SIMPLY GOOD FOODS CO/THE (SMPL)
US82900L1026 - Common Stock
Overall SMPL gets a fundamental rating of 6 out of 10. We evaluated SMPL against 92 industry peers in the Food Products industry. SMPL gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
In the past year SMPL had a positive cash flow from operations.
SMPL had positive earnings in 4 of the past 5 years.
In the past 5 years SMPL always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 6.71%, SMPL is doing good in the industry, outperforming 75.00% of the companies in the same industry.
The Return On Equity of SMPL (8.66%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 7.68%, SMPL is in the better half of the industry, outperforming 73.91% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SMPL is in line with the industry average of 8.91%.
The last Return On Invested Capital (7.68%) for SMPL is above the 3 year average (7.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.71% | ||
| ROE | 8.66% | ||
| ROIC | 7.68% |
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 11.49%, SMPL belongs to the best of the industry, outperforming 88.04% of the companies in the same industry.
In the last couple of years the Profit Margin of SMPL has declined.
SMPL has a Operating Margin of 17.01%. This is amongst the best in the industry. SMPL outperforms 91.30% of its industry peers.
SMPL's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 38.10%, SMPL belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
In the last couple of years the Gross Margin of SMPL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.01% | ||
| PM (TTM) | 11.49% | ||
| GM | 38.1% |
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
SMPL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
SMPL has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for SMPL has been increased compared to 5 years ago.
SMPL has a better debt/assets ratio than last year.
2.2 Solvency
SMPL has an Altman-Z score of 5.52. This indicates that SMPL is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.52, SMPL belongs to the best of the industry, outperforming 88.04% of the companies in the same industry.
The Debt to FCF ratio of SMPL is 1.06, which is an excellent value as it means it would take SMPL, only 1.06 years of fcf income to pay off all of its debts.
SMPL's Debt to FCF ratio of 1.06 is amongst the best of the industry. SMPL outperforms 85.87% 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's Debt to Equity ratio of 0.14 is fine compared to the rest of the industry. SMPL outperforms 77.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.06 | ||
| Altman-Z | 5.52 |
ROIC/WACC0.95
WACC8.1%
2.3 Liquidity
SMPL has a Current Ratio of 5.19. This indicates that SMPL is financially healthy and has no problem in meeting its short term obligations.
SMPL has a better Current ratio (5.19) than 96.74% of its industry peers.
SMPL has a Quick Ratio of 4.05. This indicates that SMPL is financially healthy and has no problem in meeting its short term obligations.
SMPL has a Quick ratio of 4.05. This is amongst the best in the industry. SMPL outperforms 95.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.19 | ||
| Quick Ratio | 4.05 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.58% 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
The Revenue has been growing slightly by 6.65% in the past year.
SMPL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.57% yearly.
EPS 1Y (TTM)15.58%
EPS 3Y20.57%
EPS 5Y27.17%
EPS Q2Q%13.64%
Revenue 1Y (TTM)6.65%
Revenue growth 3Y15.02%
Revenue growth 5Y23.57%
Sales Q2Q%3.07%
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 8.08% on average per year.
SMPL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.74% yearly.
EPS Next Y14.13%
EPS Next 2Y10.21%
EPS Next 3Y10.41%
EPS Next 5Y8.08%
Revenue Next Year6.94%
Revenue Next 2Y8.91%
Revenue Next 3Y8.08%
Revenue Next 5Y5.74%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.35, which indicates a rather expensive current valuation of SMPL.
SMPL's Price/Earnings ratio is a bit cheaper when compared to the industry. SMPL is cheaper than 68.48% of the companies in the same industry.
When comparing the Price/Earnings ratio of SMPL to the average of the S&P500 Index (29.62), we can say SMPL is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 16.50, the valuation of SMPL can be described as correct.
Based on the Price/Forward Earnings ratio, SMPL is valued a bit cheaper than the industry average as 72.83% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SMPL to the average of the S&P500 Index (21.22), we can say SMPL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.35 | ||
| Fwd PE | 16.5 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SMPL.
SMPL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SMPL is cheaper than 72.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.65 | ||
| EV/EBITDA | 14.26 |
4.3 Compensation for Growth
SMPL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of SMPL may justify a higher PE ratio.
PEG (NY)1.3
PEG (5Y)0.68
EPS Next 2Y10.21%
EPS Next 3Y10.41%
5. Dividend
5.1 Amount
No dividends for SMPL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SIMPLY GOOD FOODS CO/THE
NASDAQ:SMPL (9/6/2024, 8:00:02 PM)
After market: 32.66 0 (0%)32.66
-0.98 (-2.91%)
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 Cap3.27B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Min 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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Revenue beat(16)
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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 | 18.35 | ||
| Fwd PE | 16.5 | ||
| 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)1.3
PEG (5Y)0.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.71% | ||
| ROE | 8.66% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.01% | ||
| PM (TTM) | 11.49% | ||
| GM | 38.1% | ||
| 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 Turnover0.58
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 | 5.19 | ||
| Quick Ratio | 4.05 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)15.58%
EPS 3Y20.57%
EPS 5Y
EPS Q2Q%
EPS Next Y14.13%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.65%
Revenue growth 3Y15.02%
Revenue growth 5Y
Sales 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