SUPERIOR PLUS CORP (SPB.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:SPB - CA86828P1036 - Common Stock
7.18 CAD
+0.05 (+0.7%)
Taking everything into account, SPB scores 4 out of 10 in our fundamental rating. SPB was compared to 6 industry peers in the Gas Utilities industry. While SPB is still in line with the averages on profitability rating, there are concerns on its financial health. SPB has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year SPB was profitable.
- SPB had a positive operating cash flow in the past year.
- In multiple years SPB reported negative net income over the last 5 years.
- In the past 5 years SPB always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 0.46%, SPB perfoms like the industry average, outperforming 50.00% of the companies in the same 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.
- Measured over the past 3 years, the Average Return On Invested Capital for SPB is in line with the industry average of 5.31%.
- The 3 year average ROIC (4.06%) for SPB is below the current ROIC(4.54%), indicating increased profibility in the last year.
| 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
- SPB has a Profit Margin (0.64%) which is in line with its industry peers.
- With a Operating Margin value of 7.79%, SPB is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- SPB's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 52.36%, SPB belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- 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.
- Compared to 5 years ago, SPB has more shares outstanding
- 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.
- SPB has a Altman-Z score (0.47) which is in line with its industry peers.
- The Debt to FCF ratio of SPB is 9.40, which is on the high side as it means it would take SPB, 9.40 years of fcf income to pay off 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.
- A Debt/Equity ratio of 2.18 is on the high side and indicates that SPB has dependencies on debt financing.
- SPB has a Debt to Equity ratio of 2.18. This is in the lower half of the industry: SPB underperforms 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
WACC5.77%
2.3 Liquidity
- A Current Ratio of 0.84 indicates that SPB may have some problems paying its short term obligations.
- SPB's Current ratio of 0.84 is in line compared to the rest of the industry. SPB outperforms 50.00% of its industry peers.
- A Quick Ratio of 0.66 indicates that SPB may have some problems paying its short term obligations.
- SPB has a better Quick ratio (0.66) than 83.33% of its industry peers.
| 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
- The Earnings Per Share is expected to grow by 34.26% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 6.53% on average over the next years.
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
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- SPB is valuated quite expensively with a Price/Earnings ratio of 51.29.
- The rest of the industry has a similar Price/Earnings ratio as SPB.
- SPB's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.21.
- SPB is valuated reasonably with a Price/Forward Earnings ratio of 11.29.
- SPB's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SPB is cheaper than 66.67% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of SPB to the average of the S&P500 Index (25.98), we can say SPB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.29 | ||
| Fwd PE | 11.29 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SPB is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
- 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 | 5.95 | ||
| EV/EBITDA | 6.51 |
4.3 Compensation for Growth
- SPB's 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
- SPB has a Yearly Dividend Yield of 2.52%.
- 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 1.81.
| 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 51.29 and the Price/Book (PB) ratio is 1.42.
How financially healthy is SUPERIOR PLUS CORP?
The financial health rating of SUPERIOR PLUS CORP (SPB.CA) is 3 / 10.