Pembina PipelinePBA +1.40%69 Interest Coverage is 5.14 as of Mar. 2026, which is 11% below its 10-year median of 5.75. GuruFocus rates PBA with a GF Score™ of 69/100 and a GF Value™ of $38.77 (Modestly Overvalued). The stock has 9 warning signs investors should review. Among 728 Oil & Gas companies, Pembina Pipeline ranks worse than 56.59% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Pembina Pipeline's
Operating Income
for the
three
months ended in Mar. 2026 was $573 Mil. Pembina Pipeline's Interest Expense for the
three
months ended in Mar. 2026 was $-112 Mil.
Pembina Pipeline's interest coverage for the quarter that ended in Mar. 2026 was 5.14.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Pembina Pipeline's Interest Coverage or its related term are showing as below:
PBA'
s Interest Coverage Range Over the Past 10 Years
Min: 4.28 Med: 5.75 Max: 7.21
Current: 4.39
PBA's Interest Coverage is ranked worse than 56.59% of 728
companies
in the Oil & Gas industry
Industry Median: 5.885
vs PBA: 4.39
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Pembina Pipeline Interest Coverage Related Terms
Pembina Pipeline Interest Coverage Historical Data
* Premium members only.
The historical data trend for Pembina Pipeline's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
PBA vs WMB, EPD, KMI: Interest Coverage Comparison
For the Oil & Gas Midstream subindustry, Pembina Pipeline's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Pembina Pipeline Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Pembina Pipeline's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Pembina Pipeline's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Pembina Pipeline (PBA) has a Interest Coverage of 5.14 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Pembina Pipeline and its competitors. This is 11% below median its historical median of 5.75. Over the past decade, Pembina Pipeline's Interest Coverage has ranged from 4.28 to 7.21. According to the industry distribution chart, Pembina Pipeline ranks #412 out of 728 companies in the Oil & Gas industry, placing it in the top 56.6%.
Is Pembina Pipeline's Interest Coverage too high?
Pembina Pipeline's current Interest Coverage of 5.14 is 11% below median its 10-year median of 5.75. Over the past 10 years, this metric has ranged from a low of 4.28 to a high of 7.21. The Oil & Gas industry median Interest Coverage is 5.89. Pembina Pipeline's value of 5.14 is 12.7% below this industry median. Based on the distribution chart, Pembina Pipeline ranks #412 out of 728 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Pembina Pipeline has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Pembina Pipeline's Interest Coverage compare to WMB and EPD?
According to the Oil & Gas industry distribution chart, Pembina Pipeline ranks #412 out of 728 companies for Interest Coverage. This places Pembina Pipeline in the lower half of its industry. The industry median Interest Coverage is 5.89. Pembina Pipeline's value of 5.14 is 12.7% below this benchmark. Historically, Pembina Pipeline's own Interest Coverage has ranged from 4.28 to 7.21 over the past decade. While the company's 10-year median is 5.75 vs. the industry median of 5.89, Pembina Pipeline has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 5.89, based on 728 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pembina Pipeline's current Interest Coverage of 5.14 is 12.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Pembina Pipeline and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pembina Pipeline's current Interest Coverage is 5.14, which is 11% below median its own 10-year median of 5.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pembina Pipeline stock overvalued right now?
Based on GuruFocus' analysis, Pembina Pipeline (PBA) is currently considered Modestly Overvalued. The stock's GF Value™ is $38.77, compared to a current price of $47.14 — trading 21.6% above its estimated fair value. The current Interest Coverage is 5.14, which is 11% below median its 10-year median of 5.75 and 12.7% below the Oil & Gas industry median of 5.89. Pembina Pipeline's overall GF Score™ is 69/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Pembina Pipeline (PBA), the current Interest Coverage is 5.14 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Pembina Pipeline (PBA) Overvalued in 2026?
Based on GuruFocus' analysis, Pembina Pipeline stock appears to be overvalued.
The current stock price of $47.14 is trading 21.6% above its estimated GF Value™ of $38.77.
GuruFocus considers Pembina Pipeline to be Modestly Overvalued.
Key valuation signals for PBA:
Interest Coverage: 5.14 (11% below median its 10-year median of 5.75)
GF Value™: $38.77 vs. price of $47.14 (21.6% above fair value)
Industry Position: 12.7% below the Oil & Gas median (#412 of 728)
No single metric tells the full story. See the PBA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pembina Pipeline is a midstream company serving the Canadian and North American (primarily Bakken) markets with an integrated product portfolio. Its operations include transmission pipelines, oil and gas gathering, fractionation, storage, and natural gas liquid exports. It also has a joint venture through the Cedar LNG export terminal.
69GF Score
Get the complete analysis for PBA
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