This company has been acquired
Sanderson Farms (SAFM) Stock Overview
Sanderson Farms, Inc., an integrated poultry processing company, produces, processes, markets, and distributes fresh, frozen, and prepared chicken products in the United States. More details
| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 0/6 |
| Past Performance | 6/6 |
| Financial Health | 6/6 |
| Dividends | 3/6 |
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Sanderson Farms, Inc. Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$204.00 |
| 52 Week High | US$221.63 |
| 52 Week Low | US$175.83 |
| Beta | 0.56 |
| 1 Month Change | -5.38% |
| 3 Month Change | 7.92% |
| 1 Year Change | 10.37% |
| 3 Year Change | 55.30% |
| 5 Year Change | 59.20% |
| Change since IPO | 3,238.18% |
Recent News & Updates
Sanderson Farms Plays Chicken
The deal is the downside. Antitrust suit could unlock value. Massive standalone upside.Sanderson Farms: Priced For Flight
Food giants Cargill and Continental Grain announced the joint acquisition of Sanderson Farms on August 9, 2021, for $203 per share cash. The Poultry Market in the USA is not concentrated; the deal presents little traditional competition risk. Recent accusations of price-fixing in the poultry sector present political risk but SAFM is cheap even if the DoJ were to sue to block the deal. Since August, chicken prices have skyrocketed, Sanderson's results have exploded, and the shares look extremely cheap. Sanderson will benefit from continued inflation if the deal is blocked.Sanderson Farms: Defensive Value With Growth Potential
In December 2021, Chicken prices increased to $2.74 per kg, up a massive 17% from the month prior. The average annual Chicken price is forecast to rise from $2.26 per kg to $2.30 per kg in 2022. - Euro Meat News. Sanderson Farms is the 3rd largest poultry processor in the U.S. and is already riding the wave of higher Chicken prices, with increased profitability.Sanderson Farms: A Favorable Risk To Reward Prospect Still
Sanderson Farms has barely budged even as the broader market has risen steadily in recent months. The market is scared about the sale of the entity falling through and what that and regulatory pressure could do to the firm. But on the whole, shares are still cheap enough to make for a favorable risk to reward prospect given all the facts we know today.Sanderson Farms: An M&A Opportunity
Sanderson Farms is being acquired by Cargill and Continental Grain. The terms look straightforward, but it carries certain antitrust risks. The spread between today’s price and the $203 close represents a decent return. If the deal fails, Sanderson Farms should do well as a standalone investment. Investors beware: investing in mergers like this is inherently risky.Recent updates
Shareholder Returns
| SAFM | US Food | US Market | |
|---|---|---|---|
| 7D | -4.1% | 0.5% | -1.1% |
| 1Y | 10.4% | -7.0% | 15.1% |
Return vs Industry: SAFM exceeded the US Food industry which returned 0.6% over the past year.
Return vs Market: SAFM exceeded the US Market which returned -14.6% over the past year.
Price Volatility
| SAFM volatility | |
|---|---|
| SAFM Average Weekly Movement | 2.7% |
| Food Industry Average Movement | 5.4% |
| Market Average Movement | 7.1% |
| 10% most volatile stocks in US Market | 16.1% |
| 10% least volatile stocks in US Market | 3.2% |
Stable Share Price: SAFM has not had significant price volatility in the past 3 months.
Volatility Over Time: SAFM's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1947 | 17,662 | Joe Sanderson | www.sandersonfarms.com |
Sanderson Farms, Inc., an integrated poultry processing company, produces, processes, markets, and distributes fresh, frozen, and prepared chicken products in the United States. The company sells ice-packed, chill-packed, bulk-packed, and frozen chicken primarily under the Sanderson Farms brand name to retailers, distributors, and casual dining operators in the southeastern, southwestern, northeastern, and western United States, as well as to customers who resell frozen chicken into export markets. Its prepared chicken product line includes institutional and consumer packaged partially cooked or marinated chicken items for distributors and food service establishments.
Sanderson Farms, Inc. Fundamentals Summary
| SAFM fundamental statistics | |
|---|---|
| Market cap | US$4.55b |
| Earnings (TTM) | US$852.15m |
| Revenue (TTM) | US$5.62b |
Is SAFM overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| SAFM income statement (TTM) | |
|---|---|
| Revenue | US$5.62b |
| Cost of Revenue | US$4.18b |
| Gross Profit | US$1.45b |
| Other Expenses | US$593.92m |
| Earnings | US$852.15m |
Last Reported Earnings
Apr 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 38.18 |
| Gross Margin | 25.71% |
| Net Profit Margin | 15.15% |
| Debt/Equity Ratio | 0% |
How did SAFM perform over the long term?
See historical performance and comparisonDividends
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/07/24 12:59 |
| End of Day Share Price | 2022/07/21 00:00 |
| Earnings | 2022/04/30 |
| Annual Earnings | 2021/10/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
| |
| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.
Learn about the world class team who designed and built the Simply Wall St analysis model.
Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
Sanderson Farms, Inc. is covered by 15 analysts. 3 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| null null | Argus Research Company |
| Kenneth Zaslow | BMO Capital Markets Equity Research |
| Peter Galbo | BofA Global Research |