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
Flawless balance sheet and good value.
Share Price & News
How has Sanderson Farms's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SAFM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: SAFM's weekly volatility (5%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: SAFM exceeded the US Food industry which returned 7.2% over the past year.
Return vs Market: SAFM exceeded the US Market which returned 30.7% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Sanderson Farms's share price compared to the market and industry in the last 5 years?
Simply Wall St News
11 months ago | Simply Wall StTread With Caution Around Sanderson Farms, Inc.'s (NASDAQ:SAFM) 1.4% Dividend Yield
11 months ago | Simply Wall StSanderson Farms (NASDAQ:SAFM) Is Making Moderate Use Of Debt
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 ($191) 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 (14.5x) compared to the US Food industry average (20.5x).
PE vs Market: SAFM is good value based on its PE Ratio (14.5x) compared to the US market (17.1x).
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 (2.6x) compared to the US Food industry average (2.1x).
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 (-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 (9.5% 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
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 (25.4%).
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 ($180.8M).
Debt to Equity History and Analysis
Debt Level: SAFM is debt free.
Reducing Debt: SAFM had no debt 5 years ago.
Debt Coverage: SAFM has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: SAFM has no debt, therefore coverage of interest payments is not a concern.
What is Sanderson Farms's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SAFM's dividend (0.92%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.36%).
High Dividend: SAFM's dividend (0.92%) is low compared to the top 25% of dividend payers in the US market (3.6%).
Stability and Growth of Payments
Stable Dividend: SAFM's dividend payments have been volatile in the past 10 years.
Growing Dividend: SAFM's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (13.1%), SAFM's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SAFM's dividends in 3 years are forecast to be well covered by earnings (22.5% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Joe Sanderson (73 yo)
Mr. Joe F. Sanderson, Jr. has been the Chairman of Sanderson Farms, Inc. since January 8, 1998 and as its Chief Executive Officer since November 1, 1989. Mr. Sanderson served as the President of Sanderson...
CEO Compensation Analysis
Compensation vs Market: Joe's total compensation ($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 (16.9 years average tenure).
Experienced Board: SAFM's board of directors are seasoned and experienced ( 15.6 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 company bio, 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$4.265b
- Shares outstanding: 22.33m
- Website: https://www.sandersonfarms.com
Number of Employees
- Sanderson Farms, Inc.
- 127 Flynt Road
- United States
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-packe...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/16 05:03|
|End of Day Share Price||2021/09/15 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.