Superior Plus (SPB) AI Stock Analysis

• Market Cap: C$1.55B
• Dividend Yield: 6.83%
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): 73.5
• Beta (1Y): 0.66
• Revenue Growth: -2.75%
• EPS Growth: -165.76%
• Country: CA
• Employees: 4,261
• Sector: Utilities
• Sector Strength: 93
• Industry: Regulated Gas
• EPS (TTM): -0.21
• Shares Outstanding: 235,046,360
• 10 Day Avg. Volume: 1,024,163
• 30 Day Avg. Volume: 1,079,742
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.48
• Price to Cash Flow (P/CF): 11.70
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$9.73
• Price Target Upside: 47.65% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

Superior Plus has a balanced outlook with both strengths and challenges. The company benefits from strategic initiatives and high dividend yield, but faces financial risks due to increased leverage and recent losses. The technical analysis suggests moderate momentum, supported by positive corporate events and earnings guidance.

Positive Factors

Financial Strategy

The focus on share buybacks and deleveraging is expected to improve per-share metrics and position the company for future growth.

Market Position

Certarus is positioned to benefit from steady industrial demand and is a market leader in over-the-road CNG with significant market share.

Operational Efficiency

The company's focus on increasing operational efficiency and potential market share gains in Propane is seen as a key growth area.

Negative Factors

Growth Challenges

Despite targeting significant growth in EBITDA and free cash flow, achieving these targets may present challenges due to reliance on operational efficiencies and improved asset utilization.

Superior Plus Business Overview & Revenue Model

Company Description

Superior Plus Corp. engages in the energy distribution business. It operates through two segments, U.S. Propane Distribution and Canadian Propane Distribution. The U.S. Propane Distribution segment distributes and sells propane, heating oil, and other liquid fuels in the Northeast, Atlantic, the Southeast, the Midwest, and California. It also provides installation, maintenance, and repair services for propane and heating oil equipment. The Canadian Propane Distribution segment distributes and sells propane, and propane-consuming equipment; rents tanks, cylinders, and other equipment; and provides equipment supply, installation, and repair services. This segment offers its service in Canada and the United States. Superior General Partner Inc. serves as the general partner of the company. As of February 10, 2022, the company served approximately 780,000 customers The company was founded in 1996 and is headquartered in Toronto, Canada.

How the Company Makes Money

Superior Plus generates revenue through its Energy Distribution and Specialty Chemicals segments. The Energy Distribution segment is the primary source of revenue, earning money by selling and delivering propane and other fuels to residential, commercial, and industrial customers. This segment also provides related services such as equipment installation and maintenance. The Specialty Chemicals segment contributes to the company’s earnings by manufacturing and selling chemicals like sodium chlorate, which is used in the pulp and paper industry, and chlor-alkali products, used in various industrial applications. The company’s revenue streams are supported by long-term customer relationships and, in some cases, multi-year contracts. Additionally, strategic acquisitions and partnerships enhance their market presence and operational efficiencies, further bolstering revenue generation.

Superior Plus Financial Statement Overview

Summary

Superior Plus shows a mix of financial strengths and weaknesses. While gross profit margins improved, revenue and net income have deteriorated, impacting profitability. Increased leverage poses financial risks, and declining ROE suggests reduced shareholder value. Despite these challenges, the company maintains reasonable cash flow management, crucial for its operations.

Income Statement

Superior Plus experienced a significant decline in total revenue from 2023 to 2024, dropping by approximately 28.96%. The gross profit margin improved from 45.66% in 2023 to 53.90% in 2024, indicating better cost management despite lower revenue. However, the net profit margin turned negative in 2024, at -1.54%, compared to 1.54% in 2023, primarily due to a net loss. The absence of EBIT in 2024 hinders the ability to evaluate operating efficiency, but EBITDA margin remained healthy at 16.24%.

Balance Sheet

The company's debt-to-equity ratio increased from 1.74 in 2023 to 2.11 in 2024, highlighting a rising leverage risk. The equity ratio decreased from 27.57% to 24.03%, indicating reduced financial stability. Return on Equity (ROE) declined to -4.15% in 2024 due to net losses, compared to 3.62% in 2023, reflecting declining shareholder returns.

Cash Flow

Operating cash flow decreased to $274.1 million in 2024 from $550 million in 2023, impacting cash generation capabilities. Free cash flow also dropped significantly by 67.5%, affecting liquidity. However, the operating cash flow to net income ratio remains strong, suggesting efficient cash flow management relative to earnings.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.38B	3.35B	3.38B	2.39B	2.39B
	Gross Profit
1.28B	1.53B	1.19B	912.70M	1.11B
	EBIT
0.00	272.30M	182.30M	117.10M	246.00M
	EBITDA
387.00M	569.20M	203.30M	318.20M	328.51M
	Net Income Common Stockholders
-36.80M	51.60M	-87.90M	17.20M	58.89M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
17.10M	48.30M	58.40M	81.00M	67.80M
	Total Assets
3.69B	5.17B	4.48B	3.56B	3.83B
	Total Debt
1.87B	2.48B	2.15B	1.63B	1.83B
	Net Debt
1.85B	2.44B	2.09B	1.60B	1.80B
	Total Liabilities
2.54B	3.40B	3.02B	2.25B	2.55B
	Stockholders Equity
885.80M	1.43B	1.11B	983.60M	949.20M
Cash Flow		Free Cash Flow
113.70M	349.80M	131.40M	126.90M	243.90M
	Operating Cash Flow
274.10M	550.00M	248.70M	232.00M	360.20M
	Investing Cash Flow
-142.10M	-467.10M	-632.10M	172.00M	-384.20M
	Financing Cash Flow
-144.70M	-99.70M	410.90M	-399.60M	22.50M

Superior Plus Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SPB, the sentiment is Negative. The current price of 6.59 is below the 20-day moving average (MA) of 6.60, above the 50-day MA of 6.34, and below the 200-day MA of 6.90, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 54.87 is Neutral, neither overbought nor oversold. The STOCH value of 10.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SPB.

