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Sanderson Farms

Nasdaq:SAFM
Snowflake Description

Adequate balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SAFM
Nasdaq
$3B
Market Cap
  1. Home
  2. US
  3. Food, Beverage & Tobacco
Company description

Sanderson Farms, Inc., an integrated poultry processing company, produces, processes, markets, and distributes fresh, frozen, and prepared chicken products in the United States. The last earnings update was 17 days ago. More info.


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SAFM Share Price and Events
7 Day Returns
1.5%
NasdaqGS:SAFM
1.3%
US Food
0.5%
US Market
1 Year Returns
39.1%
NasdaqGS:SAFM
0.9%
US Food
0.8%
US Market
SAFM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Sanderson Farms (SAFM) 1.5% -5.5% 13.2% 39.1% 77.4% 49.2%
US Food 1.3% 1.4% 8.8% 0.9% -10.9% 23%
US Market 0.5% -0.1% 1% 0.8% 37.5% 37.5%
1 Year Return vs Industry and Market
  • SAFM outperformed the Food industry which returned 0.9% over the past year.
  • SAFM outperformed the Market in United States of America which returned 0.8% over the past year.
Price Volatility
SAFM
Industry
5yr Volatility vs Market

SAFM Value

 Is Sanderson Farms undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Sanderson Farms to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Sanderson Farms.

NasdaqGS:SAFM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:SAFM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Food Unlevered Beta Simply Wall St/ S&P Global 0.55
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.545 (1 + (1- 21%) (3.13%))
0.704
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NasdaqGS:SAFM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Sanderson Farms is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:SAFM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.5%)
2019 3.10 Analyst x1 2.88
2020 125.00 Analyst x1 108.17
2021 163.86 Est @ 31.09% 131.91
2022 200.86 Est @ 22.58% 150.42
2023 234.26 Est @ 16.63% 163.19
2024 263.44 Est @ 12.46% 170.72
2025 288.57 Est @ 9.54% 173.96
2026 310.20 Est @ 7.5% 173.95
2027 329.02 Est @ 6.07% 171.64
2028 345.68 Est @ 5.07% 167.75
Present value of next 10 years cash flows $1,414.59
NasdaqGS:SAFM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $345.68 × (1 + 2.73%) ÷ (7.5% – 2.73%)
$7,447.96
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $7,447.96 ÷ (1 + 7.5%)10
$3,614.38
NasdaqGS:SAFM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,414.59 + $3,614.38
$5,028.96
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $5,028.96 / 22.15
$227
NasdaqGS:SAFM Discount to Share Price
Calculation Result
Value per share (USD) From above. $227.00
Current discount Discount to share price of $144.23
= -1 x ($144.23 - $227.00) / $227.00
36.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Sanderson Farms is available for.
Intrinsic value
36%
Share price is $144.23 vs Future cash flow value of $227
Current Discount Checks
For Sanderson Farms to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Sanderson Farms's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Sanderson Farms's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Sanderson Farms's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Sanderson Farms's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:SAFM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-04-30) in USD $-0.40
NasdaqGS:SAFM Share Price ** NasdaqGS (2019-06-14) in USD $144.23
United States of America Food Industry PE Ratio Median Figure of 43 Publicly-Listed Food Companies 24.84x
United States of America Market PE Ratio Median Figure of 3,094 Publicly-Listed Companies 17.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Sanderson Farms.

NasdaqGS:SAFM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:SAFM Share Price ÷ EPS (both in USD)

= 144.23 ÷ -0.40

-361.63x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sanderson Farms is loss making, we can't compare its value to the US Food industry average.
  • Sanderson Farms is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Sanderson Farms's expected growth come at a high price?
Raw Data
NasdaqGS:SAFM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -361.63x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
91.7%per year
United States of America Food Industry PEG Ratio Median Figure of 31 Publicly-Listed Food Companies 1.56x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Sanderson Farms, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Sanderson Farms's assets?
Raw Data
NasdaqGS:SAFM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-04-30) in USD $63.23
NasdaqGS:SAFM Share Price * NasdaqGS (2019-06-14) in USD $144.23
United States of America Food Industry PB Ratio Median Figure of 70 Publicly-Listed Food Companies 1.97x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NasdaqGS:SAFM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:SAFM Share Price ÷ Book Value per Share (both in USD)

