This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Sanderson Farms Inc
SAFM : NASDAQ : Consumer Goods
$83.40 | %
Today's Range: 80.47 - 83.92
Avg. Daily Volume: 491,300
02/12/16 - 4:00 PM ET

Financial Analysis


SANDERSON FARMS INC's gross profit margin for the fourth quarter of its fiscal year 2015 has significantly decreased when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not. SANDERSON FARMS INC is extremely liquid. Currently, the Quick Ratio is 2.02 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 14.69% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q4 FY15 Q4 FY14
Net Sales ($mil)679.59760.85
EBITDA ($mil)63.76160.2
EBIT ($mil)43.59142.53
Net Income ($mil)27.3793.11


Balance Sheet Q4 FY15 Q4 FY14
Cash & Equiv. ($mil)196.66165.61
Total Assets ($mil)1251.461111.25
Total Debt ($mil)10.020.0
Equity ($mil)1029.86897.95


Profitability Q4 FY15 Q4 FY14
Gross Profit Margin15.2926.29
EBITDA Margin9.3821.05
Operating Margin6.4118.73
Sales Turnover2.242.5
Return on Assets17.2522.41
Return on Equity20.9727.73
Debt Q4 FY15 Q4 FY14
Current Ratio3.493.46
Debt/Capital0.010.02
Interest Expense0.610.81
Interest Coverage71.22176.39


Share Data Q4 FY15 Q4 FY14
Shares outstanding (mil)22.5223.13
Div / share0.720.92
EPS1.224.04
Book value / share45.7338.82
Institutional Own % n/a n/a
Avg Daily Volume458747.0430574.0

Valuation


BUY. SANDERSON FARMS INC's P/E ratio indicates a significant discount compared to an average of 29.92 for the Food Products industry and a significant discount compared to the S&P 500 average of 21.13. To use another comparison, its price-to-book ratio of 1.73 indicates a discount versus the S&P 500 average of 2.51 and a significant discount versus the industry average of 4.73. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, SANDERSON FARMS INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SAFM 8.35 Peers 29.92   SAFM 5.99 Peers 36.69

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

SAFM is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

SAFM is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SAFM 13.85 Peers 22.56   SAFM NM Peers 1.06

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

SAFM is trading at a significant discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

SAFM's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SAFM 1.73 Peers 4.73   SAFM -12.13 Peers 113.19

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

SAFM is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, SAFM is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SAFM 0.64 Peers 2.89   SAFM 1.03 Peers -2.20

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

SAFM is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

SAFM has a sales growth rate that significantly exceeds its peers.

 

 

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free

Latest Stock Upgrades/Downgrades


Top Rated Stocks Top Rated Funds Top Rated ETFs