SPARTANNASH CO (SPTN) Stock Fundamental Analysis
NASDAQ:SPTN - Nasdaq - US8472151005 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to SPTN. SPTN was compared to 40 industry peers in the Consumer Staples Distribution & Retail industry. Both the profitability and the financial health of SPTN get a neutral evaluation. Nothing too spectacular is happening here. SPTN has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally SPTN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year SPTN was profitable.
In the past year SPTN had a positive cash flow from operations.
Each year in the past 5 years SPTN has been profitable.
Of the past 5 years SPTN 4 years had a positive operating cash flow.
1.2 Ratios
SPTN has a Return On Assets (1.84%) which is comparable to the rest of the industry.
SPTN's Return On Equity of 5.81% is in line compared to the rest of the industry. SPTN outperforms 41.03% of its industry peers.
SPTN has a Return On Invested Capital (6.02%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for SPTN is below the industry average of 8.35%.
The 3 year average ROIC (4.81%) for SPTN is below the current ROIC(6.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.84% | ||
| ROE | 5.81% | ||
| ROIC | 6.02% |
ROA(3y)1.23%
ROA(5y)2.04%
ROE(3y)3.72%
ROE(5y)6.09%
ROIC(3y)4.81%
ROIC(5y)5.11%
1.3 Margins
With a Profit Margin value of 0.48%, SPTN is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
SPTN's Profit Margin has declined in the last couple of years.
SPTN has a Operating Margin (1.41%) which is in line with its industry peers.
SPTN's Operating Margin has improved in the last couple of years.
SPTN's Gross Margin of 15.60% is on the low side compared to the rest of the industry. SPTN is outperformed by 82.05% of its industry peers.
In the last couple of years the Gross Margin of SPTN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.41% | ||
| PM (TTM) | 0.48% | ||
| GM | 15.6% |
OM growth 3Y9.13%
OM growth 5Y10.43%
PM growth 3Y-84.31%
PM growth 5Y-45.58%
GM growth 3Y0.25%
GM growth 5Y1.68%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SPTN is destroying value.
SPTN has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SPTN has been reduced compared to 5 years ago.
SPTN has a worse debt/assets ratio than last year.
2.2 Solvency
SPTN has an Altman-Z score of 4.68. This indicates that SPTN is financially healthy and has little risk of bankruptcy at the moment.
SPTN's Altman-Z score of 4.68 is fine compared to the rest of the industry. SPTN outperforms 66.67% of its industry peers.
SPTN has a Debt/Equity ratio of 0.80. This is a neutral value indicating SPTN is somewhat dependend on debt financing.
SPTN has a worse Debt to Equity ratio (0.80) than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.68 |
ROIC/WACC0.82
WACC7.37%
2.3 Liquidity
A Current Ratio of 1.62 indicates that SPTN should not have too much problems paying its short term obligations.
The Current ratio of SPTN (1.62) is better than 76.92% of its industry peers.
SPTN has a Quick Ratio of 1.62. This is a bad value and indicates that SPTN is not financially healthy enough and could expect problems in meeting its short term obligations.
SPTN has a Quick ratio of 0.83. This is in the better half of the industry: SPTN outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The earnings per share for SPTN have decreased by -7.34% in the last year.
SPTN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.72% yearly.
SPTN shows a decrease in Revenue. In the last year, the revenue decreased by -1.85%.
SPTN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.27% yearly.
EPS 1Y (TTM)-7.34%
EPS 3Y5.71%
EPS 5Y12.72%
EPS Q2Q%20%
Revenue 1Y (TTM)-1.85%
Revenue growth 3Y2.26%
Revenue growth 5Y2.27%
Sales Q2Q%0.73%
3.2 Future
The Earnings Per Share is expected to decrease by -6.94% on average over the next years.
Based on estimates for the next years, SPTN will show a small growth in Revenue. The Revenue will grow by 1.65% on average per year.
EPS Next Y-4.94%
EPS Next 2Y-6.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.3%
Revenue Next 2Y1.65%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.74, which indicates a very decent valuation of SPTN.
Based on the Price/Earnings ratio, SPTN is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SPTN to the average of the S&P500 Index (29.63), we can say SPTN is valued rather cheaply.
A Price/Forward Earnings ratio of 10.24 indicates a reasonable valuation of SPTN.
SPTN's Price/Forward Earnings ratio is rather cheap when compared to the industry. SPTN is cheaper than 92.31% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. SPTN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.74 | ||
| Fwd PE | 10.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SPTN indicates a rather cheap valuation: SPTN is cheaper than 84.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.4 |
4.3 Compensation for Growth
A cheap valuation may be justified as SPTN's earnings are expected to decrease with -6.94% in the coming years.
PEG (NY)N/A
PEG (5Y)0.77
EPS Next 2Y-6.94%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SPTN has a Yearly Dividend Yield of 4.47%, which is a nice return.