= 144.23 ÷ 63.23

2.28x

* Primary Listing of Sanderson Farms.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sanderson Farms is overvalued based on assets compared to the US Food industry average.
X
Value checks
We assess Sanderson Farms's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Food industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Food industry average (and greater than 0)? (1 check)
  5. Sanderson Farms has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SAFM Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
91.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Sanderson Farms expected to grow at an attractive rate?
  • Sanderson Farms's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Sanderson Farms's earnings growth is expected to exceed the United States of America market average.
  • Sanderson Farms's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:SAFM Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:SAFM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 91.7%
NasdaqGS:SAFM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 7.4%
United States of America Food Industry Earnings Growth Rate Market Cap Weighted Average 21.1%
United States of America Food Industry Revenue Growth Rate Market Cap Weighted Average 3.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:SAFM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:SAFM Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-10-31 3,896 1
2020-10-31 3,839 321 240 6
2019-10-31 3,537 246 162 6
NasdaqGS:SAFM Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-04-30 3,239 135 -9
2019-01-31 3,207 85 -8
2018-10-31 3,236 131 61
2018-07-31 3,358 203 175
2018-04-30 3,437 336 278
2018-01-31 3,426 394 302
2017-10-31 3,342 409 275
2017-07-31 3,213 412 278
2017-04-30 3,009 308 218
2017-01-31 2,899 357 199
2016-10-31 2,816 297 186
2016-07-31 2,705 255 138

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Sanderson Farms's earnings are expected to grow significantly at over 20% yearly.
  • Sanderson Farms's revenue is expected to grow by 7.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:SAFM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Sanderson Farms Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SAFM Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-10-31
2020-10-31 9.77 14.59 2.91 6.00
2019-10-31 6.97 8.11 5.92 5.00
NasdaqGS:SAFM Past Financials Data
Date (Data in USD Millions) EPS *
2019-04-30 -0.40
2019-01-31 -0.35
2018-10-31 2.70
2018-07-31 7.78
2018-04-30 12.37
2018-01-31 13.48
2017-10-31 12.30
2017-07-31 12.46
2017-04-30 9.78
2017-01-31 8.94
2016-10-31 8.37
2016-07-31 6.24

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Sanderson Farms will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Sanderson Farms's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Sanderson Farms has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SAFM Past Performance

  How has Sanderson Farms performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Sanderson Farms's growth in the last year to its industry (Food).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Sanderson Farms does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Sanderson Farms's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Sanderson Farms's 1-year growth to the US Food industry average as it is not currently profitable.
Earnings and Revenue History
Sanderson Farms's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Sanderson Farms Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SAFM Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-04-30 3,239.20 -8.81 222.12
2019-01-31 3,207.44 -7.75 227.93
2018-10-31 3,236.00 60.55 221.97
2018-07-31 3,357.80 174.91 227.95
2018-04-30 3,437.26 277.66 234.20
2018-01-31 3,425.83 302.28 222.81
2017-10-31 3,342.23 275.46 216.30
2017-07-31 3,213.10 278.49 196.74
2017-04-30 3,009.19 218.29 179.27
2017-01-31 2,899.24 199.18 175.67
2016-10-31 2,816.06 186.03 159.89
2016-07-31 2,704.84 138.32 155.07
2016-04-30 2,716.78 134.57 157.84
2016-01-31 2,741.28 157.55 147.30
2015-10-31 2,803.48 211.83 155.11
2015-07-31 2,884.74 275.34 154.77
2015-04-30 2,913.20 299.23 153.12
2015-01-31 2,857.33 278.98 153.53
2014-10-31 2,774.85 242.27 139.03
2014-07-31 2,741.06 195.68 129.55
2014-04-30 2,711.63 187.65 113.36
2014-01-31 2,672.10 162.01 103.28
2013-10-31 2,682.98 126.91 100.25
2013-07-31 2,604.30 91.98 90.23
2013-04-30 2,490.19 53.86 81.43
2013-01-31 2,464.04 53.38 79.76
2012-10-31 2,386.11 52.33 77.10
2012-07-31 2,297.57 21.69 74.76

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Sanderson Farms has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Sanderson Farms has efficiently used its assets last year compared to the US Food industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Sanderson Farms improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Sanderson Farms's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Food industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Sanderson Farms has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SAFM Health

 How is Sanderson Farms's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Sanderson Farms's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Sanderson Farms is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Sanderson Farms's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Sanderson Farms's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 5.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Sanderson Farms Company Filings, last reported 1 month ago.

