SpartanNash Co (SPTN) AI Stock Analysis

• Market Cap: $633.67M
• Dividend Yield: 4.7%
• Average Volume (3M): 329.33K
• Price to Earnings (P/E): 2246.0
• Beta (1Y): -0.03
• Revenue Growth: -2.66%
• EPS Growth: 8.18%
• Country: US
• Employees: 11,000
• Sector: Consumer Defensive
• Sector Strength: 63
• Industry: Food Distribution
• EPS (TTM): 0.35
• Shares Outstanding: 33,849,873
• 10 Day Avg. Volume: 451,551
• 30 Day Avg. Volume: 329,333
• PEG Ratio: <0.01
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.61
• Enterprise Value/Market Cap: 2.88
• Enterprise Value/Revenue: 0.05
• Enterprise Value/Gross Profit: 1.23
• Enterprise Value/Ebitda: 2.73
• 1Y Price Target: $20.00
• Price Target Upside: 10.56% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 63 Neutral
• Price Target: ―

SpartanNash Co's stock score of 63 reflects stable financial performance with operational efficiency but challenges in revenue growth and negative free cash flow. The technical analysis indicates bearish trends, while valuation appears fair with a strong dividend yield. The mixed sentiment from the earnings call reflects both strategic growth initiatives and ongoing challenges.

Positive Factors

Expansion Strategy

Management continues to target higher growth by expanding its Hispanic stores and c-stores footprint.

Financial Performance

SpartanNash reported a solid start to the year with net sales and adjusted EBITDA slightly topping forecasts.

Sales and Earnings

SpartanNash posted better-than-expected sales and earnings figures, mostly driven by a recent acquisition.

Negative Factors

Cost Pressures

Retail EBITDA was below estimates and had negative EBIT due to cost pressures including an estimated impact from Pharmacy Benefit Manager.

Earnings Outlook

Adjusted EPS is expected to be much lower than previous estimates due to higher depreciation and interest expenses.

Top-Line Challenges

Longer term, there is a challenging outlook for SPTN’s top-line, as small- and mid-sized food retailers remain pressured due to competitive disadvantages to larger peers.

SpartanNash Co Business Overview & Revenue Model

Company Description

SpartanNash Company distributes and retails grocery products. It operates in three segments: Food Distribution, Military, and Retail. The Food Distribution segment offers approximately 65,000 stock-keeping units, such as dry groceries, produce, dairy products, meat, delicatessen items, bakery goods, frozen food, seafood, floral products, general merchandise, beverages, tobacco products, health and beauty care, and pharmacy products to independent retailers, national retailers, food service distributors, e-commerce providers, and corporate owned retail stores. This segment also offers various value-added services to retailers. The Military segment sells and distributes grocery products to 160 military commissaries and approximately 400 exchanges located in 39 states across the United States and the District of Columbia, Europe, Cuba, Puerto Rico, Honduras, Iraq, Kuwait, Bahrain, Qatar, and Djibouti. The Retail segment primarily operates 145 corporate owned retail stores and 36 fuel centers, primarily under the banners of Family Fare, Martin's Super Markets, D&W Fresh Market, VG's Grocery, and Dan's Supermarket. SpartanNash Company also markets and distributes private brand items primarily under the Our Family brand name. 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.

How the Company Makes Money

SpartanNash 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.

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.

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.

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
17.51M	17.96M	29.09M	10.67M	19.90M	24.17M
	Total Assets
2.47B	2.36B	2.31B	2.21B	2.28B	2.28B
	Total Debt
924.33M	865.58M	788.10M	720.27M	811.09M	998.34M
	Net Debt
906.82M	847.61M	759.01M	709.60M	791.19M	974.17M
	Total Liabilities
1.69B	1.58B	1.54B	1.42B	1.54B	1.59B
	Stockholders Equity
781.31M	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

• Technical Analysis Sentiment: Negative
• Last Price: 18.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPTN, the sentiment is Negative. The current price of 18.09 is below the 20-day moving average (MA) of 19.18, below the 50-day MA of 19.48, and below the 200-day MA of 19.59, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 40.18 is Neutral, neither overbought nor oversold. The STOCH value of 10.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SPTN.

SpartanNash Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SYY	78 Outperform	$36.60B	19.53	94.91%	2.70%	3.55%	-5.79%
USFD	77 Outperform	$17.80B	34.92	11.16%	―	6.32%	5.69%
PFGC	76 Outperform	$13.69B	36.09	9.05%	―	6.20%	-10.58%
CHEF	74 Outperform	$2.55B	41.81	12.90%	―	7.85%	79.89%
Sector *	65 Neutral	$8.92B	15.03	4.68%	6.11%	3.59%	-2.49%
SPTN	63 Neutral	$633.67M	2,245.98	-1.38%	4.70%	-2.66%	8.18%
UNFI	48 Neutral	$1.41B	―	-4.11%	―	6.62%	53.12%