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%)
Overall SOVO gets a fundamental rating of 5 out of 10. We evaluated SOVO against 86 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. This makes SOVO very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year SOVO was profitable.
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
With a Return On Assets value of 2.44%, SOVO perfoms like the industry average, outperforming 54.35% of the companies in the same industry.
SOVO has a Return On Equity (5.68%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 4.94%, SOVO is in line with its industry, 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 29.14%.
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 in line with its industry peers.
SOVO's Profit Margin has improved in the last couple of years.
SOVO's Operating Margin of 8.09% is fine compared to the rest of the industry. SOVO outperforms 71.74% of its industry peers.
SOVO's Operating Margin has declined in the last couple of years.
The Gross Margin of SOVO (29.94%) is better than 73.91% of its industry peers.
SOVO's Gross Margin has declined in the last couple of years.
| 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.
The number of shares outstanding for SOVO has been increased compared to 1 year ago.
The debt/assets ratio for SOVO has been reduced compared to a year ago.
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.
With a decent Debt to FCF ratio value of 5.18, SOVO is doing good in the industry, outperforming 72.83% of the companies in the same industry.
SOVO has a Debt/Equity ratio of 0.91. This is a neutral value indicating 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 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'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.
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
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.
The Revenue has grown by 16.17% in the past year. This is quite good.
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
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.
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
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.
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.
The average S&P500 Price/Earnings ratio is at 26.34. SOVO is around the same levels.
Based on the Price/Forward Earnings ratio of 23.94, the valuation of SOVO can be described as rather expensive.
60.87% of the companies in the same industry are more expensive than SOVO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.43. SOVO is valued slightly cheaper when compared to this.
| 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
The 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
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.