SOVOS BRANDS INC (SOVO) Fundamental Analysis & Valuation

NASDAQ:SOVO • US84612U1079

Current stock price

22.98 USD
+0.03 (+0.13%)
At close:
23 USD
+0.02 (+0.09%)
After Hours:

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

5

1. SOVO Profitability Analysis

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.
  • 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

  • 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.
  • The Return On Equity of SOVO (5.68%) is comparable to the rest of the industry.
  • The Return On Invested Capital of SOVO (4.94%) is comparable to the rest of the industry.
  • The Average Return On Invested Capital over the past 3 years for SOVO is below the industry average of 7.69%.
  • 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 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

  • Looking at the Profit Margin, with a value of 2.95%, SOVO is in line with its industry, outperforming 57.61% of the companies in the same industry.
  • In the last couple of years the Profit Margin of SOVO has grown nicely.
  • Looking at the Operating Margin, with a value of 8.09%, SOVO is in the better half of the industry, outperforming 71.74% of the companies in the same industry.
  • 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.
  • In the last couple of years the Gross Margin of SOVO has declined.
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

  • 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.
  • SOVO has a better debt/assets ratio than last year.
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

  • An Altman-Z score of 3.22 indicates that SOVO is not in any danger for 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.
  • 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 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

  • 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.
  • With an excellent Current ratio value of 2.90, SOVO belongs to the best of the industry, outperforming 83.70% of the companies in the same industry.
  • 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 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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8

3. SOVO Growth Analysis

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
  • 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

  • The Earnings Per Share is expected to grow by 19.90% on average over the next years. This is quite good.
  • 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.
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

  • With a Price/Earnings ratio of 28.37, SOVO can be considered very expensive at the moment.
  • SOVO's Price/Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Earnings ratio is at 26.91. SOVO is around the same levels.
  • The Price/Forward Earnings ratio is 23.94, which indicates a rather expensive current valuation of SOVO.
  • 60.87% of the companies in the same industry are more expensive than SOVO, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of SOVO to the average of the S&P500 Index (21.99), we can say SOVO is valued inline with the index average.
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SOVO is on the same level as its industry peers.
  • 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 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.
  • 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

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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
Industry Strength22.36
Industry Growth11.8
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 Number0 (-100%)
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 Fundamental Analysis 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.


How profitable is SOVOS BRANDS INC (SOVO) stock?

SOVOS BRANDS INC (SOVO) has a profitability rating of 5 / 10.


How financially healthy is SOVOS BRANDS INC?

The financial health rating of SOVOS BRANDS INC (SOVO) is 6 / 10.


How sustainable is the dividend of SOVOS BRANDS INC (SOVO) stock?

The dividend rating of SOVOS BRANDS INC (SOVO) is 0 / 10 and the dividend payout ratio is 0%.