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KEY

KeyeraTSX:KEY Stock Report

Last Price

CA$29.32

Market Cap

CA$6.5b

7D

1.8%

1Y

9.8%

Updated

19 Jan, 2022

Data

Company Financials +
KEY fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance0/6
Financial Health2/6
Dividends5/6

KEY Stock Overview

Keyera Corp. engages in the energy infrastructure business in Canada.

Keyera Competitors

Enbridge

TSX:ENB

CA$106.6b

TC Energy

TSX:TRP

CA$61.9b

Pembina Pipeline

TSX:PPL

CA$22.6b

Gibson Energy

TSX:GEI

CA$3.5b

Price History & Performance

Summary of all time highs, changes and price drops for Keyera
Historical stock prices
Current Share PriceCA$29.32
52 Week HighCA$35.75
52 Week LowCA$23.59
Beta2.47
1 Month Change4.57%
3 Month Change-10.06%
1 Year Change9.81%
3 Year Change6.23%
5 Year Change-25.70%
Change since IPO456.89%

Recent News & Updates

Jan 18
Keyera (TSE:KEY) Will Pay A Dividend Of CA$0.16

Keyera (TSE:KEY) Will Pay A Dividend Of CA$0.16

The board of Keyera Corp. ( TSE:KEY ) has announced that it will pay a dividend on the 15th of February, with investors...

Dec 20
Keyera (TSE:KEY) Is Due To Pay A Dividend Of CA$0.16

Keyera (TSE:KEY) Is Due To Pay A Dividend Of CA$0.16

Keyera Corp. ( TSE:KEY ) will pay a dividend of CA$0.16 on the 17th of January. The dividend yield will be 6.8% based...

Nov 27
Keyera (TSE:KEY) May Have Issues Allocating Its Capital

Keyera (TSE:KEY) May Have Issues Allocating Its Capital

What trends should we look for it we want to identify stocks that can multiply in value over the long term? One common...

Oct 18
Keyera (TSE:KEY) Has Re-Affirmed Its Dividend Of CA$0.16

Keyera (TSE:KEY) Has Re-Affirmed Its Dividend Of CA$0.16

Keyera Corp. ( TSE:KEY ) will pay a dividend of CA$0.16 on the 15th of November. This makes the dividend yield 5.9...

Shareholder Returns

KEYCA Oil and GasCA Market
7D1.8%5.7%2.4%
1Y9.8%58.2%19.9%

Return vs Industry: KEY underperformed the Canadian Oil and Gas industry which returned 53.4% over the past year.

Return vs Market: KEY underperformed the Canadian Market which returned 19.1% over the past year.

Price Volatility

Is KEY's price volatile compared to industry and market?
KEY volatility
KEY Average Weekly Movement2.9%
Oil and Gas Industry Average Movement9.5%
Market Average Movement9.7%
10% most volatile stocks in CA Market17.6%
10% least volatile stocks in CA Market3.7%

Stable Share Price: KEY is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: KEY's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2003959C. Setoguchihttps://www.keyera.com

Keyera Corp. engages in the energy infrastructure business in Canada. It operates through Gathering and Processing, Liquids Infrastructure, and Marketing segments. The company’s Gathering and Processing segment owns and operates raw gas gathering pipelines and processing plants, which collect and process raw natural gas, remove waste products, and separate the economic components primarily natural gas liquids; and provides condensate handling services.

Keyera Fundamentals Summary

How do Keyera's earnings and revenue compare to its market cap?
KEY fundamental statistics
Market CapCA$6.48b
Earnings (TTM)CA$159.44m
Revenue (TTM)CA$3.96b

40.6x

P/E Ratio

1.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KEY income statement (TTM)
RevenueCA$3.96b
Cost of RevenueCA$3.09b
Gross ProfitCA$866.74m
ExpensesCA$707.30m
EarningsCA$159.44m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.72
Gross Margin21.90%
Net Profit Margin4.03%
Debt/Equity Ratio125.4%

How did KEY perform over the long term?

See historical performance and comparison

Dividends

6.5%

Current Dividend Yield

266%

Payout Ratio

Does KEY pay a reliable dividends?

