SIMPLY GOOD FOODS CO/THE (SMPL) Stock Fundamental Analysis
NASDAQ:SMPL - Nasdaq - US82900L1026 - Common Stock - Currency: USD
SMPL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 91 industry peers in the Food Products industry. SMPL scores excellent points on both the profitability and health parts. This is a solid base for a good stock. SMPL has a decent growth rate and is not valued too expensively. These ratings would make SMPL suitable for quality investing!
1. Profitability
1.1 Basic Checks
SMPL had positive earnings in the past year.
In the past year SMPL had a positive cash flow from operations.
SMPL had positive earnings in each of the past 5 years.
Each year in the past 5 years SMPL had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 5.99%, SMPL is doing good in the industry, outperforming 76.92% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.00%, SMPL is in the better half of the industry, outperforming 63.74% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.51%, SMPL is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SMPL is significantly below the industry average of 28.40%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.99% | ||
| ROE | 8% | ||
| ROIC | 7.51% |
ROA(3y)5.76%
ROA(5y)4.51%
ROE(3y)8.04%
ROE(5y)6.66%
ROIC(3y)7.52%
ROIC(5y)6.79%
1.3 Margins
Looking at the Profit Margin, with a value of 10.31%, SMPL belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
In the last couple of years the Profit Margin of SMPL has grown nicely.
SMPL has a Operating Margin of 16.39%. This is amongst the best in the industry. SMPL outperforms 91.21% of its industry peers.
In the last couple of years the Operating Margin of SMPL has grown nicely.
With an excellent Gross Margin value of 38.27%, SMPL belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
SMPL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.39% | ||
| PM (TTM) | 10.31% | ||
| GM | 38.28% |
OM growth 3Y-2.21%
OM growth 5Y1.61%
PM growth 3Y37.02%
PM growth 5YN/A
GM growth 3Y-1.94%
GM growth 5Y-1.56%
2. Health
2.1 Basic Checks
SMPL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SMPL has more shares outstanding
Compared to 5 years ago, SMPL has more shares outstanding
SMPL has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.58 indicates that SMPL is not in any danger for bankruptcy at the moment.
The Altman-Z score of SMPL (4.58) is better than 83.52% of its industry peers.
SMPL has a debt to FCF ratio of 1.68. This is a very positive value and a sign of high solvency as it would only need 1.68 years to pay back of all of its debts.
The Debt to FCF ratio of SMPL (1.68) is better than 87.91% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that SMPL is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.16, SMPL is doing good in the industry, outperforming 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.68 | ||
| Altman-Z | 4.58 |
ROIC/WACC0.74
WACC10.11%
2.3 Liquidity
SMPL has a Current Ratio of 4.27. This indicates that SMPL is financially healthy and has no problem in meeting its short term obligations.
SMPL has a Current ratio of 4.27. This is amongst the best in the industry. SMPL outperforms 93.41% of its industry peers.
SMPL has a Quick Ratio of 2.70. This indicates that SMPL is financially healthy and has no problem in meeting its short term obligations.
SMPL has a better Quick ratio (2.70) than 89.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.27 | ||
| Quick Ratio | 2.7 |
3. Growth
3.1 Past
SMPL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.37%, which is quite good.
The Earnings Per Share has been growing by 27.18% on average over the past years. This is a very strong growth
Looking at the last year, SMPL shows a quite strong growth in Revenue. The Revenue has grown by 11.48% in the last year.
SMPL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.51% yearly.
EPS 1Y (TTM)13.37%
EPS 3Y13.25%
EPS 5Y27.18%
EPS Q2Q%15%
Revenue 1Y (TTM)11.48%
Revenue growth 3Y9.8%
Revenue growth 5Y20.51%
Sales Q2Q%15.2%
3.2 Future
Based on estimates for the next years, SMPL will show a small growth in Earnings Per Share. The EPS will grow by 7.02% on average per year.
Based on estimates for the next years, SMPL will show a small growth in Revenue. The Revenue will grow by 5.95% on average per year.
EPS Next Y8.38%
EPS Next 2Y8.12%
EPS Next 3Y8.78%
EPS Next 5Y7.02%
Revenue Next Year9.81%
Revenue Next 2Y7.53%
Revenue Next 3Y6.95%
Revenue Next 5Y5.95%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.44, SMPL is valued correctly.
Based on the Price/Earnings ratio, SMPL is valued a bit cheaper than 65.93% of the companies in the same industry.
SMPL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.45.
SMPL is valuated correctly with a Price/Forward Earnings ratio of 14.99.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SMPL indicates a somewhat cheap valuation: SMPL is cheaper than 68.13% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. SMPL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.44 | ||
| Fwd PE | 14.99 |
4.2 Price Multiples
SMPL's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, SMPL is valued a bit cheaper than the industry average as 70.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.19 | ||
| EV/EBITDA | 13.64 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of SMPL may justify a higher PE ratio.
