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%)
SOVO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 87 industry peers in the Food Products industry. SOVO has an average financial health and profitability rating. SOVO is not overvalued while it is showing excellent growth. This is an interesting combination. 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.
SOVO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SOVO has a Return On Assets (2.44%) which is comparable to the rest of the industry.
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 28.38%.
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 (2.95%) which is comparable to the rest of the industry.
SOVO's Profit Margin has improved in the last couple of years.
SOVO has a Operating Margin of 8.09%. This is in the better half of the industry: SOVO outperforms 71.74% of its industry peers.
SOVO's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 29.94%, SOVO is in the better half of 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
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SOVO 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
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.
Looking at the Altman-Z score, with a value of 3.22, SOVO is in the better half of the industry, outperforming 76.09% of the companies in the same industry.
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.
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.
A Debt/Equity ratio of 0.91 indicates that SOVO is somewhat dependend on debt financing.
The Debt to Equity ratio of SOVO (0.91) is worse than 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.
SOVO's Current ratio of 2.90 is amongst the best of the industry. SOVO outperforms 83.70% of its industry peers.
SOVO has a Quick Ratio of 2.26. This indicates that SOVO is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.26, SOVO belongs to the best 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 |
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.
Looking at the last year, SOVO shows a quite strong growth in Revenue. The Revenue has grown by 16.17% in the last year.
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
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
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
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 (25.46), 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.
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.
When comparing the Price/Forward Earnings ratio of SOVO to the average of the S&P500 Index (35.39), we can say SOVO is valued slightly cheaper.
| 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.
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.
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
SOVO does not give a dividend.
| 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.