RE:RE:GLTALongs. A bunch of chicken littles.
DeanEdmonton reply - (10/21/2022 12:17:39 PM)
RE:GLTALongs. A bunch of chicken littles.
MrLongPants - Learn to read a balance sheet and quit relying on whoever you are quoting because they are wrong. This company has over 11.6 BILLION in debt, not the 4 billion you are showing. When you strip out the 3.7 billion in goodwill and Intangible assets they have a billiom more debt than hard assets, so their book value is actually negative. EBITA last year was 1 billion on Revenue of 21.5 billion. Revenue over the first three quarters has been just over 29.3 billion but EBITA is under a billion.
Guy needs to be careful about which analysts you listen to. If you are buying in I really hope you do well. I will relook at this stock after Q4 results are in.
Mrlongpants wrote:Hold ,Buy and prosper.
Debt 4 billion.Impact:
NEGATIVE
Our revised 2022E EBITDA is $1,604mm. This could prove conservative if crack spreads remain high and hedging losses do not create offsets. Management indicated that, including SOL's NCI beginning August 4, it expects earnings to fall comfortably within its $1.6bln-$1.7bln guidance range. Adjusting for the SOL NCI, roughly half of the $126mm EBITDA shortfall vs. our previous Q3/22 estimate was from an unexpected $65mm inventory and risk management loss in the USA wholesale business, with the other half from lowerthan-expected Canadian fuel margins as prices fell. Parkland's USA wholesale business (selling fuel to non-Parkland commercial/retail locations) has grown considerably in recent years (from acquisitions) and required Parkland to carry substantial inventory. Parkland hedges its exposure using futures contracts, though hedges are not perfect as the price differential (vs. futures contract prices) in many smaller markets can be large, resulting in basis risk. With the recent commodity price volatility, we are currently seeing that exposure became very apparent in Q3/22 and management curtailed the wholesale business to reduce inventory exposure going forward.
TD Investment Conclusion
PKI's shares remain undervalued, at ~6x NTM EBITDA (ex-turnaround), well below the 8.0x weighted-average of peers, and we believe that the shares will remain in the penalty box in the near term. Nevertheless, the 6% EBITDA CAGR through 2024 and 10-12% FCF yield going forward should help PKI gradually deleverage, and eventually lift valuation once investors gain more confidence in the earnings outlook.
I have a Certificate in book keeping.
Had to be able to read liabilities and assets on the spread sheets.
I cut and paste from TD web broker . I rely on the facts and recommendations from other analysts.
I hope i didnt offend anyone. If I did. I'm sorry. I post to help and bring what I think are the facts.
Then you can decide if their true or not.Cut and paste.
How Much Debt Does Parkland Carry?
As you can see below, at the end of June 2022, Parkland had CA$5.88b of debt, up from CA$4.03b a year ago. Click the image for more detail. However, because it has a cash reserve of CA$542.0m, its net debt is less, at about CA$5.34b.
For more Debt
info goto:
https://simplywall.st/stocks/ca/energy/tsx-pki/parkland-shares/news/is-parkland-tsepki-using-too-much-debt
I hold This stock. GLTALongs.