SUNOPTA INC (STKL) Stock Fundamental Analysis
NASDAQ:STKL - Nasdaq - CA8676EP1086 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to STKL. STKL was compared to 90 industry peers in the Food Products industry. While STKL is still in line with the averages on profitability rating, there are concerns on its financial health. STKL shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year STKL was profitable.
In the past year STKL had a positive cash flow from operations.
STKL had negative earnings in 4 of the past 5 years.
Of the past 5 years STKL 4 years had a positive operating cash flow.
1.2 Ratios
STKL has a Return On Assets of -2.68%. This is in the lower half of the industry: STKL underperforms 67.78% of its industry peers.
STKL's Return On Equity of -10.96% is on the low side compared to the rest of the industry. STKL is outperformed by 67.78% of its industry peers.
STKL has a Return On Invested Capital of 6.26%. This is in the better half of the industry: STKL outperforms 62.22% of its industry peers.
STKL had an Average Return On Invested Capital over the past 3 years of 5.96%. This is below the industry average of 8.90%.
The 3 year average ROIC (5.96%) for STKL is below the current ROIC(6.26%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.68% | ||
| ROE | -10.96% | ||
| ROIC | 6.26% |
ROA(3y)-10.02%
ROA(5y)-3.86%
ROE(3y)-38.03%
ROE(5y)-19.1%
ROIC(3y)5.96%
ROIC(5y)4.5%
1.3 Margins
Looking at the Operating Margin, with a value of 5.58%, STKL is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
STKL's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 16.42%, STKL perfoms like the industry average, outperforming 42.22% of the companies in the same industry.
In the last couple of years the Gross Margin of STKL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.58% | ||
| PM (TTM) | N/A | ||
| GM | 16.42% |
OM growth 3Y38.42%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y10.42%
GM growth 5Y12.48%
2. Health
2.1 Basic Checks
STKL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
STKL has more shares outstanding than it did 1 year ago.
The number of shares outstanding for STKL has been increased compared to 5 years ago.
The debt/assets ratio for STKL has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.33, we must say that STKL is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.33, STKL is doing worse than 64.44% of the companies in the same industry.
STKL has a debt to FCF ratio of 15.26. This is a negative value and a sign of low solvency as STKL would need 15.26 years to pay back of all of its debts.
With a Debt to FCF ratio value of 15.26, STKL perfoms like the industry average, outperforming 45.56% of the companies in the same industry.
STKL has a Debt/Equity ratio of 1.51. This is a high value indicating a heavy dependency on external financing.
STKL has a worse Debt to Equity ratio (1.51) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | 15.26 | ||
| Altman-Z | 1.33 |
ROIC/WACC0.75
WACC8.39%
2.3 Liquidity
STKL has a Current Ratio of 0.94. This is a bad value and indicates that STKL is not financially healthy enough and could expect problems in meeting its short term obligations.
STKL has a worse Current ratio (0.94) than 75.56% of its industry peers.
A Quick Ratio of 0.39 indicates that STKL may have some problems paying its short term obligations.
The Quick ratio of STKL (0.39) is worse than 81.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
STKL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 250.00%, which is quite impressive.
Measured over the past years, STKL shows a very strong growth in Earnings Per Share. The EPS has been growing by 128.94% on average per year.
Looking at the last year, STKL shows a quite strong growth in Revenue. The Revenue has grown by 15.09% in the last year.
The Revenue has been growing slightly by 0.11% on average over the past years.
EPS 1Y (TTM)250%
EPS 3Y128.94%
EPS 5YN/A
EPS Q2Q%100%
Revenue 1Y (TTM)15.09%
Revenue growth 3Y-3.71%
Revenue growth 5Y0.11%
Sales Q2Q%10.27%
3.2 Future
The Earnings Per Share is expected to grow by 41.14% on average over the next years. This is a very strong growth
STKL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.29% yearly.
EPS Next Y3.8%
EPS Next 2Y41.14%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.01%
Revenue Next 2Y8.29%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 43.43, which means the current valuation is very expensive for STKL.
The rest of the industry has a similar Price/Earnings ratio as STKL.
Compared to an average S&P500 Price/Earnings ratio of 24.21, STKL is valued quite expensively.
A Price/Forward Earnings ratio of 25.44 indicates a quite expensive valuation of STKL.
