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SUPREMEX INC (SXP.CA) Stock Fundamental Analysis

TSX:SXP - Toronto Stock Exchange - CA86863R1055 - Common Stock - Currency: CAD

3.6  -0.08 (-2.17%)

Fundamental Rating

6

Overall SXP gets a fundamental rating of 6 out of 10. We evaluated SXP against 12 industry peers in the Paper & Forest Products industry. SXP scores excellent on profitability, but there are some minor concerns on its financial health. SXP scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make SXP suitable for value investing!


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

SXP had positive earnings in the past year.
In the past year SXP had a positive cash flow from operations.
In the past 5 years SXP has always been profitable.
In the past 5 years SXP always reported a positive cash flow from operatings.
SXP.CA Yearly Net Income VS EBIT VS OCF VS FCFSXP.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10M 20M 30M 40M

1.2 Ratios

Looking at the Return On Assets, with a value of -6.84%, SXP is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Return On Equity of SXP (-15.37%) is comparable to the rest of the industry.
SXP has a better Return On Invested Capital (5.90%) than 91.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SXP is significantly above the industry average of 4.98%.
The last Return On Invested Capital (5.90%) for SXP is well below the 3 year average (11.37%), which needs to be investigated, but indicates that SXP had better years and this may not be a problem.
Industry RankSector Rank
ROA -6.84%
ROE -15.37%
ROIC 5.9%
ROA(3y)8.37%
ROA(5y)6.62%
ROE(3y)17.31%
ROE(5y)14.14%
ROIC(3y)11.37%
ROIC(5y)9.67%
SXP.CA Yearly ROA, ROE, ROICSXP.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 -5 10 15 20

1.3 Margins

SXP's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 5.80%, SXP is doing good in the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Operating Margin of SXP has remained more or less at the same level.
SXP has a better Gross Margin (27.05%) than 83.33% of its industry peers.
SXP's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 5.8%
PM (TTM) N/A
GM 27.05%
OM growth 3Y7.68%
OM growth 5Y1.48%
PM growth 3Y16.1%
PM growth 5YN/A
GM growth 3Y1.85%
GM growth 5Y2.9%
SXP.CA Yearly Profit, Operating, Gross MarginsSXP.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30

6

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SXP is creating some value.
Compared to 1 year ago, SXP has less shares outstanding
Compared to 5 years ago, SXP has less shares outstanding
The debt/assets ratio for SXP has remained at the same level compared to a year ago.
SXP.CA Yearly Shares OutstandingSXP.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M 20M 25M
SXP.CA Yearly Total Debt VS Total AssetsSXP.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M

2.2 Solvency

SXP has an Altman-Z score of 1.04. This is a bad value and indicates that SXP is not financially healthy and even has some risk of bankruptcy.
SXP's Altman-Z score of 1.04 is on the low side compared to the rest of the industry. SXP is outperformed by 75.00% of its industry peers.
SXP has a debt to FCF ratio of 2.61. This is a good value and a sign of high solvency as SXP would need 2.61 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.61, SXP belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
A Debt/Equity ratio of 0.82 indicates that SXP is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.82, SXP is doing worse than 83.33% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.82
Debt/FCF 2.61
Altman-Z 1.04
ROIC/WACC0.84
WACC7.05%
SXP.CA Yearly LT Debt VS Equity VS FCFSXP.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M

2.3 Liquidity

A Current Ratio of 2.20 indicates that SXP has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.20, SXP is in line with its industry, outperforming 58.33% of the companies in the same industry.
SXP has a Quick Ratio of 1.40. This is a normal value and indicates that SXP is financially healthy and should not expect problems in meeting its short term obligations.
SXP's Quick ratio of 1.40 is amongst the best of the industry. SXP outperforms 83.33% of its industry peers.
Industry RankSector Rank
Current Ratio 2.2
Quick Ratio 1.4
SXP.CA Yearly Current Assets VS Current LiabilitesSXP.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M

