Parkland (TSX:PKI) - Share price, News & Analysis

PKI fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	3/6
Past Performance	1/6
Financial Health	2/6
Dividends	3/6

PKI Stock Overview

Parkland Corporation operates food and convenience stores in Canada, the United States, the Caribbean region, and Central and South America.

Rewards

Trading at 47.8% below our estimate of its fair value

Earnings are forecast to grow 30.17% per year

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 3.93% is not well covered by earnings or forecast to be in the next 3 years

Large one-off items impacting financial results

Profit margins (0.5%) are lower than last year (1.4%)

+ 1 more risk

Parkland Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Parkland
Historical stock prices
Current Share Price	CA$33.11
52 Week High	CA$41.78
52 Week Low	CA$31.18
Beta	1.67
1 Month Change	-8.51%
3 Month Change	-6.31%
1 Year Change	-14.44%
3 Year Change	-20.31%
5 Year Change	11.44%
Change since IPO	1,302.69%

Recent News & Updates

Jun 14

Are Investors Undervaluing Parkland Corporation (TSE:PKI) By 43%?

Does the June share price for Parkland Corporation ( TSE:PKI ) reflect what it's really worth? Today, we will estimate...

Shareholder Returns

	PKI	CA Oil and Gas	CA Market
7D	-2.0%	-2.1%	0.3%
1Y	-14.4%	30.9%	-4.1%

Return vs Industry: PKI underperformed the Canadian Oil and Gas industry which returned 27.5% over the past year.

Return vs Market: PKI underperformed the Canadian Market which returned -5.7% over the past year.

Price Volatility

Is PKI's price volatile compared to industry and market?
PKI volatility
PKI Average Weekly Movement	5.1%
Oil and Gas Industry Average Movement	10.4%
Market Average Movement	9.9%
10% most volatile stocks in CA Market	17.2%
10% least volatile stocks in CA Market	4.3%

Stable Share Price: PKI is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: PKI's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1977	n/a	Bob Espey	https://www.parkland.ca

Parkland Corporation operates food and convenience stores in Canada, the United States, the Caribbean region, and Central and South America. The company operates through four segments: Canada, USA, Supply, and International. The Canada segment owns, operates, supports, and distributes a coast-to-coast network of retail convenience, food, and fuel sites, as well as commercial cardlocks and bulk fuel facilities; and provides propane, heating oil, lubricants, and other related services to commercial, industrial, and residential customers.

Parkland Fundamentals Summary

How do Parkland's earnings and revenue compare to its market cap?
PKI fundamental statistics
Market Cap	CA$5.01b
Earnings (TTM)	CA$123.00m
Revenue (TTM)	CA$24.85b

41.9x

P/E Ratio

0.2x

P/S Ratio

Is PKI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PKI income statement (TTM)
Revenue	CA$24.85b
Cost of Revenue	CA$21.55b
Gross Profit	CA$3.30b
Other Expenses	CA$3.17b
Earnings	CA$123.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.79
Gross Margin	13.26%
Net Profit Margin	0.50%
Debt/Equity Ratio	236.5%

How did PKI perform over the long term?

See historical performance and comparison

Dividends

3.9%

Current Dividend Yield

154%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is PKI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PKI?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for PKI. This is calculated by dividing PKI's market cap by their current preferred multiple.
What is PKI's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CA$5.01b

PKI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.5x
Enterprise Value/EBITDA	9.4x
PEG Ratio	1.4x

Price to Earnings Ratio vs Peers

How does PKI's PE Ratio compare to its peers?

PKI PE Ratio vs Peers

The above table shows the PE ratio for PKI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	37.1x

Forward PE

Price-To-Earnings vs Peers: PKI is expensive based on its Price-To-Earnings Ratio (41.9x) compared to the peer average (37.1x).

Price to Earnings Ratio vs Industry

How does PKI's PE Ratio compare vs other companies in the Canadian Oil and Gas Industry?

Price-To-Earnings vs Industry: PKI is expensive based on its Price-To-Earnings Ratio (41.9x) compared to the Canadian Oil and Gas industry average (7.6x)

Price to Earnings Ratio vs Fair Ratio

What is PKI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PKI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	41.9x
Fair PE Ratio	20.2x

Price-To-Earnings vs Fair Ratio: PKI is expensive based on its Price-To-Earnings Ratio (41.9x) compared to the estimated Fair Price-To-Earnings Ratio (20.2x).

Share Price vs Fair Value

What is the Fair Price of PKI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PKI (CA$33.11) is trading below our estimate of fair value (CA$63.47)

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

Price to Earnings Growth Ratio

PEG Ratio: PKI is poor value based on its PEG Ratio (1.4x)

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Future Growth

How is Parkland forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

30.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: PKI's forecast earnings growth (30.2% per year) is above the savings rate (1.6%).

Earnings vs Market: PKI's earnings (30.2% per year) are forecast to grow faster than the Canadian market (7.4% per year).

High Growth Earnings: PKI's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PKI's revenue (2.1% per year) is forecast to grow slower than the Canadian market (6.6% per year).

High Growth Revenue: PKI's revenue (2.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if PKI's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Parkland performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

8.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PKI has a large one-off loss of CA$81.0M impacting its March 31 2022 financial results.

Growing Profit Margin: PKI's current net profit margins (0.5%) are lower than last year (1.4%).

Past Earnings Growth Analysis

Earnings Trend: PKI's earnings have grown by 8.4% per year over the past 5 years.

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

Earnings vs Industry: PKI had negative earnings growth (-35.3%) over the past year, making it difficult to compare to the Oil and Gas industry average (171.2%).

Return on Equity

High ROE: PKI's Return on Equity (6.6%) is considered low.

Discover strong past performing companies

Financial Health

How is Parkland's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: PKI's short term assets (CA$4.1B) exceed its short term liabilities (CA$2.6B).

Long Term Liabilities: PKI's short term assets (CA$4.1B) do not cover its long term liabilities (CA$7.8B).

Debt to Equity History and Analysis

Debt Level: PKI's net debt to equity ratio (222.4%) is considered high.

Reducing Debt: PKI's debt to equity ratio has increased from 103% to 236.5% over the past 5 years.

Debt Coverage: PKI's debt is not well covered by operating cash flow (10.4%).

Interest Coverage: PKI's interest payments on its debt are well covered by EBIT (3.2x coverage).

Balance Sheet

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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.93%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PKI's dividend (3.93%) is higher than the bottom 25% of dividend payers in the Canadian market (2.08%).

High Dividend: PKI's dividend (3.93%) is low compared to the top 25% of dividend payers in the Canadian market (5.35%).

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 increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (153.9%), PKI's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (111.1%), PKI's dividend payments are not well covered by cash flows.

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Management

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

3.7yrs

Average management tenure

CEO

Bob Espey (55 yo)

11.25yrs

Tenure

CA$4,962,035

Compensation

Mr. Robert Berthold Espey, also known as Bob, serves as an Independent Director of Boyd Group Services Inc. since May 12, 2021. Mr. Espey has been the President at Parkland Corporation (formerly known as P...

CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD3.84M) is about average for companies of similar size in the Canadian market ($USD3.49M).

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

Leadership Team

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

Board Members

Experienced Board: PKI's board of directors are considered experienced (7.5 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: PKI 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 3.3%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31