Sanderson Farms, Inc., an integrated poultry processing company, produces, processes, markets, and distributes fresh, frozen, and prepared chicken products in the United States.
Sanderson Farms Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$189.16|
|52 Week High||US$122.01|
|52 Week Low||US$197.25|
|1 Month Change||-0.26%|
|3 Month Change||2.34%|
|1 Year Change||44.44%|
|3 Year Change||88.78%|
|5 Year Change||112.02%|
|Change since IPO||2,995.35%|
Recent News & Updates
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.
Sanderson Farms: Buyout Leads To Further Upside Potential
Sanderson Farms has done well to grow itself into a leading provider of poultry in the US. This led to an eventual buyout offer for the business and shares have risen nicely since then as a result. Even so, additional upside potential exists for investors and this could make for a great short-term play.
|SAFM||US Food||US Market|
Return vs Industry: SAFM exceeded the US Food industry which returned 8% over the past year.
Return vs Market: SAFM exceeded the US Market which returned 30.3% over the past year.
Stable Share Price: SAFM is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: SAFM's weekly volatility (3%) has been stable over the past year.
About the Company
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 Fundamentals Summary
|SAFM fundamental statistics|
Is SAFM overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|SAFM income statement (TTM)|
|Cost of Revenue||US$3.66b|
Last Reported Earnings
Jul 31, 2021
Next Earnings Date
|Earnings per share (EPS)||13.21|
|Net Profit Margin||6.80%|
How did SAFM perform over the long term?See historical performance and comparison
0.9%Current Dividend Yield
Is Sanderson Farms undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SAFM ($189.16) is trading below our estimate of fair value ($1668.57)
Significantly Below Fair Value: SAFM is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SAFM is good value based on its PE Ratio (14.3x) compared to the US Food industry average (23.3x).
PE vs Market: SAFM is good value based on its PE Ratio (14.3x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: SAFM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: SAFM is overvalued based on its PB Ratio (2.5x) compared to the US Food industry average (2.2x).
How is Sanderson Farms forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SAFM's earnings are forecast to decline over the next 3 years (-5.3% per year).
Earnings vs Market: SAFM's earnings are forecast to decline over the next 3 years (-5.3% per year).
High Growth Earnings: SAFM's earnings are forecast to decline over the next 3 years.
Revenue vs Market: SAFM's revenue (0.6% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: SAFM's revenue (0.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if SAFM's Return on Equity is forecast to be high in 3 years time
How has Sanderson Farms performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SAFM has high quality earnings.
Growing Profit Margin: SAFM became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: SAFM's earnings have declined by 24.1% per year over the past 5 years.
Accelerating Growth: SAFM has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: SAFM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Food industry (28%).
Return on Equity
High ROE: SAFM's Return on Equity (17.9%) is considered low.
How is Sanderson Farms's financial position?
Financial Position Analysis
Short Term Liabilities: SAFM's short term assets ($890.8M) exceed its short term liabilities ($303.7M).
Long Term Liabilities: SAFM's short term assets ($890.8M) exceed its long term liabilities ($180.8M).
Debt to Equity History and Analysis
Debt Level: SAFM is debt free.
Reducing Debt: SAFM had no debt 5 years ago.
Debt Coverage: SAFM has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: SAFM has no debt, therefore coverage of interest payments is not a concern.
What is Sanderson Farms's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SAFM's dividend (0.93%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.29%).
High Dividend: SAFM's dividend (0.93%) is low compared to the top 25% of dividend payers in the US market (3.47%).
Stability and Growth of Payments
Stable Dividend: SAFM's dividend payments have been volatile in the past 10 years.
Growing Dividend: SAFM's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (13.1%), SAFM's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SAFM's dividends in 3 years are forecast to be well covered by earnings (23.3% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Joe Sanderson (73 yo)
Mr. Joe F. Sanderson, Jr. has been the Chairman of Sanderson Farms, Inc. since January 8, 1998 and as its Chief Executive Officer since November 1, 1989. Mr. Sanderson served as the President of Sanderson...
CEO Compensation Analysis
Compensation vs Market: Joe's total compensation ($USD4.53M) is about average for companies of similar size in the US market ($USD5.19M).
Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.
Experienced Management: SAFM's management team is seasoned and experienced (17 years average tenure).
Experienced Board: SAFM's board of directors are seasoned and experienced ( 15.7 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Sanderson Farms, Inc.'s employee growth, exchange listings and data sources
- Name: Sanderson Farms, Inc.
- Ticker: SAFM
- Exchange: NasdaqGS
- Founded: 1947
- Industry: Packaged Foods and Meats
- Sector: Food, Beverage & Tobacco
- Market Cap: US$4.224b
- Shares outstanding: 22.33m
- Website: https://www.sandersonfarms.com
Number of Employees
- Sanderson Farms, Inc.
- 127 Flynt Road
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/23 22:28|
|End of Day Share Price||2021/10/22 00:00|
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.