Superior Plus Corp. (SPB) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Wajax Corp.

Russel Metals, Inc.

ADENTRA, Inc.

Finning International, Inc.

Gibson Energy, Inc.

Taiga Building Products Ltd.

Parkland Corp.

Toromont Industries Ltd.

Superior Plus Corp.

Tidewater Midstream And Infrastructure Ltd.

First Hydrogen Corp.

Why is Superior Plus Corp. ?

Poor Management Efficiency with a low ROCE of 7.25%

The company has been able to generate a Return on Capital Employed (avg) of 7.25% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate 9.42% of over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 4.80% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 9.42% of over the last 5 years

With ROE of 8.57%, it has a expensive valuation with a 1.42 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -0.74%, its profits have fallen by -1% ; the PEG ratio of the company is 2.2

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -0.74% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Superior Plus Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Superior Plus Corp.

-0.74%

-0.29

40.01%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.28%

EBIT Growth (5y)

9.42%

EBIT to Interest (avg)

1.85

Debt to EBITDA (avg)

3.93

Net Debt to Equity (avg)

1.64

Sales to Capital Employed (avg)

0.92

Tax Ratio

49.17%

Dividend Payout Ratio

48.12%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

7.25%

ROE (avg)

4.80%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.42

EV to EBIT

15.28

EV to EBITDA

6.57

EV to Capital Employed

1.15

EV to Sales

1.26

PEG Ratio

2.15

Dividend Yield

ROCE (Latest)

7.53%

ROE (Latest)

8.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 432.04 MM

NET PROFIT(HY)

Higher at CAD 218.32 MM

ROCE(HY)

Highest at 4.16%

RAW MATERIAL COST(Y)

Fallen by -10.67% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 22.51 times

-5What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.63 times

PRE-TAX PROFIT(Q)

Fallen at -30.87%

NET PROFIT(Q)

Fallen at -32.28%

Here's what is working for Superior Plus Corp.

Operating Cash Flow

Highest at CAD 432.04 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Inventory Turnover Ratio

Highest at 22.51 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -10.67% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Superior Plus Corp.

Pre-Tax Profit

Fallen at -30.87%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

Fallen at -32.28%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Debtors Turnover Ratio

Lowest at 6.63 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio