SOVOS BRANDS INC (SOVO) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:SOVO • US84612U1079

22.98 USD
+0.03 (+0.13%)
At close: Mar 11, 2024
23 USD
+0.02 (+0.09%)
After Hours: 3/11/2024, 8:00:02 PM
Fundamental Rating

5

Overall SOVO gets a fundamental rating of 5 out of 10. We evaluated SOVO against 87 industry peers in the Food Products industry. Both the profitability and the financial health of SOVO get a neutral evaluation. Nothing too spectacular is happening here. SOVO is valued quite expensively, but it does show have an excellent growth rating. These ratings would make SOVO suitable for growth investing!


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

  • In the past year SOVO was profitable.
  • SOVO had a positive operating cash flow in the past year.
  • In multiple years SOVO reported negative net income over the last 5 years.
  • Each year in the past 5 years SOVO had a positive operating cash flow.
SOVO Yearly Net Income VS EBIT VS OCF VS FCFSOVO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 0 50M -50M 100M

1.2 Ratios

  • SOVO's Return On Assets of 2.44% is in line compared to the rest of the industry. SOVO outperforms 54.35% of its industry peers.
  • Looking at the Return On Equity, with a value of 5.68%, SOVO is in line with its industry, outperforming 56.52% of the companies in the same industry.
  • SOVO has a Return On Invested Capital of 4.94%. This is comparable to the rest of the industry: SOVO outperforms 57.61% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for SOVO is significantly below the industry average of 27.79%.
  • The 3 year average ROIC (3.89%) for SOVO is below the current ROIC(4.94%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 2.44%
ROE 5.68%
ROIC 4.94%
ROA(3y)-0.67%
ROA(5y)-0.76%
ROE(3y)-1.72%
ROE(5y)-1.6%
ROIC(3y)3.89%
ROIC(5y)N/A
SOVO Yearly ROA, ROE, ROICSOVO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 0 5 -5 -10

1.3 Margins

  • Looking at the Profit Margin, with a value of 2.95%, SOVO is in line with its industry, outperforming 57.61% of the companies in the same industry.
  • In the last couple of years the Profit Margin of SOVO has grown nicely.
  • The Operating Margin of SOVO (8.09%) is better than 71.74% of its industry peers.
  • In the last couple of years the Operating Margin of SOVO has declined.
  • Looking at the Gross Margin, with a value of 29.94%, SOVO is in the better half of the industry, outperforming 73.91% of the companies in the same industry.
  • SOVO's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 8.09%
PM (TTM) 2.95%
GM 29.94%
OM growth 3Y-1.94%
OM growth 5YN/A
PM growth 3Y15.32%
PM growth 5YN/A
GM growth 3Y-3.54%
GM growth 5YN/A
SOVO Yearly Profit, Operating, Gross MarginsSOVO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 0 10 20 30

More info and screens

6

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SOVO is destroying value.
  • SOVO has more shares outstanding than it did 1 year ago.
  • The debt/assets ratio for SOVO has been reduced compared to a year ago.
SOVO Yearly Shares OutstandingSOVO Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M
SOVO Yearly Total Debt VS Total AssetsSOVO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

2.2 Solvency

  • An Altman-Z score of 3.22 indicates that SOVO is not in any danger for bankruptcy at the moment.
  • SOVO has a better Altman-Z score (3.22) than 76.09% of its industry peers.
  • SOVO has a debt to FCF ratio of 5.18. This is a neutral value as SOVO would need 5.18 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 5.18, SOVO is in the better half of the industry, outperforming 72.83% of the companies in the same industry.
  • SOVO has a Debt/Equity ratio of 0.91. This is a neutral value indicating SOVO is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.91, SOVO is doing worse than 67.39% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.91
Debt/FCF 5.18
Altman-Z 3.22
ROIC/WACC0.59
WACC8.36%
SOVO Yearly LT Debt VS Equity VS FCFSOVO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 0 100M 200M 300M 400M 500M

2.3 Liquidity

  • SOVO has a Current Ratio of 2.90. This indicates that SOVO is financially healthy and has no problem in meeting its short term obligations.
  • The Current ratio of SOVO (2.90) is better than 83.70% of its industry peers.
  • A Quick Ratio of 2.26 indicates that SOVO has no problem at all paying its short term obligations.
  • With an excellent Quick ratio value of 2.26, SOVO belongs to the best of the industry, outperforming 85.87% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.9
Quick Ratio 2.26
SOVO Yearly Current Assets VS Current LiabilitesSOVO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 100M 200M 300M 400M

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8

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 35.00% over the past year.
  • SOVO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 38.55% yearly.
  • The Revenue has grown by 16.17% in the past year. This is quite good.
  • The Revenue has been growing by 22.13% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)35%
EPS 3Y38.55%
EPS 5YN/A
EPS Q2Q%36.84%
Revenue 1Y (TTM)16.17%
Revenue growth 3Y22.13%
Revenue growth 5YN/A
Sales Q2Q%11.43%

3.2 Future

  • Based on estimates for the next years, SOVO will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.90% on average per year.
  • The Revenue is expected to grow by 12.19% on average over the next years. This is quite good.
EPS Next Y18.53%
EPS Next 2Y19.9%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year13.03%
Revenue Next 2Y12.19%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
SOVO Yearly Revenue VS EstimatesSOVO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
SOVO Yearly EPS VS EstimatesSOVO Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

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3

4. Valuation

4.1 Price/Earnings Ratio

  • SOVO is valuated quite expensively with a Price/Earnings ratio of 28.37.
  • SOVO's Price/Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Earnings ratio is at 28.32. SOVO is around the same levels.
  • The Price/Forward Earnings ratio is 23.94, which indicates a rather expensive current valuation of SOVO.
  • 60.87% of the companies in the same industry are more expensive than SOVO, based on the Price/Forward Earnings ratio.
  • SOVO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 28.37
Fwd PE 23.94
SOVO Price Earnings VS Forward Price EarningsSOVO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SOVO is on the same level as its industry peers.
  • 61.96% of the companies in the same industry are more expensive than SOVO, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 24.95
EV/EBITDA 22.17
SOVO Per share dataSOVO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

4.3 Compensation for Growth

  • SOVO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • A more expensive valuation may be justified as SOVO's earnings are expected to grow with 19.90% in the coming years.
PEG (NY)1.53
PEG (5Y)N/A
EPS Next 2Y19.9%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

  • SOVO does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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SOVOS BRANDS INC / SOVO FAQ

Can you provide the ChartMill fundamental rating for SOVOS BRANDS INC?

ChartMill assigns a fundamental rating of 5 / 10 to SOVO.


What is the valuation status of SOVOS BRANDS INC (SOVO) stock?

ChartMill assigns a valuation rating of 3 / 10 to SOVOS BRANDS INC (SOVO). This can be considered as Overvalued.


Can you provide the profitability details for SOVOS BRANDS INC?

SOVOS BRANDS INC (SOVO) has a profitability rating of 5 / 10.


What is the expected EPS growth for SOVOS BRANDS INC (SOVO) stock?

The Earnings per Share (EPS) of SOVOS BRANDS INC (SOVO) is expected to grow by 18.53% in the next year.


Is the dividend of SOVOS BRANDS INC sustainable?

The dividend rating of SOVOS BRANDS INC (SOVO) is 0 / 10 and the dividend payout ratio is 0%.