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SunOpta Financial Strength

: 5 (As of Jun. 2022)
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SunOpta has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

SunOpta's Interest Coverage for the quarter that ended in Jun. 2022 was 2.55. SunOpta's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.35. As of today, SunOpta's Altman Z-Score is 2.64.


Competitive Comparison

For the Packaged Foods subindustry, SunOpta's Financial Strength, along with its competitors' market caps and Financial Strength 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.

   

SunOpta Financial Strength Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, SunOpta's Financial Strength distribution charts can be found below:

* The bar in red indicates where SunOpta's Financial Strength falls into.



SunOpta Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

SunOpta's Interest Expense for the months ended in Jun. 2022 was $-3.1 Mil. Its Operating Income for the months ended in Jun. 2022 was $8.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $310.6 Mil.

SunOpta's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*7.982/-3.132
=2.55

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

SunOpta's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(32.988 + 310.577) / 974.124
=0.35

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

SunOpta has a Z-score of 2.64, indicating it is in Grey Zones. This implies that SunOpta is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.64 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.


SunOpta  (NAS:STKL) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

SunOpta has the Financial Strength Rank of 5.


SunOpta Financial Strength Related Terms

Thank you for viewing the detailed overview of SunOpta's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


SunOpta Business Description

SunOpta logo
Traded in Other Exchanges
Address
2233 Argentia Road, Suite 401, Mississauga, ON, CAN, L5N 2X7
SunOpta Inc is a Canadian company that focuses on a healthy product portfolio. The company's operating segment includes Plant-Based Foods and Beverages and Fruit-Based Foods and Beverages. It generates maximum revenue from the Plant-Based Foods and Beverages segment. Plant-Based Foods and Beverages include plant-based beverages and liquid and dry ingredients (utilizing almond, soy) as well as broths, teas, and nutritional beverages. Fruit-Based Foods and Beverages include individually quick frozen(IQF) fruit for retail(including strawberries, mango), IQF and bulk frozen fruit for foodservice (including purees, fruit cups, and smoothies), and custom fruit preparations for industrial use. Geographically, it derives a majority of revenue from the United States.
Executives
Wickramasinghe Mahes director 2334 MISSISSAUGA ROAD MISSISSAUGA A6 L5H2L1
Bam Partners Trust 10 percent owner 181 BAY STREET SUITE 300 TORONTO A6 M5J 2T3
Kempf Kenneth C director 610 NEWPORT CENTER DRIVE NEWPORT BEACH CA 92660
Engaged Capital Special Situation Fund, Lp other: See Footnote 1 610 NEWPORT CENTER DRIVE, SUITE 250 NEWPORT BEACH CA 92660
Brookfield Asset Management Inc. 10 percent owner BROOKFIELD PLACE, 181 BAY ST, STE 300 PO BOX 762 TORONTO A6 M5J2T3
Partners Ltd 10 percent owner 181 BAY STREET BROOKFIELD PLACE, SUITE 300 TORONTO A6 M5J2T3
Engaged Capital Llc 10 percent owner 610 NEWPORT CENTER DRIVE SUITE 250 NEWPORT BEACH CA 92660
Engaged Capital Flagship Fund, L.p. 10 percent owner 610 NEWPORT CENTER DRIVE SUITE 250 NEWPORT BEACH CA 90272
Engaged Capital Flagship Master Fund, Lp 10 percent owner CRICKET SQUARE, HUTCHINS DRIVE P.O. BOX 2681 GRAND CAYMAN E9 KY1-1111
Engaged Capital Holdings, Llc 10 percent owner 610 NEWPORT CENTER DRIVE SUITE 250 NEWPORT BEACH CA 92660
Welling Glenn W. 10 percent owner 610 NEWPORT CENTER DRIVE SUITE 250 NEWPORT BEACH CA 92660
Engaged Capital Flagship Fund, Ltd. 10 percent owner 610 NEWPORT CENTER DRIVE SUITE 250 NEWPORT BEACH CA 92660
Engaged Capital Co-invest Iv, Lp 10 percent owner, other: See Footnote 1 610 NEWPORT CENTER DRIVE, SUITE 250 NEWPORT BEACH CA 92660
Engaged Capital Co-invest Iv-a, Lp 10 percent owner, other: See Footnote 1 610 NEWPORT CENTER DRIVE, SUITE 250 NEWPORT BEACH CA 92660
Ardsley Advisory Partners 10 percent owner, other: See Footnotes(1)(2)(3) 262 HARBOR DRIVE, 4TH FLOOR STAMFORD CT 06902

SunOpta Headlines

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