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Simply Good Foods

Nasdaq:SMPL
Snowflake Description

Excellent balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SMPL
Nasdaq
$3B
Market Cap
  1. Home
  2. US
  3. Food, Beverage & Tobacco
Company description

The Simply Good Foods Company develops, markets, and sells branded nutritional foods and snack products in North America and internationally. The last earnings update was 20 days ago. More info.


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SMPL Share Price and Events
7 Day Returns
7.4%
NasdaqCM:SMPL
1.5%
US Food
0.7%
US Market
1 Year Returns
37.2%
NasdaqCM:SMPL
3.7%
US Food
13.7%
US Market
SMPL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Simply Good Foods (SMPL) 7.4% 4.8% -3.4% 37.2% 145.9% -
US Food 1.5% 2.2% 0.5% 3.7% -6.1% 20.3%
US Market 0.7% 4.7% 6.1% 13.7% 39.2% 44.5%
1 Year Return vs Industry and Market
  • SMPL outperformed the Food industry which returned 3.7% over the past year.
  • SMPL outperformed the Market in United States of America which returned 13.7% over the past year.
Price Volatility
SMPL
Industry
5yr Volatility vs Market

Value

 Is Simply Good Foods undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Simply Good Foods to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Simply Good Foods.

NasdaqCM:SMPL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqCM:SMPL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Food Unlevered Beta Simply Wall St/ S&P Global 0.55
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.55 (1 + (1- 21%) (7.59%))
0.721
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NasdaqCM:SMPL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Simply Good Foods is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqCM:SMPL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.5%)
2020 80.21 Est @ 12.05% 74.61
2021 87.63 Est @ 9.26% 75.84
2022 94.03 Est @ 7.3% 75.69
2023 99.60 Est @ 5.93% 74.59
2024 104.55 Est @ 4.97% 72.83
2025 109.04 Est @ 4.3% 70.66
2026 113.22 Est @ 3.83% 68.25
2027 117.18 Est @ 3.5% 65.71
2028 121.01 Est @ 3.27% 63.13
2029 124.77 Est @ 3.11% 60.55
Present value of next 10 years cash flows $701.00
NasdaqCM:SMPL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $124.77 × (1 + 2.73%) ÷ (7.5% – 2.73%)
$2,688.16
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,688.16 ÷ (1 + 7.5%)10
$1,304.52
NasdaqCM:SMPL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $701.00 + $1,304.52
$2,005.52
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,005.52 / 95.20
$21.07
NasdaqCM:SMPL Discount to Share Price
Calculation Result
Value per share (USD) From above. $21.07
Current discount Discount to share price of $26.43
= -1 x ($26.43 - $21.07) / $21.07
-25.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Simply Good Foods is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Simply Good Foods's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Simply Good Foods's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqCM:SMPL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-08-31) in USD $0.59
NasdaqCM:SMPL Share Price ** NasdaqCM (2019-11-18) in USD $26.43
United States of America Food Industry PE Ratio Median Figure of 41 Publicly-Listed Food Companies 24.8x
United States of America Market PE Ratio Median Figure of 2,924 Publicly-Listed Companies 18.25x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Simply Good Foods.

NasdaqCM:SMPL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqCM:SMPL Share Price ÷ EPS (both in USD)

= 26.43 ÷ 0.59

44.89x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Simply Good Foods is overvalued based on earnings compared to the US Food industry average.
  • Simply Good Foods is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Simply Good Foods's expected growth come at a high price?
Raw Data
NasdaqCM:SMPL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 44.89x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
17.8%per year
United States of America Food Industry PEG Ratio Median Figure of 27 Publicly-Listed Food Companies 1.28x
United States of America Market PEG Ratio Median Figure of 2,038 Publicly-Listed Companies 1.46x

*Line of best fit is calculated by linear regression .