SPTN's Dividend Yield is rather good when compared to the industry average which is at 2.38. SPTN pays more dividend than 97.44% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, SPTN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.47% |
5.2 History
On average, the dividend of SPTN grows each year by 9.50%, which is quite nice.
SPTN has paid a dividend for at least 10 years, which is a reliable track record.
SPTN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.5%
Div Incr Years13
Div Non Decr Years17
5.3 Sustainability
SPTN pays out 65.83% of its income as dividend. This is not a sustainable payout ratio.
SPTN's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP65.83%
EPS Next 2Y-6.94%
EPS Next 3YN/A
19.67
+0.2 (+1.03%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners86.3%
Inst Owner Change0.17%
Ins Owners1.25%
Ins Owner Change0%
Market Cap663.86M
Analysts76.36
Price Target22.78 (15.81%)
Short Float %2.77%
Short Ratio3.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.47% |
Yearly Dividend0.85
Dividend Growth(5Y)9.5%
DP65.83%
Div Incr Years13
Div Non Decr Years17
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.21%
Min EPS beat(2)-1.96%
Max EPS beat(2)2.38%
EPS beat(4)2
Avg EPS beat(4)-2%
Min EPS beat(4)-10.29%
Max EPS beat(4)2.38%
EPS beat(8)2
Avg EPS beat(8)-4.49%
EPS beat(12)5
Avg EPS beat(12)-0.81%
EPS beat(16)7
Avg EPS beat(16)-0.23%
Revenue beat(2)0
Avg Revenue beat(2)-2.44%
Min Revenue beat(2)-3.6%
Max Revenue beat(2)-1.29%
Revenue beat(4)0
Avg Revenue beat(4)-2.84%
Min Revenue beat(4)-3.6%
Max Revenue beat(4)-1.29%
Revenue beat(8)1
Avg Revenue beat(8)-2.71%
Revenue beat(12)4
Avg Revenue beat(12)-1.37%
Revenue beat(16)4
Avg Revenue beat(16)-1.36%
PT rev (1m)0%
PT rev (3m)-1.47%
EPS NQ rev (1m)-3.88%
EPS NQ rev (3m)-5.34%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.74 | ||
| Fwd PE | 10.24 | ||
| P/S | 0.07 | ||
| P/FCF | N/A | ||
| P/OCF | 5.68 | ||
| P/B | 0.85 | ||
| P/tB | 1.36 | ||
| EV/EBITDA | 5.4 |
EPS(TTM)2.02
EY10.27%
EPS(NY)1.92
Fwd EY9.76%
FCF(TTM)-0.45
FCFYN/A
OCF(TTM)3.46
OCFY17.61%
SpS282.46
BVpS23.15
TBVpS14.5
PEG (NY)N/A
PEG (5Y)0.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.84% | ||
| ROE | 5.81% | ||
| ROCE | 7.63% | ||
| ROIC | 6.02% | ||
| ROICexc | 6.09% | ||
| ROICexgc | 7.3% | ||
| OM | 1.41% | ||
| PM (TTM) | 0.48% | ||
| GM | 15.6% | ||
| FCFM | N/A |
ROA(3y)1.23%
ROA(5y)2.04%
ROE(3y)3.72%
ROE(5y)6.09%
ROIC(3y)4.81%
ROIC(5y)5.11%
ROICexc(3y)4.87%
ROICexc(5y)5.17%
ROICexgc(3y)5.86%
ROICexgc(5y)6.29%
ROCE(3y)6.09%
ROCE(5y)6.47%
ROICexcg growth 3Y3.02%
ROICexcg growth 5Y8.87%
ROICexc growth 3Y4.32%
ROICexc growth 5Y10.44%
OM growth 3Y9.13%
OM growth 5Y10.43%
PM growth 3Y-84.31%
PM growth 5Y-45.58%
GM growth 3Y0.25%
GM growth 5Y1.68%
F-Score6
Asset Turnover3.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.65 | ||
| Cap/Depr | 129.94% | ||
| Cap/Sales | 1.38% | ||
| Interest Coverage | 3.17 | ||
| Cash Conversion | 49.47% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 4.68 |
F-Score6
WACC7.37%
ROIC/WACC0.82
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-7.34%
EPS 3Y5.71%
EPS 5Y12.72%
EPS Q2Q%20%
EPS Next Y-4.94%
EPS Next 2Y-6.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.85%
Revenue growth 3Y2.26%
Revenue growth 5Y2.27%
Sales Q2Q%0.73%
Revenue Next Year3.3%
Revenue Next 2Y1.65%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y41.75%
EBIT growth 3Y11.59%
EBIT growth 5Y12.94%
EBIT Next Year98.99%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-118.57%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-41.15%
OCF growth 3YN/A
OCF growth 5YN/A