Parkland (PKI) AI Stock Analysis

• Market Cap: C$6.75B
• Dividend Yield: 3.67%
• Average Volume (3M): 542.19K
• Price to Earnings (P/E): 22.6
• Beta (1Y): 0.63
• Revenue Growth: -10.91%
• EPS Growth: -21.14%
• Country: CA
• Employees: 4,635
• Sector: Energy
• Sector Strength: 46
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): 0.90
• Shares Outstanding: 174,427,540
• 10 Day Avg. Volume: 467,652
• 30 Day Avg. Volume: 542,190
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$42.44
• Price Target Upside: 9.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 72 Outperform
• Price Target: C$43.00 ▲(11.11% Upside)

Parkland's overall stock score is driven by its stable financial performance and positive corporate events. The strategic transaction with Sunoco is a significant positive, expected to enhance market position and financial performance. While technical indicators and valuation are neutral, they do not detract significantly from the overall positive outlook.

Positive Factors

Acquisition Offer

Sunoco LP's acquisition offer includes a 25% premium to where Parkland shares were trading at the time of the deal announcement.

Dividend Increase

Parkland announced a modest 3% bump in its quarterly dividend to $0.36 per share, which translates to a 4% annualized yield.

Free Cash Flow

Parkland's strong free cash flow yield of over 10% supports an Outperform rating.

Negative Factors

Earnings Performance

Parkland reported softer Q4/24 results partly due to weaker refinery margins.

Target Price

The target price for Parkland shares has been decreased to $42, reflecting the equity offer price based on Sunoco's current trading price.

Valuation

Parkland is trading at the low end of its historical valuation range, significantly below its Retail/Commercial peer groups.

Parkland Business Overview & Revenue Model

Company Description

Parkland Corporation (PKI) is a leading independent marketer of fuel and petroleum products, as well as a convenience store operator. The company operates across various segments including retail, commercial, and wholesale, serving customers in Canada, the United States, and the Caribbean. Parkland's core services include fuel supply, logistics, and related convenience retail offerings, providing essential energy and retail solutions to a diverse customer base.

How the Company Makes Money

Parkland Corporation generates revenue through multiple streams primarily centered around the sale and distribution of fuel and petroleum products. The company operates an extensive network of retail gas stations and convenience stores, which contribute significantly to its income. Additionally, Parkland serves commercial clients by supplying bulk fuel and by offering tailored energy solutions to various industries such as agriculture, mining, and transportation. The wholesale division further boosts revenue by distributing fuel to third-party retailers and resellers. Strategic acquisitions and partnerships in the energy sector also enhance Parkland's market reach and financial performance, enabling the company to capitalize on synergies and expand its service offerings.

Parkland Financial Statement Overview

Summary

Parkland demonstrates stable financial performance with decent operational efficiency and strong cash flow generation. However, challenges in revenue growth and high leverage pose potential risks.

Income Statement

The income statement shows a stable gross profit margin of 10.44% for TTM, with a net profit margin of 0.70%. Revenue has shown a slight decline in the TTM compared to the previous annual period, indicating potential challenges in maintaining revenue growth. However, EBIT and EBITDA margins are relatively stable at 2.81% and 5.25%, respectively, showcasing decent operational efficiency.

Balance Sheet

The balance sheet indicates a moderate debt-to-equity ratio of 2.09, suggesting a higher leverage which can pose risks in a volatile market. However, the equity ratio of 22.62% reflects a reasonable proportion of assets funded by equity. ROE stands at 6.20% for TTM, showing satisfactory returns on shareholder investments.

