TSX:IPL

Stock Analysis Report

Inter Pipeline

Executive Summary

Inter Pipeline Ltd. engages in the petroleum transportation and storage, and natural gas liquids processing businesses in Canada and Europe.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

1.1%

IPL

0.4%

CA Oil and Gas

-0.1%

CA Market


1 Year Return

2.8%

IPL

-12.5%

CA Oil and Gas

0.9%

CA Market

Return vs Industry: IPL exceeded the Canadian Oil and Gas industry which returned -12.5% over the past year.

Return vs Market: IPL exceeded the Canadian Market which returned 0.9% over the past year.


Shareholder returns

IPLIndustryMarket
7 Day1.1%0.4%-0.1%
30 Day-10.3%-2.7%-2.1%
90 Day-1.2%-4.4%-1.6%
1 Year11.2%2.8%-8.6%-12.5%4.4%0.9%
3 Year-1.9%-20.3%-14.8%-23.4%15.5%5.2%
5 Year-12.7%-36.2%-22.2%-34.0%25.7%7.5%

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

Valuation

Is Inter Pipeline undervalued compared to its fair value and its price relative to the market?

8.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: IPL (CA$22.3) is trading below our estimate of fair value (CA$24.27)

Significantly Undervalued: 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 (13.3x) compared to the Oil and Gas industry average (8.3x).

PE vs Market: IPL is good value based on its PE Ratio (13.3x) compared to the Canadian market (13.6x).


Price to Earnings Growth Ratio

Low 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 (2.3x) 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 8 analysts?

-9.4%

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 (-9.4% per year).

Earnings vs Market: IPL's earnings are forecast to decline over the next 3 years (-9.4% per year).

High Growth Earnings: IPL's earnings are forecast to decline over the next 3 years.

Revenue vs Market: IPL's revenue (8.1% per year) is forecast to grow faster than the Canadian market (5.7% per year).

High Growth Revenue: IPL's revenue (8.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: IPL's Return on Equity is forecast to be low in 3 years time (12.3%).


Next Steps

Past Performance

How has Inter Pipeline performed over the past 5 years?

13.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: IPL's earnings have grown by 13.2% per year over the past 5 years.

Accelerating Growth: IPL's earnings growth over the past year (19.4%) exceeds its 5-year average (13.2% per year).

Earnings vs Industry: IPL earnings growth over the past year (19.4%) underperformed the Oil and Gas industry 62.2%.


Return on Equity

High ROE: IPL's Return on Equity (16.5%) is considered low.


Return on Assets

ROA vs Industry: IPL has a higher Return on Assets than the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: IPL's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Inter Pipeline's financial position?


Financial Position Analysis

Short Term Liabilities: IPL's short term assets (CA$362.4M) do not cover its short term liabilities (CA$2.1B)

Long Term Liabilities: IPL's short term assets (362.4M) do not cover its long term liabilities (6.0B)


Debt to Equity History and Analysis

Debt Level: IPL's debt to equity ratio (147.8%) is considered high

Reducing Debt: IPL's debt to equity ratio has reduced from 150.9% to 147.8% over the past 5 years.

Debt Coverage: IPL's debt is not well covered by operating cash flow (15.6%).

Interest Coverage: IPL's interest payments on its debt are well covered by EBIT (5.5x 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?

7.67%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Inter Pipeline before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company7.7%marketbottom25%2.0%markettop25%6.0%industryaverage4.9%forecastin3Years7.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: IPL's dividend (7.67%) is higher than the bottom 25% of dividend payers in the Canadian market (2.03%).

High Dividend: IPL's dividend (7.67%) is in the top 25% of dividend payers in the Canadian market (5.98%)

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 (101.3%), 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 (146.9% payout ratio).


Next Steps

Management

What is the CEO of Inter Pipeline's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Chris Bayle (50yo)

5.8yrs

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 ($USD2.97M) is about average for companies of similar size in the Canadian market ($USD4.09M).

Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.7yrs

Average Tenure

Experienced Management: IPL's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

5.0yrs

Average Tenure

63.5yo

Average Age

Experienced Board: IPL's board of directors are considered experienced (5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$74,95214 May 19
Jeremy Roberge
EntityIndividual
Role
Head of Investor Relations
VP of Finance and Investor Relations
Shares3,600
Max PriceCA$20.82
BuyCA$116,60026 Feb 19
David Chappell
EntityIndividual
Shares5,500
Max PriceCA$21.20
BuyCA$482,22020 Dec 18
Christian Bayle
EntityIndividual
Role
Chief Executive Officer
President
Shares25,000
Max PriceCA$19.29
BuyCA$22,39321 Nov 18
Alison Love
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceCA$22.41
BuyCA$226,45513 Nov 18
Peter Cella
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceCA$22.65

Ownership Breakdown


Management Team

  • Spilios Kousinioris

    Vice President of Corporate Development

    • Tenure: 3.6yrs
  • Chris Bayle (50yo)

    President

    • Tenure: 5.8yrs
    • Compensation: CA$3.93m
  • Brent Heagy

    Chief Financial Officer

    • Tenure: 5.6yrs
    • Compensation: CA$1.92m
  • Jeremy Roberge

    VP of Finance and Investor Relations

    • Tenure: 1.5yrs
  • Anita Elizabeth Oliva

    Vice President of Legal

    • Tenure: 3.8yrs
  • Jeffrey Marchant

    Senior Vice President of Transportation

    • Tenure: 5.3yrs
    • Compensation: CA$1.46m
  • Jim Arsenych

    Chief Compliance Officer

    • Tenure: 3.8yrs
    • Compensation: CA$935.11k
  • James Madro

    Senior Vice President of NGL Processing

    • Tenure: 1.5yrs
    • Compensation: CA$1.48m
  • Bernard Perron

    Senior Vice President of Projects & Operations Services

    • Tenure: 1.5yrs
    • Compensation: CA$1.40m
  • Megan Joyce

    Vice President of Human Resources

    • Tenure: 1.5yrs

Board Members

  • Alison Love (65yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: CA$215.65k
  • Brant Sangster (72yo)

    Independent Director

    • Tenure: 10.6yrs
    • Compensation: CA$213.49k
  • Art Korpach (62yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: CA$132.34k
  • Chris Bayle (50yo)

    President

    • Tenure: 5.8yrs
    • Compensation: CA$3.93m
  • Bill Robertson (74yo)

    Independent Director

    • Tenure: 16.3yrs
    • Compensation: CA$225.12k
  • Richard Shaw (73yo)

    Independent Chairman of the Board

    • Tenure: 5.8yrs
    • Compensation: CA$329.09k
  • Pete Cella (61yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: CA$130.71k
  • Duane Keinick (72yo)

    Independent Director

    • Tenure: 11.7yrs
    • Compensation: CA$217.62k
  • Margaret McKenzie (57yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: CA$209.06k
  • Julie Dill (59yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: CA$132.34k

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$9.230b
  • Shares outstanding: 413.91m
  • Website: https://www.interpipeline.com

Number of Employees


Location

  • Inter Pipeline Ltd.
  • 215 – 2nd Street SW
  • Suite 3200
  • Calgary
  • Alberta
  • T2P 1M4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IPLTSX (The Toronto Stock Exchange)YesCommon SharesCACADNov 1998
IPPL.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDNov 1998
2IPDB (Deutsche Boerse AG)YesCommon SharesDEEURNov 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 Transporta ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:38
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.