compared to its peers suggests that the stock is overvalued and may be due for a correction.
BEAR VIEWRegulatory uncertainty and commodity price volatility pose significant risks to Pembina's financial performance and growth prospects.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score PBA and 4,400+ other equities.
PEMBINA PIPELINE CORP exhibits a 96% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
20.8%
Sector: 3.7%
Gross Margin
Pricing power and cost efficiency
44.9%
Sector: 52.7%
Operating Margin
Core business profitability
34.8%
Sector: 10.7%
Net Margin
Bottom-line profitability
25.4%
Sector: 6.4%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
