SIMPLY GOOD FOODS CO/THE (SMPL)
US82900L1026 - Common Stock
We assign a fundamental rating of 6 out of 10 to SMPL. SMPL was compared to 92 industry peers in the Food Products industry. Both the health and profitability get an excellent rating, making SMPL a very profitable company, without any liquidiy or solvency issues. SMPL is not valued too expensively and it also shows a decent growth rate. These ratings would make SMPL suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year SMPL was profitable.
SMPL had a positive operating cash flow in the past year.
SMPL had positive earnings in 4 of the past 5 years.
SMPL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SMPL's Return On Assets of 6.55% is fine compared to the rest of the industry. SMPL outperforms 74.73% of its industry peers.
With a decent Return On Equity value of 8.54%, SMPL is doing good in the industry, outperforming 60.44% of the companies in the same industry.
SMPL has a Return On Invested Capital of 7.60%. This is in the better half of the industry: SMPL outperforms 76.92% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SMPL is in line with the industry average of 7.56%.
The last Return On Invested Capital (7.60%) for SMPL is above the 3 year average (7.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.55% | ||
| ROE | 8.54% | ||
| ROIC | 7.6% |
ROA(3y)4.52%
ROA(5y)2.92%
ROE(3y)6.5%
ROE(5y)4.34%
ROIC(3y)7.31%
ROIC(5y)6.34%
1.3 Margins
With an excellent Profit Margin value of 11.11%, SMPL belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
SMPL's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 16.57%, SMPL belongs to the best of the industry, outperforming 93.41% of the companies in the same industry.
SMPL's Operating Margin has improved in the last couple of years.
SMPL has a Gross Margin of 37.26%. This is amongst the best in the industry. SMPL outperforms 90.11% of its industry peers.
SMPL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.57% | ||
| PM (TTM) | 11.11% | ||
| GM | 37.26% |
OM growth 3Y5.74%
OM growth 5Y2.04%
PM growth 3Y10.2%
PM growth 5Y-8.03%
GM growth 3Y-2.79%
GM growth 5Y-2.69%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SMPL is destroying value.
The number of shares outstanding for SMPL remains at a similar level compared to 1 year ago.
Compared to 5 years ago, SMPL has more shares outstanding
SMPL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.74 indicates that SMPL is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.74, SMPL belongs to the best of the industry, outperforming 86.81% of the companies in the same industry.
SMPL has a debt to FCF ratio of 1.19. This is a very positive value and a sign of high solvency as it would only need 1.19 years to pay back of all of its debts.
SMPL has a Debt to FCF ratio of 1.19. This is amongst the best in the industry. SMPL outperforms 86.81% of its industry peers.
SMPL has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
SMPL has a Debt to Equity ratio of 0.14. This is in the better half of the industry: SMPL outperforms 72.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 5.74 |
ROIC/WACC0.85
WACC8.95%
2.3 Liquidity
SMPL has a Current Ratio of 4.20. This indicates that SMPL is financially healthy and has no problem in meeting its short term obligations.
SMPL has a Current ratio of 4.20. This is amongst the best in the industry. SMPL outperforms 91.21% of its industry peers.
A Quick Ratio of 3.09 indicates that SMPL has no problem at all paying its short term obligations.
SMPL has a Quick ratio of 3.09. This is amongst the best in the industry. SMPL outperforms 93.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.2 | ||
| Quick Ratio | 3.09 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.69% over the past year.
The Earnings Per Share has been growing by 27.17% on average over the past years. This is a very strong growth
Looking at the last year, SMPL shows a small growth in Revenue. The Revenue has grown by 6.55% in the last year.
Measured over the past years, SMPL shows a very strong growth in Revenue. The Revenue has been growing by 23.57% on average per year.
EPS 1Y (TTM)11.69%
EPS 3Y20.57%
EPS 5Y27.17%
EPS growth Q2Q25%
Revenue 1Y (TTM)6.55%
Revenue growth 3Y15.02%
Revenue growth 5Y23.57%
Revenue growth Q2Q5.26%
3.2 Future
Based on estimates for the next years, SMPL will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.05% on average per year.
Based on estimates for the next years, SMPL will show a small growth in Revenue. The Revenue will grow by 4.67% on average per year.
EPS Next Y13.95%
EPS Next 2Y11.72%
EPS Next 3Y11.28%
EPS Next 5Y8.05%
Revenue Next Year5.13%
Revenue Next 2Y4.93%
Revenue Next 3Y4.84%
Revenue Next 5Y4.67%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
SMPL is valuated rather expensively with a Price/Earnings ratio of 21.37.
Based on the Price/Earnings ratio, SMPL is valued a bit cheaper than the industry average as 68.13% of the companies are valued more expensively.
SMPL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.55.
Based on the Price/Forward Earnings ratio of 18.06, the valuation of SMPL can be described as rather expensive.
71.43% of the companies in the same industry are more expensive than SMPL, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.92, SMPL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.37 | ||
| Fwd PE | 18.06 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SMPL is on the same level as its industry peers.
SMPL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SMPL is cheaper than 73.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.35 | ||
| EV/EBITDA | 16.22 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SMPL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.53
PEG (5Y)0.79
EPS Next 2Y11.72%
EPS Next 3Y11.28%
5. Dividend
5.1 Amount
SMPL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SIMPLY GOOD FOODS CO/THE
NASDAQ:SMPL (5/1/2024, 7:22:53 PM)
After market: 36.59 -0.16 (-0.44%)36.75
+0.3 (+0.82%)
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 Cap3.67B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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PT rev (1m)
PT rev (3m)
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Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.37 | ||
| Fwd PE | 18.06 | ||
| 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)1.53
PEG (5Y)0.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.55% | ||
| ROE | 8.54% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.57% | ||
| PM (TTM) | 11.11% | ||
| GM | 37.26% | ||
| 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 Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.2 | ||
| Quick Ratio | 3.09 | ||
| 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)11.69%
EPS 3Y20.57%
EPS 5Y
EPS growth Q2Q
EPS Next Y13.95%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.55%
Revenue growth 3Y15.02%
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
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OCF growth 5Y