SUPERIOR PLUS CORP (SPB.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:SPB - CA86828P1036 - Common Stock
7.19 CAD
+0.01 (+0.14%)
SPB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 6 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 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.
- 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
- The Return On Assets of SPB (0.46%) is comparable to the rest of the industry.
- Looking at the Return On Equity, with a value of 1.95%, SPB is in line with its industry, outperforming 50.00% of the companies in the same industry.
- The Return On Invested Capital of SPB (4.54%) is better than 83.33% of its industry peers.
- 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
- The Profit Margin of SPB (0.64%) is comparable to the rest of the industry.
- SPB has a worse Operating Margin (7.79%) than 66.67% of its industry peers.
- In the last couple of years the Operating Margin of SPB has declined.
- 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.
- In the last couple of years the Gross Margin of SPB has grown nicely.
| 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.
- The number of shares outstanding for SPB has been reduced compared to 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
- Based on the Altman-Z score of 0.47, we must say that SPB is in the distress zone and 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.
- 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.
- Looking at the Debt to FCF ratio, with a value of 9.40, SPB belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- SPB has a Debt/Equity ratio of 2.18. This is a high value indicating a heavy dependency on external financing.
- SPB has a worse Debt to Equity ratio (2.18) 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
WACC5.77%
2.3 Liquidity
- A Current Ratio of 0.84 indicates that SPB may have some problems paying 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.
- SPB's Quick ratio of 0.66 is amongst the best of the industry. SPB outperforms 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.
- The Revenue has been growing slightly by 3.02% in the past year.
- SPB shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.54% yearly.
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
- 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
- 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
- Based on the Price/Earnings ratio of 51.36, the valuation of SPB can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of SPB is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 27.25. SPB is valued rather expensively when compared to this.
- SPB is valuated reasonably with a Price/Forward Earnings ratio of 11.35.
- Based on the Price/Forward Earnings ratio, SPB is valued a bit cheaper than 66.67% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, SPB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.36 | ||
| Fwd PE | 11.35 |
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.
- SPB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SPB is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.98 | ||
| EV/EBITDA | 6.53 |
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
- SPB has a Yearly Dividend Yield of 2.52%. Purely for dividend investing, there may be better candidates out there.
- 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 paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-3.18%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- SPB pays out 460.38% of its income as dividend. 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 51.36 and the Price/Book (PB) ratio is 1.43.
How financially healthy is SUPERIOR PLUS CORP?
The financial health rating of SUPERIOR PLUS CORP (SPB.CA) is 3 / 10.