SP Plus (NasdaqGS:SP) - Share price, News & Analysis

Q: What is the Fair Price of SP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

SP ($30.72) is trading below our estimate of [[fair value]] ($57.02)

SP fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	4/6
Past Performance	2/6
Financial Health	2/6
Dividends	0/6

SP Stock Overview

SP Plus Corporation provides mobility solutions, parking management, ground transportation, baggage, and other ancillary services in North America.

Rewards

Trading at 46.1% below our estimate of its fair value

Earnings are forecast to grow 23.32% per year

Became profitable this year

Risk Analysis

Has a high level of debt

SP Plus Competitors

Heritage-Crystal Clean

NasdaqGS:HCCI

US$654.6m

Harsco

NYSE:HSC

US$564.7m

BrightView Holdings

NYSE:BV

US$1.1b

CECO Environmental

NasdaqGS:CECE

US$210.2m

Price History & Performance

Summary of all time highs, changes and price drops for SP Plus
Historical stock prices
Current Share Price	US$31.61
52 Week High	US$34.99
52 Week Low	US$25.29
Beta	1.49
1 Month Change	-0.78%
3 Month Change	-0.78%
1 Year Change	2.80%
3 Year Change	-5.30%
5 Year Change	0.99%
Change since IPO	405.76%

Recent News & Updates

May 18

At US$31.38, Is It Time To Put SP Plus Corporation (NASDAQ:SP) On Your Watch List?

While SP Plus Corporation ( NASDAQ:SP ) might not be the most widely known stock at the moment, it saw a decent share...

Shareholder Returns

	SP	US Commercial Services	US Market
7D	4.4%	2.5%	-0.6%
1Y	2.8%	-8.4%	-21.7%

Return vs Industry: SP exceeded the US Commercial Services industry which returned -8.2% over the past year.

Return vs Market: SP exceeded the US Market which returned -20.8% over the past year.

Price Volatility

Is SP's price volatile compared to industry and market?
SP volatility
SP Average Weekly Movement	5.0%
Commercial Services Industry Average Movement	7.3%
Market Average Movement	8.0%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.2%

Stable Share Price: SP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SP's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1929	13,700	G. Baumann	https://www.spplus.com

SP Plus Corporation provides mobility solutions, parking management, ground transportation, baggage, and other ancillary services in North America. The company operates in Commercial and Aviation segments. It provides on-site parking management, valet parking, ground transportation, facility maintenance, event logistics, remote airline check-in, security, municipal meter revenue collection and enforcement, and consulting services, as well as shuttle bus vehicles and drivers; baggage services, including delivery of delayed luggage and baggage handling services; wheelchair assist services; baggage repair and replacement services; and on-street parking meter collection and other forms of parking enforcement services.

SP Plus Fundamentals Summary

How do SP Plus's earnings and revenue compare to its market cap?
SP fundamental statistics
Market Cap	US$735.30m
Earnings (TTM)	US$40.10m
Revenue (TTM)	US$657.20m

18.3x

P/E Ratio

1.1x

P/S Ratio

Is SP overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SP income statement (TTM)
Revenue	US$657.20m
Cost of Revenue	US$457.80m
Gross Profit	US$199.40m
Other Expenses	US$159.30m
Earnings	US$40.10m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.72
Gross Margin	30.34%
Net Profit Margin	6.10%
Debt/Equity Ratio	122.9%

How did SP perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is SP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SP?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SP. This is calculated by dividing SP's market cap by their current preferred multiple.
What is SP's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$735.30m

SP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.9x
Enterprise Value/EBITDA	11.8x
PEG Ratio	0.8x

Price to Earnings Ratio vs Peers

How does SP's PE Ratio compare to its peers?

SP PE Ratio vs Peers

The above table shows the PE ratio for SP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	35.8x
HCCI Heritage-Crystal Clean	10.1x	-11.6%	US$654.6m
HSC Harsco	34.5x	125.6%	US$564.7m
BV BrightView Holdings	28.1x	60.4%	US$1.1b
CECE CECO Environmental	69.9x	36.0%	US$210.2m
SP SP Plus	17.8x	23.3%	US$714.6m

Forward PE

Price-To-Earnings vs Peers: SP is good value based on its Price-To-Earnings Ratio (17.8x) compared to the peer average (35.5x).

Price to Earnings Ratio vs Industry

How does SP's PE Ratio compare vs other companies in the US Commercial Services Industry?

Price-To-Earnings vs Industry: SP is good value based on its Price-To-Earnings Ratio (17.8x) compared to the US Commercial Services industry average (21x)

Price to Earnings Ratio vs Fair Ratio

What is SP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	18.3x
Fair PE Ratio	23.2x

Price-To-Earnings vs Fair Ratio: SP is good value based on its Price-To-Earnings Ratio (17.8x) compared to the estimated Fair Price-To-Earnings Ratio (23.1x).

Share Price vs Fair Value

What is the Fair Price of SP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SP ($30.72) is trading below our estimate of fair value ($57.02)

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

Price to Earnings Growth Ratio

PEG Ratio: SP is good value based on its PEG Ratio (0.8x)

Discover undervalued companies

Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

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

23.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SP's forecast earnings growth (23.3% per year) is above the savings rate (1.9%).

Earnings vs Market: SP's earnings (23.3% per year) are forecast to grow faster than the US market (13.7% per year).

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

Revenue vs Market: SP's revenue (8.3% per year) is forecast to grow faster than the US market (8.3% per year).

High Growth Revenue: SP's revenue (8.3% 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 SP's Return on Equity is forecast to be high in 3 years time

Discover growth companies

Past Performance

How has SP Plus performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

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

-38.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SP has high quality earnings.

Growing Profit Margin: SP became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: SP's earnings have declined by 38.4% per year over the past 5 years.

Accelerating Growth: SP has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SP has become profitable in the last year, making it difficult to compare its past year earnings growth to the Commercial Services industry (25.7%).

Return on Equity

High ROE: SP's Return on Equity (18.2%) is considered low.

Discover strong past performing companies

Financial Health

How is SP Plus's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

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

Financial Position Analysis

Short Term Liabilities: SP's short term assets ($172.7M) do not cover its short term liabilities ($319.2M).

Long Term Liabilities: SP's short term assets ($172.7M) do not cover its long term liabilities ($534.7M).

Debt to Equity History and Analysis

Debt Level: SP's net debt to equity ratio (113%) is considered high.

Reducing Debt: SP's debt to equity ratio has increased from 69.5% to 122.9% over the past 5 years.

Debt Coverage: SP's debt is well covered by operating cash flow (27.9%).

Interest Coverage: SP's interest payments on its debt are well covered by EBIT (4.2x coverage).

Balance Sheet

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

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

Dividend Yield vs Market

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

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

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SP has not reported any payouts.

Discover strong dividend paying companies

Management

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

3.4yrs

Average management tenure

CEO

G. Baumann (66 yo)

8.25yrs

Tenure

US$4,947,004

Compensation

Mr. G. Marc Baumann has been Chief Executive Officer of SP Plus Corporation since January 1, 2015 and has been its President since March 2014 and Chairman since May 2021. Mr. Baumann served as Chief Financ...

CEO Compensation Analysis

Compensation vs Market: G.'s total compensation ($USD4.95M) is about average for companies of similar size in the US market ($USD4.00M).

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

Leadership Team

Experienced Management: SP's management team is considered experienced (3.4 years average tenure).

Board Members

Experienced Board: SP's board of directors are considered experienced (6.1 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.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/07/01 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31