NasdaqCM:SMPL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 44.89x ÷ 17.8%

2.51x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Simply Good Foods is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Simply Good Foods's assets?
Raw Data
NasdaqCM:SMPL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-08-31) in USD $10.23
NasdaqCM:SMPL Share Price * NasdaqCM (2019-11-18) in USD $26.43
United States of America Food Industry PB Ratio Median Figure of 70 Publicly-Listed Food Companies 2.31x
United States of America Market PB Ratio Median Figure of 5,086 Publicly-Listed Companies 1.76x
NasdaqCM:SMPL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqCM:SMPL Share Price ÷ Book Value per Share (both in USD)

= 26.43 ÷ 10.23

2.58x

* Primary Listing of Simply Good Foods.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Simply Good Foods is overvalued based on assets compared to the US Food industry average.
X
Value checks
We assess Simply Good Foods's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Food industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Food industry average (and greater than 0)? (1 check)
  5. Simply Good Foods has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Simply Good Foods expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
17.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Simply Good Foods expected to grow at an attractive rate?
  • Simply Good Foods's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Simply Good Foods's earnings growth is expected to exceed the United States of America market average.
  • Simply Good Foods's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqCM:SMPL Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqCM:SMPL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 17.8%
NasdaqCM:SMPL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 15.7%
United States of America Food Industry Earnings Growth Rate Market Cap Weighted Average 19.7%
United States of America Food Industry Revenue Growth Rate Market Cap Weighted Average 2.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.4%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqCM:SMPL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqCM:SMPL Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-08-31 1,174 130 1
2023-08-31 1,133 119 1
2022-08-31 1,060 107 2
2021-08-31 1,000 92 4
2020-08-31 869 74 4
2019-11-19
NasdaqCM:SMPL Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-08-31 523 73 48
2019-05-25 492 77 53
2019-02-23 460 58 47
2018-11-24 446 65 75
2018-08-25 431 61 70
2018-05-26 421 12 45
2018-02-24 410 1 42
2017-11-25 403 -5 4
2017-08-26 396 -5 0
2016-12-31 0 0

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Simply Good Foods's earnings are expected to grow by 17.8% yearly, however this is not considered high growth (20% yearly).
  • Simply Good Foods's revenue is expected to grow by 15.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqCM:SMPL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Simply Good Foods Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:SMPL Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-08-31 1.29 1.29 1.29 1.00
2023-08-31 1.19 1.19 1.19 1.00
2022-08-31 1.07 1.07 1.07 1.00
2021-08-31 0.89 0.93 0.85 3.00
2020-08-31 0.74 0.79 0.70 3.00
2019-11-19
NasdaqCM:SMPL Past Financials Data
Date (Data in USD Millions) EPS *
2019-08-31 0.59
2019-05-25 0.68
2019-02-23 0.62
2018-11-24 1.04
2018-08-25 1.00
2018-05-26 0.63
2018-02-24 0.59
2017-11-25 0.05
2017-08-26 0.01
2016-12-31 -0.03

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Simply Good Foods is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Simply Good Foods's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Simply Good Foods has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Simply Good Foods performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Simply Good Foods's growth in the last year to its industry (Food).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Simply Good Foods has delivered over 20% year on year earnings growth in the past 5 years.
  • Simply Good Foods's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Simply Good Foods's 1-year earnings growth is negative, it can't be compared to the US Food industry average.
Earnings and Revenue History
Simply Good Foods's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Simply Good Foods Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:SMPL Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-08-31 523.38 47.54 125.96
2019-05-25 492.46 53.15 149.46
2019-02-23 460.23 46.82 142.18
2018-11-24 445.77 75.49 138.93
2018-08-25 431.43 70.46 108.73
2018-05-26 420.72 44.60 128.86
2018-02-24 409.99 41.81 124.52
2017-11-25 402.96 3.88 122.12
2017-08-26 396.17 0.45 95.97
2016-12-31 -0.29 0.73
2016-08-27 427.86 10.03 121.71
2015-08-29 379.35 -7.97 128.41
2014-12-27 429.86 13.96 114.81

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Simply Good Foods has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Simply Good Foods used its assets less efficiently than the US Food industry average last year based on Return on Assets.
  • Simply Good Foods's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Simply Good Foods's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Food industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Simply Good Foods has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Simply Good Foods's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Simply Good Foods's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Simply Good Foods is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Simply Good Foods's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Simply Good Foods's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Simply Good Foods Company Filings, last reported 2 months ago.

