SIMPLY GOOD FOODS CO/THE (SMPL) Stock Fundamental Analysis
USA - NASDAQ:SMPL - US82900L1026 - Common Stock
24.56 USD
+0.46 (+1.91%)
24.56 USD
0 (0%)
Overall SMPL gets a fundamental rating of 6 out of 10. We evaluated SMPL against 87 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 has a correct valuation and a medium growth rate. With these ratings, SMPL could be worth investigating further 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 each of the past 5 years.
Each year in the past 5 years SMPL had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SMPL (5.99%) is better than 82.76% of its industry peers.
SMPL has a Return On Equity of 8.00%. This is in the better half of the industry: SMPL outperforms 65.52% of its industry peers.
SMPL has a Return On Invested Capital of 7.51%. This is in the better half of the industry: SMPL outperforms 75.86% of its industry peers.
SMPL had an Average Return On Invested Capital over the past 3 years of 7.52%. This is significantly below the industry average of 28.34%.
| 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
The Profit Margin of SMPL (10.31%) is better than 86.21% of its industry peers.
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 91.95% of its industry peers.
SMPL's Operating Margin has improved in the last couple of years.
SMPL has a Gross Margin of 38.27%. This is amongst the best in the industry. SMPL outperforms 88.51% of its industry peers.
In the last couple of years the Gross Margin of SMPL has declined.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SMPL is destroying value.
The number of shares outstanding for SMPL has been increased compared to 1 year ago.
Compared to 5 years ago, SMPL has more shares outstanding
Compared to 1 year ago, SMPL has a worse debt to assets ratio.
2.2 Solvency
SMPL has an Altman-Z score of 3.82. This indicates that SMPL is financially healthy and has little risk of bankruptcy at the moment.
SMPL has a better Altman-Z score (3.82) than 78.16% of its industry peers.
The Debt to FCF ratio of SMPL is 1.68, which is an excellent value as it means it would take SMPL, only 1.68 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SMPL (1.68) is better than 86.21% 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 71.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.68 | ||
| Altman-Z | 3.82 |
ROIC/WACC0.91
WACC8.3%
2.3 Liquidity
A Current Ratio of 4.27 indicates that SMPL has no problem at all paying its short term obligations.
SMPL's Current ratio of 4.27 is amongst the best of the industry. SMPL outperforms 94.25% 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.
Looking at the Quick ratio, with a value of 2.70, SMPL belongs to the top of the industry, outperforming 91.95% of the companies in the same industry.
| 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 10.11%, 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 small growth in Revenue. The Revenue has grown by 7.13% in the last year.
Measured over the past years, SMPL shows a very strong growth in Revenue. The Revenue has been growing by 20.51% on average per year.
EPS 1Y (TTM)10.11%
EPS 3Y13.25%
EPS 5Y27.18%
EPS Q2Q%2%
Revenue 1Y (TTM)7.13%
Revenue growth 3Y9.8%
Revenue growth 5Y20.51%
Sales Q2Q%13.8%
3.2 Future
The Earnings Per Share is expected to grow by 6.35% on average over the next years.
The Revenue is expected to grow by 5.16% on average over the next years.
EPS Next Y8.5%
EPS Next 2Y5.9%
EPS Next 3Y6.34%
EPS Next 5Y6.35%
Revenue Next Year9.14%
Revenue Next 2Y6.12%
Revenue Next 3Y6.02%
Revenue Next 5Y5.16%
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 correctly with a Price/Earnings ratio of 12.53.
SMPL's Price/Earnings ratio is a bit cheaper when compared to the industry. SMPL is cheaper than 75.86% of the companies in the same industry.
When comparing the Price/Earnings ratio of SMPL to the average of the S&P500 Index (27.40), we can say SMPL is valued rather cheaply.
The Price/Forward Earnings ratio is 11.97, which indicates a very decent valuation of SMPL.
Based on the Price/Forward Earnings ratio, SMPL is valued cheaper than 82.76% of the companies in the same industry.
SMPL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.53 | ||
| Fwd PE | 11.97 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SMPL indicates a somewhat cheap valuation: SMPL is cheaper than 74.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.87 | ||
| EV/EBITDA | 10.59 |
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)1.47
PEG (5Y)0.46
EPS Next 2Y5.9%
EPS Next 3Y6.34%
5. Dividend
5.1 Amount
No dividends for SMPL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
24.56
+0.46 (+1.91%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners97.13%
Inst Owner Change-0.16%
Ins Owners8.21%
Ins Owner Change0.14%
Market Cap2.47B
Analysts78.89
Price Target38.93 (58.51%)
Short Float %5.64%
Short Ratio4.07
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)-0.65%
PT rev (3m)-1.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.6%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.53 | ||
| Fwd PE | 11.97 | ||
| P/S | 1.75 | ||
| P/FCF | 13.87 | ||
| P/OCF | 13.35 | ||
| P/B | 1.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.59 |
EPS(TTM)1.96
EY7.98%
EPS(NY)2.05
Fwd EY8.36%
FCF(TTM)1.77
FCFY7.21%
OCF(TTM)1.84
OCFY7.49%
SpS14.04
BVpS18.08
TBVpS-1.01
PEG (NY)1.47
PEG (5Y)0.46
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 | 3.82 |
F-Score5
WACC8.3%
ROIC/WACC0.91
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)10.11%
EPS 3Y13.25%
EPS 5Y27.18%
EPS Q2Q%2%
EPS Next Y8.5%
EPS Next 2Y5.9%
EPS Next 3Y6.34%
EPS Next 5Y6.35%
Revenue 1Y (TTM)7.13%
Revenue growth 3Y9.8%
Revenue growth 5Y20.51%
Sales Q2Q%13.8%
Revenue Next Year9.14%
Revenue Next 2Y6.12%
Revenue Next 3Y6.02%
Revenue Next 5Y5.16%
EBIT growth 1Y10.24%
EBIT growth 3Y7.38%
EBIT growth 5Y22.45%
EBIT Next Year17.1%
EBIT Next 3Y8.11%
EBIT Next 5Y6.75%
FCF growth 1Y36.56%
FCF growth 3Y18.61%
FCF growth 5Y23.78%
OCF growth 1Y38.46%
OCF growth 3Y17.76%
OCF growth 5Y24.2%