Cash Flow

The cash flow statement highlights strong free cash flow generation with a TTM free cash flow to net income ratio of 4.67. The operating cash flow to net income ratio is 7.68, indicating robust cash flow generation relative to net income, providing a buffer for debt servicing and investments. However, free cash flow has decreased slightly from the previous annual period, which may need monitoring.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.18B	28.30B	32.45B	35.46B	21.47B	14.01B
Gross Profit	2.94B	2.89B	3.15B	3.28B	2.34B	1.73B
EBITDA	1.48B	1.32B	1.70B	1.47B	1.08B	1.02B
Net Income	196.00M	127.00M	471.00M	310.00M	97.00M	112.00M
Balance Sheet
Total Assets	13.97B	14.04B	13.87B	14.29B	11.55B	9.09B
Cash, Cash Equivalents and Short-Term Investments	362.00M	385.00M	387.00M	653.00M	284.00M	262.00M
Total Debt	6.61B	6.64B	6.36B	6.97B	5.56B	4.16B
Total Liabilities	10.81B	10.88B	10.69B	11.25B	9.22B	6.83B
Stockholders Equity	3.16B	3.17B	3.18B	3.04B	1.97B	1.92B
Cash Flow
Free Cash Flow	915.00M	960.00M	1.30B	823.00M	508.00M	589.00M
Operating Cash Flow	1.50B	1.53B	1.78B	1.33B	904.00M	934.00M
Investing Cash Flow	-524.00M	-524.00M	-516.00M	-1.23B	-1.51B	-515.00M
Financing Cash Flow	-1.03B	-1.04B	-1.57B	276.00M	655.00M	-367.00M

Parkland Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PKI, the sentiment is Positive. The current price of 38.7 is above the 20-day moving average (MA) of 38.54, above the 50-day MA of 38.33, and above the 200-day MA of 35.54, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 52.04 is Neutral, neither overbought nor oversold. The STOCH value of 51.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PKI.

Parkland Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KEY	80 Outperform	C$10.10B	19.04	18.92%	4.72%	1.57%	55.82%
WCP	79 Outperform	$12.39B	6.87	11.56%	7.30%	12.28%	16.78%
PKI	72 Outperform	C$6.75B	22.63	9.44%	3.67%	-10.91%	-21.14%
GEI	68 Neutral	C$4.22B	26.46	17.22%	6.57%	-14.27%	-11.69%
TPZ	66 Neutral	C$3.82B	59.66	5.17%	5.35%	1.92%	11.06%
Sector *	65 Neutral	$14.85B	7.05	2.76%	5.52%	4.66%	-61.61%
PSK	65 Neutral	$5.56B	25.39	8.08%	4.29%	-4.07%	-3.22%

Parkland Corporate Events

Parkland Corporation Achieves Record Q2 Results Amid Strategic Advancements

Parkland Corporation reported a record second quarter Adjusted EBITDA of $508 million in 2025, showcasing the strength of its diversified business model. The company’s Canadian and International operations demonstrated resilience, with notable performance in the Burnaby refinery contributing to higher refining margins. However, the USA segment faced challenges due to competitive pricing and macroeconomic pressures. The company is advancing a significant transaction with Sunoco, which is expected to enhance its market position and cash flow potential.

The most recent analyst rating on (TSE:PKI) stock is a Buy with a C$47.00 price target. To see the full list of analyst forecasts on Parkland stock, see the TSE:PKI Stock Forecast page.

Parkland to Release Q2 2025 Results Amid Sunoco Arrangement

Parkland Corporation announced that it will release its 2025 second quarter results on August 5, 2025, after market close. Due to an ongoing arrangement with Sunoco LP, Parkland will not hold a conference call or webcast for this quarter’s results. This decision may impact stakeholders’ usual access to detailed financial discussions and insights.

The most recent analyst rating on (TSE:PKI) stock is a Buy with a C$48.00 price target. To see the full list of analyst forecasts on Parkland stock, see the TSE:PKI Stock Forecast page.

Parkland Corporation Announces Shareholder Approval of Key Arrangement with Sunoco LP

Parkland Corporation announced the successful approval of all matters at its 2025 Annual and Special Meeting of Shareholders, including a significant arrangement with Sunoco LP. The arrangement, pending regulatory and court approvals, is expected to close in the latter half of 2025. This development reflects Parkland’s strategic efforts to enhance its market position and operational capabilities, potentially impacting stakeholders positively by aligning with its growth and performance objectives.

The most recent analyst rating on (TSE:PKI) stock is a Hold with a C$43.00 price target. To see the full list of analyst forecasts on Parkland stock, see the TSE:PKI Stock Forecast page.

