SIMPLY GOOD FOODS CO/THE (SMPL) Stock Fundamental Analysis
NASDAQ:SMPL - Nasdaq - US82900L1026 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to SMPL. SMPL was compared to 89 industry peers in the Food Products industry. SMPL has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. SMPL is not valued too expensively and it also shows a decent 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.
In the past 5 years SMPL has always been profitable.
SMPL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.99%, SMPL is in the better half of the industry, outperforming 76.40% of the companies in the same industry.
SMPL's Return On Equity of 8.00% is fine compared to the rest of the industry. SMPL outperforms 64.04% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.51%, SMPL is in the better half of the industry, outperforming 73.03% of the companies in the same industry.
SMPL had an Average Return On Invested Capital over the past 3 years of 7.52%. This is in line with the industry average of 7.57%.
| 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
SMPL's Profit Margin of 10.31% is amongst the best of the industry. SMPL outperforms 84.27% of its industry peers.
SMPL's Profit Margin has improved in the last couple of years.
SMPL has a Operating Margin of 16.39%. This is amongst the best in the industry. SMPL outperforms 92.13% of its industry peers.
In the last couple of years the Operating Margin of SMPL has grown nicely.
SMPL has a better Gross Margin (38.27%) than 85.39% 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.
Compared to 1 year ago, SMPL has more shares outstanding
SMPL has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SMPL is higher compared to a year ago.
2.2 Solvency
SMPL has an Altman-Z score of 4.76. This indicates that SMPL is financially healthy and has little risk of bankruptcy at the moment.
SMPL has a Altman-Z score of 4.76. This is amongst the best in the industry. SMPL outperforms 85.39% 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.
SMPL has a Debt to FCF ratio of 1.68. This is amongst the best in the industry. SMPL outperforms 88.76% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that SMPL is not too dependend on debt financing.
The Debt to Equity ratio of SMPL (0.16) is better than 68.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.68 | ||
| Altman-Z | 4.76 |
ROIC/WACC0.77
WACC9.8%
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's Current ratio of 4.27 is amongst the best of the industry. SMPL outperforms 94.38% 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's Quick ratio of 2.70 is amongst the best of the industry. SMPL outperforms 88.76% 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
The Revenue has grown by 11.48% in the past year. This is quite good.
The Revenue has been growing by 20.51% on average over the past years. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 7.12% on average over the next years.
Based on estimates for the next years, SMPL will show a small growth in Revenue. The Revenue will grow by 6.13% on average per year.
EPS Next Y8.38%
EPS Next 2Y8.41%
EPS Next 3Y8.78%
EPS Next 5Y7.12%
Revenue Next Year9.81%
Revenue Next 2Y7.6%
Revenue Next 3Y7%
Revenue Next 5Y6.13%
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 17.10, SMPL is valued on the expensive side.
SMPL's Price/Earnings ratio is a bit cheaper when compared to the industry. SMPL is cheaper than 62.92% of the companies in the same industry.
SMPL is valuated rather cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.50, which indicates a correct valuation of SMPL.
68.54% of the companies in the same industry are more expensive than SMPL, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SMPL to the average of the S&P500 Index (22.06), we can say SMPL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.1 | ||
| Fwd PE | 15.5 |
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.
Based on the Price/Free Cash Flow ratio, SMPL is valued a bit cheaper than 70.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.91 | ||
| EV/EBITDA | 14.37 |
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)2.04
PEG (5Y)0.63
EPS Next 2Y8.41%
EPS Next 3Y8.78%
5. Dividend
5.1 Amount
SMPL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
33.34
-0.53 (-1.56%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners95.61%
Inst Owner Change0.21%
Ins Owners8.13%
Ins Owner Change-0.04%
Market Cap3.37B
Analysts80
Price Target42.25 (26.72%)
Short Float %5.58%
Short Ratio5.26
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%
PT rev (3m)4.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.54%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)1.05%
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 | 17.1 | ||
| Fwd PE | 15.5 | ||
| P/S | 2.39 | ||
| P/FCF | 18.91 | ||
| P/OCF | 18.21 | ||
| P/B | 1.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.37 |
EPS(TTM)1.95
EY5.85%
EPS(NY)2.15
Fwd EY6.45%
FCF(TTM)1.76
FCFY5.29%
OCF(TTM)1.83
OCFY5.49%
SpS13.97
BVpS17.99
TBVpS-1.01
PEG (NY)2.04
PEG (5Y)0.63
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 | 4.76 |
F-Score5
WACC9.8%
ROIC/WACC0.77
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 2Y8.41%
EPS Next 3Y8.78%
EPS Next 5Y7.12%
Revenue 1Y (TTM)11.48%
Revenue growth 3Y9.8%
Revenue growth 5Y20.51%
Sales Q2Q%15.2%
Revenue Next Year9.81%
Revenue Next 2Y7.6%
Revenue Next 3Y7%
Revenue Next 5Y6.13%
EBIT growth 1Y10.24%
EBIT growth 3Y7.38%
EBIT growth 5Y22.45%
EBIT Next Year17.48%
EBIT Next 3Y10.33%
EBIT Next 5Y7.88%
FCF growth 1Y36.56%
FCF growth 3Y18.61%
FCF growth 5Y23.78%
OCF growth 1Y38.46%
OCF growth 3Y17.76%
OCF growth 5Y24.2%