TSX:SPB

Stock Analysis Report

Executive Summary

Superior Plus Corp. engages in the energy distribution and specialty chemicals businesses in Canada, the United States, and Chile.

Rewards

Trading at 58.7% below its fair value

Earnings are forecast to grow 21.24% per year

Pays a reliable dividend of 6.09%

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 6.09% is not well covered by earnings

Large one-off items impacting financial results

Profit margins (0.7%) are lower than last year (2.3%)

+ 1 more risk


Snowflake Analysis

Average dividend payer with moderate growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SPB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.7%

SPB

3.6%

CA Gas Utilities

0.6%

CA Market


1 Year Return

0.9%

SPB

33.4%

CA Gas Utilities

5.8%

CA Market

Return vs Industry: SPB underperformed the Canadian Gas Utilities industry which returned 33.4% over the past year.

Return vs Market: SPB underperformed the Canadian Market which returned 5.8% over the past year.


Shareholder returns

SPBIndustryMarket
7 Day3.7%3.6%0.6%
30 Day-7.9%4.8%0.5%
90 Day-5.5%5.5%3.6%
1 Year7.1%0.9%40.6%33.4%9.1%5.8%
3 Year10.4%-7.7%20.8%9.7%15.4%5.0%
5 Year17.8%-13.3%49.9%25.7%33.6%14.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SPB (CA$11.83) is trading below our estimate of fair value (CA$28.64)

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 (105x) compared to the Gas Utilities industry average (17.7x).

PE vs Market: SPB is poor value based on its PE Ratio (105x) compared to the Canadian market (15.9x).


Price to Earnings Growth Ratio

PEG Ratio: SPB is poor value based on its PEG Ratio (4.9x)


Price to Book Ratio

PB vs Industry: SPB is overvalued based on its PB Ratio (2x) compared to the CA Gas Utilities industry average (1.5x).


Next Steps

Future Growth

How is Superior Plus forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

21.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPB's forecast earnings growth (21.2% per year) is above the savings rate (1.4%).

Earnings vs Market: SPB's earnings (21.2% per year) are forecast to grow faster than the Canadian market (10.4% per year).

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

Revenue vs Market: SPB's revenue (2.1% per year) is forecast to grow slower than the Canadian market (4.9% per year).

High Growth Revenue: SPB's revenue (2.1% 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


Next Steps

Past Performance

How has Superior Plus performed over the past 5 years?

-10.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPB has a large one-off loss of CA$65.0M impacting its September 30 2019 financial results.

Growing Profit Margin: SPB's current net profit margins (0.7%) are lower than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: SPB's earnings have declined by -10.7% 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 (-66.9%) over the past year, making it difficult to compare to the Gas Utilities industry average (-2%).


Return on Equity

High ROE: SPB's Return on Equity (1.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Superior Plus's financial position?


Financial Position Analysis

Short Term Liabilities: SPB's short term assets (CA$384.9M) do not cover its short term liabilities (CA$435.8M).

Long Term Liabilities: SPB's short term assets (CA$384.9M) do not cover its long term liabilities (CA$2.0B).


Debt to Equity History and Analysis

Debt Level: SPB's debt to equity ratio (166.9%) is considered high.

Reducing Debt: SPB's debt to equity ratio has reduced from 176.3% to 166.9% over the past 5 years.

Debt Coverage: SPB's debt is well covered by operating cash flow (21.1%).

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


Balance Sheet

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

Debt Coverage by Assets: SPB's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

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

6.09%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company6.1%marketbottom25%1.9%markettop25%5.3%industryaverage4.6%forecastin3Years6.1%

Current dividend yield vs market & industry

Notable Dividend: SPB's dividend (6.09%) is higher than the bottom 25% of dividend payers in the Canadian market (1.91%).

High Dividend: SPB's dividend (6.09%) is in the top 25% of dividend payers in the Canadian market (5.32%)


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.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (639.2%), SPB's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SPB's dividends in 3 years are forecast to be covered by earnings (72.7% payout ratio).


