NasdaqCM:SMPL

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Fair value with moderate growth potential.


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

Stable Share Price: SMPL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.3%

SMPL

2.4%

US Food

2.0%

US Market


1 Year Return

-18.2%

SMPL

3.6%

US Food

7.1%

US Market

Return vs Industry: SMPL underperformed the US Food industry which returned 3.6% over the past year.

Return vs Market: SMPL underperformed the US Market which returned 7.1% over the past year.


Shareholder returns

SMPLIndustryMarket
7 Day8.3%2.4%2.0%
30 Day5.1%0.3%6.0%
90 Day-19.0%3.0%-0.05%
1 Year-18.2%-18.2%6.2%3.6%9.5%7.1%
3 Year51.0%51.0%-6.8%-14.3%30.7%22.1%
5 Yearn/a26.6%11.6%55.6%38.0%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SMPL ($17.88) is trading below our estimate of fair value ($45.06)

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


Price To Earnings Ratio

PE vs Industry: SMPL is poor value based on its PE Ratio (61.3x) compared to the Food industry average (21x).

PE vs Market: SMPL is poor value based on its PE Ratio (61.3x) compared to the US market (15.6x).


Price to Earnings Growth Ratio

PEG Ratio: SMPL is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: SMPL is good value based on its PB Ratio (1.4x) compared to the US Food industry average (2x).


Next Steps

Future Growth

How is Simply Good Foods forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

26.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SMPL's forecast earnings growth (26.3% per year) is above the savings rate (2.2%).

Earnings vs Market: SMPL's earnings (26.3% per year) are forecast to grow faster than the US market (21.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SMPL's revenue (8.6% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: SMPL's revenue (8.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SMPL's Return on Equity is forecast to be low in 3 years time (6.9%).


Next Steps

Past Performance

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

40.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SMPL has a large one-off loss of $49.2M impacting its February 29 2020 financial results.

Growing Profit Margin: SMPL's current net profit margins (3.9%) are lower than last year (10.2%).


Past Earnings Growth Analysis

Earnings Trend: SMPL's earnings have grown significantly by 40.5% per year over the past 5 years.

Accelerating Growth: SMPL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SMPL had negative earnings growth (-46.2%) over the past year, making it difficult to compare to the Food industry average (-1%).


Return on Equity

High ROE: SMPL's Return on Equity (2.1%) is considered low.


Next Steps

Financial Health

How is Simply Good Foods's financial position?


Financial Position Analysis

Short Term Liabilities: SMPL's short term assets ($235.6M) exceed its short term liabilities ($74.3M).

Long Term Liabilities: SMPL's short term assets ($235.6M) do not cover its long term liabilities ($730.0M).


Debt to Equity History and Analysis

Debt Level: SMPL's debt to equity ratio (52.1%) is considered high.

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 not well covered by operating cash flow (5.8%).

Interest Coverage: SMPL's interest payments on its debt are well covered by EBIT (5.5x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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

2.8yrs

Average management tenure


CEO

Joe Scalzo (60yo)

2.83yrs

Tenure

US$3,659,783

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: Joe's total compensation ($USD3.66M) is about average for companies of similar size in the US market ($USD4.80M).

Compensation vs Earnings: Joe's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Joseph Scalzo
CEO, President & Director2.83yrsUS$3.66m0.40% $6.9m
Todd Cunfer
Chief Financial Officer2.75yrsUS$1.29m0.016% $268.3k
Hanno Holm
Chief Operations Officer2.83yrsUS$915.82kno data
Timothy Kraft
Chief Legal Officerno dataUS$1.58m0.0047% $80.2k
C. Parker
Chief Marketing Officer2.83yrsUS$1.58m0.096% $1.6m
Timothy Matthews
VP, Controller & Chief Accounting Officer2.83yrsno datano data
Mark Pogharian
Vice President of Investor Relationsno datano datano data
Jill Clark
Chief Customer Officer2.75yrsno data0.038% $644.5k

2.8yrs

Average Tenure

51yo

Average Age

Experienced Management: SMPL's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Joseph Scalzo
CEO, President & Director2.83yrsUS$3.66m0.40% $6.9m
Brian Ratzan
Independent Director3.33yrsUS$149.99k0.082% $1.4m
Clayton Daley
Independent Director3.33yrsUS$157.49k0.075% $1.3m
James Healey
Independent Director3.33yrsUS$159.99k0.055% $932.7k
Michelle Goolsby
Independent Director0.92yrUS$34.72k0.010% $178.7k
Arvin Kash
Independent Director2.83yrsUS$149.99k0.029% $492.3k
James Kilts
Independent Chairman of the Board2.83yrsUS$174.99k1.01% $17.2m
David West
Vice Chairman2.83yrsUS$174.99k0.013% $224.1k
Robert Montgomery
Independent Director2.83yrsUS$149.99k0.048% $814.1k
Nomi Ghez
Independent Director2.83yrsUS$154.99k0.14% $2.5m

2.8yrs

Average Tenure

66.5yo

Average Age

Experienced Board: SMPL's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: SMPL insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.4%.


Top Shareholders

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$1.705b
  • Shares outstanding: 95.38m
  • 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 confectionery products under the Atkins, SimplyProtein, and Atkins Endulge brand names. The company is headquartered in Denver, Colorado. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/28 05:34
End of Day Share Price2020/05/27 00:00
Earnings2020/02/29
Annual Earnings2019/08/31


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.