Supremex (SXP) AI Stock Analysis

• Market Cap: C$87.63M
• Dividend Yield: 19.55%
• Average Volume (3M): 16.57K
• Price to Earnings (P/E): 5.3
• Beta (1Y): 0.95
• Revenue Growth: -4.69%
• EPS Growth: N/A
• Country: CA
• Employees: 900
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 0.19
• Shares Outstanding: 24,477,179
• 10 Day Avg. Volume: 20,445
• 30 Day Avg. Volume: 16,568
• PEG Ratio: 0.05
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 3.09
• 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
• EPS Forecast (FY): 0.29
• Revenue Forecast (FY): C$270.90M

• Rating: 67 Neutral
• Price Target: C$4.00 ▲(13.31% Upside)

Supremex's overall score reflects its strong valuation and strategic financial moves, such as acquisitions and debt reduction. However, declining revenue and profitability, along with bearish technical indicators, weigh on the score.

Positive Factors

Strong Financial Position

The sale leaseback significantly strengthens Supremex's financial position, reducing net debt and providing flexibility for future strategic initiatives.

Successful Acquisition Strategy

Strategic acquisitions enhance operational synergies and market presence, contributing to growth in key segments like folding carton and e-commerce solutions.

Special Dividend to Shareholders

The special dividend reflects strong cash generation and a commitment to returning value to shareholders, reinforcing investor confidence in long-term prospects.

Negative Factors

Declining Revenue Growth

The decline in revenue growth highlights challenges in maintaining market share and demand, potentially impacting long-term financial performance and strategic goals.

Negative Return on Equity

Negative ROE suggests inefficiencies in generating returns from shareholders' equity, which could hinder the company's ability to attract investment and grow shareholder value.

Decline in Free Cash Flow Growth

A significant decline in free cash flow growth may limit the company's ability to invest in growth opportunities and manage financial obligations, impacting long-term sustainability.

Supremex Business Overview & Revenue Model

Company Description

Supremex (SXP) is a leading manufacturer and provider of custom packaging solutions, primarily serving the North American market. The company operates in the packaging and printing sectors, specializing in the production of a diverse range of products including envelopes, mailers, and specialty packaging. With a focus on innovation and sustainability, Supremex offers high-quality products tailored to meet the unique needs of its clients across various industries such as e-commerce, retail, and direct mail marketing.

How the Company Makes Money

Supremex generates revenue through the sale of its packaging products, which includes a variety of envelopes, mailers, and custom packaging solutions. The company's primary revenue stream comes from direct sales to businesses in need of packaging solutions, particularly in the e-commerce and retail sectors. Additionally, Supremex may benefit from long-term contracts with key clients, providing a stable income source. The company places a strong emphasis on sustainable packaging options, which can attract environmentally conscious customers and open up new market segments. Strategic partnerships with logistics and shipping companies can also enhance their distribution capabilities, contributing to increased sales and market reach.

Supremex Financial Statement Overview

Summary

Supremex shows resilience with strong gross profit margins and a stable balance sheet. However, declining revenue growth, profitability margins, negative ROE, and reduced cash flow growth highlight areas for improvement.

Income Statement

Supremex shows a mixed performance in its income statement. The TTM data indicates a decline in revenue growth rate and profitability margins compared to previous years. Gross profit margin remains strong at 58.17%, but net profit margin has decreased to 6.11%. The EBIT and EBITDA margins have also seen a decline, indicating pressure on operational efficiency. Despite these challenges, the company has maintained a positive net income, which is a positive sign.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.79 in the TTM period. However, the return on equity is negative, indicating inefficiencies in generating returns from shareholders' equity. The equity ratio remains healthy, suggesting a solid capital structure. The company should focus on improving its ROE to enhance shareholder value.

Cash Flow

The cash flow statement shows a decline in free cash flow growth, with a significant drop of 36.66% in the TTM period. The operating cash flow to net income ratio is low at 0.35, indicating potential challenges in converting income into cash. However, the free cash flow to net income ratio remains strong at 0.90, suggesting that the company is still generating sufficient cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	270.94M	281.04M	302.19M	272.47M	226.43M	204.60M
Gross Profit	157.59M	79.45M	87.22M	75.10M	53.11M	57.25M
EBITDA	39.93M	15.91M	48.28M	55.11M	36.91M	27.47M
Net Income	16.56M	-11.74M	17.33M	28.44M	15.75M	7.49M
Balance Sheet
Total Assets	237.67M	236.97M	263.76M	260.56M	206.37M	186.55M
Cash, Cash Equivalents and Short-Term Investments	2.64M	1.79M	1.07M	1.93M	6.36M	3.04M
Total Debt	86.33M	87.92M	89.25M	88.10M	67.60M	75.68M
Total Liabilities	128.66M	122.00M	139.22M	136.24M	108.97M	107.59M
Stockholders Equity	109.01M	114.97M	134.72M	124.32M	97.40M	78.96M
Cash Flow
Free Cash Flow	14.28M	30.36M	37.64M	23.82M	26.09M	34.45M
Operating Cash Flow	15.78M	32.09M	43.90M	26.91M	30.00M	37.03M
Investing Cash Flow	44.69M	-2.92M	-35.50M	-31.72M	-6.61M	-29.98M
Financing Cash Flow	-60.68M	-27.36M	-9.59M	-48.85K	-20.02M	-5.71M

Supremex Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 3.53 is below the 20-day moving average (MA) of 3.61, below the 50-day MA of 3.59, and below the 200-day MA of 3.53, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 48.90 is Neutral, neither overbought nor oversold. The STOCH value of 31.33 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.B	76 Outperform	C$14.84B	18.56	14.88%	1.50%	7.12%	17.15%
CCL.A	74 Outperform	C$14.84B	18.75	15.16%	1.47%	7.12%	17.15%
TCL.A	74 Outperform	C$1.91B	11.11	8.95%	8.38%	-2.45%	44.20%
WPK	73 Outperform	C$2.68B	14.35	10.45%	7.13%	3.19%	-0.26%
SXP	67 Neutral	C$87.63M	5.31	15.15%	19.55%	-4.69%	―
CAS	65 Neutral	C$1.25B	62.60	1.16%	3.89%	3.50%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Supremex Corporate Events

Supremex Reports Q3 2025 Results Amid Strategic Moves and Market Challenges

Supremex Inc. reported a decrease in total revenue for the third quarter of 2025, with earnings per share improving significantly compared to the previous year. The company undertook strategic acquisitions and a sale and leaseback transaction to reduce debt and return funds to shareholders, despite challenges from Canada Post labor issues affecting operations. The company’s strong balance sheet positions it well for future growth and continued shareholder returns.

Supremex Mourns the Loss of Esteemed Director Warren J. White

Supremex Inc. announced the passing of Mr. Warren J. White, a valued director since 2014, who contributed significantly to the company with his extensive experience in business and leadership roles in major international manufacturing organizations. His loss is deeply felt across the organization, and the company extends its condolences to his family. Mr. White’s expertise in areas such as information technology, finance, procurement, and strategic planning was instrumental in guiding Supremex’s operations and strategic direction.