* Note: Prices are in Million (M) USD.
Description:
Sweetgreen Inc. is an innovative fast-casual restaurant chain based in Los Angeles, California, specializing in freshly prepared salads and bowls with a strong commitment to sustainability and healthy eating. By prioritizing organic produce and supporting local farmers, Sweetgreen establishes itself as a leader in environmentally responsible dining. The company is actively expanding in key metropolitan markets while fostering community connections and advocating for a health-oriented lifestyle. Additionally, Sweetgreen's advanced technology platform is designed to enhance customer engagement and streamline operations, positioning the brand for robust growth in the burgeoning health-conscious dining sector.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $130 M
Debt : $42 M
EBITDA : $-43 M
Since Ebitda is less than 0, 0 points assigned.
This criteria used industry in which company operates:
Sector: Consumer discretionary
Industry: Restaurants
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Message: Cannot calculate PE Ratio since EPS is either 0 or negative.
Using default values for calculation.
Forward PE Ratio (using default values): 20.00
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 7 overlapping fiscal years (max 20).Average Free Cash Flow: $-77 M
Average Revenue: $575 M
Revenue Converted To Free Cash Flow (%): -13.5%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $677 M
Revenue 5 Years Ago (2019-12-31): $274 M
Total Growth over 5 Years: 146.9%
5-Year Revenue CAGR (Historical): 19.8%
Forward 5-Year CAGR (Tapered): 13.9%
Since historical Revenue CAGR is between 15 - 20, 4 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $114 M
Share Count 5 Years Ago (2020-12-31): $108 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $-0.54
Trailing 12-Month Earnings Per Share (EPS): $0.00
Average Earnings Per Share (EPS): $0.00
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0.00%
⚠️ Caution: Negative earnings detected — Further research is recommended - Next Fiscal Yr EPS: $-0.54
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 5 valid ROE years (max 20).Average ROE: -20.7%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $5.64
52-Week Low: $5.14
Threshold Price (15% Above 52-Week Low): $5.91
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $703 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 1% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
Owners' Earnings (FCF/Share, latest positive annual) (2018-12-31): $0.94
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 15 points to above Sweetgreen Inc (SG) stock.
Fair Value PE 12, Industry Based PE 25, Growth Based PE 15, Risk-Free Anchored PE (25% MoS) 18.47. Based on these 4 values, average assigned is 17.62. The fair value of Sweetgreen Inc (SG) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
