Sanderson Farms, Inc.
Sanderson Farms, Inc. Fundamental Analysis
Sanderson Farms, Inc. (SAFM) shows moderate financial fundamentals with a PE ratio of 9.87, profit margin of 9.48%, and ROE of 27.84%. The company generates N/A in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 89.9/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze SAFM's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSAFM demonstrates superior asset utilization.
Valuation Score
ExcellentSAFM trades at attractive valuation levels.
Growth Score
ModerateSAFM shows steady but slowing expansion.
Financial Health Score
ExcellentSAFM maintains a strong and stable balance sheet.
Profitability Score
WeakSAFM struggles to sustain strong margins.
Key Financial Metrics
Is SAFM Expensive or Cheap?
P/E Ratio
SAFM trades at 9.87 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SAFM's PEG of 0.10 indicates potential undervaluation.
Price to Book
The market values Sanderson Farms, Inc. at 2.43 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.54 times EBITDA. This is generally considered low.
How Well Does SAFM Make Money?
Net Profit Margin
For every $100 in sales, Sanderson Farms, Inc. keeps $9.48 as profit after all expenses.
Operating Margin
Core operations generate 12.48 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $27.84 in profit for every $100 of shareholder equity.
ROA
Sanderson Farms, Inc. generates $19.41 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
FCF Per Share
Each share generates $20.76 in free cash annually.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.87
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.43
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.51
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.28
vs 25 benchmark
ROA
Return on assets percentage
0.19
vs 25 benchmark
ROCE
Return on capital employed
0.29
vs 25 benchmark
How SAFM Stacks Against Its Sector Peers
| Metric | SAFM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.87 | 23.01 | Better (Cheaper) |
| ROE | 27.84% | 1228.00% | Weak |
| Net Margin | 9.48% | -4010.00% (disorted) | Weak |
| Debt/Equity | 0.02 | 0.78 | Strong (Low Leverage) |
| Current Ratio | 3.51 | 2.35 | Strong Liquidity |
| ROA | 19.41% | -157546.00% (disorted) | Strong |
SAFM outperforms its industry in 4 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sanderson Farms, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility
EPS CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility
FCF CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility