Executive Summary
Inter Pipeline Ltd. engages in the petroleum transportation and storage, and natural gas liquids processing businesses in Canada and Europe.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -15.4% per year for the next 3 years
Dividend of 7.84% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
Average dividend payer with acceptable track record.
Similar Companies
Share Price & News
How has Inter Pipeline's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: IPL has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.1%
IPL
-0.7%
CA Oil and Gas
0.2%
CA Market
1 Year Return
4.3%
IPL
-1.1%
CA Oil and Gas
4.9%
CA Market
Return vs Industry: IPL exceeded the Canadian Oil and Gas industry which returned 0.2% over the past year.
Return vs Market: IPL underperformed the Canadian Market which returned 5.8% over the past year.
Shareholder returns
| IPL | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.1% | -0.7% | 0.2% |
| 30 Day | -2.7% | -2.7% | 0.4% |
| 90 Day | -1.4% | 2.8% | 3.7% |
| 1 Year | 12.7%4.3% | 3.2%-1.1% | 8.2%4.9% |
| 3 Year | -8.4%-25.7% | -6.5%-16.5% | 15.9%5.5% |
| 5 Year | -10.0%-34.9% | -9.8%-24.1% | 33.8%14.3% |
Price Volatility Vs. Market
How volatile is Inter Pipeline's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 months ago | Simply Wall St
Does Inter Pipeline (TSE:IPL) Deserve A Spot On Your Watchlist?6 months ago | Simply Wall St
What Does Inter Pipeline Ltd.'s (TSE:IPL) P/E Ratio Tell You?7 months ago | Simply Wall St
Read This Before Selling Inter Pipeline Ltd. (TSE:IPL) SharesValuation
Is Inter Pipeline undervalued compared to its fair value and its price relative to the market?
16.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: IPL (CA$21.82) is trading below our estimate of fair value (CA$26.07)
Significantly Below Fair Value: IPL is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: IPL is poor value based on its PE Ratio (15.2x) compared to the Oil and Gas industry average (11x).
PE vs Market: IPL is good value based on its PE Ratio (15.2x) compared to the Canadian market (15.9x).
Price to Earnings Growth Ratio
PEG Ratio: IPL's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: IPL is overvalued based on its PB Ratio (2.2x) compared to the CA Oil and Gas industry average (0.7x).
Next Steps
Future Growth
How is Inter Pipeline forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
-15.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: IPL's earnings are forecast to decline over the next 3 years (-15.4% per year).
Earnings vs Market: IPL's earnings are forecast to decline over the next 3 years (-15.4% per year).
High Growth Earnings: IPL's earnings are forecast to decline over the next 3 years.
Revenue vs Market: IPL's revenue (8.3% per year) is forecast to grow faster than the Canadian market (5% per year).
High Growth Revenue: IPL's revenue (8.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: IPL's Return on Equity is forecast to be low in 3 years time (15.2%).
Next Steps
Past Performance
How has Inter Pipeline performed over the past 5 years?
12.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: IPL has high quality earnings.
Growing Profit Margin: IPL's current net profit margins (23.1%) are higher than last year (22.9%).
Past Earnings Growth Analysis
Earnings Trend: IPL's earnings have grown by 12.5% per year over the past 5 years.
Accelerating Growth: IPL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: IPL had negative earnings growth (-1.2%) over the past year, making it difficult to compare to the Oil and Gas industry average (6%).
Return on Equity
High ROE: IPL's Return on Equity (14.4%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Inter Pipeline's financial position?
Financial Position Analysis
Short Term Liabilities: IPL's short term assets (CA$366.6M) do not cover its short term liabilities (CA$3.1B).
Long Term Liabilities: IPL's short term assets (CA$366.6M) do not cover its long term liabilities (CA$5.3B).
Debt to Equity History and Analysis
Debt Level: IPL's debt to equity ratio (154.1%) is considered high.
Reducing Debt: IPL's debt to equity ratio has increased from 151.8% to 154.1% over the past 5 years.
Debt Coverage: IPL's debt is not well covered by operating cash flow (14.2%).
Interest Coverage: IPL's interest payments on its debt are well covered by EBIT (4.8x coverage).
Balance Sheet
Inventory Level: IPL has a high level of physical assets or inventory.
Debt Coverage by Assets: IPL's debt is not covered by short term assets (assets are 0.1x debt).
Next Steps
Dividend
What is Inter Pipeline's current dividend yield, its reliability and sustainability?
7.80%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Inter Pipeline before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: IPL's dividend (7.84%) is higher than the bottom 25% of dividend payers in the Canadian market (1.89%).
High Dividend: IPL's dividend (7.84%) is in the top 25% of dividend payers in the Canadian market (5.32%)
Stability and Growth of Payments
Stable Dividend: IPL's dividends per share have been stable in the past 10 years.
