SUNOPTA INC (STKL) Stock Fundamental Analysis
NASDAQ:STKL - Nasdaq - CA8676EP1086 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to STKL. STKL was compared to 89 industry peers in the Food Products industry. Both the profitability and financial health of STKL have multiple concerns. STKL shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
STKL had positive earnings in the past year.
STKL had a positive operating cash flow in the past year.
STKL had negative earnings in 4 of the past 5 years.
STKL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
STKL has a Return On Assets of -2.68%. This is in the lower half of the industry: STKL underperforms 67.42% of its industry peers.
With a Return On Equity value of -10.96%, STKL is not doing good in the industry: 67.42% of the companies in the same industry are doing better.
STKL has a Return On Invested Capital of 5.58%. This is comparable to the rest of the industry: STKL outperforms 52.81% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STKL is below the industry average of 8.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.68% | ||
| ROE | -10.96% | ||
| ROIC | 5.58% |
ROA(3y)-10.02%
ROA(5y)-3.86%
ROE(3y)-38.03%
ROE(5y)-19.1%
ROIC(3y)5.96%
ROIC(5y)4.5%
1.3 Margins
With a Operating Margin value of 4.98%, STKL perfoms like the industry average, outperforming 58.43% of the companies in the same industry.
STKL's Operating Margin has improved in the last couple of years.
STKL has a Gross Margin of 15.81%. This is comparable to the rest of the industry: STKL outperforms 41.57% of its industry peers.
STKL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.98% | ||
| PM (TTM) | N/A | ||
| GM | 15.81% |
OM growth 3Y38.42%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y10.42%
GM growth 5Y12.48%
2. Health
2.1 Basic Checks
STKL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for STKL has been increased compared to 1 year ago.
STKL has more shares outstanding than it did 5 years ago.
STKL has a better debt/assets ratio than last year.
2.2 Solvency
STKL has an Altman-Z score of 1.06. This is a bad value and indicates that STKL is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.06, STKL is doing worse than 69.66% of the companies in the same industry.
The Debt to FCF ratio of STKL is 15.26, which is on the high side as it means it would take STKL, 15.26 years of fcf income to pay off all of its debts.
STKL has a Debt to FCF ratio (15.26) which is in line with its industry peers.
A Debt/Equity ratio of 1.51 is on the high side and indicates that STKL has dependencies on debt financing.
STKL has a worse Debt to Equity ratio (1.51) than 80.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | 15.26 | ||
| Altman-Z | 1.06 |
ROIC/WACC0.68
WACC8.21%
2.3 Liquidity
STKL has a Current Ratio of 0.94. This is a bad value and indicates that STKL is not financially healthy enough and could expect problems in meeting its short term obligations.
STKL's Current ratio of 0.94 is on the low side compared to the rest of the industry. STKL is outperformed by 74.16% of its industry peers.
A Quick Ratio of 0.39 indicates that STKL may have some problems paying its short term obligations.
STKL has a worse Quick ratio (0.39) than 78.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 71.43% over the past year.
Measured over the past years, STKL shows a very strong growth in Earnings Per Share. The EPS has been growing by 128.94% on average per year.
Looking at the last year, STKL shows a quite strong growth in Revenue. The Revenue has grown by 14.82% in the last year.
STKL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.11% yearly.
EPS 1Y (TTM)71.43%
EPS 3Y128.94%
EPS 5YN/A
EPS Q2Q%20%
Revenue 1Y (TTM)14.82%
Revenue growth 3Y-3.71%
Revenue growth 5Y0.11%
Sales Q2Q%6.76%
3.2 Future
The Earnings Per Share is expected to grow by 41.14% on average over the next years. This is a very strong growth
Based on estimates for the next years, STKL will show a quite strong growth in Revenue. The Revenue will grow by 8.29% on average per year.
EPS Next Y3.8%
EPS Next 2Y41.14%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.01%
Revenue Next 2Y8.29%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
STKL is valuated quite expensively with a Price/Earnings ratio of 33.67.
Compared to the rest of the industry, the Price/Earnings ratio of STKL is on the same level as its industry peers.
STKL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.64, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 32.43, the valuation of STKL can be described as expensive.
