TSX:PKI

Stock Analysis Report

Executive Summary

Parkland Fuel Corporation operates as a marketer, distributor, and refiner of fuel and petroleum products in Canada and the United States.

Rewards

Trading at 51.8% below its fair value

Earnings grew by 85.4% over the past year

Pays a reliable dividend of 4.85%

Risk Analysis

Earnings are forecast to decline by an average of -4.4% per year for the next 3 years

Has a high level of debt

Highly volatile share price over past 3 months

Significant insider selling over the past 3 months

+ 1 more risk


Snowflake Analysis

Solid track record average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PKI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

15.5%

PKI

2.8%

CA Oil and Gas

4.5%

CA Market


1 Year Return

-39.2%

PKI

-44.8%

CA Oil and Gas

-24.5%

CA Market

Return vs Industry: PKI exceeded the Canadian Oil and Gas industry which returned -44.8% over the past year.

Return vs Market: PKI underperformed the Canadian Market which returned -24.5% over the past year.


Shareholder returns

PKIIndustryMarket
7 Day15.5%2.8%4.5%
30 Day-40.6%-37.8%-20.1%
90 Day-47.5%-44.8%-24.9%
1 Year-37.4%-39.2%-42.0%-44.8%-22.0%-24.5%
3 Year-5.6%-15.0%-46.4%-52.6%-14.2%-22.2%
5 Year18.4%-2.5%-48.0%-56.8%-1.9%-16.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PKI (CA$25.05) is trading below our estimate of fair value (CA$51.93)

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


Price To Earnings Ratio

PE vs Industry: PKI is poor value based on its PE Ratio (9.6x) compared to the Oil and Gas industry average (6x).

PE vs Market: PKI is good value based on its PE Ratio (9.6x) compared to the Canadian market (10.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PKI is overvalued based on its PB Ratio (1.9x) compared to the CA Oil and Gas industry average (0.4x).


Next Steps

Future Growth

How is Parkland Fuel forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

-4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PKI's earnings are forecast to decline over the next 3 years (-4.4% per year).

Earnings vs Market: PKI's earnings are forecast to decline over the next 3 years (-4.4% per year).

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

Revenue vs Market: PKI's revenue (1.5% per year) is forecast to grow slower than the Canadian market (3.8% per year).

High Growth Revenue: PKI's revenue (1.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PKI's Return on Equity is forecast to be low in 3 years time (12.5%).


Next Steps

Past Performance

How has Parkland Fuel performed over the past 5 years?

50.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PKI has high quality earnings.

Growing Profit Margin: PKI's current net profit margins (2.1%) are higher than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: PKI's earnings have grown significantly by 50.6% per year over the past 5 years.

Accelerating Growth: PKI's earnings growth over the past year (85.4%) exceeds its 5-year average (50.6% per year).

Earnings vs Industry: PKI earnings growth over the past year (85.4%) exceeded the Oil and Gas industry -2.5%.


Return on Equity

High ROE: PKI's Return on Equity (17.9%) is considered low.


Next Steps

Financial Health

How is Parkland Fuel's financial position?


Financial Position Analysis

Short Term Liabilities: PKI's short term assets (CA$2.2B) exceed its short term liabilities (CA$1.9B).

Long Term Liabilities: PKI's short term assets (CA$2.2B) do not cover its long term liabilities (CA$5.1B).


Debt to Equity History and Analysis

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

Reducing Debt: PKI's debt to equity ratio has increased from 85.4% to 147.8% over the past 5 years.

Debt Coverage: PKI's debt is well covered by operating cash flow (26.3%).

Interest Coverage: PKI's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: PKI's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

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

4.85%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PKI's dividend (4.85%) is higher than the bottom 25% of dividend payers in the Canadian market (2.71%).

High Dividend: PKI's dividend (4.85%) is low compared to the top 25% of dividend payers in the Canadian market (8.69%).


Stability and Growth of Payments

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

Growing Dividend: PKI's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.8%), PKI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PKI's dividends in 3 years are forecast to be covered by earnings (62.9% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Bob Espey (53yo)

8.83s

Tenure

CA$3,782,662

Compensation

Mr. Robert Berthold Espey, also known as Bob, has been the President at Parkland Fuel Corporation since March 15, 2011 and its Chief Executive Officer since May 01, 2011. Mr. Espey served as Transition Co ...


