19.23 USD
-0.37 (-1.89%)
19.23 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to SMPL. SMPL was compared to 87 industry peers in the Food Products industry. SMPL has an excellent financial health rating, but there are some minor concerns on its profitability. SMPL scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, SMPL could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
- In the past year SMPL was profitable.
- In the past year SMPL had a positive cash flow from operations.
- Each year in the past 5 years SMPL has been profitable.
- SMPL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 3.70%, SMPL is doing good in the industry, outperforming 65.52% of the companies in the same industry.
- With a Return On Equity value of 5.23%, SMPL perfoms like the industry average, outperforming 51.72% of the companies in the same industry.
- The Return On Invested Capital of SMPL (6.47%) is better than 71.26% of its industry peers.
- SMPL had an Average Return On Invested Capital over the past 3 years of 7.39%. This is significantly below the industry average of 27.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.7% | ||
| ROE | 5.23% | ||
| ROIC | 6.47% |
ROA(3y)5.47%
ROA(5y)4.72%
ROE(3y)7.43%
ROE(5y)6.66%
ROIC(3y)7.39%
ROIC(5y)7.36%
1.3 Margins
- The Profit Margin of SMPL (6.26%) is better than 78.16% of its industry peers.
- In the last couple of years the Profit Margin of SMPL has declined.
- SMPL's Operating Margin of 13.86% is amongst the best of the industry. SMPL outperforms 87.36% of its industry peers.
- SMPL's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 34.84%, SMPL is in the better half of the industry, outperforming 78.16% of the companies in the same industry.
- SMPL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.86% | ||
| PM (TTM) | 6.26% | ||
| GM | 34.84% |
OM growth 3Y-4.61%
OM growth 5Y1.56%
PM growth 3Y-8.4%
PM growth 5Y-2.33%
GM growth 3Y-1.68%
GM growth 5Y-1.82%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SMPL is destroying value.
- SMPL has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for SMPL has been increased compared to 5 years ago.
- The debt/assets ratio for SMPL has been reduced compared to a year ago.
2.2 Solvency
- SMPL has an Altman-Z score of 3.02. This indicates that SMPL is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.02, SMPL is in the better half of the industry, outperforming 64.37% of the companies in the same industry.
- SMPL has a debt to FCF ratio of 2.30. This is a good value and a sign of high solvency as SMPL would need 2.30 years to pay back of all of its debts.
- The Debt to FCF ratio of SMPL (2.30) is better than 83.91% of its industry peers.
- A Debt/Equity ratio of 0.23 indicates that SMPL is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.23, SMPL is in the better half of the industry, outperforming 68.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 2.3 | ||
| Altman-Z | 3.02 |
ROIC/WACC0.78
WACC8.34%
2.3 Liquidity
- A Current Ratio of 5.01 indicates that SMPL has no problem at all paying its short term obligations.
- SMPL has a Current ratio of 5.01. This is amongst the best in the industry. SMPL outperforms 93.10% of its industry peers.
- A Quick Ratio of 3.24 indicates that SMPL has no problem at all paying its short term obligations.
- SMPL has a Quick ratio of 3.24. This is amongst the best in the industry. SMPL outperforms 93.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.01 | ||
| Quick Ratio | 3.24 |
3. Growth
3.1 Past
- SMPL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.70%.
- SMPL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.60% yearly.
- SMPL shows a small growth in Revenue. In the last year, the Revenue has grown by 6.30%.
- The Revenue has been growing by 12.18% on average over the past years. This is quite good.
EPS 1Y (TTM)-3.7%
EPS 3Y6.49%
EPS 5Y15.6%
EPS Q2Q%-20.41%
Revenue 1Y (TTM)6.3%
Revenue growth 3Y7.48%
Revenue growth 5Y12.18%
Sales Q2Q%-0.31%
3.2 Future
- Based on estimates for the next years, SMPL will show a small growth in Earnings Per Share. The EPS will grow by 5.51% on average per year.
- The Revenue is expected to grow by 2.78% on average over the next years.
EPS Next Y3.42%
EPS Next 2Y7.87%
EPS Next 3Y7.65%
EPS Next 5Y5.51%
Revenue Next Year0.27%
Revenue Next 2Y2.07%
Revenue Next 3Y2.76%
Revenue Next 5Y2.78%
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
- SMPL is valuated reasonably with a Price/Earnings ratio of 10.57.
- Based on the Price/Earnings ratio, SMPL is valued cheaply inside the industry as 82.76% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of SMPL to the average of the S&P500 Index (28.60), we can say SMPL is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 8.61, the valuation of SMPL can be described as reasonable.
- SMPL's Price/Forward Earnings ratio is rather cheap when compared to the industry. SMPL is cheaper than 97.70% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of SMPL to the average of the S&P500 Index (25.83), we can say SMPL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.57 | ||
| Fwd PE | 8.61 |
4.2 Price Multiples
- SMPL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SMPL is cheaper than 62.07% of the companies in the same industry.
- 83.91% of the companies in the same industry are more expensive than SMPL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.13 | ||
| EV/EBITDA | 9.5 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SMPL does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of SMPL may justify a higher PE ratio.
PEG (NY)3.09
PEG (5Y)0.68
EPS Next 2Y7.87%
EPS Next 3Y7.65%
5. Dividend
5.1 Amount
- No dividends for SMPL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
SIMPLY GOOD FOODS CO/THE / SMPL FAQ
What is the ChartMill fundamental rating of SIMPLY GOOD FOODS CO/THE (SMPL) stock?
ChartMill assigns a fundamental rating of 6 / 10 to SMPL.
Can you provide the valuation status for SIMPLY GOOD FOODS CO/THE?
ChartMill assigns a valuation rating of 7 / 10 to SIMPLY GOOD FOODS CO/THE (SMPL). This can be considered as Undervalued.
What is the profitability of SMPL stock?
SIMPLY GOOD FOODS CO/THE (SMPL) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for SMPL stock?
The Price/Earnings (PE) ratio for SIMPLY GOOD FOODS CO/THE (SMPL) is 10.57 and the Price/Book (PB) ratio is 1.11.
Can you provide the expected EPS growth for SMPL stock?
The Earnings per Share (EPS) of SIMPLY GOOD FOODS CO/THE (SMPL) is expected to grow by 3.42% in the next year.