Parkland (PKI) AI Stock Analysis

• Market Cap: C$6.58B
• Dividend Yield: 3.81%
• Average Volume (3M): 840.85K
• Price to Earnings (P/E): 33.6
• Beta (1Y): 0.72
• Revenue Growth: -9.79%
• EPS Growth: -49.13%
• Country: CA
• Employees: 4,635
• Sector: Energy
• Sector Strength: 68
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): 0.37
• Shares Outstanding: 174,381,330
• 10 Day Avg. Volume: 631,274
• 30 Day Avg. Volume: 840,854
• PEG Ratio: 0.63
• Price to Book (P/B): 2.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.54
• 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$43.25
• Price Target Upside: 14.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 67 Neutral
• Price Target: C$42.00 ▲(11.23%Upside)

Parkland's overall stock score reflects a stable financial foundation and promising corporate events, despite a high P/E ratio indicating potential overvaluation. The company's leverage level and technical indicators suggest moderate risk, balanced by strategic initiatives with Sunoco and a solid dividend yield.

Positive Factors

Acquisition Offer

Sunoco LP has offered to acquire Parkland for approximately US$9 billion, providing a significant premium and a favorable outcome for shareholders.

Dividend Increase

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

Valuation

The company's free cash flow yield remains strong at over 10%, supporting an Outperform rating and suggesting potential for future growth.

Negative Factors

Operational Challenges

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

Strategic Review

The company has initiated a strategic review to explore options for maximizing shareholder value, indicating potential instability or uncertainty in its business strategy.

Target Price Decrease

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

Parkland Business Overview & Revenue Model

Company Description

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. It operates 1,812 retail gas stations under the Ultramar, Esso, Fas Gas Plus, Chevron, and Pioneer brands; and a convenience store under the On the Run brand. This segment also delivers bulk fuel, bulk and cylinder exchange propane, heating oil, lubricants, and other related products and services to customers in oil and gas, construction, mining, forestry, fishing, and transportation industries under the Ultramar, Bluewave Energy, Pipeline Commercial, Chevron, Columbia Fuels, and Sparlings Propane brands. The International segment operates retail service stations under the Esso, Shell, and Sol brands; and delivers and supplies gasoline, diesel, fuel oil, propane, and lubricants. This segment also provides commercial solar and other renewable energy solutions. The USA segment operates a network of gas stations; and delivers bulk fuel, lubricants, and other related products and services under the Rhinehart Oil, Farstad Oil, Conrad & Bischoff, Tropic Oil and NFN National Fuel Network brands. The Supply segment manufactures transportation fuels; transports, stores, and markets fuels, crude oil, and liquid petroleum gases; and manufactures and sells aviation fuel to airlines. The company was formerly known as Parkland Fuel Corporation and changed its name to Parkland Corporation in May 2020. Parkland Corporation was founded in 1977 and is headquartered in Calgary, Canada.

How the Company Makes Money

Parkland Corporation generates revenue primarily through the sale of fuel and petroleum products across its retail, commercial, and wholesale channels. In the retail segment, Parkland operates a vast network of branded service stations under various banners, offering fuel and convenience store products directly to consumers. The commercial segment serves businesses and industries with bulk fuel deliveries, while the wholesale segment supplies fuel to resellers and other distributors. Additionally, the company benefits from its lubricants and propane sales, which contribute to its diversified revenue streams. Strategic acquisitions and partnerships also play a crucial role in expanding Parkland's market reach and enhancing its supply chain capabilities, thereby supporting revenue growth.

Parkland Financial Statement Overview

Summary

Parkland exhibits a stable financial position with moderate profitability and robust cash flow generation. The income statement reveals stable profit margins, but a slight decline in revenue. The balance sheet shows high leverage, posing potential risks, while cash flow indicates strong free cash flow generation.

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
	EBIT
793.00M	757.00M	930.00M	1.25B	788.00M	394.00M
	EBITDA
1.48B	1.32B	1.70B	1.47B	1.08B	1.02B
	Net Income Common Stockholders
196.00M	127.00M	471.00M	310.00M	97.00M	112.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
387.00M	385.00M	387.00M	653.00M	284.00M	262.00M
	Total Assets
13.87B	14.04B	13.87B	14.29B	11.55B	9.09B
	Total Debt
6.36B	6.64B	6.36B	6.97B	5.56B	4.16B
	Net Debt
5.97B	6.26B	5.97B	6.32B	5.27B	3.90B
	Total Liabilities
10.69B	10.88B	10.69B	11.25B	9.22B	6.83B
	Stockholders Equity
3.18B	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: 37.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 37.76 is below the 20-day moving average (MA) of 38.49, above the 50-day MA of 36.55, and above the 200-day MA of 34.93, indicating a neutral trend. The MACD of 0.20 indicates Positive momentum. The RSI at 45.92 is Neutral, neither overbought nor oversold. The STOCH value of 5.83 is Positive, 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
PKI	67 Neutral	C$6.58B	33.56	6.21%	3.81%	-9.79%	-49.13%
Sector *	58 Neutral	$7.55B	3.49	-4.45%	10.15%	0.79%	-49.51%
SPGYF		$8.50B	6.21	16.40%	7.68%	―	―
GBNXF		$2.98B	25.44	17.23%	4.79%	―	―
PREKF		$4.21B	26.15	8.39%	4.07%	―	―
KEY	75 Outperform	C$9.76B	17.87	19.55%	4.88%	8.00%	52.89%
TPZ	70 Outperform	C$4.07B	74.35	4.22%	5.14%	2.02%	12.06%

