Keyera Corp. (KEY) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Pembina Pipeline Corp.

TC Energy Corp.

Enbridge, Inc.

Keyera Corp.

Why is Keyera Corp. ?

High Management Efficiency with a high ROCE of 12.80%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 4.79

Healthy long term growth as Net Sales has grown by an annual rate of 16.74%

Negative results in Jun 25

INTEREST COVERAGE RATIO(Q) Lowest at 471.9
RAW MATERIAL COST(Y) Grown by 19.53% (YoY)
NET SALES(Q) Lowest at CAD 1,537.42 MM

With ROE of 16.91%, it has a very attractive valuation with a 3.66 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 10.74%, its profits have fallen by -10%

Majority shareholders : FIIs

Underperformed the market in the last 1 year

The stock has generated a return of 10.74% in the last 1 year, much lower than market (S&P/TSX 60) returns of 22.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Keyera Corp. should be less than 10%
Overall Portfolio exposure to Oil should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Keyera Corp. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Keyera Corp.

-2.02%

1.28

21.27%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.74%

EBIT Growth (5y)

3.88%

EBIT to Interest (avg)

4.79

Debt to EBITDA (avg)

3.25

Net Debt to Equity (avg)

1.28

Sales to Capital Employed (avg)

1.05

Tax Ratio

23.27%

Dividend Payout Ratio

96.06%

Pledged Shares

Institutional Holding

0.74%

ROCE (avg)

12.80%

ROE (avg)

17.27%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.53

EV to EBIT

17.22

EV to EBITDA

11.71

EV to Capital Employed

2.10

EV to Sales

1.90

PEG Ratio

Dividend Yield

ROCE (Latest)

12.19%

ROE (Latest)

16.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

ROCE(HY)

Highest at 18.92%

DIVIDEND PER SHARE(HY)

Highest at CAD 10.69

-10What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 471.9

RAW MATERIAL COST(Y)

Grown by 19.53% (YoY

NET SALES(Q)

Lowest at CAD 1,537.42 MM

OPERATING PROFIT(Q)

Lowest at CAD 235.46 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 15.32 %

PRE-TAX PROFIT(Q)

Lowest at CAD 130.25 MM

NET PROFIT(Q)

Lowest at CAD 98.02 MM

Here's what is working for Keyera Corp.

Dividend per share

Highest at CAD 10.69

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Depreciation

Highest at CAD 94.98 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for Keyera Corp.

Net Sales

At CAD 1,537.42 MM has Fallen at -16.53%

over average net sales of the previous four periods of CAD 1,841.89 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CAD MM)

Interest Coverage Ratio

Lowest at 471.9

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CAD 1,537.42 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Operating Profit

Lowest at CAD 235.46 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Operating Profit Margin

Lowest at 15.32 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CAD 130.25 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

Lowest at CAD 98.02 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Raw Material Cost

Grown by 19.53% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales