TSX:KEY

Stock Analysis Report

Executive Summary

Keyera Corp. engages in the transportation, storage, and marketing of natural gas liquids (NGLs) and iso-octane in Canada and the United States.

Snowflake

Fundamentals

Average dividend payer with acceptable track record.


Similar Companies

Share Price & News

How has Keyera's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.3%

KEY

-0.5%

CA Oil and Gas

-0.2%

CA Market


1 Year Return

-11.6%

KEY

-12.6%

CA Oil and Gas

1.5%

CA Market

Return vs Industry: KEY matched the Canadian Oil and Gas industry which returned -12.6% over the past year.

Return vs Market: KEY underperformed the Canadian Market which returned 1.5% over the past year.


Shareholder returns

KEYIndustryMarket
7 Day-0.3%-0.5%-0.2%
30 Day-9.0%-6.1%-3.5%
90 Day-13.1%-4.5%-1.8%
1 Year-6.2%-11.6%-8.7%-12.6%5.1%1.5%
3 Year-14.8%-26.7%-17.1%-25.5%13.3%3.2%
5 Year-18.3%-34.6%-21.5%-33.4%25.2%7.2%

Price Volatility Vs. Market

How volatile is Keyera's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

46.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KEY (CA$30.2) is trading below our estimate of fair value (CA$55.9)

Significantly Below Fair Value: KEY is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KEY is poor value based on its PE Ratio (14x) compared to the Oil and Gas industry average (8.4x).

PE vs Market: KEY is poor value based on its PE Ratio (14x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

PEG Ratio: KEY's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: KEY is overvalued based on its PB Ratio (2.2x) compared to the CA Oil and Gas industry average (0.6x).


Next Steps

Future Growth

How is Keyera forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

-3.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KEY's earnings are forecast to decline over the next 3 years (-3.5% per year).

Earnings vs Market: KEY's earnings are forecast to decline over the next 3 years (-3.5% per year).

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

Revenue vs Market: KEY's revenue (13.4% per year) is forecast to grow faster than the Canadian market (5.7% per year).

High Growth Revenue: KEY's revenue (13.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KEY's Return on Equity is forecast to be low in 3 years time (12.9%).


Next Steps

Past Performance

How has Keyera performed over the past 5 years?

14.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: KEY's earnings have grown by 14% per year over the past 5 years.

Accelerating Growth: KEY's earnings growth over the past year (41.1%) exceeds its 5-year average (14% per year).

Earnings vs Industry: KEY earnings growth over the past year (41.1%) underperformed the Oil and Gas industry 62.2%.


Return on Equity

High ROE: KEY's Return on Equity (15.7%) is considered low.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Keyera's financial position?


Financial Position Analysis

Short Term Liabilities: KEY's short term assets (CA$732.8M) exceeds its short term liabilities (CA$648.4M)

Long Term Liabilities: KEY's short term assets (732.8M) do not cover its long term liabilities (4.0B)


Debt to Equity History and Analysis

Debt Level: KEY's debt to equity ratio (93.3%) is considered high

Reducing Debt: KEY's debt to equity ratio has increased from 90.7% to 93.3% over the past 5 years.

Debt Coverage: KEY's debt is well covered by operating cash flow (27.2%).

Interest Coverage: KEY's interest payments on its debt are well covered by EBIT (8x coverage).


Balance Sheet

Inventory Level: KEY has a high level of physical assets or inventory.

Debt Coverage by Assets: KEY's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is Keyera's current dividend yield, its reliability and sustainability?

6.36%

Current Dividend Yield


Dividend Yield vs Market

company6.4%marketbottom25%2.0%markettop25%6.0%industryaverage4.9%forecastin3Years6.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: KEY's dividend (6.36%) is higher than the bottom 25% of dividend payers in the Canadian market (2.04%).

High Dividend: KEY's dividend (6.36%) is in the top 25% of dividend payers in the Canadian market (6.03%)

Stable Dividend: KEY's dividend payments have been volatile in the past 10 years.

