204 USD
-5.25 (-2.51%)
At close: Jul 21, 2022
204 USD
0 (0%)
After Hours: 7/21/2022, 8:14:28 PM
Taking everything into account, SAFM scores 4 out of 10 in our fundamental rating. SAFM was compared to 87 industry peers in the Food Products industry. No worries on liquidiy or solvency for SAFM as it has an excellent financial health rating, but there are worries on the profitability. SAFM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- SAFM had positive earnings in the past year.
1.2 Ratios
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 30.52% | ||
| ROE | 36.58% | ||
| ROIC | 34.96% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.68% | ||
| PM (TTM) | 15.34% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- SAFM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, SAFM has about the same amount of shares outstanding.
- There is no outstanding debt for SAFM. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- An Altman-Z score of 10.80 indicates that SAFM is not in any danger for bankruptcy at the moment.
- SAFM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 10.8 |
ROIC/WACC4.62
WACC7.57%
2.3 Liquidity
- SAFM has a Current Ratio of 5.53. This indicates that SAFM is financially healthy and has no problem in meeting its short term obligations.
- SAFM has a Quick Ratio of 4.02. This indicates that SAFM is financially healthy and has no problem in meeting its short term obligations.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.53 | ||
| Quick Ratio | 4.02 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 416.02% over the past year.
- Measured over the past years, SAFM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.51% on average per year.
- The Revenue has grown by 42.74% in the past year. This is a very strong growth!
- SAFM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.25% yearly.
EPS 1Y (TTM)416.02%
EPS 3Y149.64%
EPS 5Y19.51%
EPS Q2Q%231.57%
Revenue 1Y (TTM)42.74%
Revenue growth 3Y14.04%
Revenue growth 5Y11.25%
Sales Q2Q%35.79%
3.2 Future
- SAFM is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -24.96% yearly.
- SAFM is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.83% yearly.
EPS Next Y138.91%
EPS Next 2Y23.7%
EPS Next 3Y-8.95%
EPS Next 5Y-24.96%
Revenue Next Year33.54%
Revenue Next 2Y13.51%
Revenue Next 3Y3.63%
Revenue Next 5Y-1.83%
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 decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 5.28, the valuation of SAFM can be described as very cheap.
- SAFM is valuated cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 6.54, the valuation of SAFM can be described as very cheap.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. SAFM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.28 | ||
| Fwd PE | 6.54 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.79 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- SAFM's earnings are expected to decrease with -8.95% in the coming years. This may justify a cheaper valuation.
PEG (NY)0.04
PEG (5Y)0.27
EPS Next 2Y23.7%
EPS Next 3Y-8.95%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.84%, SAFM is not a good candidate for dividend investing.
- Compared to an average S&P500 Dividend Yield of 1.83, SAFM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
5.2 History
- The dividend of SAFM is nicely growing with an annual growth rate of 11.20%!
- SAFM has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)11.2%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 4.56% of the earnings are spent on dividend by SAFM. This is a low number and sustainable payout ratio.
DP4.56%
EPS Next 2Y23.7%
EPS Next 3Y-8.95%
SANDERSON FARMS INC / SAFM FAQ
Can you provide the ChartMill fundamental rating for SANDERSON FARMS INC?
ChartMill assigns a fundamental rating of 8 / 10 to SAFM.
What is the valuation status for SAFM stock?
ChartMill assigns a valuation rating of 9 / 10 to SANDERSON FARMS INC (SAFM). This can be considered as Undervalued.
What is the profitability of SAFM stock?
SANDERSON FARMS INC (SAFM) has a profitability rating of 10 / 10.
How financially healthy is SANDERSON FARMS INC?
The financial health rating of SANDERSON FARMS INC (SAFM) is 10 / 10.
Is the dividend of SANDERSON FARMS INC sustainable?
The dividend rating of SANDERSON FARMS INC (SAFM) is 5 / 10 and the dividend payout ratio is 4.56%.