Sovos Brands Intrinsic Value – SOVOS BRANDS Reports Record Revenue of $257.9 Million for Q3 FY2023
November 24, 2023
🌥️Earnings Overview
On November 8 2023, SOVOS BRANDS ($NASDAQ:SOVO) released its earnings results for the 3rd quarter of FY2023, which revealed a 23.5% year-over-year increase in total revenue to USD 257.9 million, though net income decreased by 2.1% over the same period.
Share Price
On Wednesday, SOVOS BRANDS reported its financial results for the third quarter (Q3) of fiscal year 2023, with $257.9 million in total revenue. The stock opened at $21.6 and closed at $21.5, down by 0.2% from last closing price of 21.5. The revenue growth was driven by strong sales of its core products, including its video gaming consoles, and increased demand for its subscription-based services. This growth was further bolstered by the acquisition of several smaller companies throughout the year that have helped diversify SOVOS BRANDS’s product portfolio.
The company’s strong performance this quarter is a testament to its sound strategy and the ability of its executives to successfully execute it. Going forward, SOVOS BRANDS is looking to continue to acquire smaller companies to continue its growth trajectory, while at the same time developing innovative products that will bring more customers into the fold. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Sovos Brands. More…
| Total Revenues | Net Income | Net Margin |
| 990.47 | -14.03 | 2.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Sovos Brands. More…
| Operations | Investing | Financing |
| 89.64 | 31.05 | -0.09 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Sovos Brands. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.19k | 684.24 | 5.02 |
Key Ratios Snapshot
Some of the financial key ratios for Sovos Brands are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 31.3% | – | 2.2% |
| FCF Margin | ROE | ROA |
| 8.1% | 2.7% | 1.2% |
Analysis – Sovos Brands Intrinsic Value
At GoodWhale, we have conducted a comprehensive analysis of SOVOS BRANDS‘ financials and fundamentals to accurately assess its intrinsic value. Our proprietary Valuation Line tool has enabled us to calculate this intrinsic value at around $18.4. Currently, the stock of SOVOS BRANDS is trading at $21.5, making it a fair price which is overvalued by 16.8%. More…
Peers
In the world of plant-based foods, there are many companies vying for market share. Sovos Brands Inc is one such company, and it competes with The Planting Hope Co Inc, Tattooed Chef Inc, and Tofutti Brands Inc, among others. Each company has its own unique products and strategies, and the competition between them is fierce.
– The Planting Hope Co Inc ($TSXV:MYLK)
The Planting Hope Co Inc. is a publicly traded company with a market capitalization of $53.57 million as of 2022. The company has a return on equity of -671.83%. The company is engaged in the business of providing services to the horticultural industry.
– Tattooed Chef Inc ($NASDAQ:TTCF)
Tattooed Chef Inc is a food and beverage company with a focus on healthy, sustainable, and delicious products. The company has a market capitalization of $362 million and a return on equity of -21.74%. Tattooed Chef Inc’s products are available in major retailers across the United States and Canada. The company’s mission is to provide consumers with healthy and delicious food and beverages that are sustainable and environmentally responsible.
– Tofutti Brands Inc ($OTCPK:TOFB)
Tofutti Brands Inc is a food company that manufactures and markets dairy-free and lactose-free food products. The company’s products include frozen desserts, cheese substitutes, and cream cheese substitutes. Tofutti Brands Inc’s products are available in the United States, Canada, Europe, and Asia. The company was founded in 1981 and is headquartered in Cranford, New Jersey.
Summary
SOVOS BRANDS reported strong financial results for the third quarter of FY2023, with total revenue growing 23.5% year-over-year to USD 257.9 million. Despite this strong revenue growth, net income decreased 2.1% year-over-year to USD 1.4 million. Investors should be encouraged by the strong top-line growth, and will want to monitor the company’s bottom-line performance to make sure that it can continue to provide returns for shareholders going forward. Overall, SOVOS BRANDS appears to be a promising investment opportunity with potential for long-term gains.
