Supremex (TSX:SXP) - Share price, News & Analysis

SXP fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	5/6
Financial Health	3/6
Dividends	3/6

SXP Stock Overview

Rewards

Trading at 70.6% below our estimate of its fair value

Earnings grew by 99.3% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Does not have a meaningful market cap (CA$94M)

Supremex Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Supremex
Historical stock prices
Current Share Price	CA$3.57
52 Week High	CA$4.06
52 Week Low	CA$2.00
Beta	1.27
1 Month Change	2.59%
3 Month Change	3.78%
1 Year Change	52.56%
3 Year Change	20.61%
5 Year Change	-24.84%
Change since IPO	-64.30%

Shareholder Returns

	SXP	CA Forestry	CA Market
7D	6.6%	-0.2%	0.8%
1Y	52.6%	-4.0%	4.9%

Return vs Industry: SXP exceeded the Canadian Forestry industry which returned -4% over the past year.

Return vs Market: SXP exceeded the Canadian Market which returned 4.8% over the past year.

Price Volatility

Is SXP's price volatile compared to industry and market?
SXP volatility
SXP Average Weekly Movement	5.6%
Forestry Industry Average Movement	6.4%
Market Average Movement	9.9%
10% most volatile stocks in CA Market	16.9%
10% least volatile stocks in CA Market	4.3%

Stable Share Price: SXP is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SXP's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1977	825	Stewart Emerson	https://www.supremex.com

Supremex Inc. manufactures and markets envelopes, and paper packaging solutions and specialty products to corporations, resellers, government entities, SMEs, and solutions providers in Canada, and the Northeastern and Midwestern United States. The company offers a range of stock and custom envelopes in various styles, shapes, and colors; corrugated boxes, and folding carton and e-Commerce fulfillment packaging solutions; polyethylene bags for courier applications and bubble mailers. It serves various industries, including food, pharmaceuticals, cosmetics, and personal care products.

Supremex Fundamentals Summary

How do Supremex's earnings and revenue compare to its market cap?
SXP fundamental statistics
Market Cap	CA$93.92m
Earnings (TTM)	CA$17.95m
Revenue (TTM)	CA$236.10m

5.2x

P/E Ratio

0.4x

P/S Ratio

Is SXP overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SXP income statement (TTM)
Revenue	CA$236.10m
Cost of Revenue	CA$164.95m
Gross Profit	CA$71.15m
Other Expenses	CA$53.19m
Earnings	CA$17.95m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.68
Gross Margin	30.13%
Net Profit Margin	7.60%
Debt/Equity Ratio	43.4%

How did SXP perform over the long term?

See historical performance and comparison

Dividends

2.8%

Current Dividend Yield

4%

Payout Ratio

Does SXP pay a reliable dividends?

See SXP dividend history and benchmarks

When do you need to buy SXP by to receive an upcoming dividend?
Supremex dividend dates
Ex Dividend Date	Jun 08 2022
Dividend Pay Date	Jun 27 2022
Days until Ex dividend	17 days
Days until Dividend pay date	36 days

Does SXP pay a reliable dividends?

See SXP dividend history and benchmarks

Valuation

Is Supremex undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: SXP (CA$3.57) is trading below our estimate of fair value (CA$12.16)

Significantly Below Fair Value: SXP is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: SXP is poor value based on its PE Ratio (5.2x) compared to the Canadian Forestry industry average (4.5x).

PE vs Market: SXP is good value based on its PE Ratio (5.2x) compared to the Canadian market (11.5x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SXP's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: SXP's PB Ratio (0.9x) is in line with the CA Forestry industry average.

Future Growth

How is Supremex forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

5.3%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if SXP's forecast earnings growth is above the savings rate (1.6%).

Earnings vs Market: Insufficient data to determine if SXP's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SXP's revenue (5.3% per year) is forecast to grow slower than the Canadian market (6.4% per year).

High Growth Revenue: SXP's revenue (5.3% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if SXP's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Supremex performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

1.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SXP has high quality earnings.

Growing Profit Margin: SXP's current net profit margins (7.6%) are higher than last year (4.4%).

Past Earnings Growth Analysis

Earnings Trend: SXP's earnings have grown by 1.8% per year over the past 5 years.

Accelerating Growth: SXP's earnings growth over the past year (99.3%) exceeds its 5-year average (1.8% per year).

Earnings vs Industry: SXP earnings growth over the past year (99.3%) exceeded the Forestry industry 74.5%.

Return on Equity

High ROE: SXP's Return on Equity (17.4%) is considered low.

Financial Health

How is Supremex's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SXP's short term assets (CA$62.8M) exceed its short term liabilities (CA$31.8M).

Long Term Liabilities: SXP's short term assets (CA$62.8M) do not cover its long term liabilities (CA$68.4M).

Debt to Equity History and Analysis

Debt Level: SXP's net debt to equity ratio (40.4%) is considered high.

Reducing Debt: SXP's debt to equity ratio has increased from 31.8% to 43.4% over the past 5 years.

Debt Coverage: SXP's debt is well covered by operating cash flow (57.4%).

Interest Coverage: SXP's interest payments on its debt are well covered by EBIT (11.8x coverage).

Balance Sheet

Dividend

What is Supremex current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.80%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: SXP's dividend (2.8%) is higher than the bottom 25% of dividend payers in the Canadian market (1.91%).

High Dividend: SXP's dividend (2.8%) is low compared to the top 25% of dividend payers in the Canadian market (4.91%).

Stability and Growth of Payments

Stable Dividend: SXP's dividend payments have been volatile in the past 10 years.

Growing Dividend: SXP's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (3.7%), SXP's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (12.2%), SXP's dividend payments are thoroughly covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.2yrs

Average management tenure

CEO

Stewart Emerson

8yrs

Tenure

CA$1,200,878

Compensation

Mr. Stewart Emerson has been the President of Supremex Inc. since May 22, 2014 and its Chief Executive Officer since September 2, 2014. He is responsible for defining the Supremex’s strategic direction, gr...

CEO Compensation Analysis

Compensation vs Market: Stewart's total compensation ($USD935.37K) is above average for companies of similar size in the Canadian market ($USD168.24K).

Compensation vs Earnings: Stewart's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: SXP's management team is considered experienced (2.2 years average tenure).

Board Members

Experienced Board: SXP's board of directors are considered experienced (7.4 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: SXP insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31