NasdaqGS:SAFM Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-04-30 1,400.71 100.00 96.94
2019-01-31 1,363.21 60.00 74.71
2018-10-31 1,387.89 0.00 121.19
2018-07-31 1,525.01 0.00 288.28
2018-04-30 1,517.95 0.00 327.26
2018-01-31 1,478.33 0.00 388.90
2017-10-31 1,432.86 0.00 419.29
2017-07-31 1,393.51 0.00 398.27
2017-04-30 1,279.29 0.00 246.28
2017-01-31 1,213.64 0.00 225.82
2016-10-31 1,190.26 0.00 234.11
2016-07-31 1,142.28 0.00 242.98
2016-04-30 1,089.44 0.00 223.12
2016-01-31 1,039.17 10.00 155.11
2015-10-31 1,029.86 10.00 196.66
2015-07-31 1,021.56 10.00 180.84
2015-04-30 972.95 10.00 153.63
2015-01-31 963.09 20.00 173.10
2014-10-31 897.95 20.00 165.61
2014-07-31 822.55 20.00 139.33
2014-04-30 748.18 29.82 84.41
2014-01-31 696.83 40.02 58.82
2013-10-31 671.60 40.21 85.56
2013-07-31 628.41 87.91 62.88
2013-04-30 560.94 150.60 24.09
2013-01-31 539.68 160.78 23.82
2012-10-31 550.08 160.97 27.80
2012-07-31 543.55 156.54 26.62
  • Sanderson Farms's level of debt (7.1%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (4% vs 7.1% today).
  • Debt is well covered by operating cash flow (135.2%, greater than 20% of total debt).
  • Unable to confirm if the interest payments on Sanderson Farms's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Sanderson Farms's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Sanderson Farms has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SAFM Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.89%
Current annual income from Sanderson Farms dividends. Estimated to be 0.93% next year.
If you bought $2,000 of Sanderson Farms shares you are expected to receive $18 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Sanderson Farms's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • Sanderson Farms's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:SAFM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
United States of America Food Industry Average Dividend Yield Market Cap Weighted Average of 30 Stocks 2.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:SAFM Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-10-31 1.50 2.00
2020-10-31 1.29 4.00
2019-10-31 1.32 4.00
NasdaqGS:SAFM Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-25 1.280 0.872
2019-01-17 1.280 1.018
2018-09-20 1.280 1.245
2018-07-19 2.280 2.207
2018-04-19 2.280 2.150
2018-01-18 2.280 1.851
2017-09-21 2.280 1.511
2017-07-20 1.960 1.393
2017-04-27 1.960 1.655
2017-01-19 1.960 2.012
2016-09-22 1.960 2.185
2016-07-28 1.380 1.489
2016-04-28 1.380 1.584
2016-01-21 1.380 1.589
2015-09-16 1.380 1.916
2015-07-23 0.880 1.259
2015-04-23 0.880 1.145
2015-01-22 0.880 1.092
2014-09-18 0.880 1.030
2014-07-24 0.800 0.859
2014-04-24 0.800 0.874
2014-01-23 0.800 1.053
2013-09-19 0.800 1.183
2013-07-25 0.680 0.982
2013-04-25 0.680 1.020
2013-01-24 0.680 1.266
2012-09-20 0.680 1.444
2012-07-26 0.680 1.654
2012-04-26 0.680 1.413
2012-01-24 0.680 1.333
2011-09-22 0.680 1.382
2011-07-28 0.680 1.639
2011-05-24 0.680 1.513
2011-01-27 0.680 1.518
2010-09-23 0.680 1.654
2010-07-22 0.600 1.362
2010-04-22 0.600 1.122
2010-01-28 0.600 1.152
2009-09-24 0.600 1.476
2009-07-23 0.560 1.391

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Sanderson Farms's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (6.8x coverage).
X
Income/ dividend checks
We assess Sanderson Farms's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Sanderson Farms afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Sanderson Farms has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SAFM Management

 What is the CEO of Sanderson Farms's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Joe Sanderson
COMPENSATION $4,226,166
AGE 70
TENURE AS CEO 29.6 years
CEO Bio

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 Farms, Inc. from November 1, 1989 to October 21, 2004. He has been Co-Chairman at Capital Campaign for Children’s of Mississippi since 2016. He has been Member, Board of Trustees of the National WWII Museum, since 2016. He has been President at Mississippi Manufacturers’ Association, from 1992 to 1993. He serves as Chairman at National Chicken Council, from 1993 to 1994. Mr. Sanderson has been a Director of Sanderson Farms, Inc. since 1984. From January 1984 to November 1989, Mr. Sanderson served as Vice-President, Processing and Marketing of Sanderson Farms, Inc. He hold the Bachelor of Arts at Millsaps College.

