Parkland Corporation (PKI.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:PKI - CA70137W1086 - Common Stock
39.84 CAD
-0.14 (-0.35%)
We assign a fundamental rating of 5 out of 10 to PKI. PKI was compared to 206 industry peers in the Oil, Gas & Consumable Fuels industry. PKI has a medium profitability rating, but doesn't score so well on its financial health evaluation. PKI is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
- In the past year PKI was profitable.
- PKI had a positive operating cash flow in the past year.
- Each year in the past 5 years PKI has been profitable.
- PKI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.41%, PKI is in line with its industry, outperforming 56.54% of the companies in the same industry.
- PKI's Return On Equity of 10.28% is fine compared to the rest of the industry. PKI outperforms 79.91% of its industry peers.
- The Return On Invested Capital of PKI (7.46%) is better than 86.92% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for PKI is in line with the industry average of 6.62%.
- The last Return On Invested Capital (7.46%) for PKI is above the 3 year average (6.55%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.41% | ||
| ROE | 10.28% | ||
| ROIC | 7.46% |
ROA(3y)2.16%
ROA(5y)1.64%
ROE(3y)9.68%
ROE(5y)7.64%
ROIC(3y)6.55%
ROIC(5y)5.85%
1.3 Margins
- With a Profit Margin value of 1.21%, PKI perfoms like the industry average, outperforming 53.74% of the companies in the same industry.
- PKI's Profit Margin has declined in the last couple of years.
- PKI has a Operating Margin of 3.72%. This is comparable to the rest of the industry: PKI outperforms 49.53% of its industry peers.
- In the last couple of years the Operating Margin of PKI has declined.
- With a Gross Margin value of 14.53%, PKI perfoms like the industry average, outperforming 45.79% of the companies in the same industry.
- In the last couple of years the Gross Margin of PKI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.72% | ||
| PM (TTM) | 1.21% | ||
| GM | 14.53% |
OM growth 3Y-12.22%
OM growth 5Y-8.78%
PM growth 3Y-0.23%
PM growth 5Y-26.35%
GM growth 3Y-1.75%
GM growth 5Y-3.1%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PKI is still creating some value.
- The number of shares outstanding for PKI has been reduced compared to 1 year ago.
- PKI has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, PKI has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.63 indicates that PKI is not a great score, but indicates only limited risk for bankruptcy at the moment.
- PKI has a better Altman-Z score (2.63) than 75.70% of its industry peers.
- PKI has a debt to FCF ratio of 6.07. This is a slightly negative value and a sign of low solvency as PKI would need 6.07 years to pay back of all of its debts.
- PKI's Debt to FCF ratio of 6.07 is fine compared to the rest of the industry. PKI outperforms 74.77% of its industry peers.
- A Debt/Equity ratio of 1.70 is on the high side and indicates that PKI has dependencies on debt financing.
- PKI's Debt to Equity ratio of 1.70 is on the low side compared to the rest of the industry. PKI is outperformed by 73.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 6.07 | ||
| Altman-Z | 2.63 |
ROIC/WACC1.08
WACC6.89%
2.3 Liquidity
- A Current Ratio of 1.00 indicates that PKI should not have too much problems paying its short term obligations.
- PKI's Current ratio of 1.00 is fine compared to the rest of the industry. PKI outperforms 62.15% of its industry peers.
- A Quick Ratio of 0.57 indicates that PKI may have some problems paying its short term obligations.
- PKI's Quick ratio of 0.57 is on the low side compared to the rest of the industry. PKI is outperformed by 61.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 38.97% over the past year.
- The earnings per share for PKI have been decreasing by -22.68% on average. This is quite bad
- Looking at the last year, PKI shows a decrease in Revenue. The Revenue has decreased by -4.80% in the last year.
- PKI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.93% yearly.
EPS 1Y (TTM)38.97%
EPS 3Y-0.47%
EPS 5Y-22.68%
EPS Q2Q%40.38%
Revenue 1Y (TTM)-4.8%
Revenue growth 3Y9.65%
Revenue growth 5Y8.93%
Sales Q2Q%3.19%
3.2 Future
- PKI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 63.08% yearly.
- Based on estimates for the next years, PKI will show a small growth in Revenue. The Revenue will grow by 3.49% on average per year.
EPS Next Y298.59%
EPS Next 2Y113.29%
EPS Next 3Y76.62%
EPS Next 5Y63.08%
Revenue Next Year-3.48%
Revenue Next 2Y-0.47%
Revenue Next 3Y1.65%
Revenue Next 5Y3.49%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- PKI is valuated rather expensively with a Price/Earnings ratio of 21.08.
- Based on the Price/Earnings ratio, PKI is valued a bit cheaper than 60.28% of the companies in the same industry.
- PKI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.25.
- Based on the Price/Forward Earnings ratio of 12.33, the valuation of PKI can be described as correct.
- Based on the Price/Forward Earnings ratio, PKI is valued a bit cheaper than the industry average as 63.08% of the companies are valued more expensively.
- PKI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.08 | ||
| Fwd PE | 12.33 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PKI is valued a bit cheaper than 77.57% of the companies in the same industry.
- PKI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PKI is cheaper than 90.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.58 | ||
| EV/EBITDA | 6.9 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- PKI's earnings are expected to grow with 76.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.07
PEG (5Y)N/A
EPS Next 2Y113.29%
EPS Next 3Y76.62%
5. Dividend
5.1 Amount
- PKI has a Yearly Dividend Yield of 3.61%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 3.29, PKI pays a bit more dividend than its industry peers.
- PKI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
5.2 History
- On average, the dividend of PKI grows each year by 11.43%, which is quite nice.
- PKI has paid a dividend for at least 10 years, which is a reliable track record.
- The dividend of PKI decreased recently.
Dividend Growth(5Y)11.43%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- PKI pays out 73.81% of its income as dividend. This is not a sustainable payout ratio.
- PKI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP73.81%
EPS Next 2Y113.29%
EPS Next 3Y76.62%
Parkland Corporation / PKI.CA FAQ
What is the ChartMill fundamental rating of Parkland Corporation (PKI.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to PKI.CA.
What is the valuation status of Parkland Corporation (PKI.CA) stock?
ChartMill assigns a valuation rating of 6 / 10 to Parkland Corporation (PKI.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for Parkland Corporation?
Parkland Corporation (PKI.CA) has a profitability rating of 5 / 10.
Can you provide the expected EPS growth for PKI stock?
The Earnings per Share (EPS) of Parkland Corporation (PKI.CA) is expected to grow by 298.59% in the next year.
Can you provide the dividend sustainability for PKI stock?
The dividend rating of Parkland Corporation (PKI.CA) is 6 / 10 and the dividend payout ratio is 73.81%.