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SOVOS BRANDS INC (SOVO) Stock Fundamental Analysis

USA - NASDAQ:SOVO - US84612U1079 - Common Stock

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

5

We assign a fundamental rating of 5 out of 10 to SOVO. SOVO was compared to 89 industry peers in the Food Products industry. SOVO has only an average score on both its financial health and profitability. SOVO shows excellent growth, but is valued quite expensive already. These ratings could make SOVO a good candidate for growth investing.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

SOVO had positive earnings in the past year.
SOVO had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: SOVO reported negative net income in multiple years.
SOVO had a positive operating cash flow in each of the past 5 years.
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.
SOVO has a Return On Equity (5.68%) which is comparable to the rest of the 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 28.32%.
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

SOVO's Profit Margin of 2.95% is in line compared to the rest of the industry. SOVO outperforms 57.61% of its industry peers.
SOVO's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 8.09%, SOVO is doing good in the industry, outperforming 71.74% of the companies in the same industry.
In the last couple of years the Operating Margin of SOVO has declined.
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.
In the last couple of years the Gross Margin of SOVO has declined.
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

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6

2. Health

2.1 Basic Checks

SOVO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
SOVO has more shares outstanding than it did 1 year ago.
SOVO has a better debt/assets ratio than last year.
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.
The Debt to FCF ratio of SOVO (5.18) is better than 72.83% of its industry peers.
A Debt/Equity ratio of 0.91 indicates that SOVO is somewhat dependend on debt financing.
SOVO has a worse Debt to Equity ratio (0.91) than 67.39% of its industry peers.
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.
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.
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

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.
The Revenue has grown by 16.17% in the past year. This is quite good.
SOVO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.13% yearly.
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

The Earnings Per Share is expected to grow by 19.90% on average over the next years. This is quite good.
Based on estimates for the next years, SOVO will show a quite strong growth in Revenue. The Revenue will grow by 12.19% on average per year.
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of 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

A Price/Earnings ratio of 28.37 indicates a quite expensive valuation of SOVO.
Compared to the rest of the industry, the Price/Earnings ratio of SOVO is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.30. SOVO is around the same levels.
The Price/Forward Earnings ratio is 23.94, which indicates a rather expensive current valuation of SOVO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SOVO indicates a somewhat cheap valuation: SOVO is cheaper than 60.87% of the companies listed in the same industry.
SOVO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.73, 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

SOVO's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, SOVO is valued a bit cheaper than 61.96% of the companies in the same industry.
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

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SOVO's earnings are expected to grow with 19.90% in the coming years. This may justify a more expensive valuation.
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

NASDAQ:SOVO (3/11/2024, 8:00:02 PM)

After market: 23 +0.02 (+0.09%)

22.98

+0.03 (+0.13%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)02-28 2024-02-28/amc
Earnings (Next)05-08 2024-05-08/amc
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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