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SpartanNash Co. (SPTN)
:SPTN
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SpartanNash Co
(NASDAQ:SPTN)63Neutral
Positive Factors
Business Strategy
Management has outlined plans for expansion into higher growth retail channels, Hispanic and C-store, both organically and through M&A.
Earnings
SPTN reported $59mm in adjusted EBITDA, beating consensus estimates for $53-54mm.
Negative Factors
Competitive Pressure
Management hasn't yet been able to overcome headwinds from AMZN and negative volumes at key independent customers.
SpartanNash Co (SPTN) vs. S&P 500 (SPY)
Market Cap
$670.91M
Dividend Yield4.38%
Average Volume (3M)279.89K
Price to Earnings (P/E)2283.9
Beta (1Y)0.03
Revenue Growth-2.66%
EPS Growth8.18%
CountryUS
Employees17,000
SectorConsumer Defensive
Sector Strength73
IndustryRetailers - Staples
Share Statistics
EPS (TTM)-0.01
Shares Outstanding33,764,828
10 Day Avg. Volume259,363
30 Day Avg. Volume279,892
Financial Highlights & Ratios
PEG Ratio1.70
Price to Book (P/B)N/A
Price to Sales (P/S)0.07
Price to Cash Flow (P/CF)2.00
P/FCF Ratio2.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$20.00Price Target Upside-1.28% Downside
Rating ConsensusHold
Number of Analyst Covering3
SpartanNash Co Business Overview & Revenue Model
Company DescriptionSpartanNash Co. is a leading food solutions company in the United States, operating within the sectors of food distribution and retail. The company is headquartered in Grand Rapids, Michigan, and serves as a distributor, wholesaler, and retailer. SpartanNash's core products and services include distributing and supplying grocery products to independent and chain retailers, offering value-added support services, and operating a network of retail grocery stores under various banners.
How the Company Makes MoneySpartanNash Co. generates revenue primarily through its wholesale distribution segment, which supplies grocery products, fresh produce, and other consumer goods to independent and chain retailers, military commissaries, and food service distributors. The company also earns revenue from its retail operations, which involve selling products directly to consumers through its chain of grocery stores. Additionally, SpartanNash provides value-added services such as private label development, marketing support, and logistics solutions, which contribute to its earnings. The company's significant partnerships with retailers and military commissaries enhance its distribution capabilities and expand its market reach, further bolstering its revenue streams.
SpartanNash Co Financial Statement Overview
Summary
SpartanNash Co has stable profit margins and operational efficiency but faces challenges with revenue growth and free cash flow management. The balance sheet shows moderate leverage, posing some risk. Strong operating cash flow contrasts with negative free cash flow, indicating the need for improved cash management.Income Statement
The company shows a solid gross profit margin of 15.6% and a net profit margin of 0.5% for TTM, indicating modest profitability. The revenue has slightly decreased compared to the previous period, reflecting a revenue growth rate of -1.14%, which could signal challenges in maintaining sales levels. The EBIT margin is at 1.1%, and EBITDA margin at 2.3% for TTM, showing operational efficiency but room for improvement in profitability.68
Positive
Balance Sheet
The debt-to-equity ratio stands at 1.18, which suggests moderate leverage and potential risk if not managed carefully. The return on equity (ROE) for TTM is 5.8%, indicating moderate profitability for shareholders. The equity ratio is 31.7%, showing a balanced structure but with a significant portion of assets financed by liabilities.62
Positive
Cash Flow
The operating cash flow to net income ratio of 2.56 in TTM highlights strong cash generation relative to net income. However, the free cash flow is negative at -$15.08 million, showing challenges in cash management and capital expenditure. The free cash flow to net income ratio is also negative, underscoring potential cash flow issues.55
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Mar 2022 | Mar 2021 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 9.53B | 7.48B | 9.64B | 8.93B | 9.35B | 8.54B | Gross Profit |
| 1.49B | 1.15B | 1.50B | 1.40B | 1.42B | 1.24B | EBIT |
| 105.20M | 83.17M | -23.33M | 23.39M | 38.73M | -37.66M | EBITDA |
| 214.80M | 83.17M | 70.85M | 116.10M | 128.60M | 52.94M | Net Income Common Stockholders |
| 45.69M | 41.93M | 34.52M | 73.75M | 75.91M | 5.74M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 23.44M | 17.96M | 29.09M | 10.67M | 19.90M | 24.17M | Total Assets |
| 2.33B | 2.36B | 2.31B | 2.21B | 2.28B | 2.28B | Total Debt |
| 1.01B | 865.58M | 788.10M | 720.27M | 811.09M | 998.34M | Net Debt |
| 985.09M | 847.61M | 759.01M | 709.60M | 791.19M | 974.17M | Total Liabilities |
| 1.65B | 1.58B | 1.54B | 1.42B | 1.54B | 1.59B | Stockholders Equity |
| 689.30M | 778.18M | 766.07M | 782.87M | 735.05M | 687.54M |
| Cash Flow | Free Cash Flow | ||||
| -15.08M | 95.68M | 13.07M | 81.73M | 239.42M | 105.38M | Operating Cash Flow |
| 116.90M | 95.68M | 110.35M | 161.16M | 306.72M | 180.19M | Investing Cash Flow |
| -145.17M | -82.00M | -100.95M | -47.98M | -57.22M | -143.17M | Financing Cash Flow |
| 28.22M | -25.21M | 9.02M | -122.41M | -253.76M | -31.22M |
SpartanNash Co Technical Analysis
Positive
20.26
Price Trends
18.82
Positive
19.29
Positive
19.60
Positive
Market Momentum
0.33
Positive
58.61
Neutral
48.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPTN, the sentiment is Positive. The current price of 20.26 is above the 20-day moving average (MA) of 19.79, above the 50-day MA of 18.82, and above the 200-day MA of 19.60, indicating a bullish trend. The MACD of 0.33 indicates Positive momentum. The RSI at 58.61 is Neutral, neither overbought nor oversold. The STOCH value of 48.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPTN.
