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Sanderson Farms ROE %

: 57.79% (As of Apr. 2022)
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ROE % is calculated as Net Income attributable to Common Stockholders (Net Income minus dividends to participating security holders) divided by its average Total Stockholders Equity over a certain period of time. Sanderson Farms's annualized net income attributable to common stockholders for the quarter that ended in Apr. 2022 was $1,271 Mil. Sanderson Farms's average Total Stockholders Equity over the quarter that ended in Apr. 2022 was $2,198 Mil. Therefore, Sanderson Farms's annualized ROE % for the quarter that ended in Apr. 2022 was 57.79%.

The historical rank and industry rank for Sanderson Farms's ROE % or its related term are showing as below:

SAFM' s ROE % Range Over the Past 10 Years
Min: 1.97   Med: 18.77   Max: 45.19
Current: 45.19

During the past 13 years, Sanderson Farms's highest ROE % was 45.19%. The lowest was 1.97%. And the median was 18.77%.

SAFM's ROE % is ranked better than
96.74% of 1746 companies
in the Consumer Packaged Goods industry
Industry Median: 6.71 vs SAFM: 45.19

Sanderson Farms ROE % Historical Data

The historical data trend for Sanderson Farms's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Sanderson Farms Annual Data
Trend Oct12 Oct13 Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.00 4.29 3.74 1.97 27.45

Sanderson Farms Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 26.10 40.86 41.21 39.21 57.79

Competitive Comparison

For the Packaged Foods subindustry, Sanderson Farms's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Sanderson Farms ROE % Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Sanderson Farms's ROE % distribution charts can be found below:

* The bar in red indicates where Sanderson Farms's ROE % falls into.



Sanderson Farms ROE % Calculation

Sanderson Farms's annualized ROE % for the fiscal year that ended in Oct. 2021 is calculated as

ROE %=Net Income attributable to Common Stockholders (A: Oct. 2021 )/( (Total Stockholders Equity (A: Oct. 2020 )+Total Stockholders Equity (A: Oct. 2021 ))/ count )
=448.816/( (1419.273+1850.239)/ 2 )
=448.816/1634.756
=27.45 %

Sanderson Farms's annualized ROE % for the quarter that ended in Apr. 2022 is calculated as

ROE %=Net Income attributable to Common Stockholders (Q: Apr. 2022 )/( (Total Stockholders Equity (Q: Jan. 2022 )+Total Stockholders Equity (Q: Apr. 2022 ))/ count )
=1270.54/( (2038.833+2358.142)/ 2 )
=1270.54/2198.4875
=57.79 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income attributable to common stockholders of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income attributable to common stockholders data used here is four times the quarterly (Apr. 2022) net income attributable to common stockholders data. ROE % is displayed in the 30-year financial page.


Sanderson Farms  (NAS:SAFM) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %**(Q: Apr. 2022 )
=Net Income/Total Stockholders Equity
=1284.76/2198.4875
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1284.76 / 6158.856)*(6158.856 / 2705.6155)*(2705.6155 / 2198.4875)
=Net Margin %*Asset Turnover*Equity Multiplier
=20.86 %*2.2763*1.2307
=ROA %*Equity Multiplier
=47.48 %*1.2307
=58.44 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %**(Q: Apr. 2022 )
=Net Income/Total Stockholders Equity
=1284.76/2198.4875
=(Net Income /Pre-Tax Income) * (Pre-Tax Income/Operating Income) * (Operating Income/Revenue) * (Revenue/Total Assets) * (Total Assets/Total Stockholders Equity)
= (1284.76 / 1683.96) * (1683.96 / 1715.772) * (1715.772 / 6158.856) * (6158.856 / 2705.6155) * (2705.6155 / 2198.4875)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7629 * 0.9815 * 27.86 % * 2.2763 * 1.2307
=58.44 %

Note: The net income attributable to common stockholders data used here is four times the quarterly (Apr. 2022) net income attributable to common stockholders data. The Revenue data used here is four times the quarterly (Apr. 2022) revenue data. The same rule applies to Pre-Tax Income and Operating Income.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.


Be Aware

Net income attributable to common stockholders is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Sanderson Farms ROE % Related Terms

Thank you for viewing the detailed overview of Sanderson Farms's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Sanderson Farms Business Description

Sanderson Farms logo
Traded in Other Exchanges
Address
127 Flynt Road, Laurel, MS, USA, 39443
Sanderson Farms Inc is a dressed-chicken processor in the United States, producing and selling a variety of fresh, frozen, and value-added chicken products to grocers, food-service operators, and distributors. Most revenue is generated in the Southeastern, Southwestern, Northeastern, and Western United States. The company's product portfolio consists of tray packs and large birds, catering to grocery and food-service customers. It sells chill-packed, ice-packed, bulk-packed, and frozen chicken in whole, cut-up, and boneless form under the brand name Sanderson Farms to retailers, distributors, and casual dining operators in the United States.
Executives
Perez Sonia director 127 FLYNT ROAD LAUREL MS 39443
Kelly Green Edith director 3131 DEMOCRAT ROAD BLDG B206 MEMPHIS TN 38118
Barksdale John David director 127 FLYNT ROAD LAUREL MS 39443
Mestayer Suzanne T director 1100 POYDRAS STREET NEW ORLEANS LA 70163
Rigney Tim officer: Controller/Secretary 127 FLYNT ROAD, P.O. BOX 988 LAUREL MS 39441
Mooney Dianne director 7449 ASHLAND LANE BIRMINGHAM AL 35242
Khayat Robert C director PO BOX 1848 UNIVERSITY MS 38677
Banks Fred L Jr director 111 EAST CAPITOL STREET SUITE 600 JACKSON MS 39201-2122
Cooley Toni D director 253 OLD JACKSON ROAD MADISON MS 39110
Bierbusse John director 3500 NORTH LAKE SHORE DRIVE #14A CHICAGO IL 60657
Zacharias Donald W director
Taylor Rowan director
Ritter Charles W Jr director C/O SANDERSON FARM 225 N 13TH AVE LAUREL MS 39441-0998
Pittman Jones Gail director C/O SANDERSON FARMS INC PO BOX 988 225 N 13TH AVE LAUREL MS 39441-0988
Livingston Phil K director C/O SANDERSON FARM 225 N 13TH AVE LAUREL MS 39441-0998

Sanderson Farms Headlines

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