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Sanderson Farms Altman Z-Score

: 10.80 (As of Today)
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Good Sign:

Altman Z-score of 10.8 is strong.

Sanderson Farms has a Altman Z-Score of 10.80, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Sanderson Farms's Altman Z-Score or its related term are showing as below:

SAFM' s Altman Z-Score Range Over the Past 10 Years
Min: 2.93   Med: 6.51   Max: 12.17
Current: 10.8

During the past 13 years, Sanderson Farms's highest Altman Z-Score was 12.17. The lowest was 2.93. And the median was 6.51.


Sanderson Farms Altman Z-Score Historical Data

The historical data trend for Sanderson Farms's Altman Z-Score 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
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.03 8.17 9.13 7.10 9.45

Sanderson Farms Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
Altman Z-Score 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 8.06 9.12 9.45 9.10 10.38

Competitive Comparison

For the Packaged Foods subindustry, Sanderson Farms's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Sanderson Farms's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Sanderson Farms's Altman Z-Score falls into.



Sanderson Farms Altman Z-Score Calculation

Altman 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.

Sanderson Farms's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.4612+1.4*0.7843+3.3*0.4009+0.6*9.7216+1.0*1.9896
=10.80

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Apr. 2022:
Total Assets was $2,827 Mil.
Total Current Assets was $1,591 Mil.
Total Current Liabilities was $288 Mil.
Retained Earnings was $2,217 Mil.
Pre-Tax Income was 420.99 + 253.159 + 242.007 + 214.604 = $1,131 Mil.
Interest Expense was -0.567 + -0.577 + -0.576 + -0.623 = $-2 Mil.
Revenue was 1539.714 + 1327.428 + 1403.711 + 1352.756 = $5,624 Mil.
Market Cap (Today) was $4,553 Mil.
Total Liabilities was $468 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(1591.395 - 287.847)/2826.514
=0.4612

X2=Retained Earnings/Total Assets
=2216.745/2826.514
=0.7843

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(1130.76 - -2.343)/2826.514
=0.4009

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=4553.319/468.372
=9.7216

X5=Revenue/Total Assets
=5623.609/2826.514
=1.9896

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Sanderson Farms has a Altman Z-Score of 10.80 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Sanderson Farms  (NAS:SAFM) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Sanderson Farms Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Sanderson Farms's Altman Z-Score 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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