Top Momentum Stock (Consumer Staples): SpartanNash (SPTN)

By Kirsteen Mackay

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SpartanNash is a well-established American food distributor gaining share price momentum. Can it continue to reward shareholders through growth?

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SpartanNash Company (NASDAQ: SPTN)

SpartanNash Company distributes and retails grocery products. It operates in three segments: Food Distribution, Military, and Retail.

The company was formerly known as Spartan Stores, Inc. and changed its name to SpartanNash Company in November 2013. SpartanNash Company was founded in 1917 and is headquartered in Grand Rapids, Michigan.

What are the basic fundamentals of SPTN stock?

SPTN stock's market capitalization is approximately $830m. It has around $750m in debt, and free cash flow is roughly $105m.

Is 12 a good P/E ratio?

SpartanNash Company has a forward P/E of 12.8.

The stock price divided by its earnings per share gives us the P/E ratio. This means if the P/E is high, investors are confident it will go on to earn a lot more money. If the P/E is low, there are doubts in investors' minds. Traditionally a P/E below 10 was considered a bargain, value stock. But a P/E lower than 5 is particularly risky, indicating the company is in distress.

A P/E between 10 and 20 is generally considered fair for a quality company that many investors agree has good potential. When a P/E gets very high, it may indicate the stock is becoming overvalued and therefore expensive. But that's not always the case as it can also simply show extreme confidence in a stock that may well grow into its earnings ratio.

Is 1 a good P/B ratio?

SpartanNash Company has a Price/Book value of 1.1x.

The price-to-book (P/B) ratio is a favorite financial metric among value investors. Traditionally, a P/B value below 1 is considered a good P/B value., indicating a stock that may be undervalued.

Is 1 a good P/S ratio?

SpartanNash Company has a Price/Sales ratio of 0.1x.

The price-to-sales (P/S) ratio is a prized financial metric used by analysts and investors.

A P/S ratio below one is considered excellent, while a P/S ratio between one and two is considered good.

The P/S ratio shows how much an investor is paying for the stock per dollar of the company's sales. Legendary investor James O'Shaughnessy found that the P/S ratio was the single best indicator of a stock's value and predictor of its future.

Is SpartanNash generating sales?

SpartanNash Company has a 3-year CAGR for Sales of 5.49%.

Sales growth for its latest interim period vs. the prior period is negative at -58.21%.

Is SpartanNash increasing earnings?

SpartanNash also has a 3-year EPS CAGR of 7.82%.

EPS growth for its latest interim period vs. the prior period is negative at -63.4%.

What is the target price for SPTN stock?

The SPTN share price has risen approximately 39.5% in the past year.

Analyst estimates indicate SPTN stock has a 12-month average price target of $22.80, indicating a potential downside of 0.26%.

How many ETFs hold SPTN stock?

SpartanNash stock is held in 79 ETFs.

Exchange-traded funds (ETFs) are created by institutions such as investment banks and fund managers. They are a popular risk-reduced way of investing. If a stock is found in many ETFs, it shows increased confidence in the company.

Does SpartanNash pay a dividend?

SPTN currently offers a dividend yield of approximately 3.5%.

What is SpartanNash's current short interest?

At the time of writing, SpartanNash Company had over 8% short interest in its stock. This is high, but it has been declining since August 2021.

Short interest as a percentage of float above 10% is considered high and above 20% is exceptionally high.

Macro overview

SpartanNash is a well-established American food distributor and grocery store distributor. It is not the first to spring to mind when investing in the consumer staples space and tends to fly under the radar.

SpartanNash does, however, have strong business fundamentals and the potential for further growth.

The company is already growing its digital presence and increasing sales in person. Management is also implementing a strategy to improve supply chain efficiency.

Unfortunately, inflation is an issue to watch here. It sees regular volatility in its meat protein and produce prices, and this is likely to continue.

The company guidance is holding to an inflation rate of 2% to 3% for the year.

While company earnings initially rose when Covid-19 hit, analysts are forecasting for future earnings to decline.

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In this article:

Topics:
Food and Staples Retailing
Food Retail
Industries:
Consumer Staples
Companies:
SpartanNash

Author: Kirsteen Mackay

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Kirsteen Mackay does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above article.

Kirsteen Mackay has not been paid to produce this piece by the company or companies mentioned above.

Digitonic Ltd, the owner of ValueTheMarkets.com, does not hold a position or positions in the stock(s) and/or financial instrument(s) mentioned in the above article.

Digitonic Ltd, the owner of ValueTheMarkets.com, has not been paid for the production of this piece by the company or companies mentioned above.