NasdaqGS:SPTN

Stock Analysis Report

Executive Summary

SpartanNash Company distributes and retails grocery products.

Rewards

Trading at 48% below its fair value

Earnings are forecast to grow 89.63% per year

Pays a high and reliable dividend of 5.7%

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 5.7% is not well covered by earnings



Snowflake Analysis

Established dividend payer and fair value.


Similar Companies

Andersons

NasdaqGS:ANDE

Share Price & News

How has SpartanNash's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SPTN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.7%

SPTN

0.5%

US Consumer Retailing

0.5%

US Market


1 Year Return

-23.5%

SPTN

16.9%

US Consumer Retailing

20.3%

US Market

Return vs Industry: SPTN underperformed the US Consumer Retailing industry which returned 16.9% over the past year.

Return vs Market: SPTN underperformed the US Market which returned 20.3% over the past year.


Shareholder returns

SPTNIndustryMarket
7 Day3.7%0.5%0.5%
30 Day0.08%1.5%2.0%
90 Day-0.2%-0.1%9.4%
1 Year-19.0%-23.5%19.1%16.9%22.8%20.3%
3 Year-60.2%-64.5%48.2%38.6%50.1%40.4%
5 Year-41.3%-49.7%47.8%32.4%73.1%54.1%

Price Volatility Vs. Market

How volatile is SpartanNash's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is SpartanNash undervalued compared to its fair value and its price relative to the market?

48.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SPTN ($13.33) is trading below our estimate of fair value ($25.64)

Significantly Below Fair Value: SPTN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SPTN is unprofitable, so we can't compare its PE Ratio to the Consumer Retailing industry average.

PE vs Market: SPTN is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SPTN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SPTN is good value based on its PB Ratio (0.7x) compared to the US Consumer Retailing industry average (2.1x).


Next Steps

Future Growth

How is SpartanNash forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

89.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPTN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: SPTN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SPTN's is expected to become profitable in the next 3 years.

Revenue vs Market: SPTN's revenue (2.5% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: SPTN's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SPTN's Return on Equity is forecast to be low in 3 years time (7.1%).


Next Steps

Past Performance

How has SpartanNash performed over the past 5 years?

-28.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPTN is currently unprofitable.

Growing Profit Margin: SPTN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SPTN is unprofitable, and losses have increased over the past 5 years at a rate of -28.1% per year.

Accelerating Growth: Unable to compare SPTN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SPTN is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (-6.1%).


Return on Equity

High ROE: SPTN has a negative Return on Equity (-1.97%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SpartanNash's financial position?


Financial Position Analysis

Short Term Liabilities: SPTN's short term assets ($1.0B) exceed its short term liabilities ($611.0M).

Long Term Liabilities: SPTN's short term assets ($1.0B) exceed its long term liabilities ($1.0B).


Debt to Equity History and Analysis

Debt Level: SPTN's debt to equity ratio (95.1%) is considered high.

Reducing Debt: SPTN's debt to equity ratio has increased from 74.9% to 95.1% over the past 5 years.


Balance Sheet

Inventory Level: SPTN has a high level of physical assets or inventory.

Debt Coverage by Assets: SPTN's debt is covered by short term assets (assets are 1.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: SPTN has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: SPTN has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is SpartanNash's current dividend yield, its reliability and sustainability?

5.70%

Current Dividend Yield


Dividend Yield vs Market

company5.7%marketbottom25%1.4%markettop25%3.7%industryaverage1.8%forecastin3Years7.0%

Current dividend yield vs market & industry

Notable Dividend: SPTN's dividend (5.7%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: SPTN's dividend (5.7%) is in the top 25% of dividend payers in the US market (3.73%)


Stability and Growth of Payments

Stable Dividend: SPTN's dividends per share have been stable in the past 10 years.

Growing Dividend: SPTN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: SPTN is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: SPTN's dividends in 3 years are forecast to be covered by earnings (76.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Dennis Eidson (65yo)

11.3yrs

Tenure

US$281,312

Compensation

Mr. Dennis Eidson has been the President of Spartan Stores Inc. since October 22, 2007 and has been the Chief Executive Officer since October 15, 2008. He serves as an Interim President and CEO of SpartanN ...


CEO Compensation Analysis

Compensation vs Market: Dennis's total compensation ($USD281.31K) is below average for companies of similar size in the US market ($USD1.66M).

