Should Parkland Fuel Corporation (TSE:PKI) Be Your Next Stock Pick?

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Parkland Fuel Corporation (TSE:PKI) due to its excellent fundamentals in more than one area. PKI is a dependable dividend-paying company with a a strong history of performance and an optimistic future outlook. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my high-level commentary, read the full report on Parkland Fuel here.

Solid track record with reasonable growth potential and pays a dividend

Over the past few years, PKI has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. Not only did PKI outperformed its past performance, its growth also exceeded the Oil and Gas industry expansion, which generated a 16% earnings growth. This paints a buoyant picture for the company.

TSX:PKI Future Profit November 28th 18

PKI’s ample net income is able to cover all of its dividend payments, which has been higher than the low-risk savings rate, compensating investors for taking the risk of holding a stock as opposed to riskless assets.

TSX:PKI Historical Dividend Yield November 28th 18

Next Steps:

For Parkland Fuel, I’ve put together three relevant factors you should further examine:

1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.

2. Valuation: What is PKI worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether PKI is currently mispriced by the market.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of PKI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.