Superior Plus (SPB) AI Stock Analysis

• Market Cap: C$1.83B
• Dividend Yield: 2.26%
• Average Volume (3M): 822.85K
• Price to Earnings (P/E): 36.5
• Beta (1Y): 0.74
• Revenue Growth: 5.71%
• EPS Growth: 320.62%
• Country: CA
• Employees: 4,261
• Sector: Utilities
• Sector Strength: 72
• Industry: Regulated Gas
• EPS (TTM): 0.75
• Shares Outstanding: 229,271,650
• 10 Day Avg. Volume: 662,671
• 30 Day Avg. Volume: 822,853
• PEG Ratio: 0.04
• Price to Book (P/B): 1.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.66
• 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$10.05
• Price Target Upside: 26.10% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 65 Neutral
• Price Target: C$8.00 ▲(0.38%Upside)

Superior Plus's overall stock score reflects a mixed financial picture with strengths in cash flow management and strategic initiatives offset by declining income and increased leverage. Positive technical indicators and a strong earnings call further support the value, although the high P/E ratio suggests caution in valuation. The combination of a high dividend yield and positive earnings guidance adds stability and potential upside, balancing financial risks.

Positive Factors

Financial Performance

Superior's strategy includes targeting significant growth in EBITDA and free cash flow, driven by operational efficiencies and improved asset utilization.

Growth Strategy

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

Industry Demand

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

Negative Factors

Market Risks

The company's increased target price reflects confidence in its strategy and potential for stock price appreciation if targets are met.

Strategic Challenges

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

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 two main business segments. The Energy Distribution segment is the primary source of income, where the company sells propane, heating oil, and refined fuels directly to consumers and businesses. This segment benefits from long-term customer relationships and seasonal demand fluctuations, particularly in colder months. The Specialty Chemicals segment contributes to revenue by manufacturing and selling chemical products like sodium chlorate, used in the pulp and paper industry, and chlor-alkali products, used in water treatment and other industrial processes. Revenue growth is supported by strategic acquisitions, expanding customer base, and optimizing logistics and supply chain operations. Additionally, partnerships with suppliers and distribution networks play a critical role in enhancing the company's market reach and operational efficiency.

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
EBITDA	387.00M	569.20M	203.30M	318.20M	328.51M
Net Income	-36.80M	51.60M	-87.90M	17.20M	58.89M
Balance Sheet
Total Assets	3.69B	5.17B	4.48B	3.56B	3.83B
Cash, Cash Equivalents and Short-Term Investments	17.10M	48.30M	58.40M	81.00M	67.80M
Total Debt	1.87B	2.48B	2.15B	1.63B	1.83B
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: Positive
• Last Price: 7.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 7.97 is below the 20-day moving average (MA) of 8.01, above the 50-day MA of 7.55, and above the 200-day MA of 6.80, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 54.27 is Neutral, neither overbought nor oversold. The STOCH value of 13.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SPB.

Superior Plus Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPX	75 Outperform	C$8.68B	12.11	15.24%	4.66%	-27.55%	-12.05%
NPI	72 Outperform	$5.60B	21.49	6.08%	7.70%	-5.33%	―
CU	72 Outperform	C$7.68B	25.58	6.76%	6.72%	-0.53%	-31.77%
ALA	67 Neutral	C$11.55B	20.47	6.56%	3.26%	2.27%	-9.19%
Sector *	67 Neutral	$16.42B	16.95	4.63%	3.59%	4.77%	6.10%
SPB	65 Neutral	C$1.83B	36.51	2.90%	2.26%	5.71%	320.62%
AQN	56 Neutral	$6.01B	―	5.54%	4.77%	-4.74%	-213.24%

Superior Plus Corporate Events

Superior Plus Announces Successful Shareholder Meeting Outcomes

Superior Plus Corp. announced the successful approval of all resolutions at its annual and special shareholders meeting, including the election of 10 directors and the appointment of Ernst & Young LLP as auditors. The meeting also saw the approval of a new stock option plan, a reduction in the stated capital account, and a non-binding advisory vote on executive compensation, reflecting strong shareholder support and potentially enhancing the company’s governance and operational strategies.

The most recent analyst rating on (TSE:SPB) stock is a Hold with a C$9.50 price target. To see the full list of analyst forecasts on Superior Plus stock, see the TSE:SPB Stock Forecast page.

Superior Plus Reports Record Q1 Results with Strong Growth in Propane and CNG Segments

Superior Plus Corp. announced its first quarter results for 2025, reporting a record Adjusted EBITDA of $260.5 million, an 11% increase from the previous year. The company’s propane and CNG businesses both showed significant growth, with the CNG segment achieving a record quarter. Superior Plus also returned over $35 million to shareholders through dividends and share repurchases, demonstrating its commitment to delivering shareholder value.

The most recent analyst rating on (TSE:SPB) stock is a Hold with a C$9.50 price target. To see the full list of analyst forecasts on Superior Plus stock, see the TSE:SPB Stock Forecast page.

Superior Plus Announces 2025 Q2 Dividend

Superior Plus Corp. has announced a quarterly dividend of CAD $0.045 per common share, payable on July 15, 2025, to shareholders of record as of June 30, 2025. This decision reflects the company’s ongoing commitment to providing returns to its shareholders and highlights its stable financial position. The dividend is part of Superior’s annualized cash dividend rate of CAD $0.18 per share, classified as an eligible dividend for Canadian income tax purposes. This announcement underscores Superior Plus’s strategic focus on maintaining shareholder value while continuing its operations in the energy sector.

The most recent analyst rating on (TSE:SPB) stock is a Hold with a C$9.50 price target. To see the full list of analyst forecasts on Superior Plus stock, see the TSE:SPB Stock Forecast page.

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.