4

3. Growth

3.1 Past

The earnings per share for SXP have decreased strongly by -61.70% in the last year.
The Earnings Per Share has been growing by 8.90% on average over the past years. This is quite good.
Looking at the last year, SXP shows a decrease in Revenue. The Revenue has decreased by -7.90% in the last year.
Measured over the past years, SXP shows a quite strong growth in Revenue. The Revenue has been growing by 9.14% on average per year.
EPS 1Y (TTM)-61.7%
EPS 3Y23.74%
EPS 5Y8.9%
EPS Q2Q%-68.75%
Revenue 1Y (TTM)-7.9%
Revenue growth 3Y13.88%
Revenue growth 5Y9.14%
Sales Q2Q%-0.63%

3.2 Future

SXP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.97% yearly.
Based on estimates for the next years, SXP will show a small growth in Revenue. The Revenue will grow by 3.77% on average per year.
EPS Next Y-48.24%
EPS Next 2Y2.5%
EPS Next 3Y8.44%
EPS Next 5Y15.97%
Revenue Next Year-7.11%
Revenue Next 2Y-3.05%
Revenue Next 3Y-1.98%
Revenue Next 5Y3.77%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
SXP.CA Yearly Revenue VS EstimatesSXP.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 100M 200M 300M
SXP.CA Yearly EPS VS EstimatesSXP.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.2 0.4 0.6 0.8 1

8

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 10.00, which indicates a very decent valuation of SXP.
100.00% of the companies in the same industry are more expensive than SXP, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 30.43, SXP is valued rather cheaply.
SXP is valuated cheaply with a Price/Forward Earnings ratio of 4.76.
SXP's Price/Forward Earnings ratio is rather cheap when compared to the industry. SXP is cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, SXP is valued rather cheaply.
Industry RankSector Rank
PE 10
Fwd PE 4.76
SXP.CA Price Earnings VS Forward Price EarningsSXP.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SXP indicates a rather cheap valuation: SXP is cheaper than 91.67% of the companies listed in the same industry.
100.00% of the companies in the same industry are more expensive than SXP, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 2.43
EV/EBITDA 4.97
SXP.CA Per share dataSXP.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

The decent profitability rating of SXP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.12
EPS Next 2Y2.5%
EPS Next 3Y8.44%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.43%, SXP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.95, SXP pays a better dividend. On top of this SXP pays more dividend than 83.33% of the companies listed in the same industry.
SXP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
Industry RankSector Rank
Dividend Yield 5.43%

5.2 History

The dividend of SXP decreases each year by -11.61%.
SXP has been paying a dividend for at least 10 years, so it has a reliable track record.
SXP has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-11.61%
Div Incr Years2
Div Non Decr Years2
SXP.CA Yearly Dividends per shareSXP.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2022 2023 2024 0.05 0.1 0.15 0.2 0.25

5.3 Sustainability

SXP has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-23.11%
EPS Next 2Y2.5%
EPS Next 3Y8.44%
SXP.CA Yearly Income VS Free CF VS DividendSXP.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10M 20M 30M

SUPREMEX INC

TSX:SXP (2/14/2025, 7:00:00 PM)

