Sanderson Farms Inc

Find Ratings Reports
SAFM : NASDAQ : Consumer Goods
$128.14 | %
Today's Range: 127.25 - 128.59
Avg. Daily Volume: 397300.0
07/28/17 - 4:00 PM ET

Financial Analysis


SANDERSON FARMS INC's gross profit margin for the second quarter of its fiscal year 2017 has increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. SANDERSON FARMS INC is extremely liquid. Currently, the Quick Ratio is 2.89 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 17.42% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)802.04692.09
EBITDA ($mil)127.3994.75
EBIT ($mil)103.1173.77
Net Income ($mil)66.9447.6


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)246.28223.12
Total Assets ($mil)1518.961324.3
Total Debt ($mil)0.00.0
Equity ($mil)1279.291089.44


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin21.3219.48
EBITDA Margin15.8813.69
Operating Margin12.8610.66
Sales Turnover1.982.05
Return on Assets14.5310.3
Return on Equity17.2512.53
Debt Q2 FY17 Q2 FY16
Current Ratio4.974.07
Debt/Capital0.00.0
Interest Expense0.430.42
Interest Coverage240.92175.65


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)22.7422.58
Div / share0.00.0
EPS2.942.11
Book value / share56.2548.25
Institutional Own % n/a n/a
Avg Daily Volume394055.0407383.0

Valuation


BUY. SANDERSON FARMS INC's P/E ratio indicates a significant discount compared to an average of 29.98 for the Food Products industry and a significant discount compared to the S&P 500 average of 24.68. To use another comparison, its price-to-book ratio of 2.28 indicates a discount versus the S&P 500 average of 3.08 and a significant discount versus the industry average of 4.58. 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 13.17 Peers 29.98   SAFM 9.67 Peers 20.69

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 12.16 Peers 20.99   SAFM 0.52 Peers 2.43

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.

 

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.

SAFM trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SAFM 2.28 Peers 4.58   SAFM 60.46 Peers 69.59

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 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 0.97 Peers 2.27   SAFM 10.76 Peers 3.64

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.

 

 

Latest Stock Upgrades/Downgrades