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Superior Plus
(TSX:SPB)
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Rating:58Neutral
Price Target:
C$7.50
▲(4.31% Upside)
Action:Reiterated
Date:08/09/26
The score is driven mainly by constrained financial performance—strong cash generation but offset by high leverage and inconsistent net profitability. Technicals are moderately supportive with the stock trading above key moving averages. Earnings-call commentary is constructive on CNG growth and reaffirmed guidance, but elevated CapEx, negative quarterly free cash flow, and a projected leverage increase temper the outlook. Valuation is a mild headwind given the higher P/E versus earnings volatility.
Positive Factors
CNG growth platform
Certarus/CNG is becoming a meaningful growth platform: record volumes, 23% EBITDA growth, industrial volumes up 50%, and contracted data-center demand through 2030 provide multi-period visibility. The expanding hub network and new fleet-fueling vertical can broaden customers and improve scale.
Negative Factors
Elevated leverage
Superior Plus remains debt-heavy despite some debt reduction and modest equity improvement. Elevated leverage limits flexibility to fund acquisitions or absorb operating weakness, while earnings volatility makes deleveraging less predictable and increases the importance of sustained cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
CNG growth platform
Certarus/CNG is becoming a meaningful growth platform: record volumes, 23% EBITDA growth, industrial volumes up 50%, and contracted data-center demand through 2030 provide multi-period visibility. The expanding hub network and new fleet-fueling vertical can broaden customers and improve scale.
Read all positive factors
Superior Plus (SPB) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.53B
Dividend Yield2.53%
Average Volume (3M)578.88K
Price to Earnings (P/E)―
Beta (1Y)-0.05
Revenue Growth-6.92%
EPS Growth-112.94%
CountryCA
Employees4,261
SectorUtilities
Sector Strength65
IndustryRegulated Gas
Share Statistics
EPS (TTM)-0.04
Shares Outstanding214,600,000
10 Day Avg. Volume556,356
30 Day Avg. Volume578,880
Financial Highlights & Ratios
PEG Ratio-0.07
Price to Book (P/B)1.98
Price to Sales (P/S)0.64
P/FCF Ratio7.33
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$9.00Price Target Upside25.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)0.25
Revenue Forecast (FY)C$2.43B
Superior Plus Business Overview & Revenue Model
Company Description
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. seg...
How the Company Makes Money
Superior Plus primarily makes money by selling and delivering propane to end customers under a distribution model that combines recurring customer relationships with logistics and service capabilities. Key revenue streams include: (1) Propane fuel...
Superior Plus Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive operational and strategic momentum driven by Certarus/CNG: record volumes, strong CNG EBITDA (+23%), industrial volumes up ~50%, expansion of the hub network to 23 hubs, launch of a new mobile fleet fueling vertical with an initial contract, and reaffirmed guidance for 2026 with expected stronger contributions in 2027. Offsetting risks include a weak U.S. propane quarter (U.S. propane EBITDA -$5.1M), negative free cash flow in Q2 (-$35M) due to growth CapEx, a planned increase in leverage to ~4.0x by year-end, and corporate cost pressures. Overall, the positive growth trajectory and high-return CNG opportunities appear to outweigh the near-term propane and cash flow headwinds, though execution and timing of data center conversions and elevated CapEx remain key risks.Positive Updates
Consolidated Adjusted EBITDA Growth
Adjusted EBITDA of $36.8 million in Q2, up approximately 10% year-over-year, driven by CNG/Certarus strength and Canadian propane performance.
Negative Updates
U.S. Propane Weakness
U.S. propane adjusted EBITDA was negative $5.1 million in Q2 (down from a flat quarter in 2025), primarily due to lower retail sales volumes after exiting Q1 with higher in-tank levels; the propane transformation is progressing but taking longer than originally expected.
Read all updates
Q2-2026 Updates
Positive
Negative
Consolidated Adjusted EBITDA Growth
Adjusted EBITDA of $36.8 million in Q2, up approximately 10% year-over-year, driven by CNG/Certarus strength and Canadian propane performance.
