Risk factor
Considerable default risk
Profitability factor
Greatly undervalued vs peers
About
Superior Plus Corp., established in 1996 and headquartered in Toronto, Canada, operates as an energy distribution company. Its business is organized into two core divisions: U.S. Propane Distribution and Canadian Propane Distribution. The U.S. segment manages the sale and supply of propane, heating oil, and other liquid fuels across a broad geographical area, encompassing the Northeast, Atlantic, Southeast, Midwest, and California. This division also provides installation, upkeep, and repair services for propane and heating oil systems. Meanwhile, the Canadian segment specializes in distributing propane and associated consuming equipment, alongside leasing tanks, cylinders, and various other apparatus. It also furnishes equipment sourcing, installation, and maintenance solutions to clients in both Canada and the United States. As of February 10, 2022, Superior Plus served approximately 780,000 customers. Superior General Partner Inc. holds the role of the company's general partner.
Company Valuation
Based on key historical and expected multiples, the stock is undervalued relative to its peers. In particular, the stock is reasonably priced on P/E, 'cheap' on EV/EBITDA
Target Price
The average target price of SPB.TO is 8.17 and suggests 50.2% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to in