Growing Dividend: KEY's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (83.2%), KEY's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KEY's dividends in 3 years are not forecast to be well covered by earnings (117.5% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

David Smith (61yo)

4.8yrs

Tenure

CA$3,865,644

Compensation

Mr. David G. Smith has been the Chief Executive Officer and President of Keyera Corp. since January 1, 2015. Mr. Smith served as the President and Chief Operating Officer of Keyera Corp. (formerly Keyera F ...


CEO Compensation Analysis

Compensation vs. Market: David's total compensation ($USD2.95M) is about average for companies of similar size in the Canadian market ($USD3.99M).

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


Management Age and Tenure

2.8yrs

Average Tenure

Experienced Management: KEY's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

62yo

Average Age

Experienced Board: KEY's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

Insider Buying: KEY insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellCA$167,43110 Sep 19
Graham Balzun
EntityIndividual
Shares5,000
Max PriceCA$33.49
SellCA$3,289,28022 Aug 19
James Bertram
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares100,000
Max PriceCA$33.13
BuyCA$45,87013 Jun 19
Janet Woodruff
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,420
Max PriceCA$32.32
SellCA$3,18925 Mar 19
Kelly Hill
EntityIndividual
Shares100
Max PriceCA$31.89

Ownership Breakdown


Management Team

  • C. Setoguchi

    Senior VP & Chief Commercial Officer

    • Tenure: 10.9yrs
    • Compensation: CA$1.67m
  • Jamie Urquhart

    Vice President of Marketing

    • Tenure: 0.8yrs
    • Compensation: CA$259.69k
  • David Smith (61yo)

    President

    • Tenure: 4.8yrs
    • Compensation: CA$3.87m
  • Brad Lock

    Senior VP & COO

    • Tenure: 0.8yrs
    • Compensation: CA$1.67m
  • Steven Kroeker

    Senior VP & CFO

    • Tenure: 6.9yrs
    • Compensation: CA$1.64m
  • Dion Kostiuk

    Vice President of Human Resources & Corporate Services

    • Tenure: 6.7yrs
  • Rick Koshman

    Vice President of Corporate Development

    • Tenure: 0.8yrs
  • Lavonne Zdunich

    Director of Investor Relations

    • Tenure: 0yrs
  • Nancy Brennan

    Senior VP

    • Tenure: 0.8yrs

Board Members

  • John Goertzen (60yo)

    Independent Director

    • Tenure: 0.2yrs
  • Doug Haughey (62yo)

    Independent Lead Director

    • Tenure: 4.8yrs
    • Compensation: CA$215.00k
  • Michael Norris (66yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: CA$202.50k
  • Tom O'Connor (64yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: CA$172.50k
  • Charlene Ripley (55yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: CA$165.00k
  • Don Nelson (71yo)

    Independent Director

    • Tenure: 11.4yrs
    • Compensation: CA$195.00k
  • Jim Bertram (63yo)

    Independent Chairman of the Board

    • Tenure: 4.8yrs
    • Compensation: CA$265.00k
  • David Smith (61yo)

    President

    • Tenure: 4.8yrs
    • Compensation: CA$3.87m
  • Janet Woodruff (62yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: CA$165.00k
  • Gianna Manes (54yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: CA$165.00k

Company Information

Keyera Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Keyera Corp.
  • Ticker: KEY
  • Exchange: TSX
  • Founded: 1998
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: CA$6.484b
  • Shares outstanding: 214.71m
  • Website: https://www.keyera.com

Number of Employees


Location

  • Keyera Corp.
  • Sun Life Plaza West Tower
  • Suite 200
  • Calgary
  • Alberta
  • T2P 3N4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KEYTSX (The Toronto Stock Exchange)YesCommon SharesCACADMay 2003
KEYU.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMay 2003
K2YDB (Deutsche Boerse AG)YesCommon SharesDEEURMay 2003

Biography

Keyera Corp. engages in the transportation, storage, and marketing of natural gas liquids (NGLs) and iso-octane in Canada and the United States. The company’s Gathering and Processing business units operat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 00:20
End of Day Share Price2019/10/21 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.