CEO Compensation
  • Joe's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Joe's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Sanderson Farms management team in years:

20.1
Average Tenure
63.5
Average Age
  • The average tenure for the Sanderson Farms management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Joe Sanderson

TITLE
Chairman & CEO
COMPENSATION
$4M
AGE
70
TENURE
29.6 yrs

Lampkin Butts

TITLE
President
COMPENSATION
$1M
AGE
67
TENURE
14.7 yrs

Mike Cockrell

TITLE
CFO, Treasurer & Director
COMPENSATION
$1M
AGE
60
TENURE
25.6 yrs

Tim Rigney

TITLE
Corporate Secretary
COMPENSATION
$439K
AGE
54
TENURE
6.6 yrs

Brian Romano

TITLE
Director of Administration & Human Resources

Robin Robinson

TITLE
Director of Organization Development & Corporate Communication

Hilary Burroughs

TITLE
Director of Marketing

Bob Rosa

TITLE
Chief Financial Analyst
Board of Directors Tenure

Average tenure and age of the Sanderson Farms board of directors in years:

17.4
Average Tenure
66
Average Age
  • The average tenure for the Sanderson Farms board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Joe Sanderson

TITLE
Chairman & CEO
COMPENSATION
$4M
AGE
70
TENURE
21.4 yrs

Lampkin Butts

TITLE
President
COMPENSATION
$1M
AGE
67
TENURE
21.3 yrs

Mike Cockrell

TITLE
CFO, Treasurer & Director
COMPENSATION
$1M
AGE
60
TENURE
21.3 yrs

Phil Livingston

TITLE
Lead Director
COMPENSATION
$281K
AGE
74

Gail Pittman

TITLE
Independent Director
COMPENSATION
$261K
AGE
64
TENURE
17.4 yrs

Fred Banks

TITLE
Independent Director
COMPENSATION
$280K
AGE
75
TENURE
12.4 yrs

Toni Cooley

TITLE
Independent Director
COMPENSATION
$241K
AGE
57
TENURE
12.4 yrs

Suzanne Mestayer

TITLE
Independent Director
COMPENSATION
$236K
AGE
65
TENURE
1.9 yrs

Edith Kelly-Green

TITLE
Independent Director
COMPENSATION
$10K
AGE
65
TENURE
0.8 yrs

John Baker

TITLE
Independent Director
COMPENSATION
$239K
AGE
76
TENURE
25.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
19. Mar 19 Sell Lampkin Butts Individual 15. Mar 19 15. Mar 19 -10,000 $129.07 $-1,278,236
28. Feb 19 Sell John Bierbusse Individual 27. Feb 19 27. Feb 19 -677 $113.94 $-77,137
27. Dec 18 Sell Gail Pittman Individual 26. Dec 18 26. Dec 18 -300 $97.08 $-29,104
29. Aug 18 Sell Phil Livingston Individual 27. Aug 18 27. Aug 18 -500 $107.19 $-53,572
27. Aug 18 Sell John Bierbusse Individual 24. Aug 18 24. Aug 18 -875 $109.94 $-96,198
X
Management checks
We assess Sanderson Farms's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Sanderson Farms has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SAFM News

Simply Wall St News

Are Dividend Investors Making A Mistake With Sanderson Farms, Inc. (NASDAQ:SAFM)?

(NASDAQ:SAFM) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. If you are hoping to live on your dividends, it's important to be more stringent with your investments than the average punter. Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful. A 0.9% yield is nothing to get excited about, but investors probably think the long payment history suggests Sanderson Farms has some staying power. The company also bought back stock during the year, equivalent to approximately 2.7% of the company's market capitalisation at the time. When buying stocks for their dividends, you should always run through the checks below, to see if the dividend looks sustainable. Explore this interactive chart for our latest analysis on Sanderson Farms! NasdaqGS:SAFM Historical Dividend Yield, June 3rd 2019 Payout ratios Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Although it reported a loss over the past 12 months, Sanderson Farms currently pays a dividend. When a company recently reported a loss, we should investigate if its cash flows covered the dividend. Last year, Sanderson Farms paid a dividend while reporting negative free cash flow. While there may be an explanation, we think this behaviour is generally not sustainable. Consider getting our latest analysis on Sanderson Farms's financial position here. Dividend Volatility Before buying a stock for its income, we want to see if the dividends have been stable in the past, and if the company has a track record of maintaining its dividend. Sanderson Farms has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. This dividend has been unstable, which we define as having fallen by at least 20% one or more times over this time. During the past ten-year period, the first annual payment was US$0.56 in 2009, compared to US$1.28 last year. Dividends per share have grown at approximately 8.6% per year over this time. The dividends haven't grown at precisely 8.6% every year, but this is a useful way to average out the historical rate of growth. A reasonable rate of dividend growth is good to see, but we're wary that the dividend history is not as solid as we'd like, having been cut at least once. Dividend Growth Potential Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. In the last five years, Sanderson Farms's earnings per share have shrunk at approximately 14% per annum. Declining earnings per share over a number of years is not a great sign for the dividend investor. Without some improvement, this does not bode well for the long term value of a company's dividend. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. … Sanderson Farms's dividend is not well covered by free cash flow, plus it paid a dividend while being unprofitable. … Second, earnings per share have been in decline, and its dividend has been cut at least once in the past.

