Parkland Corporation (PKI.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:PKI - CA70137W1086 - Common Stock
39.84 CAD
-0.14 (-0.35%)
PKI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 206 industry peers in the Oil, Gas & Consumable Fuels industry. While PKI is still in line with the averages on profitability rating, there are concerns on its financial health. PKI is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
- PKI had positive earnings in the past year.
- In the past year PKI had a positive cash flow from operations.
- Each year in the past 5 years PKI has been profitable.
- Each year in the past 5 years PKI had a positive operating cash flow.
1.2 Ratios
- PKI's Return On Assets of 2.41% is in line compared to the rest of the industry. PKI outperforms 56.54% of its industry peers.
- With a decent Return On Equity value of 10.28%, PKI is doing good in the industry, outperforming 79.91% of the companies in the same industry.
- PKI has a better Return On Invested Capital (7.46%) than 86.92% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital 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
- PKI has a Profit Margin of 1.21%. This is comparable to the rest of the industry: PKI outperforms 53.74% of its industry peers.
- In the last couple of years the Profit Margin of PKI has declined.
- PKI has a Operating Margin (3.72%) which is comparable to the rest of the industry.
- PKI's Operating Margin has declined in the last couple of years.
- PKI's Gross Margin of 14.53% is in line compared to the rest of the industry. PKI outperforms 45.79% of its industry peers.
- PKI's Gross Margin has declined in the last couple of years.
| 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.
- PKI has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for PKI has been increased compared to 5 years ago.
- The debt/assets ratio for PKI is higher compared to a year ago.
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's Altman-Z score of 2.63 is fine compared to the rest of the industry. PKI outperforms 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.
- Looking at the Debt to FCF ratio, with a value of 6.07, PKI is in the better half of the industry, outperforming 74.77% of the companies in the same industry.
- A Debt/Equity ratio of 1.70 is on the high side and indicates that PKI has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.70, PKI is not doing good in the industry: 73.83% of the companies in the same industry are doing better.
| 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.
- Looking at the Current ratio, with a value of 1.00, PKI is in the better half of the industry, outperforming 62.15% of the companies in the same industry.
- PKI has a Quick Ratio of 1.00. This is a bad value and indicates that PKI is not financially healthy enough and could expect problems in meeting 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.
- Measured over the past years, PKI shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -22.68% on average per year.
- Looking at the last year, PKI shows a decrease in Revenue. The Revenue has decreased by -4.80% in the last year.
- Measured over the past years, PKI shows a quite strong growth in Revenue. The Revenue has been growing by 8.93% on average per year.
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
- Based on estimates for the next years, PKI will show a very strong growth in Earnings Per Share. The EPS will grow by 63.08% on average per year.
- The Revenue is expected to grow by 3.49% on average over the next years.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- PKI is valuated rather expensively with a Price/Earnings ratio of 21.08.
- 60.28% of the companies in the same industry are more expensive than PKI, based on the Price/Earnings ratio.
- PKI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 12.33, PKI is valued correctly.
- 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.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. PKI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.08 | ||
| Fwd PE | 12.33 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PKI indicates a somewhat cheap valuation: PKI is cheaper than 77.57% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, PKI is valued 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
- PKI's 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.
- Compared to an average S&P500 Dividend Yield of 1.81, PKI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
5.2 History
- The dividend of PKI is nicely growing with an annual growth rate of 11.43%!
- 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%.