We assign a fundamental rating of 4 out of 10 to SP. SP was compared to 80 industry peers in the Commercial Services & Supplies industry. There are concerns on the financial health of SP while its profitability can be described as average. SP has a correct valuation and a medium growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

SP had positive earnings in the past year.
SP had a positive operating cash flow in the past year.
Of the past 5 years SP 4 years were profitable.
Each year in the past 5 years SP had a positive operating cash flow.

1.2 Ratios

SP has a better Return On Assets (2.65%) than 63.10% of its industry peers.
The Return On Equity of SP (11.63%) is better than 73.81% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.70%, SP is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SP is below the industry average of 10.58%.
The 3 year average ROIC (7.88%) for SP is below the current ROIC(8.70%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	2.65%
ROE	11.63%
ROIC	8.7%

ROA(3y)3.19%

ROA(5y)-0.46%

ROE(3y)15.55%

ROE(5y)-6.94%

ROIC(3y)7.88%

ROIC(5y)6.28%

1.3 Margins

SP has a Profit Margin (1.68%) which is comparable to the rest of the industry.
SP's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 5.43%, SP is in line with its industry, outperforming 51.19% of the companies in the same industry.
In the last couple of years the Operating Margin of SP has remained more or less at the same level.
SP has a Gross Margin of 14.26%. This is in the lower half of the industry: SP underperforms 76.19% of its industry peers.
In the last couple of years the Gross Margin of SP has grown nicely.

		Industry Rank	Sector Rank
OM	5.43%
PM (TTM)	1.68%
GM	14.26%

OM growth 3Y40.67%

OM growth 5Y-1.13%

PM growth 3YN/A

PM growth 5Y-13.59%

GM growth 3Y6.65%

GM growth 5Y2.57%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

SP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, SP has about the same amount of shares outstanding.
The debt/assets ratio for SP has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 2.61 indicates that SP is not a great score, but indicates only limited risk for bankruptcy at the moment.
SP has a Altman-Z score (2.61) which is comparable to the rest of the industry.
The Debt to FCF ratio of SP is 8.26, which is on the high side as it means it would take SP, 8.26 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.26, SP is in line with its industry, outperforming 53.57% of the companies in the same industry.
SP has a Debt/Equity ratio of 1.27. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.27, SP is doing worse than 71.43% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	1.27
Debt/FCF	8.26
Altman-Z	2.61

ROIC/WACC1.03

WACC8.49%

2.3 Liquidity

SP has a Current Ratio of 0.65. This is a bad value and indicates that SP is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.65, SP is not doing good in the industry: 90.48% of the companies in the same industry are doing better.
A Quick Ratio of 0.65 indicates that SP may have some problems paying its short term obligations.
The Quick ratio of SP (0.65) is worse than 86.90% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.65
Quick Ratio	0.65

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 1.09% over the past year.
SP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.37% yearly.
Looking at the last year, SP shows a quite strong growth in Revenue. The Revenue has grown by 11.04% in the last year.
The Revenue has been growing slightly by 3.95% on average over the past years.

EPS 1Y (TTM)1.09%

EPS 3Y66.11%

EPS 5Y3.37%

EPS Q2Q%5.17%

Revenue 1Y (TTM)11.04%

Revenue growth 3Y17.92%

Revenue growth 5Y3.95%

Sales Q2Q%2.78%

3.2 Future

Based on estimates for the next years, SP will show a very strong growth in Earnings Per Share. The EPS will grow by 21.32% on average per year.
The Revenue is expected to grow by 6.17% on average over the next years.

EPS Next Y25.1%

EPS Next 2Y21.32%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year5.93%

Revenue Next 2Y6.17%

Revenue Next 3YN/A

Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

SP is valuated rather expensively with a Price/Earnings ratio of 19.42.
SP's Price/Earnings ratio is a bit cheaper when compared to the industry. SP is cheaper than 71.43% of the companies in the same industry.
SP is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 13.34 indicates a correct valuation of SP.
Based on the Price/Forward Earnings ratio, SP is valued a bit cheaper than 77.38% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, SP is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	19.42
Fwd PE	13.34

4.2 Price Multiples

SP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SP is cheaper than 61.90% of the companies in the same industry.
SP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SP is cheaper than 66.67% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	25.21
EV/EBITDA	10.38

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SP's earnings are expected to grow with 21.32% in the coming years. This may justify a more expensive valuation.