PEG (NY)1.96
PEG (5Y)0.6
EPS Next 2Y8.12%
EPS Next 3Y8.78%
5. Dividend
5.1 Amount
SMPL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
32.06
+0.02 (+0.06%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners96.27%
Inst Owner Change0.21%
Ins Owners8.12%
Ins Owner Change-0.04%
Market Cap3.24B
Analysts80
Price Target41.54 (29.57%)
Short Float %4.58%
Short Ratio4.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.19%
Min EPS beat(2)4.05%
Max EPS beat(2)12.32%
EPS beat(4)3
Avg EPS beat(4)4.23%
Min EPS beat(4)-1.08%
Max EPS beat(4)12.32%
EPS beat(8)6
Avg EPS beat(8)3.12%
EPS beat(12)10
Avg EPS beat(12)6.97%
EPS beat(16)14
Avg EPS beat(16)12.16%
Revenue beat(2)0
Avg Revenue beat(2)-2.1%
Min Revenue beat(2)-3.68%
Max Revenue beat(2)-0.52%
Revenue beat(4)0
Avg Revenue beat(4)-2.08%
Min Revenue beat(4)-3.68%
Max Revenue beat(4)-0.52%
Revenue beat(8)0
Avg Revenue beat(8)-2.17%
Revenue beat(12)2
Avg Revenue beat(12)-1.03%
Revenue beat(16)5
Avg Revenue beat(16)0.67%
PT rev (1m)-1.66%
PT rev (3m)2.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.54%
EPS NY rev (1m)0%
EPS NY rev (3m)1.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.44 | ||
| Fwd PE | 14.99 | ||
| P/S | 2.29 | ||
| P/FCF | 18.19 | ||
| P/OCF | 17.51 | ||
| P/B | 1.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.64 |
EPS(TTM)1.95
EY6.08%
EPS(NY)2.14
Fwd EY6.67%
FCF(TTM)1.76
FCFY5.5%
OCF(TTM)1.83
OCFY5.71%
SpS13.97
BVpS17.99
TBVpS-1.01
PEG (NY)1.96
PEG (5Y)0.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.99% | ||
| ROE | 8% | ||
| ROCE | 9.96% | ||
| ROIC | 7.51% | ||
| ROICexc | 7.86% | ||
| ROICexgc | 58.19% | ||
| OM | 16.39% | ||
| PM (TTM) | 10.31% | ||
| GM | 38.28% | ||
| FCFM | 12.62% |
ROA(3y)5.76%
ROA(5y)4.51%
ROE(3y)8.04%
ROE(5y)6.66%
ROIC(3y)7.52%
ROIC(5y)6.79%
ROICexc(3y)7.87%
ROICexc(5y)7.1%
ROICexgc(3y)59.82%
ROICexgc(5y)63.27%
ROCE(3y)9.96%
ROCE(5y)9%
ROICexcg growth 3Y-5.63%
ROICexcg growth 5Y-12.44%
ROICexc growth 3Y1.67%
ROICexc growth 5Y0.74%
OM growth 3Y-2.21%
OM growth 5Y1.61%
PM growth 3Y37.02%
PM growth 5YN/A
GM growth 3Y-1.94%
GM growth 5Y-1.56%
F-Score5
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.68 | ||
| Debt/EBITDA | 1.19 | ||
| Cap/Depr | 33.97% | ||
| Cap/Sales | 0.49% | ||
| Interest Coverage | 8.28 | ||
| Cash Conversion | 73.52% | ||
| Profit Quality | 122.39% | ||
| Current Ratio | 4.27 | ||
| Quick Ratio | 2.7 | ||
| Altman-Z | 4.58 |
F-Score5
WACC10.11%
ROIC/WACC0.74
Cap/Depr(3y)40.33%
Cap/Depr(5y)34.93%
Cap/Sales(3y)0.65%
Cap/Sales(5y)0.59%
Profit Quality(3y)121.88%
Profit Quality(5y)151.58%
High Growth Momentum
Growth
EPS 1Y (TTM)13.37%
EPS 3Y13.25%
EPS 5Y27.18%
EPS Q2Q%15%
EPS Next Y8.38%
EPS Next 2Y8.12%
EPS Next 3Y8.78%
EPS Next 5Y7.02%
Revenue 1Y (TTM)11.48%
Revenue growth 3Y9.8%
Revenue growth 5Y20.51%
Sales Q2Q%15.2%
Revenue Next Year9.81%
Revenue Next 2Y7.53%
Revenue Next 3Y6.95%
Revenue Next 5Y5.95%
EBIT growth 1Y10.24%
EBIT growth 3Y7.38%
EBIT growth 5Y22.45%
EBIT Next Year17.48%
EBIT Next 3Y10.33%
EBIT Next 5Y7.6%
FCF growth 1Y36.56%
FCF growth 3Y18.61%
FCF growth 5Y23.78%
OCF growth 1Y38.46%
OCF growth 3Y17.76%
OCF growth 5Y24.2%