NasdaqGS:SPTN

Stock Analysis Report

Executive Summary

SpartanNash Company distributes and retails grocery products.

Rewards

Trading at 51.5% below its fair value

Earnings are forecast to grow 11.74% per year

Pays a reliable dividend of 5.52%

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 5.52% is not well covered by earnings

Highly volatile share price over past 3 months

Large one-off items impacting financial results

+ 1 more risk


Snowflake Analysis

Average dividend payer and fair value.


Similar Companies

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.7%

SPTN

1.3%

US Consumer Retailing

-2.6%

US Market


1 Year Return

-14.0%

SPTN

9.1%

US Consumer Retailing

-13.3%

US Market

Return vs Industry: SPTN underperformed the US Consumer Retailing industry which returned 8.9% over the past year.

Return vs Market: SPTN matched the US Market which returned -15.9% over the past year.


Shareholder returns

SPTNIndustryMarket
7 Day-1.7%1.3%-2.6%
30 Day15.6%-5.6%-15.2%
90 Day3.4%-6.7%-22.2%
1 Year-8.6%-14.0%11.1%9.1%-11.5%-13.3%
3 Year-54.7%-60.1%38.9%30.0%13.2%5.7%
5 Year-48.3%-56.3%38.4%24.2%31.8%17.2%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SPTN ($13.95) is trading below our estimate of fair value ($28.75)

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


Price To Earnings Ratio

PE vs Industry: SPTN is poor value based on its PE Ratio (85.5x) compared to the Consumer Retailing industry average (16.6x).

PE vs Market: SPTN is poor value based on its PE Ratio (85.5x) compared to the US market (12.2x).


Price to Earnings Growth Ratio

PEG Ratio: SPTN is poor value based on its PEG Ratio (7.3x)


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 (1.3x).


Next Steps

Future Growth

How is SpartanNash forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

11.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPTN's forecast earnings growth (11.7% per year) is above the savings rate (1.7%).

Earnings vs Market: SPTN's earnings (11.7% per year) are forecast to grow slower than the US market (13.4% per year).

High Growth Earnings: SPTN's earnings are forecast to grow, but not significantly.

Revenue vs Market: SPTN's revenue (1% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: SPTN's revenue (1% 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 (6.5%).


Next Steps

Past Performance

How has SpartanNash performed over the past 5 years?

-31.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPTN has a large one-off loss of $14.8M impacting its December 28 2019 financial results.

Growing Profit Margin: SPTN's current net profit margins (0.07%) are lower than last year (0.4%).


Past Earnings Growth Analysis

Earnings Trend: SPTN's earnings have declined by -31.2% per year over the past 5 years.

Accelerating Growth: SPTN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SPTN had negative earnings growth (-82.9%) over the past year, making it difficult to compare to the Consumer Retailing industry average (-0.6%).


Return on Equity

High ROE: SPTN's Return on Equity (0.9%) is considered low.


Next Steps

Financial Health

How is SpartanNash's financial position?


Financial Position Analysis

Short Term Liabilities: SPTN's short term assets ($996.7M) exceed its short term liabilities ($565.1M).

Long Term Liabilities: SPTN's short term assets ($996.7M) do not cover its long term liabilities ($1.0B).


Debt to Equity History and Analysis

Debt Level: SPTN's debt to equity ratio (93.6%) is considered high.

Reducing Debt: SPTN's debt to equity ratio has increased from 76.2% to 93.6% over the past 5 years.

Debt Coverage: SPTN's debt is well covered by operating cash flow (28%).

Interest Coverage: SPTN's interest payments on its debt are not well covered by EBIT (1.5x coverage).


Balance Sheet


Next Steps

Dividend

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

5.46%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SPTN's dividend (5.52%) is higher than the bottom 25% of dividend payers in the US market (2.07%).

High Dividend: SPTN's dividend (5.52%) is low compared to the top 25% of dividend payers in the US market (5.82%).


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: With its high payout ratio (465.9%), SPTN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SPTN's dividends in 3 years are forecast to be covered by earnings (69.6% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Dennis Eidson (65yo)

11.5s

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 ($USD281.31K) is below average for companies of similar size in the US market ($USD2.30M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Dennis Eidson
Chairman11.5yrsUS$281.31k0.49% $2.5m
Mark Shamber
Executive VP & CFO2.58yrsUS$904.26k0.11% $568.5k
Kathleen Mahoney
Executive VP & Chief Legal Officer4.42yrsUS$1.04m0.17% $867.7k
Yvonne Trupiano
Executive VP2.08yrsUS$655.57k0.079% $404.4k
Tammy Hurley
Chief Accounting Officer & VP of Finance3.67yrsno data0.067% $344.4k
Arif Dar
Chief Information Officer & Senior VP1.25yrsno data0.024% $121.1k
Bill Jacobs
Vice President of Treasury & Corporate Development3.08yrsno datano data
Lori Raya
Executive VP & Chief Merchandising & Marketing Officer1.17yrsno data0.034% $172.9k
Tom Lee
Senior VP & Chief Supply Chain Officer2.92yrsno datano data
Thomas Swanson
Executive VP & GM of Corporate Retail1.5yrsno data0.049% $251.7k

2.8yrs

Average Tenure

52.5yo

Average Age

Experienced Management: SPTN's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dennis Eidson
Chairman11.5yrsUS$281.31k0.49% $2.5m
Yvonne Jackson
Independent Director9.5yrsUS$218.70k0.088% $449.5k
Margaret Atkins
Independent Director16.67yrsUS$211.20k0.12% $638.3k
Douglas Hacker
Lead Independent Director1.92yrsUS$218.70k0.11% $568.9k
Elizabeth Nickels
Independent Director19.67yrsUS$199.33k0.095% $487.9k
William Voss
Independent Director6.42yrsUS$206.20k0.089% $457.8k
Matthew Mannelly
Independent Director2.17yrsUS$173.72k0.035% $181.2k
Frank Gambino
Independent Director16.67yrsUS$193.70k0.13% $663.3k
Hawthorne Proctor
Independent Director6.42yrsUS$193.70k0.063% $320.8k

6.4yrs

Average Tenure

65yo

Average Age

Experienced Board: SPTN's board of directors are considered experienced (6.4 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.


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$512.519m
  • Shares outstanding: 36.35m
  • Website: https://www.spartannash.com

Number of Employees


Location

  • SpartanNash Company
  • 850 76th Street, S.W.
  • 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
SRJBRSE (Berne Stock Exchange)YesCommon StockCHCHFAug 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 52,000 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 39 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 March 17, 2020, it operated 155 supermarkets, primarily under the banners of Family Fare, Martin's Super Markets, D&W Fresh Market, VG's Grocery, and Dan's Supermarket. SpartanNash Company also markets and distributes private brand items primarily under the Our Family, Open Acres, Good to Go!, Nash’s Coffee, Crav’n Flavor, Culinary Tours, Top Care, Tippy Toes, Full Circle Market, Culinary Tours, PAWS Happy Life, Pure Harmony, Red Button Vintage Creamery, Stoked, and That’s Smart! 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 Analysis2020/04/07 01:48
End of Day Share Price2020/04/06 00:00
Earnings2019/12/28
Annual Earnings2019/12/28


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.