Sweetgreen Inc. (SG:NYE) Analysts rate as a Strong Buy, but Fundamental Analysis is very Bearish

STA Research
by: STA Research
Sweetgreen Inc

Based on the Sweetgreen stock forecast from 6 analysts, the average analyst Sweetgreen stock price target is USD 23.83 over the next 12 months. Sweetgreen Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of SG Stock is Very Bearish, which is based on 0 positive signals and 8 negative signals. At the last closing, Sweetgreen stock price was USD 16.85Sweetgreen stock price has changed by -0.21% over the past week, +2.66% over the past month and +0.00% over the last year.

Sweetgreen, Inc., together with its subsidiaries, develops and operates fast-casual restaurants serving healthy foods prepared from seasonal and organic ingredients. The company also accepts orders through its online and mobile ordering platforms, as well as sells gift cards that can be redeemed in its restaurants. As of September 26, 2021, it owned and operated 140 restaurants in 13 states and Washington, D.C. The company was founded in 2006 and is headquartered in Los Angeles, California.

 

What we like:

There is nothing we particularly like about Sweetgreen stock price forecast.

 

What we don’t like:

Poor risk adjusted returns:

Sweetgreen stock price forecast has shown that the company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

High volatility:

The total returns for Sweetgreen stock price are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median dividend returns:

The average income yield of SG stock over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings:

Sweetgreen stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Negative cashflow:

Sweetgreen stock price forecast has shown that the company had negative total cash flow in the most recent four quarters.

Negative free cash flow:

Sweetgreen stock price forecast has shown that the company had negative total free cash flow in the most recent four quarters.

Low Earnings Growth:

Sweetgreen stock price forecast has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth:

Sweetgreen stock price forecast has shown below median revenue growth in the previous 5 years compared to its sector

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