SUPERIOR PLUS CORP (SPB.CA) Stock Fundamental Analysis
TSX:SPB - Toronto Stock Exchange - CA86828P1036 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to SPB. SPB was compared to 8 industry peers in the Gas Utilities industry. There are concerns on the financial health of SPB while its profitability can be described as average. SPB is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year SPB has reported negative net income.
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 (-1.00%) which is comparable to the rest of the industry.
The Return On Equity of SPB (-4.15%) is comparable to the rest of the industry.
The Return On Invested Capital of SPB (4.40%) is better than 85.71% of its industry peers.
SPB had an Average Return On Invested Capital over the past 3 years of 4.06%. This is below the industry average of 7.05%.
The 3 year average ROIC (4.06%) for SPB is below the current ROIC(4.40%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1% | ||
| ROE | -4.15% | ||
| ROIC | 4.4% |
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 an excellent Operating Margin value of 8.09%, SPB belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
SPB's Operating Margin has declined in the last couple of years.
SPB has a better Gross Margin (53.91%) than 85.71% of its industry peers.
In the last couple of years the Gross Margin of SPB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.09% | ||
| PM (TTM) | N/A | ||
| GM | 53.91% |
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.
Compared to 5 years ago, SPB has more shares outstanding
The debt/assets ratio for SPB is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.39, we must say that SPB is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.39, SPB perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
The Debt to FCF ratio of SPB is 16.44, which is on the high side as it means it would take SPB, 16.44 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 16.44, SPB belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 2.05 is on the high side and indicates that SPB has dependencies on debt financing.
SPB's Debt to Equity ratio of 2.05 is on the low side compared to the rest of the industry. SPB is outperformed by 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.05 | ||
| Debt/FCF | 16.44 | ||
| Altman-Z | 0.39 |
ROIC/WACC0.82
WACC5.38%
2.3 Liquidity
A Current Ratio of 0.95 indicates that SPB may have some problems paying its short term obligations.
SPB's Current ratio of 0.95 is on the low side compared to the rest of the industry. SPB is outperformed by 71.43% of its industry peers.
SPB has a Quick Ratio of 0.95. 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's Quick ratio of 0.80 is amongst the best of the industry. SPB outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
SPB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -326.77%.
Looking at the last year, SPB shows a very negative growth in Revenue. The Revenue has decreased by -22.83% 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)-326.77%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-101.78%
Revenue 1Y (TTM)-22.83%
Revenue growth 3Y-0.14%
Revenue growth 5Y-3.54%
Sales Q2Q%-28.76%
3.2 Future
SPB is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 64.79% yearly.
Based on estimates for the next years, SPB will show a small growth in Revenue. The Revenue will grow by 4.51% on average per year.
EPS Next Y235.16%
EPS Next 2Y64.79%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.73%
Revenue Next 2Y4.51%
Revenue Next 3YN/A
Revenue Next 5YN/A
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
The Price/Earnings Ratio is negative for SPB. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 10.80, which indicates a very decent valuation of SPB.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SPB is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.10. SPB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 10.8 |
4.2 Price Multiples
85.71% of the companies in the same industry are more expensive than SPB, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SPB is valued cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.63 | ||
| EV/EBITDA | 6.47 |
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.
A more expensive valuation may be justified as SPB's earnings are expected to grow with 64.79% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y64.79%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.69%, SPB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.55, SPB is paying slightly less dividend.
SPB's Dividend Yield is comparable with the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
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.
SPB has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-3.18%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
SPB has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-405.16%
EPS Next 2Y64.79%
EPS Next 3YN/A
TSX:SPB (3/7/2025, 7:00:00 PM)
6.64
-0.06 (-0.9%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners32.33%
Inst Owner ChangeN/A
Ins Owners0.63%
Ins Owner ChangeN/A
Market Cap1.57B
Analysts77.33
Price Target9.39 (41.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
Yearly Dividend0.88
Dividend Growth(5Y)-3.18%
DP-405.16%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-11.33%
Min Revenue beat(2)-29.34%
Max Revenue beat(2)6.67%
Revenue beat(4)1
Avg Revenue beat(4)-16.69%
Min Revenue beat(4)-32.97%
Max Revenue beat(4)6.67%
Revenue beat(8)1
Avg Revenue beat(8)-19.07%
Revenue beat(12)3
Avg Revenue beat(12)-7.59%
Revenue beat(16)7
Avg Revenue beat(16)-2.62%
PT rev (1m)0.5%
PT rev (3m)2.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.69%
EPS NY rev (1m)-0.52%
EPS NY rev (3m)-0.52%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-3.42%
Revenue NY rev (3m)-3.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 10.8 | ||
| P/S | 0.46 | ||
| P/FCF | 9.63 | ||
| P/OCF | 4 | ||
| P/B | 1.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.47 |
EPS(TTM)-0.26
EYN/A
EPS(NY)0.61
Fwd EY9.26%
FCF(TTM)0.69
FCFY10.38%
OCF(TTM)1.66
OCFY25.02%
SpS14.44
BVpS5.37
TBVpS-5.4
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1% | ||
| ROE | -4.15% | ||
| ROCE | 6.11% | ||
| ROIC | 4.4% | ||
| ROICexc | 4.42% | ||
| ROICexgc | 10.19% | ||
| OM | 8.09% | ||
| PM (TTM) | N/A | ||
| GM | 53.91% | ||
| FCFM | 4.77% |
ROA(3y)-0.84%
ROA(5y)0.92%
ROE(3y)-3.15%
ROE(5y)3.41%
ROIC(3y)4.06%
ROIC(5y)3.44%
ROICexc(3y)4.1%
ROICexc(5y)3.47%
ROICexgc(3y)9.84%
ROICexgc(5y)7.98%
ROCE(3y)5.63%
ROCE(5y)4.77%
ROICexcg growth 3Y47.87%
ROICexcg growth 5Y-5.82%
ROICexc growth 3Y50.4%
ROICexc growth 5Y-9.22%
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%
F-Score5
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.05 | ||
| Debt/FCF | 16.44 | ||
| Debt/EBITDA | 3.99 | ||
| Cap/Depr | 61.08% | ||
| Cap/Sales | 6.73% | ||
| Interest Coverage | 1.92 | ||
| Cash Conversion | 60.19% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 0.39 |
F-Score5
WACC5.38%
ROIC/WACC0.82
Cap/Depr(3y)56.88%
Cap/Depr(5y)53.29%
Cap/Sales(3y)5.39%
Cap/Sales(5y)5.4%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-326.77%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-101.78%
EPS Next Y235.16%
EPS Next 2Y64.79%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-22.83%
Revenue growth 3Y-0.14%
Revenue growth 5Y-3.54%
Sales Q2Q%-28.76%
Revenue Next Year7.73%
Revenue Next 2Y4.51%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-18.36%
EBIT growth 3Y52.75%
EBIT growth 5Y-8.83%
EBIT Next Year260.94%
EBIT Next 3Y63.88%
EBIT Next 5Y31.28%
FCF growth 1Y-55.84%
FCF growth 3Y-3.59%
FCF growth 5Y-16.92%
OCF growth 1Y-32.47%
OCF growth 3Y5.72%
OCF growth 5Y-8.32%