The Simply Good Foods Company
Find Ratings ReportsSIMPLY GOOD FOODS COMPANY's gross profit margin for the first quarter of its fiscal year 2024 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. SIMPLY GOOD FOODS COMPANY is extremely liquid. Currently, the Quick Ratio is 3.25 which clearly shows the ability to cover any short-term cash needs. SMPL managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.
During the same period, stockholders' equity ("net worth") has increased by 9.82% 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.
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Income Statement | Q1 FY24 | Q1 FY23 |
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Net Sales ($mil) | 308.68 | 300.88 |
EBITDA ($mil) | 57.79 | 57.44 |
EBIT ($mil) | 52.19 | 52.49 |
Net Income ($mil) | 35.56 | 35.86 |
Balance Sheet | Q1 FY24 | Q1 FY23 |
---|---|---|
Cash & Equiv. ($mil) | 121.39 | 54.14 |
Total Assets ($mil) | 2115.06 | 2093.06 |
Total Debt ($mil) | 315.15 | 446.95 |
Equity ($mil) | 1607.18 | 1463.36 |
Profitability | Q1 FY24 | Q1 FY23 |
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Gross Profit Margin | 37.7 | 37.1 |
EBITDA Margin | 18.72 | 19.09 |
Operating Margin | 16.91 | 17.45 |
Sales Turnover | 0.59 | 0.57 |
Return on Assets | 6.3 | 5.89 |
Return on Equity | 8.29 | 8.42 |
Debt | Q1 FY24 | Q1 FY23 |
---|---|---|
Current Ratio | 5.02 | 4.42 |
Debt/Capital | 0.16 | 0.23 |
Interest Expense | 6.03 | 7.06 |
Interest Coverage | 8.65 | 7.44 |
Share Data | Q1 FY24 | Q1 FY23 |
---|---|---|
Shares outstanding (mil) | 99.81 | 99.49 |
Div / share | 0.0 | 0.0 |
EPS | 0.35 | 0.36 |
Book value / share | 16.1 | 14.71 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 777442.0 | 556895.0 |
BUY. This stock's P/E ratio indicates a premium compared to an average of 18.98 for the Food Manufacturing subsector and a discount compared to the S&P 500 average of 27.95. Conducting a second comparison, its price-to-book ratio of 2.08 indicates a significant discount versus the S&P 500 average of 4.68 and a discount versus the subsector average of 3.20. The price-to-sales ratio is below the S&P 500 average, but well above the subsector average. The valuation analysis reveals that, SIMPLY GOOD FOODS COMPANY seems to be trading at a premium to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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SMPL 25.63 | Peers 18.98 | SMPL 15.93 | Peers 15.41 | |||||||||||||||||||||
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. SMPL is trading at a significant premium to its peers. |
Average. 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. SMPL is trading at a valuation on par to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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SMPL 16.54 | Peers 17.75 | SMPL 0.66 | Peers 2.43 | |||||||||||||||||||||
Average. An average price-to-projected earnings ratio can signify an subsector neutral stock price and average future growth expectations. SMPL is trading at a valuation on par with its peers. |
Discount. 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. SMPL trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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SMPL 2.08 | Peers 3.20 | SMPL 7.37 | Peers 16.04 | |||||||||||||||||||||
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. SMPL 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, SMPL is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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SMPL 2.68 | Peers 1.93 | SMPL 5.23 | Peers 6.04 | |||||||||||||||||||||
Premium. 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. SMPL is trading at a significant premium to its subsector. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. SMPL trails its peers on the basis of sales growth. |
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