Parkland Corporate Events

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.

Parkland Corporation Reports Strong Q1 2025 Recovery Amid Strategic Challenges

Parkland Corporation reported a recovery in its first quarter of 2025, overcoming challenges from the previous year, including a significant impact from exiting the California compliance market. The company achieved an adjusted EBITDA of $375 million, driven by strong performance in its international segment and improved refining margins. Despite macroeconomic and regulatory challenges, Parkland’s diverse portfolio showed resilience, with notable growth in the international segment and a robust driving season anticipated in Canada. However, the company faced a decrease in adjusted EBITDA in its Canadian and USA segments due to strategic decisions and market conditions.

Sunoco to Acquire Parkland in $9.1 Billion Deal

Sunoco LP has announced a definitive agreement to acquire Parkland Corporation in a transaction valued at approximately U.S.$9.1 billion. This acquisition is expected to create the largest independent fuel distributor in the Americas, offering significant financial benefits and operational synergies. The deal includes a 25% premium for Parkland shareholders and promises continued investment in Canadian operations, including maintaining the Calgary headquarters and investing in Parkland’s refinery. The transaction is expected to close in the second half of 2025, subject to regulatory approvals.

ISS Endorses Parkland’s Board Amidst Simpson’s Control Bid

Institutional Shareholder Services Inc. (ISS) has expressed support for Parkland’s current board of directors, raising concerns about Simpson Oil Limited’s attempt to gain control. ISS criticized Simpson’s lack of detailed strategy and leadership planning, recommending against their nominee for interim CEO. Parkland’s board, endorsed by ISS, is seen as well-structured to continue strategic initiatives and deliver shareholder value. Shareholders are urged to vote for Parkland’s nominees to ensure experienced governance and value maximization.

Parkland Corporation Sets Date for Q1 2025 Results and Annual Shareholder Meeting

Parkland Corporation has announced the release date for its 2025 first quarter results, which will be shared after market close on May 5, 2025, followed by a webcast and conference call on May 6, 2025. The company will also hold its Annual General Meeting of Shareholders on the same day, urging shareholders to vote using the BLUE Proxy for director nominees. This announcement is part of Parkland’s ongoing efforts to engage with stakeholders and maintain transparency in its operations, potentially impacting its market positioning and shareholder relations.

Parkland Counters Simpson Oil’s Control Bid, Reaffirms Board’s Leadership

Parkland Corporation has published a presentation to counter claims by Simpson Oil Limited, asserting that Parkland’s independent and experienced Board is best suited to lead the company’s Strategic Review and maximize shareholder value. The company criticizes Simpson’s attempt to gain control without offering a premium and highlights the lack of qualifications and independence in Simpson’s proposed board nominees. Parkland emphasizes its commitment to delivering long-term value for all shareholders and accuses Simpson of prioritizing personal financial interests over those of other shareholders.

Parkland Announces CEO Succession and Strategic Review Amidst Market Challenges

Parkland Corporation announced that Bob Espey will step down as President and CEO, with Michael Jennings appointed as Executive Chair. The company is undergoing a strategic review to maximize shareholder value, considering options like asset divestments and business combinations. Preliminary Q1 2025 results show an expected Adjusted EBITDA of $375 million, with challenges from macroeconomic and regulatory volatility affecting operations, particularly in the U.S. and California.

Parkland Announces Board Nominees and CFO Appointment Amid Strategic Review

Parkland Corporation, a company involved in the energy sector, has announced the filing of its management information circular for the upcoming annual general meeting of shareholders. The company has added three nominees from Simpson Oil Limited to its board slate, including one on the special committee overseeing a strategic review. This move comes amid Simpson’s attempt to nominate nine directors, which Parkland views as a bid to gain control without a premium. Parkland has also appointed Brad Monaco as the permanent Chief Financial Officer, highlighting his strong leadership and strategic capabilities.

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.