Parkland (PKI) AI Stock Analysis

• Market Cap: C$5.54B
• Dividend Yield: 4.42%
• Average Volume (3M): 1.37M
• Price to Earnings (P/E): 43.8
• Beta (1Y): 0.63
• Revenue Growth: -12.79%
• EPS Growth: -72.79%
• Country: CA
• Employees: 4,635
• Sector: Energy
• Sector Strength: 61
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): 0.73
• Shares Outstanding: 173,931,270
• 10 Day Avg. Volume: 489,512
• 30 Day Avg. Volume: 1,369,867
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.23
• Price to Cash Flow (P/CF): 3.50
• P/FCF Ratio: 5.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$48.33
• Price Target Upside: 51.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

Parkland's stock score of 66 reflects a balance of strong operational performance and strategic initiatives against profitability challenges and high debt levels. While technical indicators and corporate events provide moderate encouragement, high valuation poses a risk. Improvements in financial metrics and strategic execution could enhance the stock's attractiveness.

Positive Factors

Dividends

PKI announced a modest 3% bump in its quarterly dividend to $0.36/share, offering an approximately 4% annualized yield.

Free Cash Flow

The company's free cash flow yield remains strong at over 10%, which supports an Outperform rating.

Shareholder Value

The company initiated a strategic review to explore options for maximizing shareholder value, including asset divestments, acquisitions, business combinations, or a sale.

Negative Factors

Macro Challenges

PKI’s near-trough valuation largely reflects weak refining margins and ongoing macro pressures weighing on demand.

Refinery Downtime

Unexpected refinery downtime trims the Q4/24 outlook.

Refinery Margins

PKI reported softer Q4/24 results due in part to weaker refinery margins.

Parkland Business Overview & Revenue Model

Company Description

Parkland Corporation (PKI) is a leading independent supplier and marketer of fuel and petroleum products in the Americas and the Caribbean. The company operates across three segments: Retail, Commercial, and Supply & Wholesale. Parkland offers a range of services, including fuel distribution, convenience store operations, and commercial fuel sales. It serves a diverse group of customers, from individual motorists to large industrial clients, providing both branded and unbranded fuel solutions.

How the Company Makes Money

Parkland Corporation generates revenue primarily through the sale and distribution of fuel and petroleum products. Its key revenue streams include retail fuel sales at its gas stations, commercial fuel sales to businesses and industrial clients, and wholesale fuel distribution to third-party retailers. The company also earns income through its convenience store operations, which offer a variety of products and services. Strategic acquisitions and partnerships enhance Parkland's market presence and distribution capabilities, contributing significantly to its earnings. Additionally, the company's supply and wholesale segment optimizes fuel sourcing and logistics, further bolstering its profitability.

Parkland Financial Statement Overview

Summary

Parkland's financial performance reflects strong operational cash flow and healthy margins, though profitability is challenged by high debt levels and fluctuating net income. The company needs to focus on improving net income and managing debt levels to enhance financial resilience.

Income Statement

Parkland has demonstrated moderate revenue stability in the fossil fuels industry, with fluctuations in total revenue over the years. The gross profit margin has been consistent, indicating cost management efficiency. However, the net profit margin has decreased significantly in the most recent year, reflecting challenges in profitability. The EBITDA margin remains healthy, suggesting strong operational performance despite revenue volatility.

Balance Sheet

The company's debt-to-equity ratio is moderately high, suggesting a reliance on debt financing, which could pose risks in volatile market conditions. Return on equity has been variable, but the recent decrease in net income has impacted this metric. The equity ratio indicates a stable asset base, providing some financial stability even with high liabilities.

Cash Flow

Parkland has shown strong operating cash flow relative to net income, indicating effective cash generation from operations. Though free cash flow is positive, growth has been inconsistent, potentially due to fluctuating capital expenditures. The company maintains a good balance of cash flow management, supporting its financial health.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
28.30B	32.45B	35.46B	21.47B	14.01B
	Gross Profit
2.89B	3.15B	3.28B	2.34B	1.73B
	EBIT
0.00	930.00M	1.25B	788.00M	394.00M
	EBITDA
1.30B	1.70B	1.47B	1.08B	1.02B
	Net Income Common Stockholders
127.00M	471.00M	310.00M	97.00M	112.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
385.00M	387.00M	653.00M	284.00M	262.00M
	Total Assets
14.04B	13.87B	14.29B	11.55B	9.09B
	Total Debt
6.64B	6.36B	6.97B	5.56B	4.16B
	Net Debt
6.26B	5.97B	6.32B	5.27B	3.90B
	Total Liabilities
10.88B	10.69B	11.25B	9.22B	6.83B
	Stockholders Equity
3.17B	3.18B	3.04B	1.97B	1.92B
Cash Flow		Free Cash Flow
960.00M	1.30B	823.00M	508.00M	589.00M
	Operating Cash Flow
1.53B	1.78B	1.33B	904.00M	934.00M
	Investing Cash Flow
-524.00M	-516.00M	-1.23B	-1.51B	-515.00M
	Financing Cash Flow
-1.04B	-1.57B	276.00M	655.00M	-367.00M

