NasdaqCM:SMPL

Stock Analysis Report

Executive Summary

The Simply Good Foods Company develops, markets, and sells branded nutritional foods and snack products in North America and internationally.

Snowflake

Fundamentals

Excellent balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Simply Good Foods's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.1%

SMPL

-1.2%

US Food

0.5%

US Market


1 Year Return

31.1%

SMPL

0.3%

US Food

6.8%

US Market

Return vs Industry: SMPL exceeded the US Food industry which returned 0.3% over the past year.

Return vs Market: SMPL exceeded the US Market which returned 6.8% over the past year.


Shareholder returns

SMPLIndustryMarket
7 Day1.1%-1.2%0.5%
30 Day-13.7%-2.9%-0.8%
90 Day-8.7%-1.8%-0.9%
1 Year31.1%31.1%3.2%0.3%9.2%6.8%
3 Year146.1%146.1%-2.1%-10.7%45.6%36.2%
5 Yearn/a44.2%27.0%63.2%45.4%

Price Volatility Vs. Market

How volatile is Simply Good Foods's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Simply Good Foods undervalued compared to its fair value and its price relative to the market?

36.99x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SMPL ($25.23) is trading above our estimate of fair value ($15.95)

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


Price To Earnings Ratio

PE vs Industry: SMPL is poor value based on its PE Ratio (37x) compared to the Food industry average (25.4x).

PE vs Market: SMPL is poor value based on its PE Ratio (37x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: SMPL is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: SMPL is overvalued based on its PB Ratio (2.5x) compared to the US Food industry average (2.1x).


Next Steps

Future Growth

How is Simply Good Foods forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

12.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SMPL's forecast earnings growth (12.2% per year) is above the savings rate (2.7%).

Earnings vs Market: SMPL's earnings (12.2% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: SMPL's earnings are forecast to grow, but not significantly.

Revenue vs Market: SMPL's revenue (7.2% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: SMPL's revenue (7.2% 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 SMPL's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Simply Good Foods performed over the past 5 years?

51.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SMPL's earnings have grown significantly by 51% per year over the past 5 years.

Accelerating Growth: SMPL's earnings growth over the past year (19.2%) is below its 5-year average (51% per year).

Earnings vs Industry: SMPL earnings growth over the past year (19.2%) exceeded the Food industry -22.7%.


Return on Equity

High ROE: SMPL's Return on Equity (6.4%) is considered low.


Return on Assets

ROA vs Industry: SMPL's Return on Assets is below or equal to the Food industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate SMPL's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Simply Good Foods's financial position?


Financial Position Analysis

Short Term Liabilities: SMPL's short term assets ($339.2M) exceeds its short term liabilities ($39.3M)

Long Term Liabilities: SMPL's short term assets (339.2M) exceeds its long term liabilities (255.3M)


Debt to Equity History and Analysis

Debt Level: SMPL's debt to equity ratio (23%) is considered satisfactory

Reducing Debt: Insufficient data to determine if SMPL's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: SMPL's debt is well covered by operating cash flow (40.5%).

Interest Coverage: SMPL's interest payments on its debt are well covered by EBIT (7.3x coverage).


Balance Sheet

Inventory Level: SMPL has a low level of unsold assets or inventory.

Debt Coverage by Assets: SMPL's debt is covered by short term assets (assets are 1.775070x debt).


Next Steps

Dividend

What is Simply Good Foods's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if SMPL'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 SMPL'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 Simply Good Foods's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Joe Scalzo (60yo)

2.3yrs

Tenure

US$1,663,246

Compensation

Mr. Joseph E. Scalzo, also known as Joe, serves as the Chief Executive Officer and President of Conyers Park Acquisition Corp. Mr. Scalzo has been the Chief Executive Officer and President of Atkins Nutrit ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Joe's total compensation is reasonable compared to companies of similar size in the US market.

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


Management Age and Tenure

2.3yrs

Average Tenure

54yo

Average Age

Experienced Management: SMPL's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

66.5yo

Average Age

Experienced Board: SMPL's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

SellUS$429,66819 Jul 19
Hanno Holm
EntityIndividual
Role
Chief Operating Officer
VP & COO
Shares15,983
Max PriceUS$26.90
SellUS$48,77311 Jul 19
Hanno Holm
EntityIndividual
Role
Chief Operating Officer
VP & COO
Shares1,750
Max PriceUS$27.87

Ownership Breakdown


Management Team

  • Jim Kilts (71yo)

    Chairman of the Board

    • Tenure: 3.5yrs
    • Compensation: US$149.33k
  • Dave West (56yo)

    Executive Vice Chairman

    • Tenure: 2.3yrs
    • Compensation: US$174.33k
  • Joe Scalzo (60yo)

    CEO, President & Director

    • Tenure: 2.3yrs
    • Compensation: US$1.66m
  • C. Parker (62yo)

    Chief Marketing Officer

    • Tenure: 2.3yrs
    • Compensation: US$975.33k
  • Tim Kraft (39yo)

    General Counsel & Secretary

    • Tenure: 0yrs
  • Hanno Holm (47yo)

    VP & COO

    • Tenure: 2.3yrs
  • Timothy Matthews (39yo)

    VP, Controller & Chief Accounting Officer

    • Tenure: 2.3yrs
  • Todd Cunfer (54yo)

    Chief Financial Officer

    • Tenure: 2.2yrs
    • Compensation: US$823.37k
  • Jill Clark (51yo)

    Chief Customer Officer

    • Tenure: 2.2yrs
  • Mark Pogharian

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Brian Ratzan (48yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: US$149.33k
  • Clayt Daley (67yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$156.83k
  • Jim Healey (77yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: US$159.33k
  • Michelle Goolsby (61yo)

    Director

    • Tenure: 0.3yrs
  • Rick Kash (76yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$149.33k
  • Jim Kilts (71yo)

    Chairman of the Board

    • Tenure: 3.5yrs
    • Compensation: US$149.33k
  • Dave West (56yo)

    Executive Vice Chairman

    • Tenure: 2.3yrs
    • Compensation: US$174.33k
  • Joe Scalzo (60yo)

    CEO, President & Director

    • Tenure: 2.3yrs
    • Compensation: US$1.66m
  • Robert Montgomery (66yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$149.33k
  • Nomi Ghez (72yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$154.33k

Company Information

The Simply Good Foods Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Simply Good Foods Company
  • Ticker: SMPL
  • Exchange: NasdaqCM
  • Founded:
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$2.402b
  • Shares outstanding: 95.22m
  • Website: https://www.thesimplygoodfoodscompany.com

Number of Employees


Location

  • The Simply Good Foods Company
  • 1225 17th Street
  • Suite 1000
  • Denver
  • Colorado
  • 80202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SMPLNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDSep 2016
76LBST (Boerse-Stuttgart)YesCommon StockDEEURSep 2016

Biography

The Simply Good Foods Company develops, markets, and sells branded nutritional foods and snack products in North America and internationally. It markets nutrition bars, ready-to-drink shakes, snacks, and c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 00:46
End of Day Share Price2019/10/18 00:00
Earnings2019/05/25
Annual Earnings2018/08/25


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.