NYSEAM:SEB

Stock Analysis Report

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Market Cap

US$4.4b

Last Updated

2021/06/19 01:38 UTC

Data Sources

Company Financials

Executive Summary

Seaboard Corporation operates as an agribusiness and transportation company worldwide. More Details


Snowflake Analysis

Excellent balance sheet and fair value.

Share Price & News

How has Seaboard's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SEB is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: SEB's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-0.3%

SEB

-2.4%

US Food

-0.2%

US Market


1 Year Return

21.8%

SEB

17.5%

US Food

39.4%

US Market

Return vs Industry: SEB exceeded the US Food industry which returned 17.5% over the past year.

Return vs Market: SEB underperformed the US Market which returned 39.4% over the past year.


Shareholder returns

SEBIndustryMarket
7 Day-0.3%-2.4%-0.2%
30 Day0.5%-1.6%3.1%
90 Day-0.7%3.5%5.6%
1 Year22.1%21.8%20.3%17.5%41.7%39.4%
3 Year-6.5%-7.2%30.9%20.3%59.7%49.9%
5 Year37.3%36.0%20.7%4.1%122.6%97.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Seaboard undervalued compared to its fair value and its price relative to the market?

7.72x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SEB ($3758.95) is trading above our estimate of fair value ($238.35)

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


Price To Earnings Ratio

PE vs Industry: SEB is good value based on its PE Ratio (7.7x) compared to the US Food industry average (22.4x).

PE vs Market: SEB is good value based on its PE Ratio (7.7x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SEB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SEB is good value based on its PB Ratio (1.1x) compared to the US Food industry average (2.3x).


Future Growth

How is Seaboard forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.8%

Forecasted Food, Beverage & Tobacco industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Seaboard has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Seaboard performed over the past 5 years?

-6.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SEB has a large one-off gain of $225.0M impacting its April 3 2021 financial results.

Growing Profit Margin: SEB's current net profit margins (7.5%) are higher than last year (1.7%).


Past Earnings Growth Analysis

Earnings Trend: SEB's earnings have declined by 6.3% per year over the past 5 years.

Accelerating Growth: SEB's earnings growth over the past year (366.2%) exceeds its 5-year average (-6.3% per year).

Earnings vs Industry: SEB earnings growth over the past year (366.2%) exceeded the Food industry 23.6%.


Return on Equity

High ROE: SEB's Return on Equity (14.1%) is considered low.


Financial Health

How is Seaboard's financial position?


Financial Position Analysis

Short Term Liabilities: SEB's short term assets ($3.6B) exceed its short term liabilities ($1.2B).

Long Term Liabilities: SEB's short term assets ($3.6B) exceed its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: SEB's debt to equity ratio (26.3%) is considered satisfactory.

Reducing Debt: SEB's debt to equity ratio has increased from 22.9% to 26.3% over the past 5 years.

Debt Coverage: SEB's debt is well covered by operating cash flow (23.3%).

Interest Coverage: SEB earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Seaboard current dividend yield, its reliability and sustainability?

0.24%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SEB's dividend (0.24%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.29%).

High Dividend: SEB's dividend (0.24%) is low compared to the top 25% of dividend payers in the US market (3.43%).


Stability and Growth of Payments

Stable Dividend: SEB is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: SEB is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: SEB is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SEB'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?

1.5yrs

Average management tenure


CEO

Bob Steer (60 yo)

0.92

Tenure

US$4,104,135

Compensation

Mr. Robert L. Steer, also known as Bob, has been the President and Chief Executive Officer of Seaboard Corporation since July 20, 2020. Mr. Steer served as the Chief Financial Officer of Seaboard Corporati...


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD4.10M) is about average for companies of similar size in the US market ($USD5.32M).

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


Leadership Team

Experienced Management: SEB's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: SEB's board of directors are not considered experienced ( 0.9 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: 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Seaboard Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Seaboard Corporation
  • Ticker: SEB
  • Exchange: NYSEAM
  • Founded: 1918
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$4.433b
  • Shares outstanding: 1.16m
  • Website: https://www.seaboardcorp.com

Number of Employees


Location

  • Seaboard Corporation
  • 9000 West 67th Street
  • Shawnee Mission
  • Merriam
  • Kansas
  • 66202
  • United States

Listings


Biography

Seaboard Corporation operates as an agribusiness and transportation company worldwide. It operates through six segments: Pork, Commodity Trading and Milling (CT&M), Marine, Sugar and Alcohol, Power, and Tu...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/19 01:38
End of Day Share Price2021/06/18 00:00
Earnings2021/04/03
Annual Earnings2020/12/31


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.