SOVOS BRANDS INC (SOVO) Fundamental Analysis & Valuation

NASDAQ:SOVO • US84612U1079

22.98 USD
+0.03 (+0.13%)
At close: Mar 11, 2024
23 USD
+0.02 (+0.09%)
After Hours: 3/11/2024, 8:00:02 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This SOVO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to SOVO. SOVO was compared to 88 industry peers in the Food Products industry. SOVO has only an average score on both its financial health and profitability. SOVO is valued quite expensive, but it does show an excellent growth. With these ratings, SOVO could be worth investigating further for growth investing!.


Dividend Valuation Growth Profitability Health

5

1. SOVO Profitability Analysis

1.1 Basic Checks

  • In the past year SOVO was profitable.
  • In the past year SOVO had a positive cash flow from operations.
  • In multiple years SOVO reported negative net income over the last 5 years.
  • SOVO had a positive operating cash flow in each of the past 5 years.
SOVO Yearly Net Income VS EBIT VS OCF VS FCFSOVO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 0 50M -50M 100M

1.2 Ratios

  • SOVO has a Return On Assets (2.44%) which is in line with its industry peers.
  • With a Return On Equity value of 5.68%, SOVO perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
  • With a Return On Invested Capital value of 4.94%, SOVO perfoms like the industry average, outperforming 57.61% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for SOVO is significantly below the industry average of 28.23%.
  • The 3 year average ROIC (3.89%) for SOVO is below the current ROIC(4.94%), indicating increased profibility in the last year.
Industry RankSector 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
SOVO Yearly ROA, ROE, ROICSOVO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 0 5 -5 -10

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.
  • In the last couple of years the Profit Margin of SOVO has grown nicely.
  • 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.
  • With a decent Gross Margin value of 29.94%, SOVO is doing good in the industry, outperforming 73.91% of the companies in the same industry.
  • SOVO's Gross Margin has declined in the last couple of years.
Industry RankSector 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
SOVO Yearly Profit, Operating, Gross MarginsSOVO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 0 10 20 30

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6

2. SOVO Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SOVO is destroying value.
  • The number of shares outstanding for SOVO has been increased compared to 1 year ago.
  • Compared to 1 year ago, SOVO has an improved debt to assets ratio.
SOVO Yearly Shares OutstandingSOVO Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M
SOVO Yearly Total Debt VS Total AssetsSOVO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

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.
  • SOVO's Altman-Z score of 3.22 is fine compared to the rest of the industry. SOVO outperforms 76.09% of its industry peers.
  • 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's Debt to FCF ratio of 5.18 is fine compared to the rest of the industry. SOVO outperforms 72.83% of its industry peers.
  • A Debt/Equity ratio of 0.91 indicates that SOVO is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.91, SOVO is not doing good in the industry: 67.39% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.91
Debt/FCF 5.18
Altman-Z 3.22
ROIC/WACC0.59
WACC8.36%
SOVO Yearly LT Debt VS Equity VS FCFSOVO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 0 100M 200M 300M 400M 500M

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.
  • Looking at the Quick ratio, with a value of 2.26, SOVO belongs to the top of the industry, outperforming 85.87% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.9
Quick Ratio 2.26
SOVO Yearly Current Assets VS Current LiabilitesSOVO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 100M 200M 300M 400M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. SOVO Growth Analysis

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.
  • SOVO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.17%.
  • Measured over the past years, SOVO shows a very strong growth in Revenue. The Revenue has been growing by 22.13% on average per year.
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

  • Based on estimates for the next years, SOVO will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.90% on average per year.
  • 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.
  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
SOVO Yearly Revenue VS EstimatesSOVO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
SOVO Yearly EPS VS EstimatesSOVO Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

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3

4. SOVO Valuation Analysis

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 26.29, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 23.94, SOVO is valued on the expensive side.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of SOVO indicates a somewhat cheap valuation: SOVO is cheaper than 60.87% of the companies listed in the same industry.
  • SOVO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.57.
Industry RankSector Rank
PE 28.37
Fwd PE 23.94
SOVO Price Earnings VS Forward Price EarningsSOVO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • SOVO's Enterprise Value to EBITDA is on the same level as the industry average.
  • Based on the Price/Free Cash Flow ratio, SOVO is valued a bit cheaper than the industry average as 61.96% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 24.95
EV/EBITDA 22.17
SOVO Per share dataSOVO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

4.3 Compensation for Growth

  • SOVO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • SOVO's earnings are expected to grow with 19.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.53
PEG (5Y)N/A
EPS Next 2Y19.9%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. SOVO Dividend Analysis

5.1 Amount

  • SOVO does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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SOVO Fundamentals: All Metrics, Ratios and Statistics

SOVOS BRANDS INC

NASDAQ:SOVO (3/11/2024, 8:00:02 PM)

After market: 23 +0.02 (+0.09%)

22.98

+0.03 (+0.13%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)02-28
Earnings (Next)05-08
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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 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%.