TSE:PPL
36.21
1.32
(3.78%)
Pembina Pipeline is a Canadian petroleum and natural gas pipeline operator.
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Pembina Pipeline Corp
PPL-T
Analysis and Opinions about PPL-T
Signal
Opinion
Expert
BUY
BUY
For a retirement portfolio. Overall, likes it to navigate choppy waters ahead. Lower risk in growth profile than a name like Inter Pipline. Performed well in 2020, and positioned balance sheet well in 2021. Can be volatile, so perhaps not the best for a retirement portfolio. Something like a Fortis gives you a stable yield. Could also do a barbell approach, with some Pembina and some Fortis, or another high-quality Canadian utility, to limit the volatility.
COMMENT
COMMENT
January 12, 2021
Has a safe dividend and is a good operator. He wouldn't be surprised if IPL merged with them; both companies have similar assets are are good managers. PPL has great pipelines, but also have chemical plants, which face environmental headwinds.
PAST TOP PICK
PAST TOP PICK
January 8, 2021
(A Top Pick Dec 16/19, Down 23%) Still likes it. The energy infrastructure names is very inexpensive. The cashflow stream is durable and it has proven itself during the 08/09 crisis. About 85% is from longterm contracts. They got hit from their mid-stream assets. Still really likes the assets and valuation. They cut their cap-ex plans to support the dividend.
Show full opinionHide full opinion(A Top Pick Dec 16/19, Down 23%) Still likes it. The energy infrastructure names is very inexpensive. The cashflow stream is durable and it has proven itself during the 08/09 crisis. About 85% is from longterm contracts. They got hit from their mid-stream assets. Still really likes the assets and valuation. They cut their cap-ex plans to support the dividend.
BUY
BUY
December 29, 2020
The dividend is safe, given their cash flow and balance sheet. They have less sensitivity to commodity price moves. He's fine with this. The valuation is at the higher end of mid-tier pipeline companies, but he see growth here.
Show full opinionHide full opinionThe dividend is safe, given their cash flow and balance sheet. They have less sensitivity to commodity price moves. He's fine with this. The valuation is at the higher end of mid-tier pipeline companies, but he see growth here.
DON'T BUY
DON'T BUY
November 13, 2020
It is part of the beaten down energy related stocks. Debt is a problem, it is expensive on a EBITA bases and price momentum has been poor. It is not quite cheap enough. It has not come off the bottom. It could be subject to tax loss selling. It is too dangerous to short, but it is also not own-able.
Show full opinionHide full opinionIt is part of the beaten down energy related stocks. Debt is a problem, it is expensive on a EBITA bases and price momentum has been poor. It is not quite cheap enough. It has not come off the bottom. It could be subject to tax loss selling. It is too dangerous to short, but it is also not own-able.
BUY
BUY
November 12, 2020
A good income name. She usually holds 2.5-3% of a portfolio in each name for income. Maintained pre-Covid guidance. Question is do they bring on projects or do share buybacks? Highly defensible business, long-term contracts. Yields over 8%.
Show full opinionHide full opinionA good income name. She usually holds 2.5-3% of a portfolio in each name for income. Maintained pre-Covid guidance. Question is do they bring on projects or do share buybacks? Highly defensible business, long-term contracts. Yields over 8%.
BUY
BUY
November 11, 2020
It's good. Whole sector has been taken down with Biden and the price of oil. Still room for growth. Great balance sheet and very good dividend. Value stock that got oversold and ignored. We still need pipelines, and PPL will be part of that.
Show full opinionHide full opinionIt's good. Whole sector has been taken down with Biden and the price of oil. Still room for growth. Great balance sheet and very good dividend. Value stock that got oversold and ignored. We still need pipelines, and PPL will be part of that.
BUY WEAKNESS
BUY WEAKNESS
November 6, 2020
Energy is not a loved sector. The world is transitioning to electricity. However, the yield is approaching 9%. It is an opportunity to pick up some income. With current interest rates, the yield is very attractive. The dividend is safe for now, and even if it is cut a little bit, the stock shouldn't be punished too much as it would be a result of prolonged lockdowns and competitors will be doing the same.
Show full opinionHide full opinionEnergy is not a loved sector. The world is transitioning to electricity. However, the yield is approaching 9%. It is an opportunity to pick up some income. With current interest rates, the yield is very attractive. The dividend is safe for now, and even if it is cut a little bit, the stock shouldn't be punished too much as it would be a result of prolonged lockdowns and competitors will be doing the same.
HOLD
HOLD
October 27, 2020
The dividend is safe. They've short up the balance sheet and deferred capex to uphold the divvy. A hold. Overall, sentiment on energy is very negative.
Show full opinionHide full opinionThe dividend is safe. They've short up the balance sheet and deferred capex to uphold the divvy. A hold. Overall, sentiment on energy is very negative.
BUY
BUY
October 13, 2020
Keyera vs. Pembina He owns both. Keyera: pays a slightly higher dividend, but also slightly riskier, due to its mix of liquids and gas processing, so probably more earnings volatility short-term. Pembina is a pipeline play with operating cash flow around 9-10x. They were resilient in the downturn. What's good about both is that they are sensitive to volumes, not the oil price, especially Pembina. The dividends are safe and earnings resilient. If the stocks do nothing, at least both pay more than 8% in dividend yields.
Keyera vs. Pembina He owns both. Keyera: pays a slightly higher dividend, but also slightly riskier, due to its mix of liquids and gas processing, so probably more earnings volatility short-term. Pembina is a pipeline play with operating cash flow around 9-10x. They were resilient in the downturn. What's good about both is that they are sensitive to volumes, not the oil price, especially Pembina. The dividends are safe and earnings resilient. If the stocks do nothing, at least both pay more than 8% in dividend yields.
