Sovos Brands, Inc.
Sovos Brands, Inc. Fundamental Analysis
Sovos Brands, Inc. (SOVO) shows weak financial fundamentals with a PE ratio of 77.15, profit margin of 2.96%, and ROE of 6.00%. The company generates $1.0B 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 37.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SOVO's fundamental strength across five key dimensions:
Efficiency Score
WeakSOVO struggles to generate sufficient returns from assets.
Valuation Score
ModerateSOVO shows balanced valuation metrics.
Growth Score
ModerateSOVO shows steady but slowing expansion.
Financial Health Score
ExcellentSOVO maintains a strong and stable balance sheet.
Profitability Score
WeakSOVO struggles to sustain strong margins.
Key Financial Metrics
Is SOVO Expensive or Cheap?
P/E Ratio
SOVO trades at 77.15 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SOVO's PEG of 0.77 indicates potential undervaluation.
Price to Book
The market values Sovos Brands, Inc. at 4.39 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 15.31 times EBITDA. This signals the market has high growth expectations.
How Well Does SOVO Make Money?
Net Profit Margin
For every $100 in sales, Sovos Brands, Inc. keeps $2.96 as profit after all expenses.
Operating Margin
Core operations generate 9.32 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.00 in profit for every $100 of shareholder equity.
ROA
Sovos Brands, Inc. generates $2.40 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sovos Brands, Inc. produces operating cash flow of $105.90M, showing steady but balanced cash generation.
Free Cash Flow
Sovos Brands, Inc. produces free cash flow of $93.97M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.92 in free cash annually.
FCF Yield
SOVO converts 3.99% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
77.15
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.77
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.39
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.29
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.94
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.90
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How SOVO Stacks Against Its Sector Peers
| Metric | SOVO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 77.15 | 23.25 | Worse (Expensive) |
| ROE | 6.00% | 1240.00% | Weak |
| Net Margin | 2.96% | -9728.00% (disorted) | Weak |
| Debt/Equity | 0.94 | 0.77 | Weak (High Leverage) |
| Current Ratio | 2.90 | 2.54 | Strong Liquidity |
| ROA | 2.40% | -203388.00% (disorted) | Weak |
SOVO outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sovos Brands, 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