SMITHFIELD FOODS INC (SFD) Stock Fundamental Analysis
USA - NASDAQ:SFD - US8322482071 - Common Stock
21.89 USD
-0.04 (-0.18%)
21.89 USD
0 (0%)
Overall SFD gets a fundamental rating of 6 out of 10. We evaluated SFD against 87 industry peers in the Food Products industry. SFD has an excellent financial health rating, but there are some minor concerns on its profitability. SFD is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, SFD could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
SFD had positive earnings in the past year.
SFD had a positive operating cash flow in the past year.
1.2 Ratios
SFD has a better Return On Assets (7.50%) than 83.91% of its industry peers.
The Return On Equity of SFD (13.36%) is better than 78.16% of its industry peers.
SFD's Return On Invested Capital of 8.57% is amongst the best of the industry. SFD outperforms 82.76% of its industry peers.
SFD had an Average Return On Invested Capital over the past 3 years of 5.37%. This is significantly below the industry average of 28.25%.
The 3 year average ROIC (5.37%) for SFD is below the current ROIC(8.57%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.5% | ||
| ROE | 13.36% | ||
| ROIC | 8.57% |
ROA(3y)5.01%
ROA(5y)N/A
ROE(3y)9.46%
ROE(5y)N/A
ROIC(3y)5.37%
ROIC(5y)N/A
1.3 Margins
SFD has a better Profit Margin (5.66%) than 73.56% of its industry peers.
SFD's Profit Margin has improved in the last couple of years.
SFD has a better Operating Margin (7.56%) than 68.97% of its industry peers.
SFD's Operating Margin has improved in the last couple of years.
SFD's Gross Margin of 13.37% is on the low side compared to the rest of the industry. SFD is outperformed by 60.92% of its industry peers.
SFD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.56% | ||
| PM (TTM) | 5.66% | ||
| GM | 13.37% |
OM growth 3Y11.67%
OM growth 5YN/A
PM growth 3Y28.92%
PM growth 5YN/A
GM growth 3Y9.14%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SFD is creating some value.
The number of shares outstanding for SFD has been reduced compared to 1 year ago.
SFD has a worse debt/assets ratio than last year.
2.2 Solvency
SFD has an Altman-Z score of 3.43. This indicates that SFD is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.43, SFD is doing good in the industry, outperforming 72.41% of the companies in the same industry.
SFD has a debt to FCF ratio of 4.21. This is a neutral value as SFD would need 4.21 years to pay back of all of its debts.
The Debt to FCF ratio of SFD (4.21) is better than 78.16% of its industry peers.
SFD has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of SFD (0.31) is better than 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 4.21 | ||
| Altman-Z | 3.43 |
ROIC/WACC1.09
WACC7.85%
2.3 Liquidity
SFD has a Current Ratio of 3.10. This indicates that SFD is financially healthy and has no problem in meeting its short term obligations.
SFD has a Current ratio of 3.10. This is amongst the best in the industry. SFD outperforms 83.91% of its industry peers.
SFD has a Quick Ratio of 1.44. This is a normal value and indicates that SFD is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.44, SFD is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.1 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
SFD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 6150.00%, which is quite impressive.
SFD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.72% yearly.
The Revenue has decreased by -3.40% in the past year.
The Revenue has been decreasing by -1.96% on average over the past years.
EPS 1Y (TTM)6150%
EPS 3Y27.72%
EPS 5YN/A
EPS Q2Q%-66.92%
Revenue 1Y (TTM)-3.4%
Revenue growth 3Y-1.96%
Revenue growth 5YN/A
Sales Q2Q%-63.23%
3.2 Future
The Earnings Per Share is expected to grow by 9.47% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.94% on average over the next years.
EPS Next Y27.56%
EPS Next 2Y13.03%
EPS Next 3Y9.47%
EPS Next 5YN/A
Revenue Next Year8.84%
Revenue Next 2Y4.78%
Revenue Next 3Y3.94%
Revenue Next 5YN/A
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.64, the valuation of SFD can be described as very reasonable.
SFD's Price/Earnings ratio is rather cheap when compared to the industry. SFD is cheaper than 85.06% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.67. SFD is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 9.10, which indicates a very decent valuation of SFD.
Based on the Price/Forward Earnings ratio, SFD is valued cheaply inside the industry as 91.95% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 31.86. SFD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.64 | ||
| Fwd PE | 9.1 |
4.2 Price Multiples
79.31% of the companies in the same industry are more expensive than SFD, based on the Enterprise Value to EBITDA ratio.
SFD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SFD is cheaper than 68.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.08 | ||
| EV/EBITDA | 6.62 |
4.3 Compensation for Growth
SFD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of SFD may justify a higher PE ratio.
PEG (NY)0.35
PEG (5Y)N/A
EPS Next 2Y13.03%
EPS Next 3Y9.47%
5. Dividend
5.1 Amount
SFD has a Yearly Dividend Yield of 4.56%, which is a nice return.
Compared to an average industry Dividend Yield of 5.27, SFD pays a better dividend. On top of this SFD pays more dividend than 81.61% of the companies listed in the same industry.
SFD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
5.2 History
SFD is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y13.03%
EPS Next 3Y9.47%
21.89
-0.04 (-0.18%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners6.79%
Inst Owner Change0.1%
Ins Owners1.3%
Ins Owner Change31.36%
Market Cap8.61B
Revenue(TTM)15.26B
Net Income(TTM)864.00M
Analysts80
Price Target29.36 (34.13%)
Short Float %12.83%
Short Ratio2.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.87%
Min EPS beat(2)-0.99%
Max EPS beat(2)14.74%
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)2
Avg Revenue beat(2)3.3%
Min Revenue beat(2)3.02%
Max Revenue beat(2)3.58%
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)-2.42%
PT rev (3m)0.75%
EPS NQ rev (1m)-8.3%
EPS NQ rev (3m)-11.29%
EPS NY rev (1m)-3.44%
EPS NY rev (3m)-0.46%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.64 | ||
| Fwd PE | 9.1 | ||
| P/S | 0.56 | ||
| P/FCF | 18.08 | ||
| P/OCF | 10.7 | ||
| P/B | 1.33 | ||
| P/tB | 2.4 | ||
| EV/EBITDA | 6.62 |
EPS(TTM)2.27
EY10.37%
EPS(NY)2.41
Fwd EY10.99%
FCF(TTM)1.21
FCFY5.53%
OCF(TTM)2.05
OCFY9.34%
SpS38.81
BVpS16.45
TBVpS9.12
PEG (NY)0.35
PEG (5Y)N/A
Graham Number28.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.5% | ||
| ROE | 13.36% | ||
| ROCE | 11.49% | ||
| ROIC | 8.57% | ||
| ROICexc | 9.29% | ||
| ROICexgc | 13.48% | ||
| OM | 7.56% | ||
| PM (TTM) | 5.66% | ||
| GM | 13.37% | ||
| FCFM | 3.12% |
ROA(3y)5.01%
ROA(5y)N/A
ROE(3y)9.46%
ROE(5y)N/A
ROIC(3y)5.37%
ROIC(5y)N/A
ROICexc(3y)5.83%
ROICexc(5y)N/A
ROICexgc(3y)8.5%
ROICexgc(5y)N/A
ROCE(3y)7.2%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y11.67%
OM growth 5YN/A
PM growth 3Y28.92%
PM growth 5YN/A
GM growth 3Y9.14%
GM growth 5YN/A
F-Score6
Asset Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 4.21 | ||
| Debt/EBITDA | 1.34 | ||
| Cap/Depr | 98.2% | ||
| Cap/Sales | 2.15% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 54.03% | ||
| Profit Quality | 55.09% | ||
| Current Ratio | 3.1 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z | 3.43 |
F-Score6
WACC7.85%
ROIC/WACC1.09
Cap/Depr(3y)87.58%
Cap/Depr(5y)N/A
Cap/Sales(3y)2.32%
Cap/Sales(5y)N/A
Profit Quality(3y)1367.7%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6150%
EPS 3Y27.72%
EPS 5YN/A
EPS Q2Q%-66.92%
EPS Next Y27.56%
EPS Next 2Y13.03%
EPS Next 3Y9.47%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.4%
Revenue growth 3Y-1.96%
Revenue growth 5YN/A
Sales Q2Q%-63.23%
Revenue Next Year8.84%
Revenue Next 2Y4.78%
Revenue Next 3Y3.94%
Revenue Next 5YN/A
EBIT growth 1Y338.8%
EBIT growth 3Y9.48%
EBIT growth 5YN/A
EBIT Next Year57.17%
EBIT Next 3Y17.8%
EBIT Next 5YN/A
FCF growth 1Y15%
FCF growth 3Y10.73%
FCF growth 5YN/A
OCF growth 1Y9.58%
OCF growth 3Y13.07%
OCF growth 5YN/A
SMITHFIELD FOODS INC / SFD FAQ
Can you provide the ChartMill fundamental rating for SMITHFIELD FOODS INC?
ChartMill assigns a fundamental rating of 6 / 10 to SFD.
What is the valuation status for SFD stock?
ChartMill assigns a valuation rating of 8 / 10 to SMITHFIELD FOODS INC (SFD). This can be considered as Undervalued.
What is the profitability of SFD stock?
SMITHFIELD FOODS INC (SFD) has a profitability rating of 6 / 10.
What are the PE and PB ratios of SMITHFIELD FOODS INC (SFD) stock?
The Price/Earnings (PE) ratio for SMITHFIELD FOODS INC (SFD) is 9.64 and the Price/Book (PB) ratio is 1.33.
Can you provide the financial health for SFD stock?
The financial health rating of SMITHFIELD FOODS INC (SFD) is 7 / 10.