BUY
BUY
October 1, 2020
They have assets that are stable and provides income to investors. With bond yields and interest rates being low, these companies are being looked at positively for stability and income. The petrochemical plant project is a question of how they come up with funding, and managing the timeline between spending and revenues.
Show full opinionHide full opinionThey have assets that are stable and provides income to investors. With bond yields and interest rates being low, these companies are being looked at positively for stability and income. The petrochemical plant project is a question of how they come up with funding, and managing the timeline between spending and revenues.
TOP PICK
TOP PICK
September 25, 2020
Natural gas focus and infrastructure assets that are contracted on a long-term basis makes this a good opportunity. The dividend is well-covered on a sustained basis. Energy demands is poised to rise for a little while. It should return to pre-covid levels eventually. A quality company. (Analysts’ price target is $39.36)
Show full opinionHide full opinionNatural gas focus and infrastructure assets that are contracted on a long-term basis makes this a good opportunity. The dividend is well-covered on a sustained basis. Energy demands is poised to rise for a little while. It should return to pre-covid levels eventually. A quality company. (Analysts’ price target is $39.36)
PAST TOP PICK
PAST TOP PICK
September 25, 2020
(A Top Pick Sep 19/19, Down 39%) A very interesting situation. It is his top pick again. The current valuation does not make sense to him. Commodity prices support the business and customers. The business is stronger than what investors give credit to. It will produce lots of cashflow and the dividend should continue as is.
Show full opinionHide full opinion(A Top Pick Sep 19/19, Down 39%) A very interesting situation. It is his top pick again. The current valuation does not make sense to him. Commodity prices support the business and customers. The business is stronger than what investors give credit to. It will produce lots of cashflow and the dividend should continue as is.
PAST TOP PICK
PAST TOP PICK
September 15, 2020
(A Top Pick Sep 12/19, Down 30%) It got hit in the whole energy sell-off. An excellent pipeline name. In Q1, they pulled back capex plans to protect their dividend (8% is safe) and balance sheet. Most of their contracts are long-term, and their clients are investment-grade. A fine income stock.
Show full opinionHide full opinion(A Top Pick Sep 12/19, Down 30%) It got hit in the whole energy sell-off. An excellent pipeline name. In Q1, they pulled back capex plans to protect their dividend (8% is safe) and balance sheet. Most of their contracts are long-term, and their clients are investment-grade. A fine income stock.
BUY WEAKNESS
BUY WEAKNESS
August 18, 2020
It had a lot of growth ahead, then the pandemic threw that into question. It's waiting on the future demand for energy and pipelines. The monthly dividend is safe as long as contracted players continue to pay, but the risk is in those contracts voiding and defaulting. This applies to peers like Keyera. PPL is more diversified and bigger vs. its peers. He's picking away at it, but this is a volatile space. Oil stocks are grinding higher, though, as the WTI price keeps rising and shale oil is not coming back and Canadian production is flatlining. Buy at low-$30/high-$20s. Hold at mid-$30s and hope things will normalize.
It had a lot of growth ahead, then the pandemic threw that into question. It's waiting on the future demand for energy and pipelines. The monthly dividend is safe as long as contracted players continue to pay, but the risk is in those contracts voiding and defaulting. This applies to peers like Keyera. PPL is more diversified and bigger vs. its peers. He's picking away at it, but this is a volatile space. Oil stocks are grinding higher, though, as the WTI price keeps rising and shale oil is not coming back and Canadian production is flatlining. Buy at low-$30/high-$20s. Hold at mid-$30s and hope things will normalize.
Pembina Pipeline Corp(PPL-T) Rating
Ranking : 5 out of 5
Bullish - Buy Signals / Votes : 20
Neutral - Hold Signals / Votes : 4
Bearish - Sell Signals / Votes : 4
Total Signals / Votes : 28
Pembina Pipeline Corp(PPL-T) Frequently Asked Questions
What is Pembina Pipeline Corp stock symbol?
Pembina Pipeline Corp is a Canadian stock, trading under the symbol PPL-T on the Toronto Stock Exchange (PPL-CT). It is usually referred to as TSX:PPL or PPL-T
Is Pembina Pipeline Corp a buy or a sell?
In the last year, 28 stock analysts published opinions about PPL-T. 20 analysts recommended to BUY the stock. 4 analysts recommended to SELL the stock. The latest stock analyst recommendation is BUY. Read the latest stock experts' ratings for Pembina Pipeline Corp.
Is Pembina Pipeline Corp a good investment or a top pick?
Pembina Pipeline Corp was recommended as a Top Pick by Varun Anand on 2021-02-04. Read the latest stock experts ratings for Pembina Pipeline Corp.
Why is Pembina Pipeline Corp stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
Is Pembina Pipeline Corp worth watching?
28 stock analysts on Stockchase covered Pembina Pipeline Corp In the last year. It is a trending stock that is worth watching.
What is Pembina Pipeline Corp stock price?
On 2021-03-05, Pembina Pipeline Corp (PPL-T) stock closed at a price of $36.21.
For a retirement portfolio. Overall, likes it to navigate choppy waters ahead. Lower risk in growth profile than a name like Inter Pipline. Performed well in 2020, and positioned balance sheet well in 2021. Can be volatile, so perhaps not the best for a retirement portfolio. Something like a Fortis gives you a stable yield. Could also do a barbell approach, with some Pembina and some Fortis, or another high-quality Canadian utility, to limit the volatility.