The rest of the industry has a similar Price/Forward Earnings ratio as STKL.
STKL is valuated rather expensively when we compare the Price/Forward Earnings ratio to 20.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.43 | ||
| Fwd PE | 25.44 |
4.2 Price Multiples
STKL's Enterprise Value to EBITDA is on the same level as the industry average.
STKL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.38 | ||
| EV/EBITDA | 12.31 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
STKL's earnings are expected to grow with 41.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)11.42
PEG (5Y)N/A
EPS Next 2Y41.14%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for STKL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.08
+0.25 (+4.29%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners85.43%
Inst Owner Change-0.99%
Ins Owners1.73%
Ins Owner Change0.3%
Market Cap712.82M
Analysts80
Price TargetN/A
Short Float %3.52%
Short Ratio4.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)-49.3%
DP-1.7%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.58%
Min EPS beat(2)-11.99%
Max EPS beat(2)13.15%
EPS beat(4)2
Avg EPS beat(4)216.31%
Min EPS beat(4)-27.99%
Max EPS beat(4)892.08%
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)0.38%
Min Revenue beat(2)0.19%
Max Revenue beat(2)0.57%
Revenue beat(4)4
Avg Revenue beat(4)3.7%
Min Revenue beat(4)0.19%
Max Revenue beat(4)7.51%
Revenue beat(8)5
Avg Revenue beat(8)-2.89%
Revenue beat(12)6
Avg Revenue beat(12)-11.4%
Revenue beat(16)7
Avg Revenue beat(16)-9.08%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-70.38%
EPS NY rev (1m)0%
EPS NY rev (3m)-46.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.43 | ||
| Fwd PE | 25.44 | ||
| P/S | 0.98 | ||
| P/FCF | 39.38 | ||
| P/OCF | 14.25 | ||
| P/B | 4.36 | ||
| P/tB | 5.11 | ||
| EV/EBITDA | 12.31 |
EPS(TTM)0.14
EY2.3%
EPS(NY)0.24
Fwd EY3.93%
FCF(TTM)0.15
FCFY2.54%
OCF(TTM)0.43
OCFY7.02%
SpS6.17
BVpS1.4
TBVpS1.19
PEG (NY)11.42
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.68% | ||
| ROE | -10.96% | ||
| ROCE | 8.1% | ||
| ROIC | 6.26% | ||
| ROICexc | 6.28% | ||
| ROICexgc | 6.59% | ||
| OM | 5.58% | ||
| PM (TTM) | N/A | ||
| GM | 16.42% | ||
| FCFM | 2.5% |
ROA(3y)-10.02%
ROA(5y)-3.86%
ROE(3y)-38.03%
ROE(5y)-19.1%
ROIC(3y)5.96%
ROIC(5y)4.5%
ROICexc(3y)5.97%
ROICexc(5y)4.5%
ROICexgc(3y)6.54%
ROICexgc(5y)5.2%
ROCE(3y)7.72%
ROCE(5y)5.8%
ROICexcg growth 3Y30.9%
ROICexcg growth 5YN/A
ROICexc growth 3Y41.72%
ROICexc growth 5YN/A
OM growth 3Y38.42%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y10.42%
GM growth 5Y12.48%
F-Score5
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | 15.26 | ||
| Debt/EBITDA | 3.21 | ||
| Cap/Depr | 87.48% | ||
| Cap/Sales | 4.41% | ||
| Interest Coverage | 1.69 | ||
| Cash Conversion | 65.04% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z | 1.33 |
F-Score5
WACC8.39%
ROIC/WACC0.75
Cap/Depr(3y)192.52%
Cap/Depr(5y)165.5%
Cap/Sales(3y)8.49%
Cap/Sales(5y)7.16%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)250%
EPS 3Y128.94%
EPS 5YN/A
EPS Q2Q%100%
EPS Next Y3.8%
EPS Next 2Y41.14%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)15.09%
Revenue growth 3Y-3.71%
Revenue growth 5Y0.11%
Sales Q2Q%10.27%
Revenue Next Year9.01%
Revenue Next 2Y8.29%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-21.76%
EBIT growth 3Y33.28%
EBIT growth 5YN/A
EBIT Next Year143.97%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y157.87%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y237.03%
OCF growth 3YN/A
OCF growth 5Y37.39%