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SANDERSON FARMS INC (SAFM) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:SAFM - US8000131040 - Common Stock

204 USD
-5.25 (-2.51%)
Last: 7/21/2022, 8:14:28 PM
204 USD
0 (0%)
After Hours: 7/21/2022, 8:14:28 PM
Fundamental Rating

4

SAFM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 87 industry peers in the Food Products industry. SAFM has a great financial health rating, but its profitability evaluates not so good. SAFM has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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0

1. Profitability

1.1 Basic Checks

In the past year SAFM was profitable.
SAFM Yearly Net Income VS EBIT VS OCF VS FCFSAFM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 0 200M 400M 600M

1.2 Ratios

Industry RankSector 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
SAFM Yearly ROA, ROE, ROICSAFM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 5 10 15 20

1.3 Margins

Industry RankSector 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
SAFM Yearly Profit, Operating, Gross MarginsSAFM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 5 10 15

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7

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SAFM is creating value.
SAFM has about the same amout of shares outstanding than it did 1 year ago.
SAFM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
SAFM Yearly Shares OutstandingSAFM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 5M 10M 15M 20M
SAFM Yearly Total Debt VS Total AssetsSAFM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 500M 1B 1.5B 2B

2.2 Solvency

SAFM has an Altman-Z score of 10.80. This indicates that SAFM is financially healthy and has little risk of 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 RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z 10.8
ROIC/WACC4.62
WACC7.57%
SAFM Yearly LT Debt VS Equity VS FCFSAFM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 0 500M 1B 1.5B

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.
A Quick Ratio of 4.02 indicates that SAFM has no problem at all paying its short term obligations.
Industry RankSector Rank
Current Ratio 5.53
Quick Ratio 4.02
SAFM Yearly Current Assets VS Current LiabilitesSAFM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 200M 400M 600M 800M 1B

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4

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!
Measured over the past years, SAFM shows a quite strong growth in Revenue. The Revenue has been growing by 11.25% on average per year.
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

Based on estimates for the next years, SAFM will show a very negative growth in Earnings Per Share. The EPS will decrease by -24.96% on average per year.
The Revenue is expected to decrease by -1.83% on average over the next years.
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

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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.
SAFM Yearly Revenue VS EstimatesSAFM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2B 4B 6B
SAFM Yearly EPS VS EstimatesSAFM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 10 20 30 40

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4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 5.28 indicates a rather cheap valuation of SAFM.
When comparing the Price/Earnings ratio of SAFM to the average of the S&P500 Index (27.19), we can say SAFM is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.54, the valuation of SAFM can be described as very cheap.
When comparing the Price/Forward Earnings ratio of SAFM to the average of the S&P500 Index (23.88), we can say SAFM is valued rather cheaply.
Industry RankSector Rank
PE 5.28
Fwd PE 6.54
SAFM Price Earnings VS Forward Price EarningsSAFM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA 2.79
SAFM Per share dataSAFM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150 200 250

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.
A cheap valuation may be justified as SAFM's earnings are expected to decrease with -8.95% in the coming years.
PEG (NY)0.04
PEG (5Y)0.27
EPS Next 2Y23.7%
EPS Next 3Y-8.95%

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3

5. Dividend

5.1 Amount

SAFM has a yearly dividend return of 0.84%, which is pretty low.
Compared to an average S&P500 Dividend Yield of 1.94, SAFM's dividend is way lower than the S&P500 average.
Industry RankSector 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
SAFM Yearly Dividends per shareSAFM Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 0.5 1 1.5 2

5.3 Sustainability

SAFM pays out 4.56% of its income as dividend. This is a sustainable payout ratio.
DP4.56%
EPS Next 2Y23.7%
EPS Next 3Y-8.95%
SAFM Yearly Income VS Free CF VS DividendSAFM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 0 200M 400M
SAFM Dividend Payout.SAFM Dividend Payout, showing the Payout Ratio.SAFM Dividend Payout.PayoutRetained Earnings

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SANDERSON FARMS INC

NASDAQ:SAFM (7/21/2022, 8:14:28 PM)

After market: 204 0 (0%)

204

-5.25 (-2.51%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)05-27 2022-05-27/bmo
Earnings (Next)08-25 2022-08-25/bmo
Inst Owners0%
Inst Owner Change0%
Ins Owners0.38%
Ins Owner Change0%
Market Cap4.55B
Revenue(TTM)5.62B
Net Income(TTM)862.70M
Analysts72.86
Price Target208.9 (2.4%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.84%
Yearly Dividend1.76
Dividend Growth(5Y)11.2%
DP4.56%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 5.28
Fwd PE 6.54
P/S 0.81
P/FCF N/A
P/OCF N/A
P/B 1.93
P/tB N/A
EV/EBITDA 2.79
EPS(TTM)38.65
EY18.95%
EPS(NY)31.19
Fwd EY15.29%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS251.95
BVpS105.65
TBVpSN/A
PEG (NY)0.04
PEG (5Y)0.27
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 30.52%
ROE 36.58%
ROCE N/A
ROIC 34.96%
ROICexc N/A
ROICexgc 34.96%
OM 20.68%
PM (TTM) 15.34%
GM N/A
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y0%
ROICexgc growth 5Y0%
ROICexc growth 3YN/A
ROICexc growth 5YN/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
F-Score9
Asset Turnover1.99
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 5.53
Quick Ratio 4.02
Altman-Z 10.8
F-Score9
WACC7.57%
ROIC/WACC4.62
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)416.02%
EPS 3Y149.64%
EPS 5Y19.51%
EPS Q2Q%231.57%
EPS Next Y138.91%
EPS Next 2Y23.7%
EPS Next 3Y-8.95%
EPS Next 5Y-24.96%
Revenue 1Y (TTM)42.74%
Revenue growth 3Y14.04%
Revenue growth 5Y11.25%
Sales Q2Q%35.79%
Revenue Next Year33.54%
Revenue Next 2Y13.51%
Revenue Next 3Y3.63%
Revenue Next 5Y-1.83%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A

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%.