NasdaqGS:SP

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Very undervalued with mediocre balance sheet.


Similar Companies

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: SP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

17.8%

SP

4.3%

US Commercial Services

10.5%

US Market


1 Year Return

-35.8%

SP

-15.3%

US Commercial Services

-11.5%

US Market

Return vs Industry: SP underperformed the US Commercial Services industry which returned -15.3% over the past year.

Return vs Market: SP underperformed the US Market which returned -11.5% over the past year.


Shareholder returns

SPIndustryMarket
7 Day17.8%4.3%10.5%
30 Day-39.0%-22.1%-15.4%
90 Day-48.7%-24.0%-21.4%
1 Year-35.8%-35.8%-12.4%-15.3%-9.6%-11.5%
3 Year-35.1%-35.1%14.9%7.6%12.6%5.4%
5 Year-0.9%-0.9%40.9%26.0%32.8%18.1%

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

Valuation

Is SP 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: SP ($21.92) is trading below our estimate of fair value ($44.84)

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


Price To Earnings Ratio

PE vs Industry: SP is good value based on its PE Ratio (9.9x) compared to the Commercial Services industry average (21x).

PE vs Market: SP is good value based on its PE Ratio (9.9x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: SP is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: SP is good value based on its PB Ratio (1.3x) compared to the US Commercial Services industry average (1.3x).


Next Steps

Future Growth

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

11.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SP's forecast earnings growth (11.1% per year) is above the savings rate (1.7%).

Earnings vs Market: SP's earnings (11.1% per year) are forecast to grow slower than the US market (12.3% per year).

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

Revenue vs Market: SP's revenue (3.6% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SP's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SP's Return on Equity is forecast to be low in 3 years time (18.1%).


Next Steps

Past Performance

How has SP Plus performed over the past 5 years?

23.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SP has high quality earnings.

Growing Profit Margin: SP's current net profit margins (5.2%) are lower than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: SP's earnings have grown significantly by 23.5% per year over the past 5 years.

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

Earnings vs Industry: SP had negative earnings growth (-8.3%) over the past year, making it difficult to compare to the Commercial Services industry average (2.5%).


Return on Equity

High ROE: SP's Return on Equity (13.8%) is considered low.


Next Steps

Financial Health

How is SP Plus's financial position?


Financial Position Analysis

Short Term Liabilities: SP's short term assets ($211.1M) do not cover its short term liabilities ($369.8M).

Long Term Liabilities: SP's short term assets ($211.1M) do not cover its long term liabilities ($735.9M).


Debt to Equity History and Analysis

Debt Level: SP's debt to equity ratio (93.8%) is considered high.

Reducing Debt: SP's debt to equity ratio has reduced from 109.2% to 93.8% over the past 5 years.

Debt Coverage: SP's debt is well covered by operating cash flow (21.7%).

Interest Coverage: SP's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: SP'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

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

High Dividend: Unable to evaluate SP'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 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.


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 SP's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

G. Baumann (63yo)

5.17s

Tenure

US$3,034,934

Compensation

Mr. G. Marc Baumann has been the Chief Executive Officer of SP Plus Corporation since January 1, 2015 and has been its President since March 2014. Mr. Baumann served as Chief Financial Officer and Treasure ...


CEO Compensation Analysis

Compensation vs Market: G.'s total compensation ($USD3.03M) is above average for companies of similar size in the US market ($USD2.14M).

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


Leadership Team

NamePositionTenureCompensationOwnership
G. Baumann
CEO, President & Director5.17yrsUS$3.03m0.22% $1.1m
Kristopher Roy
CFO, Treasurer & Principal Accounting Officer0.92yrUS$818.83k0.0071% $35.7k
John Ricchiuto
President of Airport Division17.25yrsUS$956.61k0.094% $471.5k
Robert Toy
President of Commercial Division7.42yrsUS$1.20m0.087% $437.7k
Robert Sacks
Consultant0.50yrUS$714.72k0.13% $640.2k
Gerard Klaisle
Chief Administrative Officer5.17yrsUS$948.42k0.068% $342.8k
Ritu Vig
Chief Legal Officer & Secretary0.50yrno data0.0045% $22.5k
Jill Nagel
Senior Communications Managerno datano datano data
Connie Jin
Senior Vice President of Corporate Development1.17yrsno datano data
Roamy Valera
Senior Vice President of Municipal & Institutional Servicesno datano datano data

3.2yrs

Average Tenure

62.5yo

Average Age

Experienced Management: SP's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
G. Baumann
CEO, President & Director5.17yrsUS$3.03m0.22% $1.1m
Karen Garrison
Independent Chairman of the Board3.17yrsUS$238.50k0.27% $1.4m
Gregory Reid
Independent Director2.83yrsUS$162.49k0.034% $173.3k
Alice Peterson
Independent Director2yrsUS$174.99k0.021% $107.4k
Douglas Waggoner
Independent Director4.92yrsUS$163.97k0.068% $340.3k
Wyman Roberts
Independent Director4.92yrsUS$167.49k0.068% $340.3k

4.0yrs

Average Tenure

64.5yo

Average Age

Experienced Board: SP'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: 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 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: SP
  • Exchange: NasdaqGS
  • Founded: 1929
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: US$504.096m
  • Shares outstanding: 23.00m
  • Website: https://www.spplus.com

Number of Employees


Location

  • SP Plus Corporation
  • 200 East Randolph Street
  • Suite 7700
  • Chicago
  • Illinois
  • 60601-7702
  • 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 in North America. 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 vehicles and the drivers; 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 comprising training and hiring of security officers and patrol, as well as customized services and technology; and multi-platform marketing services. The company offers its services primarily under the SP+ and Bags brands. 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 Analysis2020/03/28 01:26
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.