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SOVOS BRANDS INC (SOVO) Stock Fundamental Analysis

NASDAQ:SOVO - Nasdaq - US84612U1079 - Common Stock - Currency: USD

22.98  +0.03 (+0.13%)

After market: 23 +0.02 (+0.09%)

Fundamental Rating

5

Overall SOVO gets a fundamental rating of 5 out of 10. We evaluated SOVO against 91 industry peers in the Food Products industry. SOVO has only an average score on both its financial health and profitability. SOVO is valued quite expensive, but it does show an excellent growth. This makes SOVO very considerable for growth investing!


Dividend Valuation Growth Profitability Health

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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.
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

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.
SOVO has a Return On Equity of 5.68%. This is comparable to the rest of the industry: SOVO outperforms 56.52% of its industry peers.
The Return On Invested Capital of SOVO (4.94%) 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 28.11%.
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.
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.
SOVO's Operating Margin has declined in the last couple of years.
SOVO has a Gross Margin of 29.94%. This is in the better half of the industry: SOVO outperforms 73.91% of its industry peers.
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

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SOVO is destroying value.
The number of shares outstanding for SOVO has been increased compared to 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's Altman-Z score of 3.22 is fine compared to the rest of the industry. SOVO outperforms 76.09% of its industry peers.
The Debt to FCF ratio of SOVO is 5.18, which is a neutral value as it means it would take SOVO, 5.18 years of fcf income to pay off 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

A Current Ratio of 2.90 indicates that SOVO has no problem at all paying its short term obligations.
SOVO has a Current ratio of 2.90. This is amongst the best in the industry. SOVO outperforms 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.
SOVO has a better Quick ratio (2.26) than 85.87% of its industry peers.
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.
SOVO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.17%.
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.
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.
Compared to the rest of the industry, the Price/Earnings ratio of SOVO is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.30, SOVO is valued at the same level.
Based on the Price/Forward Earnings ratio of 23.94, the valuation of SOVO can be described as rather expensive.
SOVO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SOVO is cheaper than 60.87% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, SOVO is valued at the same level.
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 10 20 30

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.
Based on the Price/Free Cash Flow ratio, SOVO is valued a bit cheaper than the industry average as 61.96% of the companies are valued more expensively.
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.
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

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