Superior Plus Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KEY	78 Outperform	C$9.59B	19.70	17.35%	4.92%	2.89%	14.76%
PKI	66 Neutral	C$5.54B	43.77	4.00%	4.42%	-12.79%	-72.79%
Sector *	65 Neutral	$11.67B	15.52	6.23%	4.52%	5.50%	-9.06%
SPB	64 Neutral	C$1.55B	73.50	-3.83%	6.83%	-2.75%	-165.76%

Superior Plus Corporate Events

Superior Plus Announces Q1 2025 Results Release and Virtual AGM

Superior Plus Corp. has announced the release of its 2025 first quarter results, scheduled for May 13, 2025, followed by a conference call and webcast on May 14, 2025. Additionally, the company will hold its Annual and Special Meeting of Shareholders on May 13, 2025, as a virtual-only event. These announcements highlight Superior Plus’s commitment to transparency and stakeholder engagement, potentially impacting its market positioning and investor relations.

Superior Plus Raises Financial Targets and Outlines Strategic Growth Plan

Superior Plus has announced an increase in its Superior Delivers target to over $70 million in incremental Adjusted EBITDA by 2027, up from the previous target of $50 million. The company also introduced new financial targets for 2027, aiming for significant growth in Adjusted EBITDA, Adjusted EBTDA per share, and Free Cash Flow, while planning to strengthen its balance sheet by reducing its leverage ratio and allocating substantial funds for share repurchases. These strategic moves are expected to drive significant shareholder value and position Superior Plus as a best-in-class energy solutions provider.

Superior Plus Appoints Dale Winger as President of Certarus

Superior Plus Corp. announced the appointment of Dale Winger as President of Certarus, succeeding Natasha Cherednichenko. Winger, with extensive experience in the chemical and oilfield service sectors, will focus on optimizing asset performance and driving growth in the company’s compressed natural gas division. His leadership is expected to enhance Certarus’ strategic direction and expansion efforts, reflecting Superior Plus’s commitment to leading in the energy transition and improving stakeholder value.

Superior Plus Announces Strategic Board Changes

Superior Plus Corp., a company involved in energy and petrochemical industries, has announced the nomination of three new individuals, Laura L. Schwinn, Jean Paul Gladu, and William T. Yardley, for election to its board of directors at the upcoming 2025 annual shareholder meeting. This move is part of Superior’s regular board succession planning, aimed at enhancing the board’s expertise with individuals possessing significant operational, U.S. business, and energy industry experience. The announcement also includes the retirement of long-serving board members Mary Jordan and Doug Harrison, marking a strategic renewal of the board to address future opportunities and challenges.

Superior Plus Declares 2025 Q1 Dividend, Reinforcing Shareholder Value

Superior Plus Corp. has announced a quarterly dividend of CAD $0.045 per common share for the first quarter of 2025, payable on April 15, 2025, to shareholders of record as of March 31, 2025. This decision reflects the company’s ongoing commitment to providing shareholder value and maintaining its annualized cash dividend rate at CAD $0.18 per share. The dividend is eligible for Canadian income tax purposes, underscoring Superior’s stable financial strategy and its focus on sustainable growth within the energy distribution sector.

Superior Plus Corp. Reports Strong 2024 Results and Strategic Growth Plans

Superior Plus Corp. reported a 10% increase in full-year 2024 Adjusted EBITDA to $455.5 million, despite a 2% decline in the fourth quarter. The company returned approximately $177 million to shareholders and expects an 8% rise in 2025 Adjusted EBITDA due to strategic initiatives and growth in its Compressed Natural Gas division. The Superior Delivers transformation is projected to add at least $50 million to Adjusted EBITDA by 2027, with $20 million anticipated in 2025. These efforts are designed to strengthen the company’s propane business and adapt to market changes, ensuring long-term profitability and increased cash flow.

Superior Plus Wins Appeal, Strengthens Financial Position

Superior Plus Corp. announced that the Alberta Court of Appeal has overturned a prior decision, ruling in favor of Superior in a litigation case against Chemtrade Electrochem Inc. This decision means Superior is not required to pay a C$25 million reverse termination fee related to a 2016 Agreement, and it is entitled to the return of approximately C$28 million previously paid. This ruling positively impacts Superior’s financial standing and strengthens its position in the market as it recovers significant funds, enhancing stakeholder confidence.

Superior Plus Schedules 2024 Year-End Financial Results Release

Superior Plus Corp. announced the release schedule for its 2024 fourth quarter and year-end financial results, which will be available on February 26, 2025, followed by a conference call and webcast on February 27, 2025. This announcement reflects Superior’s ongoing commitment to transparency and engagement with stakeholders by providing timely updates on its financial performance and operations, potentially impacting investor confidence and market perception.