NasdaqCM:SMPL Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-08-31 837.44 190.94 266.34
2019-05-25 829.99 191.08 247.62
2019-02-23 816.71 191.25 218.90
2018-11-24 802.58 191.42 210.76
2018-08-25 672.60 191.58 111.97
2018-05-26 660.16 191.75 88.36
2018-02-24 651.71 192.24 79.01
2017-11-25 609.52 192.41 62.88
2017-08-26 598.70 192.09 56.50
2016-12-31 5.00 0.19 0.95
2016-08-27 -27.83 333.03 78.49
2015-08-29
2014-12-27
  • Simply Good Foods's level of debt (22.8%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Simply Good Foods's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (38.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.6x coverage).
X
Financial health checks
We assess Simply Good Foods's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Simply Good Foods has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Simply Good Foods's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Simply Good Foods dividends. Estimated to be 0% next year.
If you bought $2,000 of Simply Good Foods shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Simply Good Foods's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Simply Good Foods's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqCM:SMPL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
United States of America Food Industry Average Dividend Yield Market Cap Weighted Average of 29 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1956 Stocks 2.3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqCM:SMPL Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-08-31
2023-08-31
2022-08-31 0.00 1.00
2021-08-31 0.00 1.00
2020-08-31 0.00 1.00
2019-11-19

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Simply Good Foods has not reported any payouts.
  • Unable to verify if Simply Good Foods's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Simply Good Foods's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Simply Good Foods has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Simply Good Foods's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Simply Good Foods's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Simply Good Foods afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Simply Good Foods has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Simply Good Foods's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Joe Scalzo
COMPENSATION $1,663,246
AGE 60
TENURE AS CEO 2.3 years
CEO Bio

Mr. Joseph E. Scalzo, also known as Joe, serves as the Chief Executive Officer and President of Conyers Park Acquisition Corp. Mr. Scalzo has been the Chief Executive Officer and President of Atkins Nutritionals, Inc since February 14, 2013. Mr. Scalzo has been President and Chief Executive Officer of The Simply Good Foods Company since July 7, 2017. He served as President of Dean Foods Company from August 23, 2010 to February 25, 2011 and served as its Chief Operating Officer from November 1, 2009 to February 25, 2011. Mr. Scalzo served as Chief Executive Officer of The WhiteWave Foods Company from October 11, 2005 to October 2010 and served as its President from October 11, 2005 to November 1, 2009. He served as the Chief Executive Officer of Dean Foods Company since October 2010. He was responsible for creating value for the shareholders of Dean Foods while developing WhiteWave Foods into a top tier consumer packaged goods company. Mr. Scalzo served as President and Chief Executive Officer of Morningstar Foods, manufacturers of premium food products, since 2008. He served as President of White Wave, Inc. since August 2005. He served as President of Global Business Management - Personal Care of The Gillette Company, Inc. from October 2001 to May 2004 and served as its President of Global Value Chain since June 2004 and its Vice President. He began his career at Procter & Gamble in 1985, where he served various leadership positions. He served in marketing and product supply at Procter & Gamble. Mr. Scalzo served as Vice President of Worldwide Core Brand Development of Coca-Cola Company from February 2000 to September 2001; Senior Vice President and Chief Marketing Officer of Minute Maid Division, Coca-Cola Company from August 1998 to January 2000; Vice President and General Manager of Coca-Cola North America from 1997 to 2001; Vice President and Managing Director, U.S. Refrigerated Products, Coca-Cola Company, an manufacturer and distributor of non-alcoholic beverages from February 1997 to July 1998. He has been a Director of The Simply Good Foods Company since July 7, 2017. He serves as a Director of Conyers Park Acquisition Corp. He has been a Director of Focus Brands since March 2014 and Atkins Nutritionals, Inc. since February 2013. Mr. Scalzo served as a Director of Earthbound Farm from 2010 to October 2013. Mr. Scalzo served as a Director of HNI Corporation (formerly, Hon Industries Inc.) from 2003 to November 19, 2009. He holds a Bachelor of Science in Chemical Engineering from the University of Notre Dame.

CEO Compensation
  • Joe's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Joe's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Simply Good Foods management team in years:

2.3
Average Tenure
52.5
Average Age
  • The tenure for the Simply Good Foods management team is about average.
Management Team

