Is it a good company at a reasonable price? With this stock, I would worry about the amount of the debt and the lack of growth in revenue. I think that they should have cut the dividend a lot more when they because a corporation in 2009. I would not be currently interested in this stock. However, my testing is showing that the stock price is relatively cheap.
I do not own this stock of Superior Plus Corp (TSX-SPB, OTC-SUUIF). I started to follow this stock as it was an income trust company that was talked about in the Money Reporter from MPL Communications. This company changed to a corporation from a Unit Trust (TSX-SPF.UN) in 2009.
When I was updating my spreadsheet, I noticed this company did a lot better in the first quarter of 2025 with Revenue, Earnings and Cash Flow all increasing. Analysts think that the company will be doing better in 2025 with increasing Revenue, Earnings and Cash Flow. This company changed their reporting currency to US$ in 2024.
If you had invested in this company in December 2014, for $1,007.16 you would have bought 84 shares at $11.99 per share. In December 2024, after 10 years you would have received $594.72 in dividends. The stock would be worth $536.76. Your total return would have been $1,131.48. This would be a total return of 1.56% per year with 6.10% from capital loss and 7.66% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $11.99 | $1,007.16 | 84 | 10 | $594.72 | $536.76 | $1,131.48 |
The current dividend yield is moderate with dividend growth negative. The current dividend yield is moderate (2% to 4% ranges) at 2.65%. The 5, 10 year and historical median dividend yields are good (5% to 6% ranges) at 6.32%, 6.22% and 6.51%. The dividend growth over the past 5 years is 0%. This is because dividends were flat 2015. Dividends were changed from monthly to quarterly in 2023. Dividends were cut in 2025 by 75%.
The Dividend Payout Ratios (DPR) will probably be fine going forward. The DPR for 2024 for Earnings per Share (EPS) are non-calculable currently because of an earning loss with 5 year coverage far too high at 407%%. The DPR for 2024 for Adjusted Operations Cash Flow (AOCF) is too high at 51% with 5 year coverage fine at 41%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 27% with 5 year coverage at 29%. The DPR for 2024 for Free Cash Flow (FCF) is too high at 153% with 5 year coverage at 112%. There is no agreement on what the FCF is and the values for 2024 range from 97.3M to 163.1M. Analysts expect the DPR for Earnings per Share to be around 29% in 2025 because of the dividend cut.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | -333.59% | 407.42% |
| AOCF | 50.54% | 41.12% |
| CFPS | 27.02% | 29.49% |
| FCF | 153.24% | 111.89% |
Debt Ratios need improving and showing far too much debt. The Long Term Debt/Market Cap Ratio for 2024 is far too high at 1.61 and currently at 1.49. This ratio is best around 0.50 and you certainly want it under 1.00. The Intangible and Goodwill ratio is far too high at 2.08 and 1.60 currently. The Liquidity Ratio for 2024 is far too low at 0.95 and ok at 1.25 currently. If you added in Cash Flow after dividends, the ratio is far too low at 0.78 and currently fine at 1.82. The Debt Ratio for 2024 is fine at 1.45 and good at 1.53 currently. The Leverage and Debt/Equity Ratios for 2024 are far too high at 4.16 and 2.87 and currently at 3.62 and 2.36. These need to be below 3.00 and 2.00.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 1.61 | 1.49 |
| Intang/GW | 2.08 | 1.60 |
| Liquidity | 0.95 | 1.25 |
| Liq. + CF | 0.78 | 1.82 |
| Debt Ratio | 1.45 | 1.53 |
| Leverage | 4.16 | 3.62 |
| D/E Ratio | 2.87 | 2.36 |
The Total Return per year is shown below for years of 5 to 28 to the end of 2024 in CDN$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2019 | 5 | 0.00% | -5.42% | -12.64% | 7.22% |
| 2014 | 10 | 1.67% | 1.56% | -6.10% | 7.66% |
| 2009 | 15 | -5.26% | 2.24% | -5.38% | 7.62% |
| 2004 | 20 | -5.95% | -0.88% | -4.02% | 3.14% |
| 1999 | 25 | -2.94% | 11.59% | -2.86% | 14.45% |
| 1996 | 28 | -1.17% | 10.44% | -2.69% | 13.12% |
The Total Return per year is shown below for years of 5 to 21 to the end of 2024 in US$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2019 | 5 | -2.03% | -7.16% | -14.49% | 7.33% |
| 2014 | 10 | -0.49% | -0.67% | -8.06% | 7.39% |
| 2009 | 15 | -7.25% | 0.34% | -7.33% | 7.67% |
| 2004 | 20 | -6.79% | -0.94% | -8.24% | 7.30% |
