Supremex (SXP) AI Stock Analysis

• Market Cap: C$99.47M
• Dividend Yield: 4.44%
• Average Volume (3M): 14.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• Revenue Growth: -3.15%
• EPS Growth: -222.64%
• Country: CA
• Employees: 900
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Packaging & Containers
• EPS (TTM): 0.09
• Shares Outstanding: 24,559,870
• 10 Day Avg. Volume: 13,817
• 30 Day Avg. Volume: 14,760
• PEG Ratio: 0.56
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.96
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: C$4.50 ▲(14.50%Upside)

Supremex's overall score is driven by solid technical analysis and a positive earnings call outlook, although financial performance and valuation reveal challenges. The company's strong balance sheet and cash flow management offer support, but declining revenue and profitability warrant caution.

Supremex Business Overview & Revenue Model

Company Description

Supremex Inc. manufactures and markets envelopes, and paper packaging solutions and specialty products to corporations, resellers, government entities, SMEs, and solutions providers in Canada, and the Northeastern and Midwestern United States. The company offers a range of stock and custom envelopes in various styles, shapes, and colors; corrugated boxes, and folding carton and e-Commerce fulfillment packaging solutions; polyethylene bags for courier applications and bubble mailers. It serves various industries, including food, pharmaceuticals, cosmetics, and personal care products. The company was founded in 1977 and is based in LaSalle, Canada.

How the Company Makes Money

Supremex generates revenue through the sale of its diverse product lines, primarily envelopes and paper-based packaging solutions. The company leverages its extensive distribution network and robust manufacturing capabilities to deliver these products efficiently across North America. Key revenue streams include direct sales to businesses and governmental organizations, along with strategic partnerships with distributors and retailers. Supremex also benefits from long-term contracts and repeat business from its established client base, contributing to consistent revenue generation. The company's focus on sustainability and innovation also allows it to capture market share in the growing eco-friendly packaging sector, further driving its earnings.

Supremex Financial Statement Overview

Summary

Supremex faces challenges in revenue growth and profitability, with a negative net income and declining revenue. Nonetheless, it shows resilience through improved gross profit margins and solid cash flow management. The balance sheet remains stable with manageable debt levels, providing a strong foundation for potential future growth.

Income Statement

Supremex has shown fluctuating revenue and profitability over recent years. The TTM data shows a decrease in total revenue compared to the previous year, with a negative net profit margin of -4.79%, indicating a challenging period for profitability. However, the gross profit margin improved significantly from the previous year, suggesting some operational efficiency. The EBIT and EBITDA margins have also shown improvement in the TTM period, although they remain below industry standards.

Balance Sheet

The company's balance sheet reflects a moderate debt-to-equity ratio of 0.71, indicating a balanced leverage situation. Stockholders' equity remains stable, with a healthy equity ratio of 48.93%, which suggests a solid foundation. However, the total assets have slightly decreased, reflecting some challenges in asset growth.

Cash Flow

Supremex has maintained positive free cash flow growth, with a strong free cash flow of 32.37 million CAD in the TTM period. The operating cash flow to net income ratio is favorable, indicating effective cash management despite negative net income. The free cash flow to net income ratio is particularly strong, highlighting the company's ability to generate cash even in less profitable times.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
278.00M	281.04M	302.19M	272.47M	226.43M	204.60M
	Gross Profit
118.83M	59.79M	87.22M	75.10M	53.11M	57.25M
	EBIT
19.44M	-4.09M	28.94M	40.66M	23.28M	18.08M
	EBITDA
14.04M	15.91M	48.28M	55.11M	36.91M	27.47M
	Net Income Common Stockholders
-13.32M	-11.74M	17.33M	28.44M	15.75M	7.49M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.01M	1.79M	1.07M	1.93M	6.36M	3.04M
	Total Assets
274.48M	236.97M	263.76M	260.56M	206.37M	186.55M
	Total Debt
92.48M	87.92M	89.25M	88.10M	67.60M	75.68M
	Net Debt
91.47M	86.12M	88.18M	86.17M	61.23M	72.65M
	Total Liabilities
138.31M	122.00M	139.22M	136.24M	108.97M	107.59M
	Stockholders Equity
136.16M	114.97M	134.72M	124.32M	97.40M	78.96M
Cash Flow		Free Cash Flow
32.37M	30.36M	37.64M	23.82M	26.09M	34.45M
	Operating Cash Flow
33.93M	32.09M	43.90M	26.91M	30.00M	37.03M
	Investing Cash Flow
-2.72M	-2.92M	-35.50M	-31.72M	-6.61M	-29.98M
	Financing Cash Flow
-29.00M	-27.36M	-9.59M	-48.85K	-20.02M	-5.71M

Supremex Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SXP, the sentiment is Positive. The current price of 3.93 is above the 20-day moving average (MA) of 3.87, above the 50-day MA of 3.82, and above the 200-day MA of 3.83, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 54.07 is Neutral, neither overbought nor oversold. The STOCH value of 55.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SXP.

Supremex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCL.A	78 Outperform	C$13.73B	16.71	16.68%	1.46%	9.80%	60.44%
WPK	78 Outperform	C$2.80B	13.82	11.26%	0.40%	5.50%	9.93%
TCL.A	76 Outperform	C$1.79B	10.07	9.65%	4.19%	-2.58%	100.21%
SXP	68 Neutral	C$99.47M	―	-10.60%	4.44%	-3.15%	-222.64%
Sector *	62 Neutral	$6.83B	11.28	2.95%	3.88%	2.70%	-24.56%
CADNF		$665.93M	―	-0.24%	5.21%	―	―
CCDBF		$10.02B	16.44	16.78%	1.49%	―	―

Supremex Corporate Events

Supremex Announces Strong Shareholder Support at AGM

Supremex Inc. announced the voting results from its Annual General Meeting, where 12,310,101 common shares were voted, representing 50.12% of all outstanding shares. Shareholders overwhelmingly supported the election of all director nominees and the appointment of Ernst and Young LLP as auditors, reflecting strong shareholder confidence in the company’s leadership and strategic direction.

Supremex Reports Q1 2025 Results and Plans NCIB Renewal

Supremex Inc. reported a decrease in total revenue to $70.2 million for the first quarter of 2025, down from $73.3 million in the same period of 2024. Despite the revenue decline, the company saw growth in its packaging segment, driven by increased demand for e-commerce fulfillment solutions and folding cartons. The envelope segment experienced a revenue drop due to a less favorable customer and product mix, although there was a slight increase in volume sold. Supremex plans to renew its Normal Course Issuer Bid, and its strong balance sheet and cash flow position it to pursue strategic initiatives and potential acquisitions.

Supremex Reports Q1 2025 Results and Strategic Initiatives

Supremex Inc. announced its first-quarter 2025 financial results, reporting a total revenue of $70.2 million, a decline from the previous year. The envelope segment saw a revenue decrease due to pricing and mix-related factors, while the packaging segment experienced growth driven by increased demand for e-commerce solutions. Despite the revenue drop, Supremex maintains a strong market position, supported by efficiency gains and strategic initiatives, including potential acquisitions and a sale-leaseback transaction to enhance shareholder value.