Sanderson FarmsStock Price and Value Analysis

Should you buy Sanderson Farms stock? (NasdaqGS:SAFM). Let's see how it does in our automated value investing analysis system.

AdvantagesDisadvantages
  • This company is solid.
  • This company is making money at a modest rate.
  • This company has a low dividend yield.
  • This company has wild ups and downs.
  • This stock looks overpriced.

SAFM Free Cash Flow Trend

Based on historical returns, we believe that Sanderson Farms can grow its free cash at a rate of about 3%. That's positive!

Free Cash Flow trendline for SAFM
Free Cash Flow trendline for Sanderson Farms

Inside the SAFM Numbers

SAFM Price
(Sanderson Farms stock price per share)
$170.12
[?] SAFM Fair Price
(based on intrinsic value)
$115.35
[?] SAFM Safety Price (based on a variable margin of safety) $74.98
[?] PE Ratio versus Sector 1% lower than other Consumer Goods stocks
[?] PE Ratio versus Industry 35% lower than other Food - Major Diversified stocks
[?] Cash Yield 5.55%
[?] Free Cash Flow Jitter 139%
[?] Dividend Yield 1%

Is Sanderson Farms Stock on Sale?

We believe that Sanderson Farms may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Sanderson Farms looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy SAFM Stock?

Does Sanderson Farms have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.