Sanfilippo John B & Son Inc (JBSS) stock analysis

P/E below its 5-year median

Sanfilippo John B & Son's P/E of 11.9 is below its own 5-year median of 16.2.

P/E below the industry

Sanfilippo John B & Son's P/E of 11.9 is below the Food and Kindred Products median of 21.0.

EV/EBITDA below its 5-year median

Sanfilippo John B & Son's EV/EBITDA of 6.5 is below its 5-year median of 9.2.

P/B below the industry

Sanfilippo John B & Son's price-to-book of 1.79 is below the Food and Kindred Products median of 2.12.

Trading below fair value

The share price of $56.80 is below our fair value estimate of $90.18.

Margin of safety over 20%

The price is 37.0% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 5.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -0.9% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -14.6% over the last twelve months, against a 5-year average of 0.7% a year.

Growing faster than the industry

Revenue grew 3.1% over the last twelve months; the Food and Kindred Products median is 2.7%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin slipping

Gross margin was 17.7% over the last twelve months, against 18.7% a year earlier.

Return on equity over 15%

Return on equity was 15.4% over the last twelve months and averaged 19.9% over five years.

Return on capital over 10%

Return on invested capital was 15.0%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Sanfilippo John B & Son's return on equity of 15.4% is above the Food and Kindred Products median of 6.6%.

Earnings grew over 5 years

Net income grew 0.7% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 4.8% over the last twelve months, against a 5-year average of 5.8%.

Net margin above the industry

Sanfilippo John B & Son's net margin of 4.8% is above the Food and Kindred Products median of 2.7%.

Low debt

Debt is 13.3% of shareholders' equity, under the 40% we consider low.

Debt rising against equity

Debt to equity rose from 6.1% five years ago to 13.3%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 207% of total debt.

Interest well covered

Operating income covers interest expense 38.3 times.

Short-term assets cover short-term debts

Current assets are 1.96 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.22; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Sanfilippo John B & Son paid dividends worth 7.9% of the share price over the last twelve months.

Yield above Treasuries

The 7.9% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Sanfilippo John B & Son yields 7.9%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Not covered by earnings

Dividends take 93.4% of net income, leaving little room.

Not covered by free cash flow

Dividends take 173% of free cash flow.