DB:PZA

Stock Analysis Report

Executive Summary

SP Plus Corporation provides parking management, ground transportation, baggage, and other ancillary services to commercial, hospitality, institutional, municipal and governmental, and aviation clients in the United States, Canada, and Puerto Rico.


Snowflake Analysis

Undervalued with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.0%

PZA

1.9%

DE Commercial Services

2.0%

DE Market


1 Year Return

23.8%

PZA

-2.5%

DE Commercial Services

15.1%

DE Market

Return vs Industry: PZA exceeded the German Commercial Services industry which returned -0.5% over the past year.

Return vs Market: PZA exceeded the German Market which returned 15% over the past year.


Shareholder returns

PZAIndustryMarket
7 Day1.0%1.9%2.0%
30 Day7.7%0.5%1.0%
90 Day-2.0%6.7%3.8%
1 Year23.8%23.8%1.0%-2.5%18.6%15.1%
3 Yearn/a12.0%2.2%16.8%6.6%
5 Yearn/a4.9%-9.8%23.7%6.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

34.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PZA (€39.4) is trading below our estimate of fair value (€60.4)

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


Price To Earnings Ratio

PE vs Industry: PZA is good value based on its PE Ratio (19.9x) compared to the Commercial Services industry average (32x).

PE vs Market: PZA is good value based on its PE Ratio (19.9x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: PZA is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: PZA is good value based on its PB Ratio (2.5x) compared to the DE Commercial Services industry average (3.3x).


Next Steps

Future Growth

How is SP Plus forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

8.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PZA's forecast earnings growth (8.1% per year) is above the savings rate (-0.4%).

Earnings vs Market: PZA's earnings (8.1% per year) are forecast to grow slower than the German market (13.3% per year).

High Growth Earnings: PZA's earnings are forecast to grow, but not significantly.

Revenue vs Market: PZA's revenue (4.4% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: PZA's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PZA's Return on Equity is forecast to be low in 3 years time (16.8%).


Next Steps

Past Performance

How has SP Plus performed over the past 5 years?

24.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PZA has high quality earnings.

Growing Profit Margin: PZA's current net profit margins (5.4%) are lower than last year (6.5%).


Past Earnings Growth Analysis

Earnings Trend: PZA's earnings have grown significantly by 24.6% per year over the past 5 years.

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

Earnings vs Industry: PZA had negative earnings growth (-5.4%) over the past year, making it difficult to compare to the Commercial Services industry average (10.8%).


Return on Equity

High ROE: PZA's Return on Equity (13.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SP Plus's financial position?


Financial Position Analysis

Short Term Liabilities: PZA's short term assets ($195.3M) do not cover its short term liabilities ($344.1M).

Long Term Liabilities: PZA's short term assets ($195.3M) do not cover its long term liabilities ($753.4M).


Debt to Equity History and Analysis

Debt Level: PZA's debt to equity ratio (93.4%) is considered high.

Reducing Debt: PZA's debt to equity ratio has reduced from 119.4% to 93.4% over the past 5 years.

Debt Coverage: PZA's debt is well covered by operating cash flow (25.5%).

Interest Coverage: PZA's interest payments on its debt are well covered by EBIT (5.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: PZA's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage3.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate PZA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate PZA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PZA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PZA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PZA's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

5.1yrs

Average management tenure


CEO

G. Baumann (63yo)

5.1yrs

Tenure

US$3,175,834

Compensation

Mr. G. Marc Baumann has been the Chief Executive Officer of SP Plus Corporation since January 1, 2015 and had been its President since March 16, 2014 until November 2019. Mr. Baumann served as Chief Financ ...


CEO Compensation Analysis

Compensation vs Market: G.'s total compensation ($USD3.18M) is above average for companies of similar size in the German market ($USD1.15M).

Compensation vs Earnings: G.'s compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
G. Baumann
CEO & Director5.1yrsUS$3.18m0.23% $2.0m
Gerard Klaisle
Chief Administrative Officer5.1yrsUS$948.42k0.072% $630.3k
John Ricchiuto
President of Airport Division17.2yrsUS$1.18m0.099% $867.0k
Robert Toy
President of Commercial Division7.3yrsUS$1.32m0.092% $804.8k
Kristopher Roy
CFO, Assistant Treasurer & Principal Accounting Officer0.8yrsno data0.0075% $65.6k
Ritu Vig
Chief Legal Officer & Secretary0.4yrsno data0.0047% $41.4k
jill Nagel
Senior Communications Manager0yrsno datano data
Connie Jin
Senior Vice President of Corporate Development1.1yrsno datano data
Roamy Valera
Senior Vice President of Municipal & Institutional Services0yrsno datano data
Michael Miller
Senior Vice President of Operations in Hawaii0yrsno datano data

5.1yrs

Average Tenure

62yo

Average Age

Experienced Management: PZA's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
G. Baumann
CEO & Director5.1yrsUS$3.18m0.23% $2.0m
Karen Garrison
Independent Chairman of the Board3.1yrsUS$242.50k0.29% $2.5m
Gregory Reid
Independent Director2.8yrsUS$157.96k0.036% $318.6k
Alice Peterson
Independent Director1.9yrsUS$133.72k0.023% $197.5k
Douglas Waggoner
Independent Director4.8yrsUS$160.00k0.072% $625.7k
Wyman Roberts
Independent Director4.8yrsUS$164.47k0.072% $625.7k

4.0yrs

Average Tenure

64.5yo

Average Age

Experienced Board: PZA's board of directors are considered experienced (4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: PZA insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

SP Plus Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SP Plus Corporation
  • Ticker: PZA
  • Exchange: DB
  • Founded: 1929
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: US$946.989m
  • Listing Market Cap: US$874.071m
  • Shares outstanding: 21.69m
  • Website: https://www.spplus.com

Number of Employees


Location

  • SP Plus Corporation
  • 200 East Randolph Street
  • Suite 7700
  • Chicago
  • Illinois
  • 60601
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SPNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 2004
PZADB (Deutsche Boerse AG)YesCommon StockDEEURMay 2004

Biography

SP Plus Corporation provides parking management, ground transportation, baggage, and other ancillary services to commercial, hospitality, institutional, municipal and governmental, and aviation clients in the United States, Canada, and Puerto Rico. It provides on-site parking management, valet parking, ground transportation, facility maintenance, event logistics, baggage handling, remote airline check-in, security, municipal meter revenue collection and enforcement, and consulting services. The company also offers shuttle bus services; ground transportation services, such as taxi and livery dispatch, concierge-type ground transportation information, and support services for arriving passengers; remote airline check-in services; wheelchair assist services; baggage repair and replacement services; on-street parking meter collection and other forms of parking enforcement services; valet services; and remote parking management services. In addition, it provides facility maintenance services, including power sweeping and washing, painting and general repairs, and cleaning and seasonal services; security services; and multi-platform marketing services. SP Plus Corporation serves private and public owners, municipalities and governments, managers and developers of office buildings, residential properties, commercial properties, shopping centers and other retail properties, healthcare facilities and medical centers, sports and special event complexes, hotels and resorts, and airlines and cruise lines. The company was formerly known as Standard Parking Corporation and changed its name to SP Plus Corporation in December 2013. SP Plus Corporation was founded in 1929 and is based in Chicago, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 23:02
End of Day Share Price2020/02/17 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.