Compensation vs Earnings: Dennis's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Dennis Eidson
Chairman11.3yrsUS$281.31k0.54% $2.6m
Mark Shamber
Executive VP & CFO2.4yrsUS$904.26k0.11% $537.4k
Kathleen Mahoney
Executive VP & Chief Legal Officer4.3yrsUS$1.04m0.17% $841.1k
Yvonne Trupiano
Executive VP1.9yrsUS$655.57k0.084% $409.1k
Tammy Hurley
Chief Accounting Officer & VP of Finance3.5yrsno data0.052% $250.1k
Arif Dar
Chief Information Officer & Senior VP1.1yrsno data0.025% $123.0k
Bill Jacobs
Vice President of Treasury & Corporate Development2.9yrsno datano data
Lori Raya
Executive VP & Chief Merchandising & Marketing Officer1yrsno data0.036% $175.6k
Tom Lee
Senior VP & Chief Supply Chain Officer2.8yrsno data0.021% $100.0k
Thomas Swanson
Senior VP & GM of Corporate Retail1.3yrsno data0.052% $252.3k

2.6yrs

Average Tenure

52.5yo

Average Age

Experienced Management: SPTN's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dennis Eidson
Chairman11.3yrsUS$281.31k0.54% $2.6m
Yvonne Jackson
Independent Director9.3yrsUS$218.70k0.088% $425.0k
Margaret Atkins
Independent Director16.5yrsUS$211.20k0.12% $603.5k
Douglas Hacker
Lead Independent Director1.8yrsUS$218.70k0.11% $537.9k
Elizabeth Nickels
Independent Director19.5yrsUS$199.33k0.095% $461.3k
William Voss
Independent Director6.3yrsUS$206.20k0.089% $432.8k
Matthew Mannelly
Independent Director2yrsUS$173.72k0.035% $171.3k
Frank Gambino
Independent Director16.5yrsUS$193.70k0.13% $627.1k
Hawthorne Proctor
Independent Director6.3yrsUS$193.70k0.063% $303.3k

6.3yrs

Average Tenure

65yo

Average Age

Experienced Board: SPTN's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

SpartanNash Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SpartanNash Company
  • Ticker: SPTN
  • Exchange: NasdaqGS
  • Founded: 1917
  • Industry: Food Distributors
  • Sector: Consumer Retailing
  • Market Cap: US$484.510m
  • Shares outstanding: 36.35m
  • Website: https://www.spartannash.com

Number of Employees


Location

  • SpartanNash Company
  • 850 76th Street, SW
  • PO Box 8700
  • Grand Rapids
  • Michigan
  • 49518
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SPTNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 2000
SRJDB (Deutsche Boerse AG)YesCommon StockDEEURAug 2000

Biography

SpartanNash Company distributes and retails grocery products. It operates in three segments: Food Distribution, Military, and Retail. The Food Distribution segment offers approximately 60,000 stock-keeping units, such as dry groceries, produce, dairy products, meat, delicatessen items, bakery goods, frozen food, seafood, floral products, general merchandise, beverages, tobacco products, health and beauty care, and pharmacy products to independent retailers, national retailers, food service distributors, e-commerce providers, and corporate owned retail stores. This segment also offers various value-added services to retailers. The Military segment sells and distributes grocery products to military commissaries and exchanges located in 50 states across the United States and the District of Columbia, Europe, Cuba, Puerto Rico, Honduras, Bahrain, Djibouti, and Egypt. The Retail segment primarily operates neighborhood supermarkets. As of August 12, 2019, it operated 160 supermarkets, primarily under the banners of Family Fare Supermarkets, Martin's Super Markets, D&W Fresh Market, VG's Grocery, Dan's Supermarket, and Family Fresh Market. SpartanNash Company also markets and distributes private brand items primarily under the Our Family, Open Acres, Top Care, Tippy Toes, Full Circle, Culinary Tours, PAWS Premium, Valu Time, Pure Harmony, Freedom’s Choice, and Home Base brands. The company was formerly known as Spartan Stores, Inc. and changed its name to SpartanNash Company in November 2013. SpartanNash Company was founded in 1917 and is headquartered in Grand Rapids, Michigan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 00:21
End of Day Share Price2020/02/19 00:00
Earnings2019/10/05
Annual Earnings2018/12/29


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 here.