Joe Scalzo

TITLE
CEO, President & Director
COMPENSATION
$2M
AGE
60
TENURE
2.3 yrs

Dave West

TITLE
Executive Vice Chairman
COMPENSATION
$174K
AGE
56

Todd Cunfer

TITLE
Chief Financial Officer
COMPENSATION
$823K
AGE
54
TENURE
2.3 yrs

C. Parker

TITLE
Chief Marketing Officer
COMPENSATION
$975K
AGE
62
TENURE
2.3 yrs

Hanno Holm

TITLE
VP & COO
AGE
47
TENURE
2.3 yrs

Timothy Matthews

TITLE
VP, Controller & Chief Accounting Officer
AGE
39
TENURE
2.3 yrs

Mark Pogharian

TITLE
Vice President of Investor Relations

Tim Kraft

TITLE
General Counsel & Secretary
AGE
39

Jill Clark

TITLE
Chief Customer Officer
AGE
51
TENURE
2.3 yrs
Board of Directors Tenure

Average tenure and age of the Simply Good Foods board of directors in years:

2.3
Average Tenure
66.5
Average Age
  • The average tenure for the Simply Good Foods board of directors is less than 3 years, this suggests a new board.
Board of Directors

Jim Kilts

TITLE
Chairman of the Board
COMPENSATION
$149K
AGE
71
TENURE
3.6 yrs

Joe Scalzo

TITLE
CEO, President & Director
COMPENSATION
$2M
AGE
60
TENURE
2.3 yrs

Dave West

TITLE
Executive Vice Chairman
COMPENSATION
$174K
AGE
56
TENURE
2.3 yrs

Clayt Daley

TITLE
Independent Director
COMPENSATION
$157K
AGE
67
TENURE
3.3 yrs

Nomi Ghez

TITLE
Independent Director
COMPENSATION
$154K
AGE
72
TENURE
2.3 yrs

Jim Healey

TITLE
Independent Director
COMPENSATION
$159K
AGE
77
TENURE
2.8 yrs

Brian Ratzan

TITLE
Independent Director
COMPENSATION
$149K
AGE
48
TENURE
3.6 yrs

Robert Montgomery

TITLE
Independent Director
COMPENSATION
$149K
AGE
66
TENURE
2.3 yrs

Rick Kash

TITLE
Independent Director
COMPENSATION
$149K
AGE
76
TENURE
2.3 yrs

Michelle Goolsby

TITLE
Director
AGE
61
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Simply Good Foods individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
14. Nov 19 Buy James Kilts Individual 08. Nov 19 13. Nov 19 70,313 $24.62 $1,730,856
13. Nov 19 Buy Joseph Scalzo Individual 11. Nov 19 11. Nov 19 16,330 $24.42 $398,779
19. Jul 19 Sell Hanno Holm Individual 17. Jul 19 18. Jul 19 -15,983 $26.90 $-429,668
11. Jul 19 Sell Hanno Holm Individual 10. Jul 19 10. Jul 19 -1,750 $27.87 $-48,773
X
Management checks
We assess Simply Good Foods's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Simply Good Foods has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Do Simply Good Foods's (NASDAQ:SMPL) Earnings Warrant Your Attention?

View our latest analysis for Simply Good Foods Simply Good Foods's Improving Profits Over the last three years, Simply Good Foods has grown earnings per share (EPS) like young bamboo after rain; fast, and from a low base. … Simply Good Foods has grown its trailing twelve month EPS from US$0.63 to US$0.68, in the last year. … One important encouraging feature of Simply Good Foods is that it is growing profits.

Simply Wall St -

Here's Why Simply Good Foods (NASDAQ:SMPL) Can Manage Its Debt Responsibly

NasdaqCM:SMPL Historical Debt, August 19th 2019 How Healthy Is Simply Good Foods's Balance Sheet? … We can see from the most recent balance sheet that Simply Good Foods had liabilities of US$39.3m falling due within a year, and liabilities of US$255.3m due beyond that. … Simply Good Foods may have net cash on the balance sheet, but it is still interesting to look at how well the business converts its earnings before interest and tax (EBIT) to free cash flow, because that will influence both its need for, and its capacity to manage debt.

Simply Wall St -

Is The Simply Good Foods Company (NASDAQ:SMPL) Expensive For A Reason? A Look At Its Intrinsic Value

Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to their present value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF ($, Millions) $65.1m $74.0m $77.1m $79.9m $82.7m $85.3m $87.9m $90.5m $93.2m $95.8m Growth Rate Estimate Source Analyst x2 Analyst x1 Est @ 4.14% Est @ 3.71% Est @ 3.42% Est @ 3.21% Est @ 3.07% Est @ 2.97% Est @ 2.9% Est @ 2.85% Present Value ($, Millions) Discounted @ 7.5% $60.5 $64.0 $62.0 $59.9 $57.6 $55.3 $53.0 $50.8 $48.6 $46.5 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= $558.2m The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … NasdaqCM:SMPL Intrinsic value, August 6th 2019 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Have Insiders Been Selling The Simply Good Foods Company (NASDAQ:SMPL) Shares This Year?