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

Luc Desjardins (66yo)

8.3yrs

Tenure

CA$4,224,897

Compensation

Mr. Luc Desjardins serves as a Director of Canadian Imperial Bank of Commerce since 2009. He is President and Chief Executive Officer of Superior Plus Corp. since November 14, 2011. He serves as Director o ...


CEO Compensation Analysis

Compensation vs Market: Luc's total compensation ($USD3.19M) is above average for companies of similar size in the Canadian market ($USD2.15M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Luc Desjardins
President8.3yrsCA$4.22m0.28% CA$5.7m
Beth Summers
Executive VP & CFO4.3yrsCA$1.45m0.012% CA$238.3k
Darren Hribar
Senior VP & Chief Legal Officer5yrsCA$1.18m0.0082% CA$170.3k
Greg McCamus
President of Superior Propane & Energy Distribution7.3yrsCA$1.43m0.025% CA$515.7k
Edward Bechberger
President of Specialty Chemicals5.1yrsCA$1.19m0.020% CA$417.9k
Andrew Peyton
President of US Propane3.3yrsCA$1.40m0.0069% CA$141.9k
Catherine Best
Consultant & Independent Director12.6yrsCA$172.50k0.0040% CA$82.7k
Douglas Harrison
Consultant & Independent Director4.5yrsCA$156.00k0.010% CA$208.1k
Rick Carron
Senior Vice President of Sales & Operations0.2yrsno datano data
James Devens
Vice President of Operations - U.S. Propane Distribution1.2yrsno datano data

4.6yrs

Average Tenure

62yo

Average Age

Experienced Management: SPB's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Luc Desjardins
President8.3yrsCA$4.22m0.28% CA$5.7m
Catherine Best
Consultant & Independent Director12.6yrsCA$172.50k0.0040% CA$82.7k
Douglas Harrison
Consultant & Independent Director4.5yrsCA$156.00k0.010% CA$208.1k
Randall Findlay
Independent Director12.9yrsCA$168.50k0.011% CA$236.7k
Eugene V. Bissell
Independent Director5.8yrsCA$220.05k0.0091% CA$188.9k
Mary Jordan
Independent Director5.8yrsCA$168.00k0.0029% CA$59.2k
Richard Bradeen
Independent Director4.8yrsCA$158.00k0.0057% CA$118.3k
David Smith
Independent Chairman5.5yrsCA$293.00k0.049% CA$1.0m
Patrick Gottschalk
Independent Director2.5yrsCA$216.77k0.029% CA$591.5k

5.8yrs

Average Tenure

62yo

Average Age

Experienced Board: SPB's board of directors are considered experienced (5.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 16.5%.


Top Shareholders

Company Information

Superior Plus Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Superior Plus Corp.
  • Ticker: SPB
  • Exchange: TSX
  • Founded: 1996
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: CA$2.069b
  • Shares outstanding: 174.87m
  • Website: https://www.superiorplus.com

Number of Employees


Location

  • Superior Plus Corp.
  • 200 Wellington Street West
  • Suite 401
  • Toronto
  • Ontario
  • M5V 3C7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SPBTSX (The Toronto Stock Exchange)YesCommon SharesCACADOct 1996
8SPDB (Deutsche Boerse AG)YesCommon SharesDEEUROct 1996
SUUI.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDOct 1996

Biography

Superior Plus Corp. engages in the energy distribution and specialty chemicals businesses in Canada, the United States, and Chile. The company’s Energy Distribution segment provides distribution, wholesale procurement, and related services for propane, heating oil, and other refined fuels. Its Specialty Chemicals segment supplies sodium chlorate and technology to the pulp and paper industries, as well as potassium and chlor-alkali products. Superior General Partner Inc. serves as the general partner of the company. Superior Plus Corp. was founded in 1996 and is based in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:39
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
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.