The Simply Good Foods Company (NASDAQ:SMPL) Relative Strength Index (RSI) is 50.42, with weekly volatility at 2.75% and ATR at 1.09. The SMPL stock’s 52-week price range has touched low of $16.54 and a $35.48 high. Intraday shares traded counted 0.51 million, which was 21.92% higher than its 30-day average trading volume of 652.67K. Its shares traded lower over the last trading session, losing -1.62% on 06/03/21. The shares fell to a low of $33.23 before closing at $33.98. SMPL’s previous close was $34.54 while the outstanding shares total 95.73M. The firm has a beta of 1.02, a 12-month trailing P/E ratio of 48.13, and a growth ratio of 3.07.
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 $3.25 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 91.31 million on their books with 0.28 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 an incline. In terms of their assets, the company currently has 289.13 million total, with 80.56 million as their total liabilities.
SMPL were able to record 39.31 million as free cash flow during the 11/02/2021 quarter of the year, this saw their quarterly net cash flow reduce by -4.54 million. In cash movements, the company had a total of 39.76 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 11/02/2021 quarter of the year, The Simply Good Foods Company recorded a total of 230.61 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 1.52% coming in sequential stages and their sales for the 11/02/2021 quarter reducing by -0.24%.
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 140.34 million trying to sell their products during the last quarter, with the result yielding a gross income of 90.27 million. This allows shareholders to hold on to 95.73M with the recently reported earning now reading 0.20 cents per share. This is a figure that compared to analyst’s prediction for their 11/02/2021 (0.25 cents a share).
Having a look at the company’s valuation, the company is expected to record 1.22 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, Chief Mkting Officer, Atkins, Parker C Scott sold 30,000 shares of the company’s stock in a transaction that recorded on May 18. The sale was performed at an average price of 33.93, for a total value of 1,017,846. As the sale deal closes, the VP, Controller and CAO, Matthews Timothy Allen now sold 9,000 shares of the company’s stock, valued at 267,840. Also, Director, Montgomery Robert G. bought 2,000 shares of the company’s stock in a deal that was recorded on Nov 02. The shares were price at an average price of 18.98 per share, with a total market value of 37,960. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.50%.
6 out of 13 analysts covering the stock have rated it a Buy, while 5 have maintained a Hold recommendation on The Simply Good Foods Company. 1 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 $34.50.