3.6

-0.08 (-2.17%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)11-06 2024-11-06/amc
Earnings (Next)02-20 2025-02-20/amc
Inst Owners3.09%
Inst Owner ChangeN/A
Ins Owners12.1%
Ins Owner ChangeN/A
Market Cap88.42M
Analysts80
Price Target5.23 (45.28%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 5.43%
Yearly Dividend0.14
Dividend Growth(5Y)-11.61%
DP-23.11%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-54.98%
Min EPS beat(2)-70.88%
Max EPS beat(2)-39.07%
EPS beat(4)0
Avg EPS beat(4)-43.1%
Min EPS beat(4)-70.88%
Max EPS beat(4)-13.37%
EPS beat(8)1
Avg EPS beat(8)-27.13%
EPS beat(12)5
Avg EPS beat(12)14.24%
EPS beat(16)9
Avg EPS beat(16)21%
Revenue beat(2)1
Avg Revenue beat(2)-0.19%
Min Revenue beat(2)-2.13%
Max Revenue beat(2)1.74%
Revenue beat(4)1
Avg Revenue beat(4)-1.85%
Min Revenue beat(4)-3.73%
Max Revenue beat(4)1.74%
Revenue beat(8)2
Avg Revenue beat(8)-3.32%
Revenue beat(12)6
Avg Revenue beat(12)1.99%
Revenue beat(16)9
Avg Revenue beat(16)2%
PT rev (1m)0%
PT rev (3m)-2.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-52.86%
EPS NY rev (1m)0%
EPS NY rev (3m)-39.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.45%
Valuation
Industry RankSector Rank
PE 10
Fwd PE 4.76
P/S 0.31
P/FCF 2.43
P/OCF 2.34
P/B 0.81
P/tB 2.35
EV/EBITDA 4.97
EPS(TTM)0.36
EY10%
EPS(NY)0.76
Fwd EY21.01%
FCF(TTM)1.48
FCFY41.18%
OCF(TTM)1.54
OCFY42.64%
SpS11.57
BVpS4.46
TBVpS1.53
PEG (NY)N/A
PEG (5Y)1.12
Profitability
Industry RankSector Rank
ROA -6.84%
ROE -15.37%
ROCE 7.93%
ROIC 5.9%
ROICexc 5.99%
ROICexgc 9.25%
OM 5.8%
PM (TTM) N/A
GM 27.05%
FCFM 12.81%
ROA(3y)8.37%
ROA(5y)6.62%
ROE(3y)17.31%
ROE(5y)14.14%
ROIC(3y)11.37%
ROIC(5y)9.67%
ROICexc(3y)11.56%
ROICexc(5y)9.84%
ROICexgc(3y)19.87%
ROICexgc(5y)17.24%
ROCE(3y)15.28%
ROCE(5y)13%
ROICexcg growth 3Y2.51%
ROICexcg growth 5Y-1.98%
ROICexc growth 3Y6.48%
ROICexc growth 5Y-0.27%
OM growth 3Y7.68%
OM growth 5Y1.48%
PM growth 3Y16.1%
PM growth 5YN/A
GM growth 3Y1.85%
GM growth 5Y2.9%
F-Score4
Asset Turnover1.15
Health
Industry RankSector Rank
Debt/Equity 0.82
Debt/FCF 2.61
Debt/EBITDA 2.48
Cap/Depr 6.56%
Cap/Sales 0.46%
Interest Coverage 3.09
Cash Conversion 104.14%
Profit Quality N/A
Current Ratio 2.2
Quick Ratio 1.4
Altman-Z 1.04
F-Score4
WACC7.05%
ROIC/WACC0.84
Cap/Depr(3y)28.06%
Cap/Depr(5y)31.66%
Cap/Sales(3y)1.65%
Cap/Sales(5y)1.92%
Profit Quality(3y)155.36%
Profit Quality(5y)223.59%
High Growth Momentum
Growth
EPS 1Y (TTM)-61.7%
EPS 3Y23.74%
EPS 5Y8.9%
EPS Q2Q%-68.75%
EPS Next Y-48.24%
EPS Next 2Y2.5%
EPS Next 3Y8.44%
EPS Next 5Y15.97%
Revenue 1Y (TTM)-7.9%
Revenue growth 3Y13.88%
Revenue growth 5Y9.14%
Sales Q2Q%-0.63%
Revenue Next Year-7.11%
Revenue Next 2Y-3.05%
Revenue Next 3Y-1.98%
Revenue Next 5Y3.77%
EBIT growth 1Y-56.64%
EBIT growth 3Y22.62%
EBIT growth 5Y10.76%
EBIT Next Year-7.42%
EBIT Next 3Y7.54%
EBIT Next 5Y13.52%
FCF growth 1Y39.08%
FCF growth 3Y2.99%
FCF growth 5Y61.93%
OCF growth 1Y30.02%
OCF growth 3Y5.84%
OCF growth 5Y29.74%