Stock of the Day

March 15, 2022

Pembina Pipeline (PBA)

$36.18
-$0.26 (-0.7%)
Market Cap: $21.16B

About Pembina Pipeline

Pembina Pipeline Corporation provides energy transportation and midstream services. 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 2.9 millions of barrels of oil equivalent per day, the ground storage capacity of 10 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 and a liquefied propane export facility. 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 Bull Case

Here are some ways that investors could benefit from investing in Pembina Pipeline Co.:

  • Pembina Pipeline Co. has recently seen a significant increase in institutional investment, with Jennison Associates LLC increasing its stake by 32.3%, indicating strong confidence in the company's future performance.
  • The stock is currently trading at $36.70, which is relatively close to its 12-month high of $43.44, suggesting potential for growth as it approaches previous highs.
  • Analysts have given Pembina Pipeline Co. a consensus rating of "Hold" with some analysts issuing "Buy" ratings, indicating a generally positive outlook for the stock.
  • The company has a solid market capitalization of approximately $21.31 billion, which reflects its stability and ability to withstand market fluctuations.
  • Pembina Pipeline Co. has a P/E ratio of 15.17, which is considered reasonable and suggests that the stock may be undervalued compared to its earnings potential.

Pembina Pipeline Bear Case

Investors should be bearish about investing in Pembina Pipeline Co. for these reasons:

  • The stock has experienced volatility, with a beta of 1.25, indicating that it is more volatile than the market, which could lead to higher risk for investors.
  • Wells Fargo & Company recently downgraded the stock from a "strong-buy" to a "hold" rating, which may signal a lack of confidence in short-term performance.
  • The company has a current ratio of 0.65, which is below the ideal benchmark of 1, suggesting potential liquidity issues that could affect its ability to meet short-term obligations.
  • Pembina Pipeline Co. has a debt-to-equity ratio of 0.79, indicating that it relies on debt financing, which could pose risks if interest rates rise or if the company faces financial difficulties.
  • Despite recent institutional interest, 55.37% of the stock is owned by hedge funds and other institutional investors, which may lead to increased volatility if these investors decide to sell off their positions.

Recent News