KEYUF - Keyera: Record Results In FY2023 But Don't Get Too Excited
2024-02-23 03:07:21 ET
Summary
- Keyera delivered excellent results for FY2023.
- FY2024 Guidance leaves me to assume that Keyera might generate around C$3.25 (US$2.40) DCF per share in 2024.
- Keyera generates mediocre returns on tangible capital and trades on yield rather than growth.
- Using a very simplified approach, Keyera should be a "buy" above 7% and a sell below somewhere around 5.5% yield.
- I reiterate my "hold" rating on Keyera and would still sell my own shares at C$35 (US$25.91) per share.
Author's Note: Since Keyera Corp. is reporting in Canadian Dollars, all numbers refer to Canadian Dollars (unless stated otherwise).
Introduction
I have written twice about Keyera Corp. (KEYUF)( KEY:CA ). The first article was published on November 22, 2022, and the second on May 22, 2023. I expressed a neutral rating on Keyera both times....
Keyera: Record Results In FY2023 But Don't Get Too Excited