Supremex (SXP) AI Stock Analysis

• Market Cap: C$95.05M
• Dividend Yield: 16.8%
• Average Volume (3M): 23.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.82
• Revenue Growth: -3.54%
• EPS Growth: -244.21%
• Country: CA
• Employees: 900
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 0.00
• Shares Outstanding: 24,559,870
• 10 Day Avg. Volume: 24,524
• 30 Day Avg. Volume: 23,910
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$4.50
• Price Target Upside: 16.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: C$4.50 ▲(16.28% Upside)

Supremex's overall stock score is primarily influenced by its financial performance challenges, including declining revenue and profitability. Technical analysis shows positive momentum, providing some support to the stock. The valuation is concerning due to a negative P/E ratio, though the dividend yield is attractive. The earnings call provides a cautiously optimistic outlook, highlighting strategic actions and a strengthened financial position.

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 makes money through the production and sale of its paper-based products, with envelopes and packaging solutions being the primary revenue streams. The company generates revenue by manufacturing these products in large volumes and selling them to businesses across different sectors, including retail, financial services, and e-commerce. Supremex also benefits from long-term contracts and partnerships with key clients, allowing for consistent revenue generation. Additionally, the company's emphasis on sustainability and innovation helps attract environmentally conscious customers and opens up new market opportunities.

Supremex Financial Statement Overview

Summary

Supremex faces challenges in revenue growth and profitability, as evidenced by the negative net income and declining revenue in the TTM period. However, the company has demonstrated 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	274.62M	281.04M	302.19M	272.47M	226.43M	204.60M
Gross Profit	160.58M	79.45M	87.22M	75.10M	53.11M	57.25M
EBITDA	10.48M	15.91M	48.28M	55.11M	36.91M	27.47M
Net Income	-15.61M	-11.74M	17.33M	28.44M	15.75M	7.49M
Balance Sheet
Total Assets	228.40M	236.97M	263.76M	260.56M	206.37M	186.55M
Cash, Cash Equivalents and Short-Term Investments	2.06M	1.79M	1.07M	1.93M	6.36M	3.04M
Total Debt	41.68M	87.92M	89.25M	88.10M	67.60M	75.68M
Total Liabilities	115.46M	122.00M	139.22M	136.24M	108.97M	107.59M
Stockholders Equity	112.94M	114.97M	134.72M	124.32M	97.40M	78.96M
Cash Flow
Free Cash Flow	22.55M	30.36M	37.64M	23.82M	26.09M	34.45M
Operating Cash Flow	24.04M	32.09M	43.90M	26.91M	30.00M	37.03M
Investing Cash Flow	-1.37M	-2.92M	-35.50M	-31.72M	-6.61M	-29.98M
Financing Cash Flow	-21.94M	-27.36M	-9.59M	-48.85K	-20.02M	-5.71M

Supremex Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.87
• 50DMA: Positive
• 100DMA: Positive
• 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 3.87 is below the 20-day moving average (MA) of 3.89, above the 50-day MA of 3.80, and above the 200-day MA of 3.45, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.82 is Neutral, neither overbought nor oversold. The STOCH value of 60.71 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	78 Outperform	13.92B	17.61	14.72%	1.57%	7.90%	19.55%
CCL.A	78 Outperform	13.92B	18.29	14.72%	1.59%	7.90%	19.55%
WPK	71 Outperform	2.51B	13.16	11.97%	7.77%	4.69%	4.54%
TCL.A	68 Neutral	1.63B	9.23	6.35%	9.72%	-2.90%	57.43%
SXP	58 Neutral	C$95.05M	―	-12.57%	16.80%	-3.54%	-244.21%
CAS	57 Neutral	968.02M	-120.71	-0.48%	5.02%	2.77%	81.01%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Supremex Corporate Events

Supremex Reports Q2 2025 Results, Declares Special Dividend, and Expands with Acquisitions

Supremex Inc. announced its second quarter results for 2025, reporting a total revenue of $66.0 million, a decline from the previous year, and a net loss of $0.3 million. The company declared a special dividend of $0.50 per common share and renewed its normal course issuer bid to repurchase shares. Supremex completed two acquisitions to enhance its operations, which are expected to be immediately accretive, and executed a sale-leaseback transaction to strengthen its balance sheet. Despite challenges in the envelope segment due to reduced volume from a major U.S. customer and pricing pressures, the packaging segment showed strong growth.

The most recent analyst rating on (TSE:SXP) stock is a Buy with a C$5.75 price target. To see the full list of analyst forecasts on Supremex stock, see the TSE:SXP Stock Forecast page.

Supremex Unlocks Shareholder Value with $53 Million Sale-Leaseback Deal

Supremex Inc. has completed a sale-leaseback transaction of two properties, generating $53.0 million in gross proceeds. This transaction enhances the company’s financial flexibility, enabling it to focus on strategic objectives and sustain profitable growth, while optimizing shareholder returns. The properties, located in LaSalle, Quebec, and Etobicoke, Ontario, house the company’s primary envelope sales and manufacturing facilities. Supremex has entered into a 10-year lease agreement with options for renewal, ensuring continued operations at these sites.

The most recent analyst rating on (TSE:SXP) stock is a Buy with a C$5.75 price target. To see the full list of analyst forecasts on Supremex stock, see the TSE:SXP Stock Forecast page.