22.98 USD
+0.03 (+0.13%)
23 USD
+0.02 (+0.09%)
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. With these ratings, SOVO could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
- SOVO had positive earnings in the past year.
- SOVO had a positive operating cash flow in the past year.
- 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
- 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.
- SOVO had an Average Return On Invested Capital over the past 3 years of 3.89%. This is significantly below the industry average of 27.79%.
- 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 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.
- SOVO's Operating Margin has declined in the last couple of years.
- SOVO has a better Gross Margin (29.94%) than 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SOVO is destroying value.
- SOVO has more shares outstanding than it did 1 year ago.
- SOVO has a better debt/assets ratio than last year.
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.
- The Altman-Z score of SOVO (3.22) is better than 76.09% of its industry peers.
- The Debt to FCF ratio of SOVO is 5.18, which is a neutral value as it means it would take SOVO, 5.18 years of fcf income to pay off all of its debts.
- SOVO has a better Debt to FCF ratio (5.18) than 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 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 Current ratio of 2.90. This is amongst the best in 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.
- The Quick ratio of SOVO (2.26) is better than 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.
- 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%.
- 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
- 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.
- Based on estimates for the next years, SOVO will show a quite strong growth in Revenue. The Revenue will grow by 12.19% on average per year.
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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 28.37 indicates a quite expensive valuation of SOVO.
- 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 27.21, 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.
- 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.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. SOVO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.37 | ||
| Fwd PE | 23.94 |
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.
- SOVO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SOVO is 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
- The 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
5. Dividend
5.1 Amount
- No dividends for SOVO!.
| 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%.