NasdaqGS:SAFM

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Executive Summary

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


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


Similar Companies

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.7%

SAFM

-0.6%

US Food

-0.8%

US Market


1 Year Return

-19.3%

SAFM

-0.3%

US Food

13.8%

US Market

Return vs Industry: SAFM underperformed the US Food industry which returned -0.3% over the past year.

Return vs Market: SAFM underperformed the US Market which returned 13.8% over the past year.


Shareholder returns

SAFMIndustryMarket
7 Day2.7%-0.6%-0.8%
30 Day2.5%-5.6%-5.7%
90 Day8.0%4.4%8.6%
1 Year-18.7%-19.3%2.1%-0.3%16.4%13.8%
3 Year-24.7%-26.8%5.6%-3.0%36.9%27.8%
5 Year82.7%71.4%16.1%0.4%85.0%64.2%

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

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 ($118.01) is trading below our estimate of fair value ($1279.84)

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


Price To Earnings Ratio

PE vs Industry: SAFM is unprofitable, so we can't compare its PE Ratio to the US Food industry average.

PE vs Market: SAFM 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 SAFM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SAFM's PB Ratio (1.9x) is in line with the US Food industry average.


Next Steps

Future Growth

How is Sanderson Farms forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

124.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAFM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

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

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

Revenue vs Market: SAFM's revenue (4.7% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: SAFM's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SAFM's Return on Equity is forecast to be low in 3 years time (11.5%).


Next Steps

Past Performance

How has Sanderson Farms performed over the past 5 years?

-34.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SAFM is currently unprofitable.

Growing Profit Margin: SAFM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SAFM is unprofitable, and losses have increased over the past 5 years at a rate of 34.4% per year.

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

Earnings vs Industry: SAFM is unprofitable, making it difficult to compare its past year earnings growth to the Food industry (-4.5%).


Return on Equity

High ROE: SAFM has a negative Return on Equity (-1.61%), as it is currently unprofitable.


Next Steps

Financial Health

How is Sanderson Farms's financial position?


Financial Position Analysis

Short Term Liabilities: SAFM's short term assets ($610.3M) exceed its short term liabilities ($219.1M).

Long Term Liabilities: SAFM's short term assets ($610.3M) exceed its long term liabilities ($270.2M).


Debt to Equity History and Analysis

Debt Level: SAFM's debt to equity ratio (6.8%) is considered satisfactory.

Reducing Debt: SAFM's debt to equity ratio has increased from 1% to 6.8% over the past 5 years.

Debt Coverage: SAFM's debt is well covered by operating cash flow (179.4%).

Interest Coverage: Insufficient data to determine if SAFM's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

1.47%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: SAFM's dividend (1.49%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.72%).

High Dividend: SAFM's dividend (1.49%) is low compared to the top 25% of dividend payers in the US market (4.94%).


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: SAFM is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: SAFM's dividends in 3 years are forecast to be well covered by earnings (25.4% payout ratio).


Next Steps

Management

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

15.9yrs

Average management tenure


CEO

Joe Sanderson (72 yo)

30.83yrs

Tenure

US$4,147,894

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 ($USD4.15M) is about average for companies of similar size in the US market ($USD5.75M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Joe Sanderson
Chairman & CEO30.83yrsUS$4.15m3.71%
$ 99.1m
Lampkin Butts
President & Director22.5yrsUS$1.44m0.49%
$ 13.1m
D. Cockrell
CFO, Chief Legal Officer22.5yrsUS$1.22m0.47%
$ 12.5m
Timothy Rigney
Corporate Secretary7.83yrsUS$447.61k0.066%
$ 1.8m
Edward Chisholm
Principal Operating Officer0.58yrno datano data
Brian Romano
Director of Administration & Human Resourcesno datano datano data
Robin Robinson
Director of Organization Development & Corporate Communicationno datano datano data
Hilary Burroughs
Director of Marketingno datano datano data
Bob Rosa
Chief Financial Analystno datano datano data

15.9yrs

Average Tenure

62yo

Average Age

Experienced Management: SAFM's management team is seasoned and experienced (15.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Joe Sanderson
Chairman & CEO30.83yrsUS$4.15m3.71%
$ 99.1m
Lampkin Butts
President & Director22.5yrsUS$1.44m0.49%
$ 13.1m
D. Cockrell
CFO, Chief Legal Officer22.5yrsUS$1.22m0.47%
$ 12.5m
John Baker
Independent Director26.67yrsUS$243.46k0.097%
$ 2.6m
Phil Livingston
Independent Lead Directorno dataUS$277.41k0.046%
$ 1.2m
Edith Kelly-Green
Independent Director2yrsUS$232.06k0.014%
$ 362.1k
Gail Pittman
Independent Director18.67yrsUS$254.90k0.076%
$ 2.0m
Beverly Hogan
Independent Director16.58yrsUS$231.90k0.075%
$ 2.0m
Suzanne Mestayer
Independent Director3.17yrsUS$265.05k0.020%
$ 539.8k
John Bierbusse
Director14.5yrsUS$224.68k0.040%
$ 1.1m
Toni Cooley
Independent Director13.67yrsUS$241.85k0.11%
$ 3.0m
Fred Banks
Independent Director13.67yrsUS$279.67k0.11%
$ 3.0m

16.6yrs

Average Tenure

67.5yo

Average Age

Experienced Board: SAFM's board of directors are seasoned and experienced ( 16.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SAFM insiders have only sold shares 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 company bio, 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$2.668b
  • Shares outstanding: 22.24m
  • Website: https://www.sandersonfarms.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SAFMNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 1987
SF9DB (Deutsche Boerse AG)YesCommon StockDEEURMay 1987

Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/29 00:29
End of Day Share Price2020/09/28 00:00
Earnings2020/07/31
Annual Earnings2019/10/31


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.