Simply Wall St -

Read This Before Buying Sanderson Farms, Inc. (NASDAQ:SAFM) Shares

So shareholders might well want to know whether insiders have been buying or selling shares in Sanderson Farms, Inc. … See our latest analysis for Sanderson Farms The Last 12 Months Of Insider Transactions At Sanderson Farms In the last twelve months, the biggest single sale by an insider was when the President, Lampkin Butts, sold US$1.3m worth of shares at a price of US$129 per share. … Insiders at Sanderson Farms Have Sold Stock Recently The last three months saw significant insider selling at Sanderson Farms.

Simply Wall St -

Is Sanderson Farms, Inc.'s (NASDAQ:SAFM) CEO Pay Fair?

In 1989 Joe Sanderson was appointed CEO of Sanderson Farms, Inc. … This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Joe Sanderson's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Update: Sanderson Farms (NASDAQ:SAFM) Stock Gained 68% In The Last Five Years

One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Sanderson Farms's earnings per share are down 6.6% per year, despite strong share price performance over five years. … Because earnings per share don't seem to match up with the share price, we'll take a look at other metrics instead.

Simply Wall St -

Why Sanderson Farms, Inc. (NASDAQ:SAFM) Is A Financially Healthy Company

Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as Sanderson Farms, Inc. … Let’s take a look at SAFM’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself.

Simply Wall St -

Sanderson Farms, Inc. (NASDAQ:SAFM): What Can We Expect From This High Growth Stock?

Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … Sanderson Farms, Inc.'s (NASDAQ:SAFM) most recent earnings update in October 2018

Simply Wall St -

Is Sanderson Farms, Inc.'s (NASDAQ:SAFM) CEO Being Overpaid?

First, this article will compare CEO compensation with compensation at similar sized companies. … Check out our latest analysis for Sanderson Farms? … How Does Joe Sanderson's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Need To Know: Sanderson Farms, Inc. (NASDAQ:SAFM) Insiders Have Been Selling Shares

So we'll take a look at whether insiders have been buying or selling shares in Sanderson Farms, Inc. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … Over the last year we saw more insider selling of Sanderson Farms shares, than buying

Simply Wall St -

Why Sanderson Farms, Inc.’s (NASDAQ:SAFM) Return On Capital Employed Looks Uninspiring

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Top Bear Market Investment: Sanderson Farms Inc (NASDAQ:SAFM)

Longstanding stocks such as Sanderson Farms Inc has fared well over time in a volatile stock market, which is why it’s my top pick to invest in. … See our latest analysis for Sanderson Farms. … Sanderson Farms, Inc., an integrated poultry processing company, produces, processes, markets, and distributes fresh, frozen, and prepared chicken products in the United States

Simply Wall St -

SAFM Company Info

Description

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, Inc. was founded in 1947 and is headquartered in Laurel, Mississippi.

Details
Name: Sanderson Farms, Inc.
SAFM
Exchange: NasdaqGS
Founded: 1947
$3,195,306,756
22,154,245
Website: http://www.sandersonfarms.com
Address: Sanderson Farms, Inc.
127 Flynt Road,
Laurel,
Mississippi, 39443,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS SAFM Common Stock Nasdaq Global Select US USD 19. May 1987
DB SF9 Common Stock Deutsche Boerse AG DE EUR 19. May 1987
Number of employees
Current staff
Staff numbers
15,104
Sanderson Farms employees.
Industry
Packaged Foods and Meats
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/16 23:44
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/05/31
Last earnings filing: 2019/05/30
Last earnings reported: 2019/04/30
Last annual earnings reported: 2018/10/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.