One-glance verdict
Undervalued
$35.44 our estimate vs market $10.95
Wall Street consensus: $14.88 (-58.0% lower than our fair-value estimate)
69% below our estimate, below the bear case
Fundamentals snapshot
The Simply Good Foods Company
SMPL · NCM · Consumer Defensive · Packaged Foods
Current price
$10.95
52-week range
$10.12 - $32.37
Market cap
$967.99M
Balance sheet
Healthy
9.40x Adequate
Net debt $324.58M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
3 Risks
1 rewards · 3 risks
- Reward Free cash flow was positive in 8/10 years.
- Risk Return on equity was -12.2% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from 17.3% to 12.8% over 3 years.
- Risk Insider ownership is only 9.1% (peer median: 9.4%).
What this company does
The Simply Good Foods Company
The Simply Good Foods Company makes popular health-focused snacks and meal replacements, like protein bars and shakes, under well-known brands such as Atkins and Quest. The company earns money by selling these products through many different channels, from major grocery stores to online shops. This wide distribution matters because it allows them to reach a large number of health-conscious consumers who are increasingly looking for convenient, protein-rich foods.
How the company got here
The Simply Good Foods Company was formed in 2017 by acquiring the Atkins brand, famous for its low-carbohydrate diet products. A key turning point was in 2019 when it bought Quest Nutrition for $1 billion, shifting the company's focus from just weight management to the broader world of nutritional snacking. To keep up with changing tastes, the company recently expanded again, buying the plant-based protein shake brand OWYN (Only What You Need) in 2024.
What it actually does
Simply Good Foods sells convenient snacks and meal replacements you'd find in grocery stores, gas stations, and online. The company's main focus is on products that are high in protein and low in sugar and carbohydrates. Think of protein bars, ready-to-drink shakes, protein chips, and low-sugar sweet treats. These items are sold under three main brand names: Quest, Atkins, and OWYN.
Quest
This is the company's largest and fastest-growing business line, making up the majority of sales. Quest targets active people and fitness enthusiasts with snacks that feel like treats but are packed with protein and low in sugar. You might recognize their popular protein bars, protein chips, cookies, and ready-to-drink shakes. This brand has successfully moved the company beyond just diet products into the much larger market for everyday healthy snacking.
Atkins
This is the original brand the company was built on, and it remains a significant part of the business. Atkins is a well-known name in weight management, focusing on products for a low-carb lifestyle. People buy Atkins-branded shakes, bars, and snacks to help them stick to their diet goals. While Quest is focused on growth, Atkins provides a steady, established business for the company.
OWYN (Only What You Need)
This is the newest addition to the family, representing a smaller but important and growing slice of the business. OWYN makes plant-based protein shakes for a health-conscious audience that avoids dairy or has food allergies. By acquiring OWYN, Simply Good Foods is tapping into the rising popularity of plant-based nutrition and reaching a new type of customer.
What management is betting on now
The company's leadership is focused on making its biggest brand, Quest, even stronger, especially by boosting its core protein bar sales. They are also working to improve results for the Atkins brand while successfully adding the new OWYN brand to their lineup. A key priority is protecting their margins (the amount of profit they make on each dollar of sales) by managing rising costs for ingredients and transportation. They also plan to keep creating new products and are open to buying other brands to grow the company's presence in the nutritional snacking aisle.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$45.04M
FY2025 Q1
$31.71M
FY2025 Q3
$30.75M
FY2025 Q4
$27.34M
FY2026 Q1
$48.00M
FY2026 Q2
$2.56M
FY2026 Q3
$41.52M
Revenue
$356.98M
Net income
$-51.97M
Diluted EPS
-0.58
Operating cash flow
$43.98M
Free cash flow
$41.52M
Fetching…
Sources
Revenue
$326.01M
Net income
$-159.70M
Diluted EPS
-1.73
Operating cash flow
$8.10M
Free cash flow
$2.56M
Fetching…
Sources
Revenue
$340.20M
Net income
$25.27M
Diluted EPS
0.26
Operating cash flow
$50.09M
Free cash flow
$48.00M
Fetching…
Sources
Revenue
$369.04M
Net income
$-12.36M
Diluted EPS
-0.12
Operating cash flow
$45.37M
Free cash flow
$27.34M
Fetching…
Sources
Revenue
$359.65M
Net income
$36.75M
Diluted EPS
0.36
Operating cash flow
$31.25M
Free cash flow
$30.75M
Fetching…
Sources
Revenue
$341.27M
Net income
$38.12M
Diluted EPS
0.38
Operating cash flow
$32.02M
Free cash flow
$31.71M
Fetching…
Sources
Revenue
$375.69M
Net income
$29.29M
Diluted EPS
0.29
Operating cash flow
$48.95M
Free cash flow
$45.04M
Fetching…
Sources
Is it cheap or expensive?
Fair value $35.44 vs current price $10.95
Wall Street consensus is the average analyst price target: $14.88 (-58.0% lower than our fair-value estimate).
Our most-likely fair value is $35.44 a share — about 223.8% above today's price of $10.95, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net debt $324.6M. Interest coverage 9.4x.
Net debt
$324.58M
Interest coverage
9.40x
The Simply Good Foods Company's profit covers its interest bill about 9.4 times over. which is stronger than every peer shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
SMPL
BASELINE
The Simply Good Foods Company
Total debt $448.46M Interest coverage 9.40x This is the baseline the peer rows are being compared against.
Total debt $1.22B Interest coverage 5.23x -44% vs SMPL Carries about 1.8x less debt cushion than SMPL.
Total debt $7.63B Interest coverage 2.29x -76% vs SMPL Carries about 4.1x less debt cushion than SMPL.
Total debt $1.04B Interest coverage 0.25x -97% vs SMPL Carries about 38.1x less debt cushion than SMPL.
Total debt $497.23M Interest coverage -16.63x -100% vs SMPL This peer has almost no interest-payment cushion compared with SMPL.
What you should know
The case for and against SMPL
1 Reward
3 Risks
Rewards
-
Free cash flow was positive in 8/10 years.
Risks
-
Return on equity was -12.2% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from 17.3% to 12.8% over 3 years.
-
Insider ownership is only 9.1% (peer median: 9.4%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
6.41x
P/B
0.68x
P/S
0.70x
EV/EBITDA
5.83x
PEG ratio
1.64x
Profitability
How much profit each dollar creates
Gross margin
33.3%
Operating margin
12.8%
Net margin
-14.3%
ROE
-12.2%
ROA
5.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.32x
Current ratio
4.80x
Quick ratio
2.89x
Total debt
$448.46M
Total cash
$123.88M
Growth
How the business has been compounding
Revenue TTM
$1.39B
Revenue 5Y CAGR
9.6%
EPS TTM
-2.11
EPS 5Y CAGR
-1.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$147.54M
Free CF TTM
$157.91M
FCF margin
11.3%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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