TSX:SXP

Stock Analysis Report

Executive Summary

Supremex Inc. manufactures, markets, and sells envelopes, and paper packaging solutions and specialty products in North America.

Snowflake

Fundamentals

Second-rate dividend payer with imperfect balance sheet.


Similar Companies

Share Price & News

How has Supremex's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.5%

SXP

4.9%

CA Forestry

0.2%

CA Market


1 Year Return

-28.6%

SXP

-17.6%

CA Forestry

1.2%

CA Market

Return vs Industry: SXP underperformed the Canadian Forestry industry which returned -17.6% over the past year.

Return vs Market: SXP underperformed the Canadian Market which returned 1.2% over the past year.


Shareholder returns

SXPIndustryMarket
7 Day2.5%4.9%0.2%
30 Day-4.3%1.1%-2.5%
90 Day-3.1%2.7%-1.5%
1 Year-21.4%-28.6%-15.0%-17.6%4.7%1.2%
3 Year-47.6%-57.7%7.4%-0.3%14.0%3.8%
5 Year14.6%-15.7%0.5%-7.3%26.4%8.1%

Price Volatility Vs. Market

How volatile is Supremex's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

0.96x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: SXP (CA$2.47) is trading above our estimate of fair value (CA$2.43)

Significantly Undervalued: SXP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SXP is unprofitable, so we can't compare its PE Ratio to the Forestry industry average.

PE vs Market: SXP is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

Low 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 is good value based on its PB Ratio (1x) compared to the CA Forestry industry average (1x).


Next Steps

Future Growth

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

26.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SXP is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: SXP is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: SXP is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: SXP's revenue (1.9% per year) is forecast to grow slower than the Canadian market (5.7% per year).

High Growth Revenue: SXP's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Supremex performed over the past 5 years?

-22.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SXP is unprofitable, and losses have increased over the past 5 years at a rate of -22% per year.

Accelerating Growth: Unable to compare SXP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SXP is unprofitable, making it difficult to compare its past year earnings growth to the Forestry industry (-57.6%).


Return on Equity

High ROE: SXP has a negative Return on Equity (-10.56%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: SXP is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: SXP is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Supremex's financial position?


Financial Position Analysis

Short Term Liabilities: SXP's short term assets (CA$50.6M) exceeds its short term liabilities (CA$27.4M)

Long Term Liabilities: SXP's short term assets (50.6M) do not cover its long term liabilities (79.0M)


Debt to Equity History and Analysis

Debt Level: SXP's debt to equity ratio (76.2%) is considered high

Reducing Debt: SXP's debt to equity ratio has increased from 48.1% to 76.2% over the past 5 years.

Debt Coverage: SXP's debt is well covered by operating cash flow (23.9%).

Interest Coverage: SXP is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: SXP has a high level of physical assets or inventory.

Debt Coverage by Assets: SXP's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

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

10.53%

Current Dividend Yield


Dividend Yield vs Market

company10.5%marketbottom25%2.0%markettop25%5.9%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SXP's dividend (10.53%) is higher than the bottom 25% of dividend payers in the Canadian market (2%).

High Dividend: SXP's dividend (10.53%) is in the top 25% of dividend payers in the Canadian market (5.94%)

Stable Dividend: SXP's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: SXP is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Supremex's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average board tenure


CEO

Stewart Emerson 0

5.1yrs

Tenure

CA$690,551

Compensation

Mr. Stewart Emerson has been the President of Supremex Inc. since September 2, 2014 and has been its Chief Executive Officer since September 2, 2014. Mr. Emerson served as the Chief Operating Officer of S ...


CEO Compensation Analysis

Compensation vs. Market: Stewart's total compensation ($USD523.55K) is above average for companies of similar size in the Canadian market ($USD121.38K).

Compensation vs Earnings: Stewart's compensation has increased whilst the company is unprofitable.


Board Age and Tenure

4.8yrs

Average Tenure

60yo

Average Age

Experienced Board: SXP's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$7,77031 May 19
Robert Johnston
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares3,000
Max PriceCA$2.59
BuyCA$11,00029 May 19
Robert Johnston
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares4,000
Max PriceCA$2.75
BuyCA$8,97024 May 19
Robert Johnston
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares3,000
Max PriceCA$2.99
BuyCA$7,80028 Feb 19
Robert Johnston
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares2,400
Max PriceCA$3.25

Ownership Breakdown


Management Team

  • Stewart Emerson

    President

    • Tenure: 5.1yrs
    • Compensation: CA$690.55k
  • Guy Prenevost

    CFO & Corporate Secretary

    • Tenure: 1.5yrs
    • Compensation: CA$326.26k
  • Islem Yezza

    Vice President

    • Tenure: 0yrs

Board Members

  • Georges Kobrynsky (72yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: CA$46.09k
  • Rob Johnston (54yo)

    Independent Chairman of the Board

    • Tenure: 4.8yrs
    • Compensation: CA$60.00k
  • Steve Richardson (59yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: CA$27.48k
  • Stewart Emerson

    President

    • Tenure: 5.1yrs
    • Compensation: CA$690.55k
  • Warren White (67yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: CA$45.49k
  • Dany Paradis

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: CA$45.49k
  • Nicole Boivin (60yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: CA$27.48k
  • Drew Sullivan

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: CA$44.48k

Company Information

Supremex Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Supremex Inc.
  • Ticker: SXP
  • Exchange: TSX
  • Founded: 1977
  • Industry: Paper Products
  • Sector: Materials
  • Market Cap: CA$69.482m
  • Shares outstanding: 28.13m
  • Website: https://www.supremex.com

Number of Employees


Location

  • Supremex Inc.
  • 7213 Cordner Street
  • LaSalle
  • Quebec
  • H8N 2J7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SXPTSX (The Toronto Stock Exchange)YesCommon SharesCACADMar 2006
SUMX.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMar 2006
557DB (Deutsche Boerse AG)YesCommon SharesDEEURMar 2006

Biography

Supremex Inc. manufactures, markets, and sells envelopes, and paper packaging solutions and specialty products in North America. It manufactures a range of stock and custom envelopes in various styles, sha ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 00:13
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.