Read all positive updates
Company Guidance
Management reaffirmed 2026 guidance calling for ~2% EBITDA growth, maintained a $230 million consolidated CapEx plan for 2026 (Q2 CapEx was $37 million, up 23% YoY), and said CNG equipment spend will ramp in Q3–Q4 to service a large data‑center contract expected to commence in 2027; Certarus is expected to grow over the remaining six months of 2026 and Superior Delivers should meaningfully support propane results in Q4 2026; leverage was 3.6x at quarter end and is expected to rise to about 4.0x by year‑end (with a slight increase into Q3 as working capital builds); free cash flow was negative $35 million in Q2, and management expects approximately 5% YoY EBITDA growth in 2027 with 2027 CapEx to remain elevated at similar levels (update to the 2027 CapEx budget in February).Superior Plus Financial Statement Overview
Summary
Income Statement
57
Neutral
Balance Sheet
46
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.35B | 2.50B | 1.58B | 2.53B | 2.52B | 1.88B |
| Gross Profit | 1.11B | 1.06B | 675.96M | 965.10M | 708.68M | 557.74M |
| EBITDA | 414.51M | 485.35M | 259.06M | 428.57M | 151.51M | 300.51M |
| Net Income | -3.46M | 61.86M | -24.34M | 38.85M | -83.84M | 143.43M |
Balance Sheet | ||||||
| Total Assets | 3.37B | 3.58B | 3.69B | 5.17B | 4.48B | 3.56B |
| Cash, Cash Equivalents and Short-Term Investments | 26.96M | 23.76M | 60.38M | 48.30M | 58.40M | 81.00M |
| Total Debt | 1.65B | 1.86B | 1.87B | 2.48B | 2.15B | 1.63B |
| Total Liabilities | 2.25B | 2.52B | 2.54B | 3.40B | 3.02B | 2.25B |
| Stockholders Equity | 854.41M | 805.53M | 885.80M | 1.43B | 1.11B | 983.60M |
Cash Flow | ||||||
| Free Cash Flow | 198.77M | 218.15M | 113.70M | 349.80M | 131.40M | 126.90M |
| Operating Cash Flow | 323.72M | 334.66M | 274.10M | 550.00M | 248.70M | 232.00M |
| Investing Cash Flow | -98.12M | -96.56M | -142.10M | -467.10M | -632.10M | 172.00M |
| Financing Cash Flow | -222.37M | -231.08M | -144.70M | -99.70M | 410.90M | -399.60M |
Superior Plus Technical Analysis
Negative
7.19
Price Trends
7.69
Negative
7.71
Negative
7.32
Negative
Market Momentum
-0.19
Positive
38.11
Neutral
41.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SPB, the sentiment is Negative. The current price of 7.19 is below the 20-day moving average (MA) of 7.31, below the 50-day MA of 7.69, and below the 200-day MA of 7.32, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 38.11 is Neutral, neither overbought nor oversold. The STOCH value of 41.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SPB.
Superior Plus Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | C$16.39B | 26.72 | 7.00% | 2.47% | 8.91% | -24.51% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
62 Neutral | C$7.35B | 44.93 | 3.90% | 2.84% | 4.81% | -58.62% | |
58 Neutral | C$1.53B | -128.70 | -0.41% | 2.53% | -6.92% | -112.94% | |
52 Neutral | C$13.86B | 318.19 | 1.88% | 3.62% | 1.16% | -89.49% | |
49 Neutral | C$6.04B | 31.17 | 3.20% | 4.57% | 5.62% | ― | |
48 Neutral | C$5.23B | -64.60 | -1.50% | 1.63% | -9.61% | 54.17% |
* Utilities Sector Average
TSE:SPB
Superior Plus
7.12
-0.18
-2.44%
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Superior Plus Corporate Events
Dividends
Superior Plus Declares Q3 2026 Dividend, Confirms Annual Payout Rate
Positive
Aug 6, 2026
Superior Plus Corp. has declared a third-quarter 2026 dividend of CAD $0.045 per common share, payable on October 15, 2026, to shareholders of record as of September 29, 2026. The announcement confirms an annualized cash dividend rate of CAD $0.18...
Business Operations and StrategyFinancial Disclosures
Superior Plus lifts EBITDA on record CNG as Certarus launches mobile fleet fueling
Positive
Aug 6, 2026
Superior Plus reported second-quarter Adjusted EBITDA of $36.8 million, a 10% year-over-year increase driven by record CNG performance at its Certarus business, even as North American propane earnings softened in the seasonally slow period. Certar...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.