SOVOS BRANDS INC (SOVO) Stock Fundamental Analysis
NASDAQ:SOVO - Nasdaq - US84612U1079 - Common Stock - Currency: USD
SOVO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 89 industry peers in the Food Products industry. SOVO has an average financial health and profitability rating. SOVO is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make SOVO suitable for growth investing!
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.
1.2 Ratios
With a Return On Assets value of 2.44%, SOVO perfoms like the industry average, outperforming 54.35% of the companies in the same industry.
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 (4.94%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for SOVO is significantly below the industry average of 29.15%.
The last Return On Invested Capital (4.94%) for SOVO is above the 3 year average (3.89%), which is a sign of increasing profitability.
| Industry Rank | Sector 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
1.3 Margins
The Profit Margin of SOVO (2.95%) is comparable to the rest of the industry.
SOVO's Profit Margin has improved in the last couple of years.
SOVO has a better Operating Margin (8.09%) than 71.74% of its industry peers.
SOVO's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 29.94%, SOVO is doing good in 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 Rank | Sector 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
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SOVO is destroying value.
Compared to 1 year ago, SOVO has more shares outstanding
Compared to 1 year ago, SOVO has an improved debt to assets ratio.
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 Altman-Z score of 3.22. This is in the better half of the industry: SOVO outperforms 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.
SOVO has a better Debt to FCF ratio (5.18) than 72.83% of its industry peers.
SOVO has a Debt/Equity ratio of 0.91. This is a neutral value indicating SOVO is somewhat dependend on debt financing.
SOVO has a Debt to Equity ratio of 0.91. This is in the lower half of the industry: SOVO underperforms 67.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 5.18 | ||
| Altman-Z | 3.22 |
ROIC/WACC0.59
WACC8.36%
2.3 Liquidity
A Current Ratio of 2.90 indicates that SOVO has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.90, SOVO belongs to the top of the industry, outperforming 83.70% of the companies in the same industry.
A Quick Ratio of 2.26 indicates that SOVO has no problem at all paying its short term obligations.
SOVO has a Quick ratio of 2.26. This is amongst the best in the industry. SOVO outperforms 85.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.9 | ||
| Quick Ratio | 2.26 |
3. Growth
3.1 Past
SOVO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.00%, which is quite impressive.
Measured over the past years, SOVO shows a very strong growth in Earnings Per Share. The EPS has been growing by 38.55% on average per year.
Looking at the last year, SOVO shows a quite strong growth in Revenue. The Revenue has grown by 16.17% in the last year.
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.
4. Valuation
4.1 Price/Earnings Ratio
SOVO is valuated quite expensively with a Price/Earnings ratio of 28.37.
The rest of the industry has a similar Price/Earnings ratio as SOVO.
Compared to an average S&P500 Price/Earnings ratio of 26.82, SOVO is valued at the same level.
With a Price/Forward Earnings ratio of 23.94, SOVO is valued on the expensive side.
60.87% of the companies in the same industry are more expensive than SOVO, based on the Price/Forward Earnings ratio.
SOVO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.24, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.37 | ||
| Fwd PE | 23.94 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SOVO.
61.96% of the companies in the same industry are more expensive than SOVO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.95 | ||
| EV/EBITDA | 22.17 |
4.3 Compensation for Growth
The 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
5. Dividend
5.1 Amount
SOVO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.98
+0.03 (+0.13%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners0.19%
Inst Owner Change0%
Ins Owners1%
Ins Owner Change0%
Market Cap2.33B
Analysts72
Price Target23.23 (1.09%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)32%
Min EPS beat(2)30.72%
Max EPS beat(2)33.28%
EPS beat(4)4
Avg EPS beat(4)28.27%
Min EPS beat(4)20.87%
Max EPS beat(4)33.28%
EPS beat(8)8
Avg EPS beat(8)24.59%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)10.15%
Min Revenue beat(2)8.99%
Max Revenue beat(2)11.31%
Revenue beat(4)3
Avg Revenue beat(4)6.58%
Min Revenue beat(4)-0.08%
Max Revenue beat(4)11.31%
Revenue beat(8)7
Avg Revenue beat(8)5.87%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)19.57%
EPS NQ rev (3m)19.57%
EPS NY rev (1m)10.9%
EPS NY rev (3m)10.9%
Revenue NQ rev (1m)5.47%
Revenue NQ rev (3m)6.67%
Revenue NY rev (1m)2.78%
Revenue NY rev (3m)3.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.37 | ||
| Fwd PE | 23.94 | ||
| P/S | 2.29 | ||
| P/FCF | 24.95 | ||
| P/OCF | 22.14 | ||
| P/B | 4.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.17 |
EPS(TTM)0.81
EY3.52%
EPS(NY)0.96
Fwd EY4.18%
FCF(TTM)0.92
FCFY4.01%
OCF(TTM)1.04
OCFY4.52%
SpS10.06
BVpS5.22
TBVpS-1.92
PEG (NY)1.53
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.44% | ||
| ROE | 5.68% | ||
| ROCE | 7.61% | ||
| ROIC | 4.94% | ||
| ROICexc | 6.28% | ||
| ROICexgc | 41.5% | ||
| OM | 8.09% | ||
| PM (TTM) | 2.95% | ||
| GM | 29.94% | ||
| FCFM | 9.16% |
ROA(3y)-0.67%
ROA(5y)-0.76%
ROE(3y)-1.72%
ROE(5y)-1.6%
ROIC(3y)3.89%
ROIC(5y)N/A
ROICexc(3y)4.58%
ROICexc(5y)N/A
ROICexgc(3y)31.91%
ROICexgc(5y)N/A
ROCE(3y)5.99%
ROCE(5y)N/A
ROICexcg growth 3Y1.44%
ROICexcg growth 5YN/A
ROICexc growth 3Y26.57%
ROICexc growth 5YN/A
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
F-Score8
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 5.18 | ||
| Debt/EBITDA | 4.15 | ||
| Cap/Depr | 34.94% | ||
| Cap/Sales | 1.16% | ||
| Interest Coverage | 1.94 | ||
| Cash Conversion | 90.37% | ||
| Profit Quality | 310.37% | ||
| Current Ratio | 2.9 | ||
| Quick Ratio | 2.26 | ||
| Altman-Z | 3.22 |
F-Score8
WACC8.36%
ROIC/WACC0.59
Cap/Depr(3y)35.14%
Cap/Depr(5y)30.96%
Cap/Sales(3y)1.53%
Cap/Sales(5y)1.71%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)35%
EPS 3Y38.55%
EPS 5YN/A
EPS Q2Q%36.84%
EPS Next Y18.53%
EPS Next 2Y19.9%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)16.17%
Revenue growth 3Y22.13%
Revenue growth 5YN/A
Sales Q2Q%11.43%
Revenue Next Year13.03%
Revenue Next 2Y12.19%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y48.81%
EBIT growth 3Y19.76%
EBIT growth 5YN/A
EBIT Next Year29.16%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y186.87%
FCF growth 3Y16.45%
FCF growth 5YN/A
OCF growth 1Y131.99%
OCF growth 3Y18.74%
OCF growth 5YN/A