Sanderson Farms produces, processes, markets, and distributes fresh, frozen, and prepared chicken products in the United States. The company was founded in 1947 and is based in Laurel, Mississippi.
SAFM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for SAFM, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Sanderson Farms Inc ranked in the 4th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Sanderson Farms Inc, consider:
Its compound free cash flow growth rate, as measured over the past 5.56 years, is -0.33% -- higher than only 4.76% of stocks in our DCF forecasting set.
As a business, SAFM is generating more cash flow than only 18.27% of positive cash flow stocks in the Consumer Defensive.
The business' balance sheet reveals debt to be 2% of the company's capital (with equity being the remaining amount). Approximately merely 10.55% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Defensive that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as SAFM, try FMX, ARCE, BEDU, ONE, and SPB.
LAUREL, Miss.--(BUSINESS WIRE)---- $SAFM--Sanderson Farms, Inc. (NASDAQ: SAFM) today announced that its Board of Directors has declared a regular quarterly cash dividend of $0.44 (forty-four cents) per share payable February 16, 2021, to stockholders of record on February 2, 2021. Sanderson Farms, Inc. is engaged in the production, processing, marketing and distribution of fresh, frozen and minimally prepared chicken. Its shares trade on the NASDAQ Global Select Market under the symbol SAFM.
(Bloomberg) -- American meatpackers are benefiting from one bright spot in the restaurant industry during the pandemic: fast-food sales.With most restaurants closed or operating at reduced capacity, customers have flocked to places including McDonald’s and Burger King, where they can simply drive through to grab food. That’s helped Cargill Inc.’s protein sales to food-services business to return to near normal, while Sanderson Farms Inc. is encouraged by the chicken-sandwich rivalry among quick-service restaurants, or QSR.Americans used to spend more than half of their food budget eating out before the virus struck, locking down cities from New York to Los Angeles and shuttering restaurants. Consumer behavior shifted, and businesses adapted to more online sales and increased delivery op...
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Sanderson Farms, Inc. (NASDAQ: SAFM) today announced that John H. Baker III has informed the Company that he will retire from the Sanderson Farms Board of Directors when his current term ends at the 2021 annual shareholders’ meeting.