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

Moderate growth potential second-rate dividend payer.

Risks

  • Supremex is covered by less than 3 analysts.

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

4.7%

TSX:SXP

0.1%

CA Forestry

1.0%

CA Market


1 Year Return

-21.4%

TSX:SXP

-43.4%

CA Forestry

-5.0%

CA Market

SXP outperformed the Forestry industry which returned -43.4% over the past year.

SXP underperformed the Market in Canada which returned -5% over the past year.


Share holder returns

SXPIndustryMarket
7 Day4.7%0.1%1.0%
30 Day6.0%-2.1%-2.8%
90 Day-10.5%-2.8%-1.7%
1 Year-14.0%-21.4%-41.0%-43.4%-1.7%-5.0%
3 Year-35.7%-47.3%-0.5%-6.9%14.7%4.4%
5 Year32.4%-1.9%-4.6%-11.6%12.5%-3.3%

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 based on future cash flows and its price relative to the stock market?

1.03x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Supremex's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Supremex's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Supremex is loss making, we can't compare its value to the CA Forestry industry average.

Supremex is loss making, we can't compare the value of its earnings to the Canada market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Supremex, we can't assess if its growth is good value.


Price Based on Value of Assets

Supremex is overvalued based on assets compared to the CA Forestry industry average.


Next Steps

Future Growth

How is Supremex expected 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 Estimates


Future Annual Growth Analysis

Supremex's revenue is expected to grow by 1.9% yearly, however this is not considered high growth (20% yearly).

Supremex's earnings are expected to grow significantly at over 20% yearly.

Supremex's revenue growth is positive but not above the Canada market average.

Supremex's earnings growth is expected to exceed the Canada market average.

Supremex's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Supremex will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

Supremex does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Supremex's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Supremex's 1-year growth to the CA Forestry industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Supremex has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Supremex has efficiently used its assets last year compared to the CA Forestry industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Supremex improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Supremex's financial position?


Financial Position Analysis

Supremex is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Supremex's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Supremex's level of debt (76.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (48.1% vs 76.2% today).

Debt is well covered by operating cash flow (23.9%, greater than 20% of total debt).

Supremex is making a loss, therefore interest payments are not well covered by earnings.


Balance Sheet

High level of physical assets or inventory.

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?

9.81%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Supremex before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Supremex's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (1.99%).

Supremex's dividend is above the markets top 25% of dividend payers in Canada (5.88%).

Dividends per share have been stable in the past 10 years.

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

The company is paying a dividend however it is incurring a loss.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

4.7yrs

Average board tenure


CEO

Stewart Emerson 0

4.9yrs

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

Stewart's remuneration is higher than average for companies of similar size in Canada.

Stewart's compensation has increased whilst company is loss making.


Board Age and Tenure

4.7yrs

Average Tenure

60yo

Average Age

The tenure for the Supremex board of directors is about average.


Insider Trading

More shares have been bought than sold by Supremex individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyCA$7,77031 May 19
Robert Johnston
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares3,000
Max PriceCA$2.59
BuyCA$11,00029 May 19
Robert Johnston
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares4,000
Max PriceCA$2.75
BuyCA$8,97024 May 19
Robert Johnston
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares3,000
Max PriceCA$2.99
BuyCA$7,80028 Feb 19
Robert Johnston
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares2,400
Max PriceCA$3.25
BuyCA$8,59906 Sep 18
Robert Johnston
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares2,600
Max PriceCA$3.35
BuyCA$6,58006 Sep 18
Dany Paradis
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceCA$3.29

Ownership Breakdown


Management Team

  • Stewart Emerson

    President

    • Tenure: 4.9yrs
    • Compensation: CA$690.55k
  • Guy Prenevost

    CFO & Corporate Secretary

    • Tenure: 1.3yrs
    • Compensation: CA$326.26k
  • Islem Yezza

    Vice President

    • Tenure: 0.0yrs

Board Members

  • Georges Kobrynsky (72yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: CA$46.09k
  • Rob Johnston (54yo)

    Chairman of the Board

    • Tenure: 4.7yrs
    • Compensation: CA$60.00k
  • Steve Richardson (59yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: CA$27.48k
  • Stewart Emerson

    President

    • Tenure: 4.9yrs
    • Compensation: CA$690.55k
  • Warren White (67yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: CA$45.49k
  • Dany Paradis

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: CA$45.49k
  • Nicole Boivin (60yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: CA$27.48k
  • Drew Sullivan

    Independent Director

    • Tenure: 2.8yrs
    • 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$74.615m
  • Shares outstanding: 28.16m
  • 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 Analysis2019/08/24 00:36
End of Day Share Price2019/08/23 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.