Spartannash Company Intrinsic Value – SPARTANNASH COMPANY Reports Positive Earnings Results for 2nd Quarter of FY2023
August 27, 2023
☀️Earnings Overview
For the second quarter of FY2023, SPARTANNASH COMPANY ($NASDAQ:SPTN) recorded total revenue of USD 2312.4 million, a decrease of 20.5% year-over-year. Net income for the same period, however, was USD 19.5 million, an increase of 71.7% compared to the previous year.
Share Price
On Thursday, SPARTANNASH COMPANY reported strong financial results for the second quarter of FY2023. The company’s stock opened at $23.2 and gained 1.9% to close at $23.3, up from its prior closing price of $22.9. This is the latest in a series of positive milestones for the retail grocery company, which has seen a steady increase in its stock price over the last year. SPARTANNASH’s strong quarterly report was driven by an increase in sales and gross margins, along with higher contribution from its e-commerce business.
The positive results further illustrate SPARTANNASH’s ability to deliver value to shareholders, even in the face of a challenging economic environment. The company is also continuing to invest in growth initiatives such as expanding its store network and launching new products to meet rising consumer demand. With these factors in mind, it looks like SPARTANNASH is well on track to deliver another strong performance in the upcoming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Spartannash Company. More…
| Total Revenues | Net Income | Net Margin |
| 9.83k | 40.57 | 0.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Spartannash Company. More…
| Operations | Investing | Financing |
| 131.49 | -107.3 | -28.5 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Spartannash Company. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.33k | 1.56k | 22.2 |
Key Ratios Snapshot
Some of the financial key ratios for Spartannash Company are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 2.8% | -4.7% | 0.9% |
| FCF Margin | ROE | ROA |
| 0.2% | 7.4% | 2.5% |
Analysis – Spartannash Company Intrinsic Value
At GoodWhale, we conducted a detailed analysis of SPARTANNASH COMPANY‘s financials to come up with a fair value of its stocks. Our proprietary Valuation Line indicates that the fair value of each SPARTANNASH COMPANY share is around $25.0. However, the current trading price is $23.3, which means that the stock is undervalued by 6.9%. This could present investors with an excellent opportunity to invest in a company with an attractive price tag. Furthermore, the company has a strong track record, with consistent growth in its assets and revenue over the last couple of years. This suggests that SPARTANNASH COMPANY is well-positioned to generate returns for its investors. More…
Peers
The company operates in the United States and Canada. The company’s competitors include Metcash Ltd, Amcon Distributing Co, and United Natural Foods Inc.
– Metcash Ltd ($ASX:MTS)
Metcash Ltd is a food and grocery distributor in Australia. The company has a market cap of 3.8B as of 2022 and a Return on Equity of 21.5%. Metcash Ltd distributes food and grocery products to independent retailers in Australia. The company offers a range of products including groceries, fresh food, alcohol, and general merchandise. Metcash Ltd also provides logistics and supply chain management services to its customers.
– Amcon Distributing Co ($NYSEAM:DIT)
Amcon Distributing Company is a wholesale distributor of consumer products, including cigarettes, cigars, and other tobacco products; foodservice equipment and supplies; and janitorial, sanitation, and paper products. The company operates in three segments: Cigarettes and Tobacco Products, Foodservice Equipment and Supplies, and Janitorial, Sanitation, and Paper Products. It distributes its products through a network of distribution centers and sales offices in the United States.
– United Natural Foods Inc ($NYSE:UNFI)
UNFI is a leading distributor of natural, organic, and specialty foods in the United States and Canada. The company has a market cap of 2.65B as of 2022 and a ROE of 16.04%. UNFI is a publicly traded company on the Nasdaq Stock Market and is headquartered in Providence, Rhode Island.
Summary
Investors should take note of SPARTANNASH COMPANY’s second quarter FY2023 earnings, which saw total revenue decrease by 20.5% compared to the same period last year. However, net income increased by 71.7%, indicating that the company was able to manage costs more effectively and continue to generate profits despite the revenue dip. This is a positive sign for prospective investors, and indicates that SPARTANNASH COMPANY is well-positioned to weather economic downturns and remain profitable.
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