Superior Plus Corp

I am today reviewing Superior Plus Corp (TSX-SPB), because I was asked to for this stock for which I have spreadsheets. I have not previously reviewed this stock. I have had no investments in this stock. Superior Plus was an Income Trust that has recently changed to a corporation. Since reducing its dividend with this change, it has increased it again by just over 3%.

This company has always paid a good dividend; however, they have been inconsistent in changes to their dividends. They are therefore not on any dividend lists I follow. Considering the fact that they lowered their dividends to change to a corporation, they still have a 10 year growth in dividends of just under 3% per year. The 5 year growth of dividends is, of course, negative. Their 5 year and 10 year average dividend yield is just over 10%. The point is that you can get good income from this stock, but income growth is not as good.

The one good growth story is the revenue. This company has been issuing shares over the years, but even if you look at revenue growth per share, the 5 and 10 year growth figures are 9.5% per year and 12.5% per year respectively. The worse growth story is for the Book Value and both the 5 year and 10 year growth figures are negative. The Book Value also came down in 2009 due to an increase in shares. The share increase was due to a new acquisition.

The Liquidity Ratio has often been good, but it is currently at 1.28. I would prefer this to be at least 1.50, but at least the current assets can cover the current liabilities. The Asset/liability Ratio is a bit better at 1.36. Here also, I would prefer a ratio of at least 1.50. The other thing I do not like is that the Accrual Ratio is very high at 9%. This is due to recent acquisitions, but also due to low net income.

Tomorrow, I will talk about what the analyst say about this stock.

This company distributes propane, related products and services in Canada; produces sodium chlorate in Canada and U.S.; distributes specialty construction products to the walls and ceilings industry in Canada and U.S.; and provides natural gas supply services to commercial, industrial and residential markets in Ontario and Quebec. Its web site is www.superiorplus.com. See my spreadsheet at www.spbrunner.com/stocks/spb.htm.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets. Also, look at other investing notes on my website at www.spbrunner.com/investing.html.