Parkland Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 31.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PKI, the sentiment is Negative. The current price of 31.88 is below the 20-day moving average (MA) of 35.72, below the 50-day MA of 35.36, and below the 200-day MA of 34.77, indicating a bearish trend. The MACD of 0.17 indicates Positive momentum. The RSI at 45.20 is Neutral, neither overbought nor oversold. The STOCH value of 18.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:PKI.

Parkland Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMO	77 Outperform	$45.95B	10.00	21.08%	2.85%	1.08%	6.38%
SU	77 Outperform	$58.47B	10.01	13.82%	4.83%	3.25%	-25.69%
ATD	77 Outperform	C$66.52B	18.68	18.66%	1.05%	11.62%	-8.08%
ENB	73 Outperform	$134.54B	26.37	8.63%	6.11%	24.95%	-17.19%
CVE	67 Neutral	$29.18B	9.53	10.88%	4.60%	3.97%	-22.22%
PKI	66 Neutral	C$5.54B	43.77	4.00%	4.42%	-12.79%	-72.79%
Sector *	57 Neutral	$7.70B	4.18	-3.52%	8.32%	0.35%	-64.68%

Parkland Corporate Events

Parkland Enhances Board with New Independent Directors

Parkland Corporation has strengthened its Board of Directors by appointing Felipe Bayon and Sue Gove as independent directors. This move is part of Parkland’s ongoing commitment to strong corporate governance and board renewal. Bayon brings extensive experience from the global energy sector, while Gove offers deep retail sector expertise. Their appointments are expected to provide valuable insights as Parkland undergoes a strategic review aimed at maximizing shareholder value. Over the past two years, Parkland has added six independent directors to ensure a blend of expertise and fresh perspectives.

Parkland Corporation Declares Q1 2025 Dividend

Parkland Corporation has announced a dividend of $0.36 per share for the first quarter of 2025, payable on April 15 to shareholders of record as of March 21. This announcement highlights Parkland’s ongoing commitment to delivering value to its shareholders and reflects its stable financial performance. The dividend, classified as an ‘eligible dividend’ for Canadian tax purposes, underscores the company’s robust operational capabilities and strategic positioning in the fuel distribution and convenience retail industry.

Parkland Corporation Announces Strategic Review Amid 2024 Financial Results

Parkland Corporation reported its financial results for the fourth quarter and year-end 2024, highlighting an adjusted EBITDA of $428 million for the quarter and $1,690 million for the full year. Despite challenges in the refining and USA segments, Parkland’s retail and commercial businesses showed resilience. The company announced a strategic review to explore opportunities for maximizing shareholder value, which may include asset divestments or a sale of the company. This review is driven by the belief that the current share price does not reflect the company’s intrinsic value. Parkland’s liquidity improved significantly by year-end 2024, although its leverage ratio increased due to lower EBITDA and unfavorable currency translations.

Parkland Corporation Sets Date for 2024 Year-End Results Announcement

Parkland Corporation announced its 2024 fourth quarter and year-end results will be released on March 5, 2025, with a conference call scheduled for the following day. This announcement reflects Parkland’s commitment to transparency and communication with stakeholders, as it continues to leverage its strategic advantages in customer loyalty and supply efficiency to maintain its competitive position in the fuel distribution and convenience retail industry.

Parkland Corporation Responds to Court Decision on Governance Agreement

Parkland Corporation has acknowledged the Ontario Superior Court of Justice’s decision that Simpson Oil Limited is no longer bound by the voting and standstill restrictions in their Governance Agreement, initially established in 2019 to protect Parkland’s shareholders. Despite this change, Parkland remains committed to maximizing shareholder value and executing its long-term strategy while continuing engagement with all stakeholders. The company emphasizes its strong operational foundation and focus on shareholder interests, indicating that Simpson Oil’s representation on its board remains welcome.