The Simply Good Foods Company (NASDAQ:SMPL) shares traded higher over the last trading session, gaining 10.89% on 12/22/20. The shares fell to a low of $27.85 before closing at $28.62. Intraday shares traded counted 5.19 million, which was -545.38% lower than its 30-day average trading volume of 804.84K. SMPL’s previous close was $25.81 while the outstanding shares total 95.45M. The firm has a beta of 0.91, a 12-month trailing P/E ratio of 83.20, and a growth ratio of 13.87. The stock’s Relative Strength Index (RSI) is 83.04, with weekly volatility at 4.03% and ATR at 1.06. The SMPL stock’s 52-week price range has touched low of $14.08 and a $28.95 high.
Investors have identified the Packaged Foods company The Simply Good Foods Company as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $2.75 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
The Simply Good Foods Company (SMPL) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For SMPL, the company has in raw cash 95.85 million on their books with 0.27 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 260.26 million total, with 71.48 million as their total liabilities.
SMPL were able to record 57.19 million as free cash flow during the Q4 2020 quarter of the year, this saw their quarterly net cash flow reduce by -170.49 million. In cash movements, the company had a total of 58.92 million as operating cash flow.
Potential earnings growth for The Simply Good Foods Company (SMPL)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the Q4 2020 quarter of the year, The Simply Good Foods Company recorded a total of 222.29 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 37.39% coming in sequential stages and their sales for the Q4 2020 quarter increasing by 3.23%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 134.18 million trying to sell their products during the last quarter, with the result yielding a gross income of 88.1 million. This allows shareholders to hold on to 95.45M with the recently reported earning now reading 0.14 cents per share. This is a figure that compared to analyst’s prediction for their Q4 2020 (0.20 cents a share).
Having a look at the company’s valuation, the company is expected to record 1.05 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on SMPL sounds very interesting.
Is the stock of SMPL attractive?
In related news, Director, Montgomery Robert G. bought 2,000 shares of the company’s stock in a transaction that recorded on Nov 02. The purchase was performed at an average price of 18.98, for a total value of 37,960. As the purchase deal closes, the Director, WHITE JAMES D now bought 2,780 shares of the company’s stock, valued at 49,953. Also, Director, KILTS JAMES M bought 87,862 shares of the company’s stock in a deal that was recorded on Apr 28. The shares were cost at an average price of 16.88 per share, with a total market value of 1,483,374. Following this completion of disposal, the Director, GOOLSBY MICHELLE P now holds 5,000 shares of the company’s stock, valued at 82,950. In the last 6 months, insiders have changed their ownership in shares of company stock by 2.00%.
12 out of 14 analysts covering the stock have rated it a Buy, while 0 have maintained a Hold recommendation on The Simply Good Foods Company. 0 analysts has assigned a Sell rating on the SMPL stock. The 12-month mean consensus price target for the company’s shares has been set at $27.09.