SPARTANNASH CO (SPTN) Stock Fundamental Analysis
NASDAQ:SPTN - Nasdaq - US8472151005 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to SPTN. SPTN was compared to 40 industry peers in the Consumer Staples Distribution & Retail industry. Both the profitability and the financial health of SPTN get a neutral evaluation. Nothing too spectacular is happening here. SPTN has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
SPTN had positive earnings in the past year.
SPTN had a positive operating cash flow in the past year.
In the past 5 years SPTN has always been profitable.
In the past 5 years SPTN always reported a positive cash flow from operatings.
1.2 Ratios
SPTN has a worse Return On Assets (-0.41%) than 65.00% of its industry peers.
SPTN's Return On Equity of -1.42% is on the low side compared to the rest of the industry. SPTN is outperformed by 65.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.82%, SPTN is in line with its industry, outperforming 42.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SPTN is below the industry average of 8.23%.
The 3 year average ROIC (4.81%) for SPTN is below the current ROIC(4.82%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.41% | ||
| ROE | -1.42% | ||
| ROIC | 4.82% |
ROA(3y)1.23%
ROA(5y)2.04%
ROE(3y)3.72%
ROE(5y)6.09%
ROIC(3y)4.81%
ROIC(5y)5.11%
1.3 Margins
SPTN's Profit Margin has declined in the last couple of years.
SPTN's Operating Margin of 1.21% is on the low side compared to the rest of the industry. SPTN is outperformed by 62.50% of its industry peers.
SPTN's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 16.10%, SPTN is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
SPTN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.21% | ||
| PM (TTM) | N/A | ||
| GM | 16.1% |
OM growth 3Y9.13%
OM growth 5Y10.43%
PM growth 3Y-84.35%
PM growth 5Y-45.65%
GM growth 3Y0.25%
GM growth 5Y1.68%
2. Health
2.1 Basic Checks
SPTN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SPTN has less shares outstanding
SPTN has less shares outstanding than it did 5 years ago.
SPTN has a worse debt/assets ratio than last year.
2.2 Solvency
SPTN has an Altman-Z score of 4.54. This indicates that SPTN is financially healthy and has little risk of bankruptcy at the moment.
SPTN has a Altman-Z score of 4.54. This is in the better half of the industry: SPTN outperforms 62.50% of its industry peers.
SPTN has a debt to FCF ratio of 10.88. This is a negative value and a sign of low solvency as SPTN would need 10.88 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.88, SPTN is in line with its industry, outperforming 42.50% of the companies in the same industry.
SPTN has a Debt/Equity ratio of 1.03. This is a high value indicating a heavy dependency on external financing.
SPTN's Debt to Equity ratio of 1.03 is on the low side compared to the rest of the industry. SPTN is outperformed by 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 10.88 | ||
| Altman-Z | 4.54 |
ROIC/WACC0.62
WACC7.73%
2.3 Liquidity
SPTN has a Current Ratio of 1.66. This is a normal value and indicates that SPTN is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Current ratio value of 1.66, SPTN belongs to the best of the industry, outperforming 82.50% of the companies in the same industry.
SPTN has a Quick Ratio of 1.66. This is a bad value and indicates that SPTN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of SPTN (0.86) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The earnings per share for SPTN have decreased strongly by -11.11% in the last year.
SPTN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.72% yearly.
The Revenue has been growing slightly by 0.26% in the past year.
SPTN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.27% yearly.
EPS 1Y (TTM)-11.11%
EPS 3Y5.71%
EPS 5Y12.72%
EPS Q2Q%-33.96%
Revenue 1Y (TTM)0.26%
Revenue growth 3Y2.26%
Revenue growth 5Y2.27%
Sales Q2Q%3.68%
3.2 Future
The Earnings Per Share is expected to decrease by -3.60% on average over the next years.
Based on estimates for the next years, SPTN will show a small growth in Revenue. The Revenue will grow by 1.73% on average per year.
EPS Next Y-13.15%
EPS Next 2Y-4.46%
EPS Next 3Y-5.71%
EPS Next 5Y-3.6%
Revenue Next Year4.18%
Revenue Next 2Y1.95%
Revenue Next 3Y1.64%
Revenue Next 5Y1.73%
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
Based on the Price/Earnings ratio of 14.43, the valuation of SPTN can be described as correct.
Based on the Price/Earnings ratio, SPTN is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
SPTN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.48.
The Price/Forward Earnings ratio is 14.41, which indicates a correct valuation of SPTN.
82.50% of the companies in the same industry are more expensive than SPTN, based on the Price/Forward Earnings ratio.
SPTN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.43 | ||
| Fwd PE | 14.41 |
4.2 Price Multiples
72.50% of the companies in the same industry are more expensive than SPTN, based on the Enterprise Value to EBITDA ratio.
SPTN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SPTN is cheaper than 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.59 | ||
| EV/EBITDA | 7.31 |
4.3 Compensation for Growth
A cheap valuation may be justified as SPTN's earnings are expected to decrease with -5.71% in the coming years.
PEG (NY)N/A
PEG (5Y)1.13
EPS Next 2Y-4.46%
EPS Next 3Y-5.71%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.31%, SPTN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.03, SPTN pays a better dividend. On top of this SPTN pays more dividend than 95.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, SPTN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
5.2 History
The dividend of SPTN has a limited annual growth rate of 5.56%.