Parkland Executes Supplemental Indentures Amid Sunoco Acquisition

Parkland Corporation announced the execution of supplemental indentures for its senior notes following successful consent solicitations related to its acquisition by Sunoco LP. These amendments eliminate the obligation for a ‘Change of Control Offer’ due to the transaction and redefine ‘Change of Control’ to recognize Sunoco as a ‘Qualified Owner.’ The changes are binding on all note holders and will only become inoperative if the transaction is not completed or applicable fees are not paid.

The most recent analyst rating on (TSE:PKI) stock is a Hold with a C$43.00 price target. To see the full list of analyst forecasts on Parkland stock, see the TSE:PKI Stock Forecast page.

Parkland’s Strategic Move with Sunoco Gains Key Endorsements

Parkland Corporation announced that proxy advisory firms ISS and Glass Lewis have endorsed its proposed arrangement with Sunoco LP, highlighting strategic and financial benefits. The arrangement promises enhanced diversification and improved capital markets access, backed by fairness opinions from major financial institutions. Parkland’s Board of Directors unanimously recommends shareholders vote in favor of the arrangement at the upcoming meeting.

The most recent analyst rating on (TSE:PKI) stock is a Hold with a C$43.00 price target. To see the full list of analyst forecasts on Parkland stock, see the TSE:PKI Stock Forecast page.

Parkland Corporation Declares Q2 2025 Dividend

Parkland Corporation has announced a dividend of $0.36 per share, payable on July 15, 2025, to shareholders of record as of June 20, 2025. This announcement reflects Parkland’s ongoing commitment to delivering shareholder value and highlights its strong operational performance and strategic positioning in the fuel distribution and convenience retail industry.

The most recent analyst rating on (TSE:PKI) stock is a Hold with a C$43.00 price target. To see the full list of analyst forecasts on Parkland stock, see the TSE:PKI Stock Forecast page.

Parkland Completes Consent Solicitations for Sunoco Acquisition

Parkland Corporation announced the successful completion of consent solicitations related to its acquisition by Sunoco LP. The company received the necessary consents to amend the indentures governing its senior notes, eliminating the obligation to make a ‘Change of Control Offer’ and recognizing Sunoco as a ‘Qualified Owner.’ This move facilitates the acquisition process and impacts the company’s financial obligations, potentially affecting stakeholders and market positioning.

The most recent analyst rating on (TSE:PKI) stock is a Hold with a C$43.00 price target. To see the full list of analyst forecasts on Parkland stock, see the TSE:PKI Stock Forecast page.

Parkland Announces Strategic Transaction with Sunoco for Long-Term Growth

Parkland Corporation has announced a strategic transaction with Sunoco LP, which involves the filing of a Management Information Circular for an upcoming shareholder meeting. This transaction is set to deliver immediate value to shareholders and position the combined company for long-term growth. The arrangement offers a 25% premium based on recent share prices and provides shareholders with flexible consideration options, including cash and SunocoCorp common units. The merger will create one of the largest independent fuel distributors in the Americas, expected to achieve significant synergies and improve financial performance. Sunoco will maintain a Canadian headquarters and continue investing in Canadian operations, reinforcing its commitment to the region.

The most recent analyst rating on (TSE:PKI) stock is a Hold with a C$43.00 price target. To see the full list of analyst forecasts on Parkland stock, see the TSE:PKI Stock Forecast page.

Parkland Initiates Consent Solicitations Amid Sunoco Acquisition

Parkland Corporation has initiated consent solicitations to amend the indentures governing its outstanding notes in connection with its acquisition by Sunoco LP. This move is aimed at eliminating the obligation to make a ‘Change of Control Offer’ and redefining ‘Change of Control’ to recognize Sunoco as a qualified owner. The transaction has not resulted in any downgrade of the notes’ ratings by major rating agencies, indicating a stable outlook for Parkland’s financial instruments post-acquisition.

The most recent analyst rating on (TSE:PKI) stock is a Hold with a C$43.00 price target. To see the full list of analyst forecasts on Parkland stock, see the TSE:PKI Stock Forecast page.