Overall SOVO gets a fundamental rating of 5 out of 10. We evaluated SOVO against 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!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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

SOVO has a Return On Assets of 2.44%. This is comparable to the rest of the industry: SOVO outperforms 54.35% of 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.
SOVO has a Return On Invested Capital (4.94%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years 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 of 2.95%. This is comparable 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.
With a decent Operating Margin value of 8.09%, SOVO is doing good in the industry, outperforming 71.74% of the companies in the same industry.
In the last couple of years the Operating Margin of SOVO has declined.
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 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

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ROA

ROE

ROIC

Operating and Profit Margin

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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
Compared to 1 year ago, SOVO has an improved debt to assets ratio.

2.2 Solvency

An Altman-Z score of 3.22 indicates that SOVO is not in any danger for bankruptcy at the moment.
SOVO has a Altman-Z score of 3.22. This is in the better half 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.
The Debt to FCF ratio of SOVO (5.18) is better than 72.83% of its industry peers.
A Debt/Equity ratio of 0.91 indicates that SOVO is somewhat dependend on debt financing.
SOVO's Debt to Equity ratio of 0.91 is on the low side compared to the rest of the industry. SOVO is outperformed by 67.39% of its industry peers.

		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.
The Current ratio of SOVO (2.90) is better 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.
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 Rank	Sector Rank
Current Ratio	2.9
Quick Ratio	2.26

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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.
SOVO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.17%.
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

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.
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

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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.

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4. Valuation

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 is on the same level as the industry average.
When comparing the Price/Earnings ratio of SOVO to the average of the S&P500 Index (28.82), we can say SOVO is valued inline with the index average.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.95, SOVO is valued at the same level.

		Industry Rank	Sector Rank
PE	28.37
Fwd PE	23.94

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as SOVO.
Based on the Price/Free Cash Flow ratio, SOVO is valued a bit cheaper than 61.96% of the companies 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.