SOVOS BRANDS INC (SOVO) Stock Fundamental Analysis
NASDAQ:SOVO - Nasdaq - US84612U1079 - Common Stock - Currency: USD
SOVO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 90 industry peers in the Food Products industry. SOVO has only an average score on both its financial health and profitability. SOVO is valued quite expensively, but it does show have an excellent growth rating. These ratings would make SOVO suitable for growth investing!
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.
In multiple years SOVO reported negative net income over the last 5 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's Return On Equity of 5.68% is in line compared to the rest of the industry. SOVO outperforms 56.52% of its industry peers.
SOVO has a Return On Invested Capital (4.94%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SOVO is significantly below the industry average of 9.13%.
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 (2.95%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of SOVO has grown nicely.
SOVO has a better Operating Margin (8.09%) than 71.74% of its industry peers.
SOVO's Operating Margin has declined in the last couple of years.
SOVO has a Gross Margin of 29.94%. This is in the better half of the industry: SOVO outperforms 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
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
SOVO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.22 indicates that SOVO is not in any danger for 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.
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.
SOVO has a Debt/Equity ratio of 0.91. This is a neutral value indicating 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.
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.
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.
SOVO has a better Quick ratio (2.26) 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.
SOVO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 38.55% yearly.
The Revenue has grown by 16.17% in the past year. This is quite good.
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
SOVO is valuated quite expensively with a Price/Earnings ratio of 28.37.
SOVO's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 29.62. SOVO is around the same levels.
With a Price/Forward Earnings ratio of 23.94, SOVO is valued on the expensive side.
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 22.70. SOVO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.37 | ||
| Fwd PE | 23.94 |
4.2 Price Multiples
SOVO's Enterprise Value to EBITDA is on the same level as the industry average.
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 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
No dividends for SOVO!.
| 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
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
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
ROICexcg growth 3Y1.44%
ROICexcg 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