SUPERIOR PLUS CORP (SPB.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:SPB - CA86828P1036 - Common Stock
7.28 CAD
+0.09 (+1.25%)
We assign a fundamental rating of 4 out of 10 to SPB. SPB was compared to 6 industry peers in the Gas Utilities industry. SPB has a medium profitability rating, but doesn't score so well on its financial health evaluation. SPB has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- SPB had positive earnings in the past year.
- In the past year SPB had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: SPB reported negative net income in multiple years.
- Each year in the past 5 years SPB had a positive operating cash flow.
1.2 Ratios
- SPB has a Return On Assets (0.46%) which is comparable to the rest of the industry.
- SPB has a Return On Equity (1.95%) which is comparable to the rest of the industry.
- Looking at the Return On Invested Capital, with a value of 4.54%, SPB belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- SPB had an Average Return On Invested Capital over the past 3 years of 4.06%. This is in line with the industry average of 5.31%.
- The last Return On Invested Capital (4.54%) for SPB is above the 3 year average (4.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.46% | ||
| ROE | 1.95% | ||
| ROIC | 4.54% |
ROA(3y)-0.84%
ROA(5y)0.92%
ROE(3y)-3.15%
ROE(5y)3.41%
ROIC(3y)4.06%
ROIC(5y)3.44%
1.3 Margins
- With a Profit Margin value of 0.64%, SPB perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- Looking at the Operating Margin, with a value of 7.79%, SPB is doing worse than 66.67% of the companies in the same industry.
- In the last couple of years the Operating Margin of SPB has declined.
- SPB's Gross Margin of 52.36% is amongst the best of the industry. SPB outperforms 83.33% of its industry peers.
- SPB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.79% | ||
| PM (TTM) | 0.64% | ||
| GM | 52.36% |
OM growth 3Y52.97%
OM growth 5Y-5.48%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y12.22%
GM growth 5Y4.86%
2. Health
2.1 Basic Checks
- SPB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- SPB has less shares outstanding than it did 1 year ago.
- SPB has more shares outstanding than it did 5 years ago.
- SPB has a worse debt/assets ratio than last year.
2.2 Solvency
- SPB has an Altman-Z score of 0.47. This is a bad value and indicates that SPB is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 0.47, SPB perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- SPB has a debt to FCF ratio of 9.40. This is a negative value and a sign of low solvency as SPB would need 9.40 years to pay back of all of its debts.
- SPB has a Debt to FCF ratio of 9.40. This is amongst the best in the industry. SPB outperforms 100.00% of its industry peers.
- SPB has a Debt/Equity ratio of 2.18. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of SPB (2.18) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.18 | ||
| Debt/FCF | 9.4 | ||
| Altman-Z | 0.47 |
ROIC/WACC0.79
WACC5.78%
2.3 Liquidity
- SPB has a Current Ratio of 0.84. This is a bad value and indicates that SPB is not financially healthy enough and could expect problems in meeting its short term obligations.
- SPB has a Current ratio (0.84) which is comparable to the rest of the industry.
- A Quick Ratio of 0.66 indicates that SPB may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.66, SPB belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 316.31% over the past year.
- Looking at the last year, SPB shows a small growth in Revenue. The Revenue has grown by 3.02% in the last year.
- Measured over the past years, SPB shows a decrease in Revenue. The Revenue has been decreasing by -3.54% on average per year.
EPS 1Y (TTM)316.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-74.22%
Revenue 1Y (TTM)3.02%
Revenue growth 3Y-0.14%
Revenue growth 5Y-3.54%
Sales Q2Q%-5.95%
3.2 Future
- Based on estimates for the next years, SPB will show a very strong growth in Earnings Per Share. The EPS will grow by 34.26% on average per year.
- SPB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.53% yearly.
EPS Next Y191.88%
EPS Next 2Y97.21%
EPS Next 3Y61.73%
EPS Next 5Y34.26%
Revenue Next Year23.62%
Revenue Next 2Y12.99%
Revenue Next 3Y10.01%
Revenue Next 5Y6.53%
3.3 Evolution
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 52.00, SPB can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Earnings ratio as SPB.
- SPB is valuated expensively when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 11.52, the valuation of SPB can be described as reasonable.
- 66.67% of the companies in the same industry are more expensive than SPB, based on the Price/Forward Earnings ratio.
- SPB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52 | ||
| Fwd PE | 11.52 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SPB indicates a somewhat cheap valuation: SPB is cheaper than 66.67% of the companies listed in the same industry.
- 100.00% of the companies in the same industry are more expensive than SPB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.07 | ||
| EV/EBITDA | 6.57 |
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.
- SPB's earnings are expected to grow with 61.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y97.21%
EPS Next 3Y61.73%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.52%, SPB has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.17, SPB has a dividend in line with its industry peers.
- SPB's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
5.2 History
- The dividend of SPB decreases each year by -3.18%.
- SPB has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-3.18%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 460.38% of the earnings are spent on dividend by SPB. This is not a sustainable payout ratio.
DP460.38%
EPS Next 2Y97.21%
EPS Next 3Y61.73%
SUPERIOR PLUS CORP / SPB.CA FAQ
Can you provide the ChartMill fundamental rating for SUPERIOR PLUS CORP?
ChartMill assigns a fundamental rating of 4 / 10 to SPB.CA.
What is the valuation status for SPB stock?
ChartMill assigns a valuation rating of 6 / 10 to SUPERIOR PLUS CORP (SPB.CA). This can be considered as Fairly Valued.
What is the profitability of SPB stock?
SUPERIOR PLUS CORP (SPB.CA) has a profitability rating of 5 / 10.
What are the PE and PB ratios of SUPERIOR PLUS CORP (SPB.CA) stock?
The Price/Earnings (PE) ratio for SUPERIOR PLUS CORP (SPB.CA) is 52 and the Price/Book (PB) ratio is 1.45.
How financially healthy is SUPERIOR PLUS CORP?
The financial health rating of SUPERIOR PLUS CORP (SPB.CA) is 3 / 10.