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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

The Vita Coco Co., Inc.

General Mills, Inc.

The Simply Good Foods Co.

Bunge Ltd.

Campbell Soup Co.

Lamb Weston Holdings, Inc.

B&G Foods, Inc.

The Kraft Heinz Co.

The Hain Celestial Group, Inc.

Beyond Meat, Inc.

The Real Good Food Co., Inc.

Why is The Simply Good Foods Co. ?

Company has a low Debt to Equity ratio (avg) at times

Healthy long term growth as Net Sales has grown by an annual rate of 14.72% and Operating profit at 19.81%

Flat results in May 25

ROCE(HY) Lowest at 8.22%
RAW MATERIAL COST(Y) Grown by 9.05% (YoY)

With ROCE of 11.81%, it has a very expensive valuation with a 1.76 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 -49.95%, its profits have risen by 15.1% ; the PEG ratio of the company is 1.5

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -49.95% 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 hold?

Overall Portfolio exposure to The Simply Good Foods Co. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is The Simply Good Foods Co. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

The Simply Good Foods Co.

-52.8%

-1.34

34.17%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.72%

EBIT Growth (5y)

19.81%

EBIT to Interest (avg)

7.59

Debt to EBITDA (avg)

1.11

Net Debt to Equity (avg)

0.08

Sales to Capital Employed (avg)

0.66

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

1.85

EV to EBIT

14.92

EV to EBITDA

13.39

EV to Capital Employed

1.76

EV to Sales

2.52

PEG Ratio

1.51

Dividend Yield

ROCE (Latest)

11.81%

ROE (Latest)

8.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

Mildly Bullish

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

8What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 9.75 times

INTEREST COVERAGE RATIO(Q)

Highest at 1,463.55

NET SALES(Q)

Highest at USD 380.96 MM

OPERATING PROFIT(Q)

Highest at USD 71.71 MM

PRE-TAX PROFIT(Q)

Highest at USD 59.97 MM

NET PROFIT(Q)

Highest at USD 45.03 MM

-3What is not working for the Company

ROCE(HY)

Lowest at 8.22%

RAW MATERIAL COST(Y)

Grown by 9.05% (YoY

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

Interest Coverage Ratio

Highest at 1,463.55

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debtors Turnover Ratio

Highest at 9.75 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

Net Sales

Highest at USD 380.96 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 71.71 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Pre-Tax Profit

Highest at USD 59.97 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 45.03 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Depreciation

Highest at USD 7.17 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.

Raw Material Cost

Grown by 9.05% (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