See KEY dividend history and benchmarks
When do you need to buy KEY by to receive an upcoming dividend?
Keyera dividend dates
Ex Dividend DateJan 21 2022
Dividend Pay DateFeb 15 2022
Days until Ex dividend2 days
Days until Dividend pay date27 days

Does KEY pay a reliable dividends?

See KEY dividend history and benchmarks

Valuation

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

39.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KEY (CA$29.19) is trading below our estimate of fair value (CA$48.31)

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 (40.5x) compared to the Canadian Oil and Gas industry average (8x).

PE vs Market: KEY is poor value based on its PE Ratio (40.5x) compared to the Canadian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: KEY is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: KEY is overvalued based on its PB Ratio (2.4x) compared to the CA Oil and Gas industry average (2.1x).


Future Growth

How is Keyera forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

15.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KEY's forecast earnings growth (15.6% per year) is above the savings rate (1.6%).

Earnings vs Market: KEY's earnings (15.6% per year) are forecast to grow faster than the Canadian market (11% per year).

High Growth Earnings: KEY's earnings are forecast to grow, but not significantly.

Revenue vs Market: KEY's revenue (6.5% per year) is forecast to grow faster than the Canadian market (5.5% per year).

High Growth Revenue: KEY's revenue (6.5% 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 (19.2%).


Past Performance

How has Keyera performed over the past 5 years?

-4.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KEY has a large one-off loss of CA$123.4M impacting its September 30 2021 financial results.

Growing Profit Margin: KEY's current net profit margins (4%) are lower than last year (5.1%).


Past Earnings Growth Analysis

Earnings Trend: KEY's earnings have declined by 4.8% per year over the past 5 years.

Accelerating Growth: KEY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KEY had negative earnings growth (-4.3%) over the past year, making it difficult to compare to the Oil and Gas industry average (159%).


Return on Equity

High ROE: KEY's Return on Equity (6%) is considered low.


Financial Health

How is Keyera's financial position?


Financial Position Analysis

Short Term Liabilities: KEY's short term assets (CA$1.2B) exceed its short term liabilities (CA$1.1B).

Long Term Liabilities: KEY's short term assets (CA$1.2B) do not cover its long term liabilities (CA$4.5B).


Debt to Equity History and Analysis

Debt Level: KEY's net debt to equity ratio (124%) is considered high.

Reducing Debt: KEY's debt to equity ratio has increased from 84.6% to 125.4% over the past 5 years.

Debt Coverage: KEY's debt is not well covered by operating cash flow (18%).

Interest Coverage: KEY's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet


Dividend

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

6.55%

Current Dividend Yield


Upcoming Dividend Payment

TodayJan 19 2022Ex Dividend DateJan 21 2022Dividend Pay DateFeb 15 202225 days from Ex DividendBuy in the next 2 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: KEY's dividend (6.58%) is higher than the bottom 25% of dividend payers in the Canadian market (1.59%).

High Dividend: KEY's dividend (6.58%) is in the top 25% of dividend payers in the Canadian market (4.6%)


Stability and Growth of Payments

Stable Dividend: KEY's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (266.2%), KEY's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KEY's dividends in 3 years are forecast to be covered by earnings (79.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

C. Setoguchi (54 yo)

1.83yrs

Tenure

CA$2,194,471

Compensation

Mr. C. Dean Setoguchi has been Chief Executive Officer and Director at Keyera Corp. since January 1, 2021. Mr. Setoguchi serves as President of Keyera Corporation since March 01, 2020 and served as its Chi...


CEO Compensation Analysis

Compensation vs Market: C.'s total compensation ($USD1.75M) is below average for companies of similar size in the Canadian market ($USD3.52M).

Compensation vs Earnings: C.'s compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: KEY's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: KEY's board of directors are considered experienced (5.6 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Keyera Corp.
  • Ticker: KEY
  • Exchange: TSX
  • Founded: 2003
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Implied Market Cap: CA$6.480b
  • Shares outstanding: 221.02m
  • Website: https://www.keyera.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 00:01
End of Day Share Price2022/01/18 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.