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

General Mills, Inc.

Campbell Soup Co.

The Vita Coco Co., Inc.

Bunge Ltd.

Lamb Weston Holdings, Inc.

The Simply Good Foods Co.

The Kraft Heinz Co.

B&G Foods, Inc.

The Hain Celestial Group, Inc.

Beyond Meat, Inc.

The Real Good Food Co., Inc.

Why is The Simply Good Foods Co. ?

Negative results in Nov 25

OPERATING CASH FLOW(Y) Lowest at USD 196.53 MM
ROCE(HY) Lowest at 5.17%
RAW MATERIAL COST(Y) Grown by 16.88% (YoY)

With ROCE of 11.46%, it has a very expensive valuation with a 0.90 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -57.58%, 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 -57.58% 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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

The Simply Good Foods Co.

-57.58%

-1.63

37.81%

S&P 500

14.9%

0.77

19.29%

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

0.89

EV to EBIT

7.88

EV to EBITDA

6.96

EV to Capital Employed

0.90

EV to Sales

1.21

PEG Ratio

1.01

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

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

No Trend

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

3What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 10.4 times

CASH AND EQV(HY)

Highest at USD 292.52 MM

-14What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 196.53 MM

ROCE(HY)

Lowest at 5.17%

RAW MATERIAL COST(Y)

Grown by 16.88% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.72 times

NET SALES(Q)

Lowest at USD 340.2 MM

OPERATING PROFIT(Q)

Lowest at USD 51.19 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 15.05 %

PRE-TAX PROFIT(Q)

Lowest at USD 39.73 MM

NET PROFIT(Q)

Lowest at USD 29.69 MM

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

Debtors Turnover Ratio

Highest at 10.4 times and Grown

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

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Cash and Eqv

Highest at USD 292.52 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at USD 7.68 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

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

Operating Cash Flow

Lowest at USD 196.53 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)

Net Sales

Lowest at USD 340.2 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Operating Profit

Lowest at USD 51.19 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 15.05 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 39.73 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Pre-Tax Profit

Fallen at -25.38%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 29.69 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Net Profit

Fallen at -30.27%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Inventory Turnover Ratio

Lowest at 5.72 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 16.88% (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