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SAFM

Sanderson FarmsNasdaqGS:SAFM Stock Report

Market Cap

US$4.2b

7D

-1.7%

1Y

56.3%

Updated

27 Sep, 2021

Data

Company Financials +
SAFM fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance2/6
Financial Health6/6
Dividends3/6

SAFM Overview

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

Summary of all time highs, changes and price drops for Sanderson Farms
Historical stock prices
Current Share PriceUS$187.47
52 Week HighUS$116.65
52 Week LowUS$197.25
Beta0.69
1 Month Change-3.28%
3 Month Change-0.43%
1 Year Change56.26%
3 Year Change88.64%
5 Year Change94.90%
Change since IPO2,967.69%

Recent News & Updates

Shareholder Returns

SAFMUS FoodUS Market
7D-1.7%0.5%2.0%
1Y56.3%9.8%32.8%

Return vs Industry: SAFM exceeded the US Food industry which returned 9.8% over the past year.

Return vs Market: SAFM exceeded the US Market which returned 32.8% over the past year.

Price Volatility

Is SAFM's price volatile compared to industry and market?
SAFM volatility
SAFM Beta0.69
Industry Beta0.73
Market Beta1

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

FoundedEmployeesCEOWebsite
194717,445Joe Sandersonhttps://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 Fundamentals Summary

How do Sanderson Farms's earnings and revenue compare to its market cap?
SAFM fundamental statistics
Market CapUS$4.19b
Earnings (TTM)US$294.95m
Revenue (TTM)US$4.34b

14.2x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SAFM income statement (TTM)
RevenueUS$4.34b
Cost of RevenueUS$3.66b
Gross ProfitUS$674.79m
ExpensesUS$379.84m
EarningsUS$294.95m

Last Reported Earnings

Jul 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)13.21
Gross Margin15.56%
Net Profit Margin6.80%
Debt/Equity Ratio0%

How did SAFM perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

13%

Payout Ratio

Does SAFM pay a reliable dividends?

See SAFM dividend history and benchmarks
When do you need to buy SAFM by to receive an upcoming dividend?
Sanderson Farms dividend dates
Ex Dividend DateOct 04 2021
Dividend Pay DateOct 19 2021
Days until Ex dividend6 days
Days until Dividend pay date21 days

Does SAFM pay a reliable dividends?

See SAFM dividend history and benchmarks

Valuation

Is Sanderson Farms 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: SAFM ($187.47) is trading below our estimate of fair value ($1538.5)

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 (14.2x) compared to the US Food industry average (21.7x).

PE vs Market: SAFM is good value based on its PE Ratio (14.2x) compared to the US market (18.1x).


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 (2.4x).


Future Growth

How is Sanderson Farms forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-3.1%

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 (-3.1% per year).

Earnings vs Market: SAFM's earnings are forecast to decline over the next 3 years (-3.1% per year).

High Growth Earnings: SAFM's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SAFM's revenue (0.7% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: SAFM's revenue (0.7% 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


Past Performance

How has Sanderson Farms performed over the past 5 years?

-24.1%

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 (31.7%).


Return on Equity

High ROE: SAFM's Return on Equity (17.9%) is considered low.


Financial Health

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.


Balance Sheet


Dividend

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

0.94%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 28 2021Ex Dividend DateOct 04 2021Dividend Pay DateOct 19 202115 days from Ex DividendBuy in the next 6 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: SAFM's dividend (0.94%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.3%).

High Dividend: SAFM's dividend (0.94%) is low compared to the top 25% of dividend payers in the US market (3.57%).


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 (22.3% payout ratio).


Next Steps

Management

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

16.9yrs

Average management tenure


CEO

Joe Sanderson (73 yo)

31.83yrs

Tenure

US$4,532,493

Compensation

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 ($USD4.53M) is about average for companies of similar size in the US market ($USD5.22M).

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


Leadership Team

Experienced Management: SAFM's management team is seasoned and experienced (16.9 years average tenure).


Board Members

Experienced Board: SAFM's board of directors are seasoned and experienced ( 15.6 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

Sanderson Farms, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Sanderson Farms, Inc.
  • Ticker: SAFM
  • Exchange: NasdaqGS
  • Founded: 1947
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$4.186b
  • Shares outstanding: 22.33m
  • Website: https://www.sandersonfarms.com

Number of Employees


Location

  • Sanderson Farms, Inc.
  • 127 Flynt Road
  • Laurel
  • Mississippi
  • 39443
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 22:56
End of Day Share Price2021/09/27 00:00
Earnings2021/07/31
Annual Earnings2020/10/31


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.