SANDERSON FARMS INC (SAFM)
US8000131040 - Common Stock
Overall SAFM gets a fundamental rating of 4 out of 10. We evaluated SAFM against 93 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SAFM was profitable.
Each year in the past 5 years SAFM has been profitable.
Each year in the past 5 years SAFM had a positive operating cash flow.
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
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 10.8 |
ROIC/WACC4.62
WACC7.57%
2.3 Liquidity
A Current Ratio of 5.53 indicates that SAFM has no problem at all paying 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.
The Earnings Per Share has been growing by 19.51% on average over the past years. This is quite good.
SAFM shows a strong growth in Revenue. In the last year, the Revenue has grown by 42.74%.
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 growth Q2Q231.57%
Revenue 1Y (TTM)42.74%
Revenue growth 3Y14.04%
Revenue growth 5Y11.25%
Revenue growth Q2Q35.79%
3.2 Future
The Earnings Per Share is expected to decrease by -24.96% on average over the next years. This is quite bad
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a 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.
A Price/Forward Earnings ratio of 6.54 indicates a rather cheap valuation of SAFM.
When comparing the Price/Forward Earnings ratio of SAFM to the average of the S&P500 Index (20.24), we can say SAFM is valued rather cheaply.
| 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
SAFM's 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%
5. Dividend
5.1 Amount
SAFM has a yearly dividend return of 0.84%, which is pretty low.
With a Dividend Yield of 0.84, SAFM pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
5.2 History
On average, the dividend of SAFM grows each year by 11.20%, which is quite nice.
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
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%
SANDERSON FARMS INC
NASDAQ:SAFM (7/21/2022, 7:14:28 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)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.55B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.28 | ||
| Fwd PE | 6.54 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.04
PEG (5Y)0.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 30.52% | ||
| ROE | 36.58% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.68% | ||
| PM (TTM) | 15.34% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 5.53 | ||
| Quick Ratio | 4.02 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)416.02%
EPS 3Y149.64%
EPS 5Y
EPS growth Q2Q
EPS Next Y138.91%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)42.74%
Revenue growth 3Y14.04%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y