SPTN has been paying a dividend for at least 10 years, so it has a reliable track record.
SPTN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.56%
Div Incr Years14
Div Non Decr Years18
5.3 Sustainability
SPTN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-283.82%
EPS Next 2Y-4.46%
EPS Next 3Y-5.71%
26.56
-0.01 (-0.04%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners88.78%
Inst Owner Change0%
Ins Owners1.41%
Ins Owner Change5.29%
Market Cap899.06M
Analysts50
Price Target21.42 (-19.35%)
Short Float %6.6%
Short Ratio2.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
Yearly Dividend0.88
Dividend Growth(5Y)5.56%
DP-283.82%
Div Incr Years14
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.95%
Min EPS beat(2)-20.94%
Max EPS beat(2)32.83%
EPS beat(4)2
Avg EPS beat(4)3.08%
Min EPS beat(4)-20.94%
Max EPS beat(4)32.83%
EPS beat(8)3
Avg EPS beat(8)-1.09%
EPS beat(12)5
Avg EPS beat(12)-0.06%
EPS beat(16)8
Avg EPS beat(16)1.03%
Revenue beat(2)0
Avg Revenue beat(2)-1.05%
Min Revenue beat(2)-1.54%
Max Revenue beat(2)-0.56%
Revenue beat(4)0
Avg Revenue beat(4)-1.75%
Min Revenue beat(4)-3.6%
Max Revenue beat(4)-0.56%
Revenue beat(8)0
Avg Revenue beat(8)-2.59%
Revenue beat(12)3
Avg Revenue beat(12)-1.38%
Revenue beat(16)4
Avg Revenue beat(16)-1.24%
PT rev (1m)2.44%
PT rev (3m)2.44%
EPS NQ rev (1m)0.51%
EPS NQ rev (3m)-3.9%
EPS NY rev (1m)-2.41%
EPS NY rev (3m)-2.41%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.43 | ||
| Fwd PE | 14.41 | ||
| P/S | 0.09 | ||
| P/FCF | 12.59 | ||
| P/OCF | 4.6 | ||
| P/B | 1.22 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | 7.31 |
EPS(TTM)1.84
EY6.93%
EPS(NY)1.84
Fwd EY6.94%
FCF(TTM)2.11
FCFY7.94%
OCF(TTM)5.77
OCFY21.72%
SpS285.16
BVpS21.85
TBVpS13.06
PEG (NY)N/A
PEG (5Y)1.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.41% | ||
| ROE | -1.42% | ||
| ROCE | 6.1% | ||
| ROIC | 4.82% | ||
| ROICexc | 4.87% | ||
| ROICexgc | 5.77% | ||
| OM | 1.21% | ||
| PM (TTM) | N/A | ||
| GM | 16.1% | ||
| FCFM | 0.74% |
ROA(3y)1.23%
ROA(5y)2.04%
ROE(3y)3.72%
ROE(5y)6.09%
ROIC(3y)4.81%
ROIC(5y)5.11%
ROICexc(3y)4.87%
ROICexc(5y)5.17%
ROICexgc(3y)5.86%
ROICexgc(5y)6.29%
ROCE(3y)6.09%
ROCE(5y)6.47%
ROICexcg growth 3Y3.02%
ROICexcg growth 5Y8.87%
ROICexc growth 3Y4.32%
ROICexc growth 5Y10.44%
OM growth 3Y9.13%
OM growth 5Y10.43%
PM growth 3Y-84.35%
PM growth 5Y-45.65%
GM growth 3Y0.25%
GM growth 5Y1.68%
F-Score4
Asset Turnover3.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 10.88 | ||
| Debt/EBITDA | 3.36 | ||
| Cap/Depr | 112.97% | ||
| Cap/Sales | 1.28% | ||
| Interest Coverage | 2.61 | ||
| Cash Conversion | 86.2% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 4.54 |
F-Score4
WACC7.73%
ROIC/WACC0.62
Cap/Depr(3y)117.77%
Cap/Depr(5y)102.76%
Cap/Sales(3y)1.21%
Cap/Sales(5y)1.05%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-11.11%
EPS 3Y5.71%
EPS 5Y12.72%
EPS Q2Q%-33.96%
EPS Next Y-13.15%
EPS Next 2Y-4.46%
EPS Next 3Y-5.71%
EPS Next 5Y-3.6%
Revenue 1Y (TTM)0.26%
Revenue growth 3Y2.26%
Revenue growth 5Y2.27%
Sales Q2Q%3.68%
Revenue Next Year4.18%
Revenue Next 2Y1.95%
Revenue Next 3Y1.64%
Revenue Next 5Y1.73%
EBIT growth 1Y-8.4%
EBIT growth 3Y11.59%
EBIT growth 5Y12.94%
EBIT Next Year103.3%
EBIT Next 3Y29.52%
EBIT Next 5Y22.45%
FCF growth 1Y930.44%
FCF growth 3Y-3.51%
FCF growth 5Y-6.92%
OCF growth 1Y99.84%
OCF growth 3Y8.5%
OCF growth 5Y2.72%