SOVOS BRANDS INC (SOVO) Stock Fundamental Analysis
USA - NASDAQ:SOVO - US84612U1079 - Common Stock
22.98 USD
+0.03 (+0.13%)
23 USD
+0.02 (+0.09%)
Taking everything into account, SOVO scores 5 out of 10 in our fundamental rating. SOVO was compared to 86 industry peers in the Food Products industry. SOVO has only an average score on both its financial health and profitability. 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
SOVO had positive earnings in the past year.
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.
In the past 5 years SOVO always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.44%, SOVO is in line with its industry, outperforming 54.35% of the companies in the same industry.
SOVO's Return On Equity of 5.68% is in line compared to the rest of the industry. SOVO outperforms 56.52% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.94%, SOVO is in line with its industry, outperforming 57.61% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SOVO is significantly below the industry average of 28.75%.
The last Return On Invested Capital (4.94%) for SOVO is above the 3 year average (3.89%), which is a sign of increasing profitability.
| 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's Profit Margin of 2.95% is in line compared to the rest of the industry. SOVO outperforms 57.61% of its industry peers.
SOVO's Profit Margin has improved in the last couple of years.
SOVO has a better Operating Margin (8.09%) than 71.74% of its industry peers.
SOVO's Operating Margin has declined in the last couple of years.
The Gross Margin of SOVO (29.94%) is better than 73.91% of its industry peers.
SOVO's Gross Margin has declined in the last couple of years.
| 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.
SOVO has more shares outstanding than it did 1 year ago.
The debt/assets ratio for SOVO has been reduced compared to a year ago.
2.2 Solvency
SOVO has an Altman-Z score of 3.22. This indicates that SOVO is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.22, SOVO is doing good in 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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 5.18 | ||
| Altman-Z | 3.22 |
ROIC/WACC0.59
WACC8.36%
2.3 Liquidity
SOVO has a Current Ratio of 2.90. This indicates that SOVO is financially healthy and has no problem in meeting its short term obligations.
SOVO has a better Current ratio (2.90) than 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 Quick ratio of 2.26. This is amongst the best in 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
The Earnings Per Share has grown by an impressive 35.00% over the past year.
The Earnings Per Share has been growing by 38.55% on average over the past years. This is a very strong growth
Looking at the last year, SOVO shows a quite strong growth in Revenue. The Revenue has grown by 16.17% in the last year.
The Revenue has been growing by 22.13% on average over the past years. This is a very strong growth!
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.
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.
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
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.
SOVO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.76, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 23.94, which indicates a rather expensive current valuation of SOVO.
Based on the Price/Forward Earnings ratio, SOVO is valued a bit cheaper than the industry average as 60.87% of the companies are valued more expensively.
SOVO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.37 | ||
| Fwd PE | 23.94 |
4.2 Price Multiples
SOVO's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SOVO indicates a somewhat cheap valuation: SOVO is cheaper than 61.96% of the companies listed in the same industry.
| 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
No dividends for SOVO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.98
+0.03 (+0.13%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners0.19%
Inst Owner Change0%
Ins Owners1%
Ins Owner Change0%
Market Cap2.33B
Revenue(TTM)1.02B
Net Income(TTM)30.11M
Analysts72
Price Target23.23 (1.09%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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 Rank | Sector 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
Graham NumberN/A
Profitability
| Industry Rank | Sector 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
ROICexgc growth 3Y1.44%
ROICexgc 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 Rank | Sector 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
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 for SOVO stock?
ChartMill assigns a valuation rating of 3 / 10 to SOVOS BRANDS INC (SOVO). This can be considered as Overvalued.
What is the profitability of SOVO stock?
SOVOS BRANDS INC (SOVO) has a profitability rating of 5 / 10.
What are the PE and PB ratios of SOVOS BRANDS INC (SOVO) stock?
The Price/Earnings (PE) ratio for SOVOS BRANDS INC (SOVO) is 28.37 and the Price/Book (PB) ratio is 4.4.
Can you provide the financial health for SOVO stock?
The financial health rating of SOVOS BRANDS INC (SOVO) is 6 / 10.