SpartanNash Co Risk Analysis
SpartanNash Co disclosed 26 risk factors in its most recent earnings report. SpartanNash Co reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SpartanNash Co Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $36.74B | 19.29 | 87.49% | 2.70% | 3.95% | -5.04% | |
74 Outperform | $455.72B | 59.93 | 32.89% | 0.45% | 5.35% | 16.22% | |
72 Outperform | $46.15B | 17.38 | 26.64% | 1.96% | 1.41% | 46.58% | |
71 Outperform | $12.30B | 31.41 | 9.54% | ― | 3.85% | -9.74% | |
66 Neutral | $1.68B | ― | -5.66% | ― | 3.32% | -13.76% | |
63 Neutral | $20.85B | 13.27 | -10.88% | 7.48% | 1.13% | 11.50% | |
63 Neutral | $670.91M | 2,283.91 | 0.04% | 4.38% | -2.66% | 8.18% |
* Consumer Defensive Sector Average
Performance Comparison
SPTN
SpartanNash Co
20.26
0.81
4.16%
COST
Costco
964.31
254.12
35.78%
KR
Kroger Company
66.70
12.89
23.95%
SYY
Sysco
76.55
-1.33
-1.71%
UNFI
United Natural Foods
26.91
14.99
125.76%
PFGC
Performance Food Group
77.93
2.86
3.81%
SpartanNash Co Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: 7.59% | Next Earnings Date: May 29, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in adjusted EBITDA, retail segment growth, and military sales, alongside significant margin enhancements and cash generation. However, these positives were counterbalanced by challenges such as a slight decline in net sales, a substantial goodwill impairment charge, decreased wholesale sales, increased interest expenses, and an operating loss in the retail segment.Highlights
Record Adjusted EBITDA
Achieved a record adjusted EBITDA of $258 million, marking the third consecutive year of record performance and a 9% increase compared to the prior year quarter.
Retail Segment Growth
Retail net sales increased over 100 basis points to more than $2.84 billion with positive comparable sales progression, notably in Michigan, which had positive comps in the last two quarters.
Military Sales Growth
Military sales have grown for 12 consecutive quarters, consistently generating accretive results and serving as an avenue for additional organic growth.
Margin Enhancing Initiatives
Margin enhancing initiatives drove approximately $50 million in benefits in 2024, achieving the plan target of $125 million to $150 million a year ahead of schedule.
Strong Liquidity and Cash Generation
Generated $206 million in cash from operating activities, representing a 130% increase compared to fiscal 2023, and maintained strong liquidity of about $300 million.
Lowlights
Net Sales Decline
Full year net sales were down a little less than 2% to $9.55 billion, although Q4 saw a slight rebound with a sales increase of more than 70 basis points compared to the prior year quarter.
Goodwill Impairment Charge
A goodwill impairment charge of $45.7 million was taken in the quarter, attributed to underperformance in the legacy retail business.
Wholesale Segment Challenges
Wholesale net sales decreased by 2.1% primarily due to reduced case volumes with national accounts and independent retailers.
Interest Expense Increase
Interest expense increased by $1.2 million to $10.9 million due to an increase in borrowings related to recent acquisitions and capital investments.
Operating Loss in Retail Segment
Retail reported an operating loss of $46 million compared to earnings of $1.9 million in the fourth quarter of 2023.
Company Guidance
During the call, SpartanNash provided clear guidance for fiscal 2025, projecting net sales to range between $9.8 billion and $10 billion, with an anticipated adjusted EBITDA between $263 million and $278 million, signaling a midpoint growth of 4.6%. The company also highlighted their strategic focus on both organic and inorganic growth, incorporating tuck-in acquisitions and the impact of an additional week in fiscal 2025. They expect food inflation to be around 1% for the year. SpartanNash aims to expand their retail footprint, particularly in the ethnic and convenience store sectors, and plans to continue leveraging their market position to capture market share and drive long-term shareholder value.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.