STKL's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.44. STKL is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.67 | ||
| Fwd PE | 32.43 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STKL is on the same level as its industry peers.
STKL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.17 | ||
| EV/EBITDA | 10.16 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as STKL's earnings are expected to grow with 41.14% in the coming years.
PEG (NY)8.85
PEG (5Y)N/A
EPS Next 2Y41.14%
EPS Next 3YN/A
5. Dividend
5.1 Amount
STKL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.04
-0.05 (-1.22%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners85.43%
Inst Owner Change-0.73%
Ins Owners1.73%
Ins Owner Change0.24%
Market Cap473.65M
Analysts80
Price TargetN/A
Short Float %3.96%
Short Ratio7.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)-49.3%
DP-1.7%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.58%
Min EPS beat(2)-11.99%
Max EPS beat(2)13.15%
EPS beat(4)2
Avg EPS beat(4)216.31%
Min EPS beat(4)-27.99%
Max EPS beat(4)892.08%
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)0.38%
Min Revenue beat(2)0.19%
Max Revenue beat(2)0.57%
Revenue beat(4)4
Avg Revenue beat(4)3.7%
Min Revenue beat(4)0.19%
Max Revenue beat(4)7.51%
Revenue beat(8)5
Avg Revenue beat(8)-2.89%
Revenue beat(12)6
Avg Revenue beat(12)-11.4%
Revenue beat(16)7
Avg Revenue beat(16)-9.08%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-69.24%
EPS NY rev (1m)-46.95%
EPS NY rev (3m)-46.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.67 | ||
| Fwd PE | 32.43 | ||
| P/S | 0.65 | ||
| P/FCF | 26.17 | ||
| P/OCF | 9.47 | ||
| P/B | 2.89 | ||
| P/tB | 3.39 | ||
| EV/EBITDA | 10.16 |
EPS(TTM)0.12
EY2.97%
EPS(NY)0.12
Fwd EY3.08%
FCF(TTM)0.15
FCFY3.82%
OCF(TTM)0.43
OCFY10.56%
SpS6.17
BVpS1.4
TBVpS1.19
PEG (NY)8.85
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.68% | ||
| ROE | -10.96% | ||
| ROCE | 7.22% | ||
| ROIC | 5.58% | ||
| ROICexc | 5.6% | ||
| ROICexgc | 5.88% | ||
| OM | 4.98% | ||
| PM (TTM) | N/A | ||
| GM | 15.81% | ||
| FCFM | 2.5% |
ROA(3y)-10.02%
ROA(5y)-3.86%
ROE(3y)-38.03%
ROE(5y)-19.1%
ROIC(3y)5.96%
ROIC(5y)4.5%
ROICexc(3y)5.97%
ROICexc(5y)4.5%
ROICexgc(3y)6.54%
ROICexgc(5y)5.2%
ROCE(3y)7.72%
ROCE(5y)5.8%
ROICexcg growth 3Y30.9%
ROICexcg growth 5YN/A
ROICexc growth 3Y41.72%
ROICexc growth 5YN/A
OM growth 3Y38.42%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y10.42%
GM growth 5Y12.48%
F-Score5
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | 15.26 | ||
| Debt/EBITDA | 3.4 | ||
| Cap/Depr | 87.48% | ||
| Cap/Sales | 4.41% | ||
| Interest Coverage | 1.51 | ||
| Cash Conversion | 68.95% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z | 1.06 |
F-Score5
WACC8.21%
ROIC/WACC0.68
Cap/Depr(3y)192.52%
Cap/Depr(5y)165.5%
Cap/Sales(3y)8.49%
Cap/Sales(5y)7.16%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)71.43%
EPS 3Y128.94%
EPS 5YN/A
EPS Q2Q%20%
EPS Next Y3.8%
EPS Next 2Y41.14%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)14.82%
Revenue growth 3Y-3.71%
Revenue growth 5Y0.11%
Sales Q2Q%6.76%
Revenue Next Year9.01%
Revenue Next 2Y8.29%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-30.2%
EBIT growth 3Y33.28%
EBIT growth 5YN/A
EBIT Next Year143.97%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y157.87%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y237.03%
OCF growth 3YN/A
OCF growth 5Y37.39%