The Simply Good Foods Co. (SMPL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

The Vita Coco Co., Inc.

General Mills, Inc.

Campbell Soup Co.

Bunge Ltd.

The Simply Good Foods Co.

The Kraft Heinz Co.

Lamb Weston Holdings, Inc.

The Hain Celestial Group, Inc.

B&G Foods, Inc.

Beyond Meat, Inc.

The Real Good Food Co., Inc.

Why is The Simply Good Foods Co. ?

Flat results in Feb 26

OPERATING CASH FLOW(Y) Lowest at USD 173.38 MM
ROCE(HY) Lowest at -6.39%
INVENTORY TURNOVER RATIO(HY) Lowest at 5.41 times

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -61.40%, its profits have risen by 8.6% ; the PEG ratio of the company is 1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -61.40% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is The Simply Good Foods Co. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

The Simply Good Foods Co.

-61.4%

-1.43

45.85%

S&P 500

20.78%

1.56

13.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.11%

EBIT Growth (5y)

11.68%

EBIT to Interest (avg)

7.59

Debt to EBITDA (avg)

1.11

Net Debt to Equity (avg)

0.08

Sales to Capital Employed (avg)

0.67

Tax Ratio

24.43%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

11.45%

ROE (avg)

8.83%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.84

EV to EBIT

7.48

EV to EBITDA

6.61

EV to Capital Employed

0.86

EV to Sales

1.15

PEG Ratio

0.95

Dividend Yield

ROCE (Latest)

11.46%

ROE (Latest)

9.83%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

CASH AND EQV(HY)

Highest at USD 301.5 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 10.09 times

NET PROFIT(Q)

Highest at USD 98.53 MM

-15What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 173.38 MM

ROCE(HY)

Lowest at -6.39%

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.41 times

INTEREST(Q)

At USD 5.83 MM has Grown at 36.09%

INTEREST COVERAGE RATIO(Q)

Lowest at 896.13

RAW MATERIAL COST(Y)

Grown by 13.96% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 22.98 %

NET SALES(Q)

Lowest at USD 326.01 MM

EPS(Q)

Lowest at USD -1.73

Here's what is working for The Simply Good Foods Co.

Net Profit

At USD 98.53 MM has Grown at 156.94%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Net Profit

Highest at USD 98.53 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Cash and Eqv

Highest at USD 301.5 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 10.09 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for The Simply Good Foods Co.

Operating Cash Flow

Lowest at USD 173.38 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest

At USD 5.83 MM has Grown at 36.09%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 896.13

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Inventory Turnover Ratio

Lowest at 5.41 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

Lowest at USD 326.01 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

EPS

Lowest at USD -1.73

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Highest at 22.98 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 13.96% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales