TSE:SPB

Superior Plus Corp (SPB.TO)

7.85
+0.03 (0.38%)
as of Jun 26, 2026, 8:00:00 pm Market Open.
248 watching
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Investor Insights
star iconJun 26, 2026, 12:00 am

This summary was created by AI, based on 5 opinions in the last 12 months.

Superior Plus Corp (SPB-T) operates primarily in the propane market, which exhibits considerable volatility largely influenced by weather conditions and seasonal fluctuations. Recent earnings reports have raised concerns, resulting in an 18% drop in share price and suggesting potential management credibility issues. The company’s operations extend into logistics for propane and other fuels across North America, but guidance has shifted from an optimistic 10% growth outlook in the U.S. to a more concerning negative 5%. Although the company has entered the compressed natural gas and renewable natural gas sectors with recent acquisitions, its historical earnings have been erratic, with a decade-long compounded shareholder return of just over 1% and a minimal 0.5% return over 20 years. While the business appears stable and generates consistent income, experts are cautious about its volatility and future growth prospects.

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Consensus
Cautious
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Valuation
Overvalued
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

Recently reported earnings for SPB set a first quarter record as the Certarus acquisition is accretive to earnings.  The company increased earnings guidance for the year.  Net cash flow per share was up 250%.  It trades at 16x earnings and under 2x book value and pays a great yield.  We recommend a stop-loss at $9, looking to achieve $13 -- upside potential of 23%.  Yield 7.0%  

(Analysts’ price target is $13.10)
WATCH

It made a big acquisition to get cleaner fuels into the industry. It is one to watch since there has been a pullback.

PAST TOP PICK
(A Top Pick Feb 10/22, Down 16%)

Income-producing stock. Financing acquisitions with debt is not particularly great in this environment. At current price, great income stream at 6% yield. Low volatility. Brookfield's now involved, so it's a core investment for him.

BUY
Utility or energy company? Utility, and it has a sustainable dividend around 7.4%. SPB can now buyback 5% of its shares. It's fairly stable.
SELL ON STRENGTH
High dividend but has challenges with the price of propane (high volatility). CEO retiring is worrisome. Earnings revisions and stock price has fallen. Lots of uncertainty with business. Thinks better companies out there.
COMMENT
He owns their bonds They've done some good acquisitions, but doesn't see any dividend increases. Rather, he wants them to pay down more debt and cleaning up their balance sheet. Buy their bonds, but not their stock.
DON'T BUY
Very stable. Need propane in Canada in winter. He doesn't usually buy just income stocks. Always get some growth, as you never know when inflation will come back. See his Top Picks.
BUY ON WEAKNESS

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The revenues were ahead of estimates by 14%. EPS was 40 cents, beating the estimated 33 cents. Q4 showed some income declines however. The acquisition plan backed by Brookfield has not changed. The dip is a buying opportunity. Unlock Premium - Try 5i Free

TOP PICK
Consistent cashflow business. Consolidator of the Canadian distribution space. Throws off tons of money. Every year the company grows. Trades at a great price. Yield is 5.58%. (Analysts’ price target is $15.67)
DON'T BUY
Never buy a stock on takeover speculation. Other places to be than here. Bad house in a nice neighbourhood.
PARTIAL BUY
It's had lots of ups and downs. They have a good business model, almost monopolizing propane in Canada. However, SPB doesn't have any control over the price of propane, which creates stock volatility, but overall it's a good company. It was his top pick 5 years ago.
WEAK BUY
Analysts are not modelling a lot of growth. Trading at 15x 2022. The problem is the bloated balance sheet. A growth by acquisition story but they are not able to buy growth at this point. Likes the dividend and the pay out ratio. You could buy here and be okay.
WEAK BUY
Cross-currents this winter with increases in prices. Likes the company broadly. He'd prefer a pipeline, especially in a RRIF, with more potential for capital appreciation and dividend growth.
PAST TOP PICK
(A Top Pick Dec 13/19, Up 10%) It hasn't stumbled during this pandemic. Incredibly consistent business, distributing propane across North America, such as Quebec. The stock had plunged from $12 to $6 during the pandemic, but they will get through this pandemic without lasting issues. (SPB was fine, but the market was irrational. SPB is solid. It's had a good year, despite Covid.
HOLD

The company has good businesses. Their problem was the balance sheet. They will be 3 times debt-to-EBITDA. They have more funds for M&A, which could help them make some interesting acquisitions. He likes the distribution and the management team. They just partnered with Brookfield, which gives a strong vote of confidence. Its valuation is reasonable. Not the first place he would put capital, but you would do well if you already own it.

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