Executive Summary
Inter Pipeline Ltd. engages in the petroleum transportation and storage, and natural gas liquids processing businesses in Canada and Europe. More Details
Rewards
Risk Analysis
Snowflake Analysis
Second-rate dividend payer and slightly overvalued.
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 is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: IPL's weekly volatility (7%) has been stable over the past year.
Market Performance
7 Day Return
1.9%
IPL
0.6%
CA Oil and Gas
0.2%
CA Market
1 Year Return
-40.5%
IPL
-23.4%
CA Oil and Gas
2.0%
CA Market
Return vs Industry: IPL underperformed the Canadian Oil and Gas industry which returned -23.4% over the past year.
Return vs Market: IPL underperformed the Canadian Market which returned 2% over the past year.
Shareholder returns
| IPL | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.9% | 0.6% | 0.2% |
| 30 Day | 7.1% | 6.6% | 3.8% |
| 90 Day | 3.2% | 28.2% | 13.4% |
| 1 Year | -37.0%-40.5% | -19.0%-23.4% | 5.7%2.0% |
| 3 Year | -35.9%-48.0% | -20.8%-30.6% | 13.5%2.7% |
| 5 Year | -15.7%-39.4% | 4.5%-14.0% | 67.8%42.1% |
Long-Term 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
1 year ago | Simply Wall St
Does Inter Pipeline (TSE:IPL) Deserve A Spot On Your Watchlist?1 year ago | Simply Wall St
What Does Inter Pipeline Ltd.'s (TSE:IPL) P/E Ratio Tell You?1 year 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?
18.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: IPL (CA$13.35) is trading below our estimate of fair value (CA$16.29)
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 good value based on its PE Ratio (19.5x) compared to the CA Oil and Gas industry average (21.8x).
PE vs Market: IPL is poor value based on its PE Ratio (19.5x) compared to the Canadian market (16.8x).
Price to Earnings Growth Ratio
PEG Ratio: IPL is poor value based on its PEG Ratio (1x)
Price to Book Ratio
PB vs Industry: IPL is overvalued based on its PB Ratio (1.4x) compared to the CA Oil and Gas industry average (1.2x).
Next Steps
Future Growth
How is Inter Pipeline forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
19.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: IPL's forecast earnings growth (19.3% per year) is above the savings rate (1.5%).
Earnings vs Market: IPL's earnings (19.3% per year) are forecast to grow slower than the Canadian market (27.3% per year).
High Growth Earnings: IPL's earnings are forecast to grow, but not significantly.
Revenue vs Market: IPL's revenue (5.5% per year) is forecast to grow slower than the Canadian market (7.9% per year).
High Growth Revenue: IPL's revenue (5.5% 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 (9.8%).
Next Steps
Past Performance
How has Inter Pipeline performed over the past 5 years?
2.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: IPL has high quality earnings.
Growing Profit Margin: IPL's current net profit margins (12%) are lower than last year (23.1%).
Past Earnings Growth Analysis
Earnings Trend: IPL's earnings have grown by 2.6% 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 (-50.1%) over the past year, making it difficult to compare to the Oil and Gas industry average (-52.6%).
Return on Equity
High ROE: IPL's Return on Equity (7%) is considered low.
Next Steps
Financial Health
How is Inter Pipeline's financial position?
Financial Position Analysis
Short Term Liabilities: IPL's short term assets (CA$1.5B) do not cover its short term liabilities (CA$2.5B).
Long Term Liabilities: IPL's short term assets (CA$1.5B) do not cover its long term liabilities (CA$6.9B).
Debt to Equity History and Analysis
Debt Level: IPL's debt to equity ratio (171.7%) is considered high.
Reducing Debt: IPL's debt to equity ratio has increased from 154.5% to 171.7% over the past 5 years.
Debt Coverage: IPL's debt is not well covered by operating cash flow (11.3%).
Interest Coverage: IPL's interest payments on its debt are well covered by EBIT (3.6x coverage).
Balance Sheet
Next Steps
Dividend
What is Inter Pipeline current dividend yield, its reliability and sustainability?
3.60%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: IPL's dividend (3.6%) is higher than the bottom 25% of dividend payers in the Canadian market (1.54%).
High Dividend: IPL's dividend (3.6%) is low compared to the top 25% of dividend payers in the Canadian market (5%).
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 fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (160%), IPL's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: IPL's dividends in 3 years are forecast to be covered by earnings (54% payout ratio).
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Management
How experienced are the management team and are they aligned to shareholders interests?
3.5yrs
Average management tenure
CEO
Chris Bayle (51 yo)
7yrs
Tenure
CA$5,244,691
Compensation
Mr. Christian P. Bayle, also known as Chris, is Chief Executive Officer and President of Inter Pipeline Ltd. since January 1, 2014. He has been Director of Inter Pipeline Ltd. since January 1, 2017. Mr. Ba...
CEO Compensation Analysis
Compensation vs Market: Chris's total compensation ($USD4.15M) is above average for companies of similar size in the Canadian market ($USD3.03M).
Compensation vs Earnings: Chris's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 7yrs | CA$5.24m | 0.12% CA$ 6.9m | |
| Chief Financial Officer | 6.83yrs | CA$2.03m | 0.0077% CA$ 444.6k | |
| Senior Vice President of Projects & Operations Services | 2.75yrs | CA$1.47m | 0.0069% CA$ 397.2k | |
| Senior Vice President of Transportation | 6.58yrs | CA$1.55m | 0.10% CA$ 6.0m | |
| Senior Vice President of Petrochemicals | 2.75yrs | CA$1.57m | 0.0062% CA$ 357.9k | |
| VP of EH&S and Technical Services | no data | no data | no data | |
| VP of Finance & Investor Relations | 2.75yrs | no data | 0.0043% CA$ 250.3k | |
| Director of Corporate Communications | no data | no data | no data | |
| Vice President of Corporate Development | 4.83yrs | no data | 0.0032% CA$ 183.3k | |
| Vice President of Marketing | 0.17yr | no data | no data | |
| Vice President of Human Resources | 2.75yrs | no data | no data | |
| Senior Vice President of Petrochemical Development | 4.33yrs | CA$1.81m | 0.0064% CA$ 372.3k |
3.5yrs
Average Tenure
Experienced Management: IPL's management team is considered experienced (3.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 7yrs | CA$5.24m | 0.12% CA$ 6.9m | |
| Independent Director | 7yrs | CA$220.00k | 0.0075% CA$ 433.0k | |
| Independent Director | 11.83yrs | CA$220.00k | 0.0026% CA$ 149.7k | |
| Independent Director | 2.67yrs | CA$210.00k | 0.0042% CA$ 242.2k | |
| Independent Chairman of the Board | 7yrs | CA$332.50k | 0.0076% CA$ 437.7k | |
| Independent Director | 2.67yrs | CA$207.50k | 0.010% CA$ 605.9k | |
| Independent Director | 12.92yrs | CA$222.50k | 0.0025% CA$ 143.4k | |
| Independent Director | 5.42yrs | CA$225.57k | 0.0047% CA$ 269.4k | |
| Independent Director | 2.67yrs | CA$221.04k | 0.0049% CA$ 282.7k | |
| Independent Director | 0.67yr | no data | 0.014% CA$ 818.1k | |
| Independent Director | 0.67yr | no data | 0.00070% CA$ 40.5k |
4.0yrs
Average Tenure
63yo
Average Age
Experienced Board: IPL's board of directors are considered experienced (4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: IPL 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 2%.
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$5.782b
- Shares outstanding: 429.22m
- 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 Transporta...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/20 23:34 |
| End of Day Share Price | 2021/01/20 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.