22.98 USD
+0.03 (+0.13%)
23 USD
+0.02 (+0.09%)
We assign a fundamental rating of 5 out of 10 to SOVO. SOVO was compared to 87 industry peers in the Food Products industry. SOVO has an average financial health and profitability rating. SOVO shows excellent growth, but is valued quite expensive already. These ratings would make SOVO suitable for growth investing!
1. Profitability
1.1 Basic Checks
- In the past year SOVO was profitable.
- In the past year SOVO had a positive cash flow from operations.
- 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.
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.
- The Return On Equity of SOVO (5.68%) is comparable to the rest of the industry.
- SOVO has a Return On Invested Capital (4.94%) which is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for SOVO is significantly below the industry average of 27.79%.
- The 3 year average ROIC (3.89%) for SOVO is below the current ROIC(4.94%), indicating increased profibility in the last year.
| Industry Rank | Sector 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
1.3 Margins
- SOVO has a Profit Margin (2.95%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of SOVO has grown nicely.
- SOVO has a Operating Margin of 8.09%. This is in the better half of the industry: SOVO outperforms 71.74% of its industry peers.
- 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 Rank | Sector 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
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.
- Compared to 1 year ago, SOVO has more shares outstanding
- SOVO has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.22 indicates that SOVO is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.22, SOVO is in the better half of the industry, outperforming 76.09% of the companies in the same industry.
- 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.
- SOVO has a Debt to FCF ratio of 5.18. This is in the better half of the industry: SOVO outperforms 72.83% of its industry peers.
- 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 5.18 | ||
| Altman-Z | 3.22 |
ROIC/WACC0.59
WACC8.36%
2.3 Liquidity
- A Current Ratio of 2.90 indicates that SOVO has no problem at all paying its short term obligations.
- SOVO's Current ratio of 2.90 is amongst the best of 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's Quick ratio of 2.26 is amongst the best of the industry. SOVO outperforms 85.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.9 | ||
| Quick Ratio | 2.26 |
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
- SOVO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.90% yearly.
- SOVO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.19% yearly.
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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 28.37, the valuation of SOVO can be described as expensive.
- SOVO's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, SOVO is valued at the same level.
- SOVO is valuated rather expensively with a Price/Forward Earnings ratio of 23.94.
- 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.
- SOVO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.37 | ||
| Fwd PE | 23.94 |
4.2 Price Multiples
- SOVO's Enterprise Value to EBITDA ratio is in line with the industry average.
- 61.96% of the companies in the same industry are more expensive than SOVO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.95 | ||
| EV/EBITDA | 22.17 |
4.3 Compensation for Growth
- SOVO's 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
5. Dividend
5.1 Amount
- SOVO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SOVOS BRANDS INC / SOVO FAQ
Can you provide the ChartMill fundamental rating for SOVOS BRANDS INC?
ChartMill assigns a fundamental rating of 5 / 10 to SOVO.
What is the valuation status of SOVOS BRANDS INC (SOVO) stock?
ChartMill assigns a valuation rating of 3 / 10 to SOVOS BRANDS INC (SOVO). This can be considered as Overvalued.
Can you provide the profitability details for SOVOS BRANDS INC?
SOVOS BRANDS INC (SOVO) has a profitability rating of 5 / 10.
What is the expected EPS growth for SOVOS BRANDS INC (SOVO) stock?
The Earnings per Share (EPS) of SOVOS BRANDS INC (SOVO) is expected to grow by 18.53% in the next year.
Is the dividend of SOVOS BRANDS INC sustainable?
The dividend rating of SOVOS BRANDS INC (SOVO) is 0 / 10 and the dividend payout ratio is 0%.