Superior Plus (SPB) AI Stock Analysis

• Market Cap: C$1.73B
• Dividend Yield: 3.99%
• Average Volume (3M): 618.80K
• Price to Earnings (P/E): 20.7
• Beta (1Y): 0.81
• Revenue Growth: 6.01%
• EPS Growth: N/A
• Country: CA
• Employees: 4,261
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): -0.35
• Shares Outstanding: 222,969,790
• 10 Day Avg. Volume: 626,278
• 30 Day Avg. Volume: 618,801
• PEG Ratio: 0.16
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 9.67
• 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$9.71
• Price Target Upside: 23.07% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 68 Neutral
• Price Target: C$8.00 ▲(1.39% Upside)

Superior Plus shows a stable financial position with strong cash flow and gross profit margins, but high leverage poses a risk. Technical indicators suggest a positive trend, and the company is making strategic progress despite some operational challenges. The valuation is high, but the dividend yield offers compensation. Overall, the stock is moderately attractive with room for improvement in operational efficiency and debt reduction.

Positive Factors

Revenue Growth

The growth in adjusted EBITDA indicates strong revenue performance, driven by favorable conditions and increased volumes, enhancing long-term business stability.

Diversification Strategy

Successful diversification into industrial and renewable segments reduces dependency on traditional markets, providing a more resilient revenue base.

Operational Efficiency

Improved operational efficiency through cost reductions enhances profitability and competitive positioning, supporting sustainable long-term growth.

Negative Factors

High Leverage

Significant leverage increases financial risk, especially if interest rates rise, potentially impacting cash flow and limiting strategic flexibility.

Decline in U.S. Propane Business

Challenges in the U.S. propane segment highlight vulnerabilities in key markets, which could affect overall profitability and growth prospects.

Market Headwinds in Well Site Business

Exposure to commodity price fluctuations in the well site business can lead to volatility in earnings, impacting financial predictability and planning.

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 makes money primarily through its energy distribution segment, which involves the sale and distribution of propane and related products. The company generates revenue by delivering propane to a diverse customer base, including residential, commercial, and industrial clients. Key revenue streams include residential heating solutions, commercial energy needs, and wholesale distribution to other businesses. Superior Plus also benefits from strategic partnerships and acquisitions that expand its market presence and enhance its service offerings. Additionally, the company may engage in complementary services, such as equipment rental and maintenance, which contribute to its overall earnings.

Superior Plus Financial Statement Overview

Summary

Superior Plus demonstrates a stable financial position with strengths in gross profit margins and cash flow generation. However, high leverage and moderate returns on equity highlight potential risks. The company should focus on improving operational efficiency and reducing debt to enhance financial health.

Income Statement

Superior Plus has shown mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a slight decline in revenue growth, but the company has maintained a positive net profit margin of 1.52%. The gross profit margin is strong at 47.18%, suggesting efficient cost management. However, the EBIT and EBITDA margins, while positive, indicate room for improvement in operational efficiency.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.78, which suggests significant leverage and potential risk if interest rates rise. The return on equity is modest at 3.90%, indicating limited profitability from shareholders' investments. The equity ratio of 26.13% reflects a moderate level of financial stability.

Cash Flow

The cash flow statement reveals a healthy free cash flow growth rate of 19.55% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is 0.69, showing that the company is generating sufficient cash from operations relative to its net income. The free cash flow to net income ratio of 0.48 suggests a reasonable conversion of earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.48B	2.27B	2.53B	2.52B	1.88B	1.42B
Gross Profit	1.05B	972.74M	965.10M	708.68M	557.74M	557.67M
EBITDA	477.67M	372.80M	428.57M	151.51M	300.51M	324.07M
Net Income	54.53M	-35.03M	38.85M	-83.84M	143.43M	58.83M
Balance Sheet
Total Assets	3.52B	3.69B	5.17B	4.48B	3.56B	3.83B
Cash, Cash Equivalents and Short-Term Investments	21.60M	60.38M	48.30M	58.40M	81.00M	67.80M
Total Debt	1.80B	1.87B	2.48B	2.15B	1.63B	1.83B
Total Liabilities	2.34B	2.54B	3.40B	3.02B	2.25B	2.55B
Stockholders Equity	920.10M	885.80M	1.43B	1.11B	983.60M	949.20M
Cash Flow
Free Cash Flow	159.20M	113.70M	349.80M	131.40M	126.90M	243.90M
Operating Cash Flow	295.00M	274.10M	550.00M	248.70M	232.00M	360.20M
Investing Cash Flow	-115.00M	-142.10M	-467.10M	-632.10M	172.00M	-384.20M
Financing Cash Flow	-187.30M	-144.70M	-99.70M	410.90M	-399.60M	22.50M

Superior Plus Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 7.89 is above the 20-day moving average (MA) of 7.59, above the 50-day MA of 7.27, and above the 200-day MA of 6.95, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 73.80 is Negative, neither overbought nor oversold. The STOCH value of 81.22 is Negative, 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	70 Outperform	10.11B	20.34	8.98%	4.01%	-16.83%	-37.24%
SPB	68 Neutral	C$1.73B	20.65	6.30%	3.99%	6.01%	―
ALA	66 Neutral	12.72B	16.63	9.27%	2.92%	-1.95%	78.65%
CU	66 Neutral	7.89B	23.40	7.50%	4.75%	-0.51%	-17.17%
NPI	62 Neutral	5.93B	-112.23	-1.06%	5.46%	-8.39%	-180.67%
AQN	46 Neutral	5.76B	-3.07	-29.29%	4.84%	-6.96%	-1235.30%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%

Superior Plus Corporate Events

Superior Plus Reports Strong H1 2025 Results, Reaffirms Growth Guidance

Superior Plus Corp. reported a strong first half of 2025, with an increase in adjusted EBITDA by $15.1 million, or 5.4%, compared to the same period in 2024. Despite a decrease in second-quarter adjusted EBITDA due to lower propane volumes and a temporary plant shutdown, the company reaffirmed its 2025 growth guidance of approximately 8%. The company’s CNG business showed resilience, growing its EBITDA by 5% in the first half of the year. Superior Plus also returned approximately C$114.5 million to shareholders through dividends and share repurchases, repurchasing over 10% of outstanding shares since November 2024.

The most recent analyst rating on (TSE:SPB) stock is a Buy with a C$11.00 price target. To see the full list of analyst forecasts on Superior Plus stock, see the TSE:SPB Stock Forecast page.

Superior Plus Declares Quarterly Dividend for Q3 2025

Superior Plus Corp. has announced a quarterly dividend of CAD $0.045 per common share, payable on October 15, 2025, to shareholders of record at the close of business on September 29, 2025. This dividend declaration reflects the company’s ongoing commitment to providing returns to its shareholders and underscores its stable financial performance in the energy distribution sector.

The most recent analyst rating on (TSE:SPB) stock is a Buy with a C$11.00 price target. To see the full list of analyst forecasts on Superior Plus stock, see the TSE:SPB Stock Forecast page.