The Simply Good Foods Company [NASDAQ:SMPL]: Analyst Rating and Earnings
Stock market traders oftentimes pay a lot of attention to what top analysts say regarding a potential investment. Regarding The Simply Good Foods Company [SMPL], the latest average analyst recommendation we can see is from the quarter closing in August. On average, stock market experts give SMPL an Outperform rating. The average 12-month price forecast for this stock is $22.43, with the high estimate being $23.00, the low estimate being $22.00 and the median estimate amounting to $22.00. This is compared to its latest closing price of $19.62.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for The Simply Good Foods Company [SMPL] is sitting at 1.57. This is compared to 1 month ago, when its average rating was 1.57.
For the quarter ending in Nov-18 The Simply Good Foods Company [SMPL] generated $0.12 billion in sales. That’s 1.29% lower than the average estimate of $0.12 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Pay attention for this company’s financial results, of which the next release is scheduled to happen on Tue 9 Apr (In 88 Days).
Fundamental Analysis of The Simply Good Foods Company [SMPL]
Now let’s turn to look at profitability: with a current Operating Margin for The Simply Good Foods Company [SMPL] sitting at +14.87 and its Gross Margin at +46.33, this company’s Net Margin is now 16.90%. These measurements indicate that The Simply Good Foods Company [SMPL] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 7.63, and its Return on Invested Capital has reached 6.00%. Its Return on Equity is 11.08, and its Return on Assets is 7.43. These metrics show a mixed bag, which means that this investment’s attractiveness can be quickly increased or decreased in the short term, depending on future updates SMPL financial performance.
Turning to investigate this organization’s capital structure, The Simply Good Foods Company [SMPL] has generated a Total Debt to Total Equity ratio of 28.48. Similarly, its Total Debt to Total Capital is 22.17, while its Total Debt to Total Assets stands at 19.66. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 28.39, and its Long-Term Debt to Total Capital is 22.09. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 22.90 and its Total Debt to EBITDA Value is 2.67. The Enterprise Value to Sales for this firm is now 3.69, and its Total Debt to Enterprise Value stands at 0.14. The Simply Good Foods Company [SMPL] has a Price to Book Ratio of 1.89, a Price to Cash Flow Ratio of 21.70 and P/E Ratio of 20.42. These metrics suggest that this publicly-traded organization will not likely result in investment gains.
Shifting the focus to workforce efficiency, The Simply Good Foods Company [SMPL] earns $3,059,780 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 11.69 and its Total Asset Turnover is 0.45. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 5.09 and its Current Ratio is 6.07. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: The Simply Good Foods Company [SMPL] has 81.06M shares outstanding, amounting to a total market cap of $1.57B. Its stock price has been found in the range of 12.14 to 21.03. At its current price, it has moved by -7.75% from its 52-week high, and it has moved 59.80% from its 52-week low.
This stock’s Beta value is currently , which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 54.23. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is The Simply Good Foods Company [SMPL] a Reliable Buy?
The Simply Good Foods Company [SMPL] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.