Growing Dividend: IPL's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (119.3%), IPL's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: IPL's dividends in 3 years are not forecast to be well covered by earnings (129.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.0yrs
Average management tenure
CEO
Chris Bayle (50yo)
6.1yrs
Tenure
CA$3,934,566
Compensation
Mr. Christian P. Bayle, also known as Chris, is Chief Executive Officer and President of Inter Pipeline Ltd. since January 1, 2014. He has been Director of Inter Pipeline Ltd. since January 1, 2017. Mr. Ba ...
CEO Compensation Analysis
Compensation vs Market: Chris's total compensation ($USD2.97M) is about average for companies of similar size in the Canadian market ($USD3.73M).
Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 6.1yrs | CA$3.93m | 0.11% CA$10.6m | |
| Chief Financial Officer | 5.9yrs | CA$1.92m | no data | |
| Senior Vice President of Projects & Operations Services | 1.8yrs | CA$1.40m | 0.0036% CA$329.3k | |
| Senior Vice President of Transportation | 5.7yrs | CA$1.46m | no data | |
| Senior Vice President of NGL Processing | 1.8yrs | CA$1.48m | no data | |
| VP of Finance and Investor Relations | 1.8yrs | no data | 0.0044% CA$405.1k | |
| Vice President of Legal | 4.1yrs | no data | 0.0028% CA$262.7k | |
| Chief Compliance Officer | 4.1yrs | CA$935.11k | no data | |
| Vice President of Corporate Development | 3.9yrs | no data | 0.0030% CA$275.6k | |
| Vice President of Human Resources | 1.8yrs | no data | no data |
4.0yrs
Average Tenure
Experienced Management: IPL's management team is considered experienced (4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 6.1yrs | CA$3.93m | 0.11% CA$10.6m | |
| Independent Director | 6.1yrs | CA$215.65k | 0.0051% CA$474.5k | |
| Independent Director | 10.9yrs | CA$213.49k | 0.0024% CA$225.7k | |
| Independent Director | 1.8yrs | CA$132.34k | 0.0031% CA$284.9k | |
| Independent Director | 16.7yrs | CA$225.12k | 0.0071% CA$655.7k | |
| Independent Chairman of the Board | 6.1yrs | CA$329.09k | 0.0077% CA$712.2k | |
| Independent Director | 1.8yrs | CA$130.71k | 0.0071% CA$657.6k | |
| Independent Director | 12yrs | CA$217.62k | 0.0025% CA$233.1k | |
| Independent Director | 4.5yrs | CA$209.06k | 0.0047% CA$438.4k | |
| Independent Director | 1.8yrs | CA$132.34k | 0.00024% CA$22.2k |
5.3yrs
Average Tenure
63.5yo
Average Age
Experienced Board: IPL's board of directors are considered experienced (5.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.3%.
Top Shareholders
Company Information
Inter Pipeline Ltd.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Inter Pipeline Ltd.
- Ticker: IPL
- Exchange: TSX
- Founded: 1997
- Industry: Oil and Gas Storage and Transportation
- Sector: Energy
- Market Cap: CA$9.249b
- Shares outstanding: 422.12m
- Website: https://www.interpipeline.com
Number of Employees
Location
- Inter Pipeline Ltd.
- 215 – 2nd Street SW
- Suite 3200
- Calgary
- Alberta
- T2P 1M4
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| IPL | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Nov 1998 |
| IPPL.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Nov 1998 |
| 2IP | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Nov 1998 |
Biography
Inter Pipeline Ltd. engages in the petroleum transportation and storage, and natural gas liquids processing businesses in Canada and Europe. The company operates through four segments: Oil Sands Transportation; Conventional Oil Pipelines; Natural Gas Liquids (NGL) Processing; and Bulk Liquid Storage. The Oil Sands Transportation segment transports petroleum products, such as bitumen blend and diluent through Cold Lake, Corridor, and Polaris pipeline systems covering approximately 3,300 kilometers of pipeline and 3.8 million barrels of storage capacity. This segment also offers related blending and handling services. The Conventional Oil Pipelines segment is involved in the transportation of petroleum products, including crude oil through Bow River, Central Alberta, and Mid-Saskatchewan pipeline systems covering approximately 3,900 kilometers of pipeline and 1,375,000 barrels of storage capacity; and related blending, handling, and marketing activities. The NGL Processing segment processes pipeline natural gas to remove NGL, including ethane, propane, butane, and pentanes-plus; and fractionates NGL stream to produce ethane products and propane plus. These NGLs are used as energy products; and as a feedstock for the petrochemical and crude oil refining industries. The Bulk Liquid Storage segment stores and handles bulk liquid products. This segment operates 23 bulk liquid storage terminals and approximately 37 million barrels of storage capacity. Inter Pipeline Ltd. was founded in 1997 and is headquartered in Calgary, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/18 23:50 |
| End of Day Share Price | 2020/02/18 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.