Superior Plus (TSX:SPB) - Share price, News & Analysis

SPB fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	3/6
Past Performance	1/6
Financial Health	1/6
Dividends	3/6

SPB Stock Overview

Superior Plus Corp. engages in the energy distribution business.

Rewards

Trading at 84.8% below our estimate of its fair value

Earnings are forecast to grow 39.38% per year

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 5.94% is not well covered by earnings or forecast to be in the next 3 years

Large one-off items impacting financial results

Profit margins (1.9%) are lower than last year (5.7%)

+ 1 more risk

Superior Plus Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Superior Plus
Historical stock prices
Current Share Price	CA$12.13
52 Week High	CA$16.24
52 Week Low	CA$10.80
Beta	1.04
1 Month Change	2.88%
3 Month Change	7.54%
1 Year Change	-19.99%
3 Year Change	-2.57%
5 Year Change	0.92%
Change since IPO	-2.57%

Recent News & Updates

May 12

Industry Analysts Just Upgraded Their Superior Plus Corp. (TSE:SPB) Revenue Forecasts By 15%

Celebrations may be in order for Superior Plus Corp. ( TSE:SPB ) shareholders, with the analysts delivering a...

May 10

Superior Plus (TSE:SPB) Will Pay A Dividend Of CA$0.06

Superior Plus Corp. ( TSE:SPB ) has announced that it will pay a dividend of CA$0.06 per share on the 15th of June...

Shareholder Returns

	SPB	CA Gas Utilities	CA Market
7D	1.2%	1.7%	0.8%
1Y	-20.0%	7.3%	4.9%

Return vs Industry: SPB underperformed the Canadian Gas Utilities industry which returned 7.3% over the past year.

Return vs Market: SPB underperformed the Canadian Market which returned 4.8% over the past year.

Price Volatility

Is SPB's price volatile compared to industry and market?
SPB volatility
SPB Average Weekly Movement	3.1%
Gas Utilities Industry Average Movement	3.7%
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: SPB is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: SPB's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1996	n/a	Luc Desjardins	https://www.superiorplus.com

Superior Plus Corp. engages in the energy distribution business. It operates through two segments, U.S. Propane Distribution and Canadian Propane Distribution.

Superior Plus Fundamentals Summary

How do Superior Plus's earnings and revenue compare to its market cap?
SPB fundamental statistics
Market Cap	CA$2.45b
Earnings (TTM)	CA$50.70m
Revenue (TTM)	CA$2.72b

48.3x

P/E Ratio

0.9x

P/S Ratio

Is SPB overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SPB income statement (TTM)
Revenue	CA$2.72b
Cost of Revenue	CA$1.77b
Gross Profit	CA$949.30m
Other Expenses	CA$898.60m
Earnings	CA$50.70m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.25
Gross Margin	34.86%
Net Profit Margin	1.86%
Debt/Equity Ratio	122.2%

How did SPB perform over the long term?

See historical performance and comparison

Dividends

5.9%

Current Dividend Yield

250%

Payout Ratio

Does SPB pay a reliable dividends?

See SPB dividend history and benchmarks

When do you need to buy SPB by to receive an upcoming dividend?
Superior Plus dividend dates
Ex Dividend Date	May 30 2022
Dividend Pay Date	Jun 15 2022
Days until Ex dividend	8 days
Days until Dividend pay date	24 days

Does SPB pay a reliable dividends?

See SPB dividend history and benchmarks

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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: SPB (CA$12.13) is trading below our estimate of fair value (CA$79.82)

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

Price To Earnings Ratio

PE vs Industry: SPB is poor value based on its PE Ratio (48.3x) compared to the North American Gas Utilities industry average (22.8x).

PE vs Market: SPB is poor value based on its PE Ratio (48.3x) compared to the Canadian market (11.5x).

Price to Earnings Growth Ratio

PEG Ratio: SPB is poor value based on its PEG Ratio (1.2x)

Price to Book Ratio

PB vs Industry: SPB is overvalued based on its PB Ratio (2.3x) compared to the XN Gas Utilities industry average (1.8x).

Future Growth

How is Superior Plus forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

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

39.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPB's forecast earnings growth (39.4% per year) is above the savings rate (1.6%).

Earnings vs Market: SPB's earnings (39.4% per year) are forecast to grow faster than the Canadian market (7.5% per year).

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

Revenue vs Market: SPB's revenue (1% per year) is forecast to grow slower than the Canadian market (6.4% per year).

High Growth Revenue: SPB's revenue (1% 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 SPB's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Superior Plus performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

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

21.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SPB has a large one-off loss of CA$30.0M impacting its March 31 2022 financial results.

Growing Profit Margin: SPB's current net profit margins (1.9%) are lower than last year (5.7%).

Past Earnings Growth Analysis

Earnings Trend: SPB's earnings have grown significantly by 21.5% per year over the past 5 years.

Accelerating Growth: SPB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SPB had negative earnings growth (-55%) over the past year, making it difficult to compare to the Gas Utilities industry average (-17%).

Return on Equity

High ROE: SPB's Return on Equity (5.9%) is considered low.

Financial Health

How is Superior Plus's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

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

Financial Position Analysis

Short Term Liabilities: SPB's short term assets (CA$685.1M) exceed its short term liabilities (CA$498.6M).

Long Term Liabilities: SPB's short term assets (CA$685.1M) do not cover its long term liabilities (CA$2.1B).

Debt to Equity History and Analysis

Debt Level: SPB's net debt to equity ratio (119.1%) is considered high.

Reducing Debt: SPB's debt to equity ratio has increased from 90.3% to 122.2% over the past 5 years.

Debt Coverage: SPB's debt is not well covered by operating cash flow (13.3%).

Interest Coverage: SPB's interest payments on its debt are not well covered by EBIT (2.2x coverage).

Balance Sheet

Dividend

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

Dividend Score

3/6

Dividend Score 3/6

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

5.94%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: SPB's dividend (5.94%) is higher than the bottom 25% of dividend payers in the Canadian market (1.91%).

High Dividend: SPB's dividend (5.94%) is in the top 25% of dividend payers in the Canadian market (4.91%)

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (249.9%), SPB's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (111.4%), SPB's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

4.5yrs

Average management tenure

CEO

Luc Desjardins (68 yo)

10.5yrs

Tenure

CA$3,871,260

Compensation

Mr. Luc Desjardins M.B.A. serves as Director of Canadian Imperial Bank of Commerce since February 26, 2009. He is President, Chief Executive Officer and Director of Superior Plus Corp. since joining on Nov...

CEO Compensation Analysis

Compensation vs Market: Luc's total compensation ($USD3.02M) is above average for companies of similar size in the Canadian market ($USD2.24M).

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

Leadership Team

Experienced Management: SPB's management team is considered experienced (4.5 years average tenure).

Board Members

Experienced Board: SPB's board of directors are considered experienced (8 years average tenure).

Ownership

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

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.6%.

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