Parkland (PKI) AI Stock Analysis

• Market Cap: C$6.72B
• Dividend Yield: 3.71%
• Average Volume (3M): 702.06K
• Price to Earnings (P/E): 22.5
• Beta (1Y): 0.79
• Revenue Growth: -10.91%
• EPS Growth: -21.14%
• Country: CA
• Employees: 4,635
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): 0.90
• Shares Outstanding: 174,586,440
• 10 Day Avg. Volume: 1,133,636
• 30 Day Avg. Volume: 702,057
• PEG Ratio: -0.61
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 5.91
• 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$42.38
• Price Target Upside: 10.08% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 60 Neutral
• Price Target: C$40.00 ▲(3.90% Upside)

The overall stock score of 60 reflects Parkland's operational improvements and strong cash flow generation, which are offset by high debt levels and a challenging market environment. The technical indicators suggest limited momentum, while the valuation is moderate with a reasonable dividend yield. Continued focus on operational efficiencies and debt management will be crucial for future stability.

Positive Factors

Operational Improvements

Improved EBIT and EBITDA margins indicate enhanced operational efficiency, which can lead to better profitability and competitiveness in the long term.

Cash Flow Generation

Strong cash flow generation supports financial flexibility, enabling Parkland to invest in growth opportunities and manage debt effectively.

Market Diversification

Diversified operations across multiple segments and regions reduce dependency on a single market, enhancing resilience against sector-specific downturns.

Negative Factors

High Debt Levels

High leverage can strain financial resources and limit strategic flexibility, posing a risk if market conditions deteriorate.

Revenue Decline

Declining revenue suggests potential challenges in maintaining market share or pricing power, impacting long-term growth prospects.

Low Net Profit Margin

A low net profit margin indicates limited profitability, which can affect the company's ability to reinvest in growth and withstand economic pressures.

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 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's financial performance is mixed. The income statement shows stable gross profit margins but low net profit margins. Revenue has decreased, yet EBIT and EBITDA margins have improved, indicating operational efficiencies. The balance sheet reveals high leverage, posing a risk, but cash flow is strong with positive trends in free cash flow growth and effective cash management.

Income Statement

Parkland's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is stable at 10.82%, but the net profit margin is relatively low at 1.08%. Revenue has decreased by 2.24% in the TTM, indicating a challenging market environment. However, the EBIT and EBITDA margins have shown improvement over the previous year, suggesting operational efficiencies.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 2.04, indicating significant leverage. Return on equity is moderate at 9.41%, showing decent profitability relative to equity. The equity ratio is not explicitly provided, but the high leverage poses a risk if market conditions worsen.

Cash Flow

Cash flow analysis reveals a positive trend with a 13.12% growth in free cash flow in the TTM. The operating cash flow to net income ratio is 0.45, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 0.63, suggesting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.55B	28.30B	32.45B	35.46B	21.47B	14.01B
Gross Profit	3.68B	3.57B	3.84B	4.02B	2.96B	2.34B
EBITDA	1.62B	1.28B	1.59B	1.43B	1.15B	833.00M
Net Income	298.00M	127.00M	471.00M	310.00M	97.00M	82.00M
Balance Sheet
Total Assets	13.62B	14.04B	13.87B	14.29B	11.55B	9.09B
Cash, Cash Equivalents and Short-Term Investments	439.00M	385.00M	387.00M	716.00M	326.00M	296.00M
Total Debt	6.46B	6.64B	6.36B	6.97B	5.56B	3.98B
Total Liabilities	10.44B	10.88B	10.69B	11.25B	9.22B	6.83B
Stockholders Equity	3.17B	3.17B	3.18B	3.04B	1.97B	1.92B
Cash Flow
Free Cash Flow	726.00M	651.00M	972.00M	547.00M	295.00M	599.00M
Operating Cash Flow	1.35B	1.23B	1.45B	1.05B	691.00M	944.00M
Investing Cash Flow	-560.00M	-544.00M	-541.00M	-1.24B	-1.53B	-525.00M
Financing Cash Flow	-677.00M	-713.00M	-1.22B	569.00M	882.00M	-367.00M

Parkland Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.50
• 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 38.5 is above the 20-day moving average (MA) of 38.25, above the 50-day MA of 38.20, and above the 200-day MA of 35.92, indicating a bullish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 57.54 is Neutral, neither overbought nor oversold. The STOCH value of 55.81 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
WCP	79 Outperform	C$13.73B	7.61	―	6.54%	12.28%	16.78%
KEY	73 Outperform	C$10.64B	20.05	18.75%	4.52%	1.57%	55.82%
GEI	66 Neutral	C$4.42B	27.74	18.61%	6.30%	-14.27%	-11.69%
PSK	65 Neutral	C$6.19B	28.39	―	3.89%	-4.07%	-3.22%
TPZ	64 Neutral	C$4.12B	64.22	3.52%	5.01%	1.92%	11.06%
PKI	60 Neutral	C$6.72B	22.51	9.44%	3.71%	-10.91%	-21.14%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

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.