NasdaqCM:SANW

Stock Analysis Report

Executive Summary

S&W Seed Company, an agricultural company, engages in breeding, growing, processing, and selling alfalfa and sorghum seeds.


Snowflake Analysis

Flawless balance sheet and overvalued.


Similar Companies

Share Price & News

How has S&W Seed's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SANW has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.9%

SANW

0.5%

US Food

-0.09%

US Market


1 Year Return

-0.3%

SANW

15.4%

US Food

23.9%

US Market

Return vs Industry: SANW underperformed the US Food industry which returned 13.9% over the past year.

Return vs Market: SANW underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

SANWIndustryMarket
7 Day1.9%0.5%-0.09%
30 Day6.6%0.3%3.1%
90 Day3.3%8.4%10.4%
1 Year-0.3%-0.3%18.6%15.4%26.6%23.9%
3 Year-49.5%-49.5%1.8%-6.3%50.9%41.2%
5 Year-54.8%-54.8%44.6%27.6%78.1%58.5%

Price Volatility Vs. Market

How volatile is S&W Seed's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is S&W Seed undervalued compared to its fair value and its price relative to the market?

0.81x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: SANW ($2.13) is trading above our estimate of fair value ($1.98)

Significantly Below Fair Value: SANW is trading above our estimate of fair value.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: SANW is good value based on its PB Ratio (0.7x) compared to the US Food industry average (2.1x).


Next Steps

Future Growth

How is S&W Seed forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

26.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SANW is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: SANW is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: SANW is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: SANW's revenue is expected to decline over the next 3 years (-13.7% per year).

High Growth Revenue: SANW's revenue is forecast to decline over the next 3 years (-13.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SANW's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has S&W Seed performed over the past 5 years?

-40.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SANW is currently unprofitable.

Growing Profit Margin: SANW is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SANW is unprofitable, and losses have increased over the past 5 years at a rate of -40.1% per year.

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

Earnings vs Industry: SANW is unprofitable, making it difficult to compare its past year earnings growth to the Food industry (-12.1%).


Return on Equity

High ROE: SANW has a negative Return on Equity (-15.17%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is S&W Seed's financial position?


Financial Position Analysis

Short Term Liabilities: SANW's short term assets ($92.4M) exceed its short term liabilities ($42.8M).

Long Term Liabilities: SANW's short term assets ($92.4M) exceed its long term liabilities ($14.2M).


Debt to Equity History and Analysis

Debt Level: SANW's debt to equity ratio (22%) is considered satisfactory.

Reducing Debt: SANW's debt to equity ratio has reduced from 45% to 22% over the past 5 years.


Balance Sheet

Inventory Level: SANW has a high level of physical assets or inventory.

Debt Coverage by Assets: SANW's debt is covered by short term assets (assets are 4.4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable SANW has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SANW is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 14.8% per year.


Next Steps

Dividend

What is S&W Seed's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate SANW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SANW's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SANW's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SANW's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SANW's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of S&W Seed's salary, the management and board of directors tenure and is there insider trading?

1.9yrs

Average management tenure


CEO

Mark Wong (70yo)

2.6yrs

Tenure

US$1,312,547

Compensation

Mr. Mark W. Wong has been Chief Executive Officer and President of S&W Seed Company since June 20, 2017. Mr. Wong is the Founder of Colorado Financial Holdings, LLC and has been its Managing Partner & Mana ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD1.31M) is above average for companies of similar size in the US market ($USD519.76K).

Compensation vs Earnings: Mark's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

1.9yrs

Average Tenure

58yo

Average Age

Experienced Management: SANW's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

3.9yrs

Average Tenure

59yo

Average Age

Experienced Board: SANW's board of directors are considered experienced (3.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 36.3%.


Management Team

  • Mark Wong (70yo)

    CEO, President & Director

    • Tenure: 2.6yrs
    • Compensation: US$1.31m
  • Mark Grewal (63yo)

    Consultant

    • Tenure: 2.6yrs
    • Compensation: US$567.81k
  • Don Panter (57yo)

    Executive Vice President of Americas

    • Tenure: 1.3yrs
    • Compensation: US$645.37k
  • Matt Szot (45yo)

    Executive VP of Finance & Administration

    • Tenure: 9.8yrs
    • Compensation: US$667.22k
  • David Callachor (54yo)

    Executive Vice President of International

    • Tenure: 1.3yrs
  • Christine Hatcher

    Vice President of Finance

    • Tenure: 4.4yrs
  • Dennis Jury (59yo)

    Senior Vice President of International Production & Supply Chain

    • Tenure: 1.3yrs
    • Compensation: US$288.67k
  • Andrea McFarlane

    Global Director of Human Resources

    • Tenure: 0.2yrs

Board Members

  • Alex Matina (43yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$113.76k
  • Mark Wong (70yo)

    CEO, President & Director

    • Tenure: 2.6yrs
    • Compensation: US$1.31m
  • Rob Straus (49yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: US$86.67k
  • Consuelo Madere (58yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: US$83.23k
  • Chip Seidler (42yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: US$87.29k
  • David Fischhoff (66yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$84.83k
  • Mark Harvey (64yo)

    Chairman of the Board

    • Tenure: 5.1yrs
    • Compensation: US$177.00k
  • Alan Willits (60yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$107.83k

Company Information

S&W Seed Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: S&W Seed Company
  • Ticker: SANW
  • Exchange: NasdaqCM
  • Founded: 1980
  • Industry: Agricultural Products
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$77.400m
  • Shares outstanding: 33.30m
  • Website: https://www.swseedco.com

Number of Employees


Location

  • S&W Seed Company
  • 106 K Street
  • Suite 300
  • Sacramento
  • California
  • 95814
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SANWNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJun 2010
210DB (Deutsche Boerse AG)YesCommon StockDEEURJun 2010

Biography

S&W Seed Company, an agricultural company, engages in breeding, growing, processing, and selling alfalfa and sorghum seeds. The company sells its seeds to distributors and dealers in approximately 30 countries worldwide. S&W Seed Company was founded in 1980 and is headquartered in Sacramento, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/24 00:58
End of Day Share Price2020/01/23 00:00
Earnings2019/09/30
Annual Earnings2019/06/30


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.