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD2.68M) is about average for companies of similar size in the Canadian market ($USD2.88M).

Compensation vs Earnings: Bob's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Espey
President8.83yrsCA$3.78m0.39% CA$14.5m
Pierre Patrick Magnan
President of Parkland International1.42yrsCA$1.26m0.038% CA$1.4m
Douglas Haugh
President of Parkland USA2.25yrsCA$2.21m0.048% CA$1.8m
Ryan Krogmeier
Senior Vice President of Supply1.42yrsCA$2.13m0.036% CA$1.3m
Darren Smart
Interim CFO0.25yrCA$976.54k0.033% CA$1.2m
Brad Monaco
Director of Investor Relationsno datano datano data
Christy Elliott
VP, Senior General Counsel2.67yrsno data0.017% CA$632.7k
Annie Cuerrier
Director of Corporate Communicationsno datano datano data
Stephanie McDonald
Senior Vice President of People & Culture1.42yrsno data0.014% CA$516.4k
Ian White
Senior Vice President of Strategic Marketing & Innovation1.17yrsno data0.031% CA$1.2m

1.4yrs

Average Tenure

50yo

Average Age

Experienced Management: PKI's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Robert Espey
President8.83yrsCA$3.78m0.39% CA$14.5m
Lisa Colnett
Independent Director5.83yrsCA$198.44k0.0011% CA$42.7k
John Bechtold
Independent Director13.58yrsCA$204.30k0.032% CA$1.2m
Domenic Pilla
Independent Director5.17yrsCA$171.85k0.0038% CA$142.7k
Jack Donald
Chairman Emeritusno datano datano data
James Pantelidis
Independent Chairman14.83yrsCA$405.29k0.20% CA$7.5m
Steven Richardson
Independent Director2.58yrsCA$166.26k0.0015% CA$54.6k
David Spencer
Non-Independent Director14.83yrsCA$185.80k0.0095% CA$351.8k
Deborah Stein
Independent Director3.83yrsCA$194.91k0.0034% CA$125.2k
Timothy Hogarth
Independent Director4.67yrsCA$170.89k0.18% CA$6.8m

5.8yrs

Average Tenure

60.5yo

Average Age

Experienced Board: PKI's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PKI insiders have sold more shares than they have bought 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 11%.


Top Shareholders

Company Information

Parkland Fuel Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Parkland Fuel Corporation
  • Ticker: PKI
  • Exchange: TSX
  • Founded: 1977
  • Industry: Oil and Gas Refining and Marketing
  • Sector: Energy
  • Market Cap: CA$3.715b
  • Shares outstanding: 148.31m
  • Website: https://www.parkland.ca

Number of Employees


Location

  • Parkland Fuel Corporation
  • 240-4 Avenue SW
  • Suite 1800
  • Calgary
  • Alberta
  • T2P 4H4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PKITSX (The Toronto Stock Exchange)YesCommon SharesCACADSep 1982
PKIU.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 1982
PF6DB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1982

Biography

Parkland Fuel Corporation operates as a marketer, distributor, and refiner of fuel and petroleum products in Canada and the United States. The company’s Retail segment supplies and supports a network of 1,855 retail gas stations under the Ultramar, Esso, Fas Gas Plus, Pioneer, Chevron, and Race Trac, as well as operates convenience stores under the On the Run/Marché Express brand. Its Commercial segment offers bulk fuel, propane, heating oil, lubricants, agricultural inputs, oilfield fluids, and other related products and services to commercial, industrial, and residential customers in various industries, such as oil and gas, construction, mining, forestry, fishing, and transportation. Its brands include Bluewave Energy, Columbia Fuels, Sparlings Propane, Island Petroleum, Propane Nord-Ouest, PNE Propane, Sol Petroleum, Chevron, and Ultramar. The company’s Supply segment manages fuel supply contracts; purchases fuel from refiners, refines fuel, and distributes fuel through rail and highway carriers to wholesale and reseller customers. This segment also offers gasoline and diesel; liquid petroleum gas, such as propane and butane; and other fuel and petroleum products, which include crude oil, aviation fuel, asphalt, fuel oils, gas oils, ethanol, and biodiesel. Its Parkland USA segment operates retail service stations; and delivers gasoline, distillates, propane, and lubricating oils under the SPF Energy, Farstad Oil, Superpumper, and Rhinehart brands. The company was founded in 1977 and is headquartered in Calgary, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 01:52
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.