| 2003 | 21 | -5.82% | 2.11% | -6.92% | 9.02% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 12.22, 14.09 and 15.96. The corresponding 10 year ratios are 8.09, 9.71 and 11.20. The corresponding historical ratios are 12.22, 14.90 and 18.18. The current ratio is 10.95 based on a stock price of $6.79 and EPS estimate for 2025 of $0.62. The current ratio is between the median and high ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get a Graham Price of $9.31. The 10-year low, median, and high median Price/Graham Price Ratios are 1.07, 1.28 and 1.60. The current ratio is 0.73 based on a stock price $6.79. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I get a 10-year median Price/Book Value per Share Ratio of 1.91. The current ratio is 1.09 based on a stock price of $6.79, Book Value of $1,387M and Book Value per Share of $6.22. The current ratio is 43% below the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I get a 10-year median Price/Cash Flow per Share Ratio of 7.07. The current ratio is 3.36 based on a stock price of $6.79, Cash Flow per Share estimate for 2025 of $2.02 and Cash Flow of $450.9M. The current ratio is 53% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I get an historical median dividend yield of 6.51%. The current dividend yield is 2.65% based on a stock price of $6.79 and dividends of $0.18. The current dividend yield is 59% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive. This stock used to be an income trust and therefore could have a high dividend yield. They have just decreased their dividends after having them flat for a long time. So, this is not a good test.
I get a 10 year median dividend yield of 6.22%. The current dividend yield is 2.65% based on a stock price of $6.79 and dividends of $0.18. The current dividend yield is 57% below the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively expensive. This stock used to be an income trust and therefore could have a high dividend yield. They have just decreased their dividends after having them flat for a long time. So, this is not a good test.
The 10-year median Price/Sales (Revenue) Ratio is 0.72. The current P/S Ratio is 0.40 based on Revenue estimate for 2025 pf $3,785M, Revenue per Share of $16.97 and a stock price of $6.79. The current ratio is 44% below the 10 year median ratio.
Results of stock price testing is that the stock price could be cheap. The dividend yield tests say the stock price is expensive, but this test works best on dividend growth stocks. This company used to be an income trust and they should have cut the dividend more when they because a corporation in 2009. The P/S Ratio test says that the stock is relatively cheap. The rest of the testing says that the stock price is relatively cheap except for the P/E Ratio test that says it is reasonable but above the median.
When I look at analysts’ recommendations, I find Strong Buy (3), Buy (5), and Hold (2). The consensus would be a Buy. The 12 month stock price consensus is $9.63 with a high of $12.00 and low of $7.50. The consensus stock price of $9.63 implies a total return of 44.48% with 41.83% from capital gains and 2.65% from dividends.
Analysts on Stock Chase sort of like this company. One analyst says that the dividend cut is a game-changer for him and I understand that. Christopher Liew on Motley Fool thinks this stock is a safe long-term holding. Amy Legate-Wolfe on Motley Fool reviews this stock but seems to miss the dividend changes. The company put out a Press Release about their fourth quarter of 2024 results. The company put out a Press Release about their first quarter of 2025.
Simply Wall Street via Yahoo Finance puts out a review on this stock. They have two warnings out on this stock of interest payments are not well covered by earnings; and unstable dividend track record.
Superior Plus Corp is a Canadian-based company that distributes energy and specialty chemicals. The company is organized into four business segments: U.S. Propane Distribution, Canadian Propane Distribution, Wholesale Propane Distribution and Certarus, out of which the majority is from the U.S. Propane segment. Its web site is here Superior Plus Corp.
The last stock I wrote about was about was Evertz Technologies Ltd (TSX-ET, OTC-EVTZF) ... learn more. The next stock I will write about will be Badger Infrastructure Solutions Ltd (TSX-BDGI, OTC-BADFF) ... learn more on Monday, August 18, 2025 around 5 pm.
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