DCF Tool

SAFM

Sanderson Farms, Inc. – Dog and Cat Food Manufacturing
Sanderson Farms, Inc., founded in 1947, is engaged in the production, processing, marketing and distribution of fresh and frozen chicken and other prepared food items. Employing more than 15,000 employees in operations spanning five states and 17 different cities, Sanderson Farms is the third largest poultry producer in the United States. As a company, Sanderson Farms is committed to adopting a fresh approach in everything that we do, not only where products are concerned, but companywide, as well. Though the company has grown in size, it still adheres to the same hometown values of honesty, integrity and innovation that were established when the Sanderson family founded the company back in 1947.
Analysis Results
Intrinsic Value $12,251.93
Latest Price $194.49
Relative Value 98% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 52.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 52.9%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 1.97 1.89
2023 3.01 2.76
2024 4.6 4.05
2025 7.03 5.94
2026 10.8 8.7
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 323 billion. This corresponds to a present value of 250 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 23.3 billion. Adding in the terminal value gives a total present value of 274 billion.

There are presently 22.3 million outstanding shares, so the intrinsic value per share is 12251.93.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,172,540,000
Current Cash 878,678,000
Current Liabilities 618,126,000
Current Debt 0
Non-Cash Working Capital (NCWC) 675,736,000
Change in NCWC 370,769,000
EBIT 1,197,742,000
Tax Provision 282,574,000
Depreciation and Amortization 336,462,000
Capital Expenditure -332,696,000
Unlevered Free Cash Flow 1,288,520,822
Current Assets 578,135,000
Current Cash 49,061,000
Current Liabilities 224,107,000
Current Debt 0
Non-Cash Working Capital (NCWC) 304,967,000
Change in NCWC 34,954,000
EBIT -11,594,000
Tax Provision -44,585,000
Depreciation and Amortization 156,754,000
Capital Expenditure -202,437,000
Unlevered Free Cash Flow -22,323,000
Current Assets 581,111,000
Current Cash 95,417,000
Current Liabilities 215,681,000
Current Debt 0
Non-Cash Working Capital (NCWC) 270,013,000
Change in NCWC 23,606,000
EBIT 70,794,000
Tax Provision 10,553,000
Depreciation and Amortization 135,420,000
Capital Expenditure -249,503,000
Unlevered Free Cash Flow -31,384,240
Current Assets 566,489,000
Current Cash 121,193,000
Current Liabilities 198,889,000
Current Debt 0
Non-Cash Working Capital (NCWC) 246,407,000
Change in NCWC 14,875,000
EBIT 39,300,000
Tax Provision -30,874,000
Depreciation and Amortization 110,896,000
Capital Expenditure -308,875,000
Unlevered Free Cash Flow -143,804,000
Current Assets 849,538,000
Current Cash 419,285,000
Current Liabilities 198,721,000
Current Debt 0
Non-Cash Working Capital (NCWC) 231,532,000
Change in NCWC 508,000
EBIT 425,239,000
Tax Provision 144,785,000
Depreciation and Amortization 100,337,000
Capital Expenditure -166,768,000
Unlevered Free Cash Flow 214,289,197
Current Assets 613,324,000
Current Cash 234,111,000
Current Liabilities 148,189,000
Current Debt 0
Non-Cash Working Capital (NCWC) 231,024,000
Change in NCWC 16,140,000
EBIT 294,111,000
Tax Provision 103,716,000
Depreciation and Amortization 84,583,000
Capital Expenditure -200,882,000
Unlevered Free Cash Flow 89,727,833
Current Assets 562,790,000
Current Cash 196,659,000
Current Liabilities 161,247,000
Current Debt 10,000,000
Non-Cash Working Capital (NCWC) 214,884,000
Change in NCWC 7,423,000
EBIT 335,998,000
Tax Provision 118,090,000
Depreciation and Amortization 74,661,000
Capital Expenditure -158,289,000
Unlevered Free Cash Flow 141,028,939
Current Assets 510,706,000
Current Cash 165,610,000
Current Liabilities 147,635,000
Current Debt 10,000,000
Non-Cash Working Capital (NCWC) 207,461,000
Change in NCWC 13,025,000
EBIT 381,922,000
Tax Provision 130,418,000
Depreciation and Amortization 64,309,000
Capital Expenditure -171,626,000
Unlevered Free Cash Flow 156,367,901
Current Assets 430,743,000
Current Cash 85,563,000
Current Liabilities 161,543,000
Current Debt 10,799,000
Non-Cash Working Capital (NCWC) 194,436,000
Change in NCWC -50,712,000
EBIT 205,678,000
Tax Provision 69,496,000
Depreciation and Amortization 62,225,000
Capital Expenditure -54,529,000
Unlevered Free Cash Flow 91,233,365
Current Assets 397,787,000
Current Cash 27,802,000
Current Liabilities 135,594,000
Current Debt 10,757,000
Non-Cash Working Capital (NCWC) 245,148,000
Change in NCWC -79,179,000
EBIT 96,316,000
Tax Provision 32,628,000
Depreciation and Amortization 59,979,000
Capital Expenditure -49,249,000
Unlevered Free Cash Flow -8,433,402

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.