So shareholders might well want to know whether insiders have been buying or selling shares in The Simply Good Foods Company (NASDAQ:SMPL). … For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.' View our latest analysis for Simply Good Foods The Last 12 Months Of Insider Transactions At Simply Good Foods In the last twelve months, the biggest single sale by an insider was when the VP & COO, Hanno Holm, sold US$430k worth of shares at a price of US$26.90 per share. … NasdaqCM:SMPL Recent Insider Trading, July 22nd 2019 Insiders at Simply Good Foods Have Sold Stock Recently There was substantially more insider selling, than buying, of Simply Good Foods shares over the last three months.

Simply Wall St -

Should Simply Good Foods (NASDAQ:SMPL) Be Disappointed With Their 67% Profit?

For example, the The Simply Good Foods Company (NASDAQ:SMPL) share price is up 67% in the last year, clearly besting than the market return of around 1.2% (not including dividends). … See our latest analysis for Simply Good Foods There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Simply Wall St -

Should You Be Adding Simply Good Foods (NASDAQ:SMPL) To Your Watchlist Today?

So if you're like me, you might be more interested in profitable, growing companies, like Simply Good Foods (NASDAQ:SMPL). … View our latest analysis for Simply Good Foods Simply Good Foods's Improving Profits Over the last three years, Simply Good Foods has grown earnings per share (EPS) like young bamboo after rain; fast, and from a low base. … One important encouraging feature of Simply Good Foods is that it is growing profits.

Simply Wall St -

Can The Simply Good Foods Company (NASDAQ:SMPL) Improve Its Returns?

View our latest analysis for Simply Good Foods How Do I Calculate Return On Equity? … The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Simply Good Foods: 5.7% = US$47m ÷ US$817m (Based on the trailing twelve months to February 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Combining Simply Good Foods's Debt And Its 5.7% Return On Equity While Simply Good Foods does have some debt, with debt to equity of just 0.23, we wouldn't say debt is excessive.

Simply Wall St -

Calculating The Intrinsic Value Of The Simply Good Foods Company (NASDAQ:SMPL)

I will use the Discounted Cash Flow (DCF) model! … If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. … We're using the 2-stage growth model, which simply means we take in account two stages of company's growth

Simply Wall St -

What Investors Should Know About The Simply Good Foods Company's (NASDAQ:SMPL) Financial Strength

However, an important fact which most ignore is: how financially healthy is the business? … Evaluating financial health as part of your investment thesis is. … We'll look at some basic checks that can form a snapshot the company’s financial strength.

Simply Wall St -

Are Insiders Buying The Simply Good Foods Company (NASDAQ:SMPL) Stock?

So shareholders might well want to know whether insiders have been buying or selling shares in The Simply Good Foods Company (NASDAQ:SMPL). … We don't think shareholders should simply follow insider transactions. … The Last 12 Months Of Insider Transactions At Simply Good Foods.

Simply Wall St -

Company Info

Description

The Simply Good Foods Company develops, markets, and sells branded nutritional foods and snack products in North America and internationally. It markets nutrition bars, ready-to-drink shakes, snacks, and confectionery products under the Atkins, SimplyProtein, and Atkins Endulge brand names. The company is headquartered in Denver, Colorado.

Details
Name: The Simply Good Foods Company
SMPL
Exchange: NasdaqCM
Founded:
$2,516,037,812
95,196,285
Website: http://www.thesimplygoodfoodscompany.com
Address: The Simply Good Foods Company
1225 17th Street,
Suite 1000,
Denver,
Colorado, 80202,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqCM SMPL Common Stock Nasdaq Capital Market US USD 08. Sep 2016
BST 76L Common Stock Boerse-Stuttgart DE EUR 08. Sep 2016
Number of employees
Current staff
Staff numbers
150
Simply Good Foods employees.
Industry
Packaged Foods and Meats
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/19 00:59
End of day share price update: 2019/11/18 00:00
Last estimates confirmation: 2019/11/18
Last earnings filing: 2019/10/30
Last earnings reported: 2019/08/31
Last annual earnings reported: 2019/08/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.