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Fresh Market Inc
TFM : NASDAQ : Services
$39.71 0.17 | 0.43%
Today's Range: 38.80 - 40.00
Avg. Daily Volume: 690,300
11/20/14 - 4:00 PM ET

Financial Analysis


FRESH MARKET INC's gross profit margin for the second quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. FRESH MARKET INC has very weak liquidity. Currently, the Quick Ratio is 0.25 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 19.83% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q2 FY14 Q2 FY13
Net Sales ($mil)422.23354.76
EBITDA ($mil)34.438.62
EBIT ($mil)19.1325.91
Net Income ($mil)11.3915.63


Balance Sheet Q2 FY14 Q2 FY13
Cash & Equiv. ($mil)17.215.97
Total Assets ($mil)491.11449.34
Total Debt ($mil)36.445.02
Equity ($mil)287.87240.23


Profitability Q2 FY14 Q2 FY13
Gross Profit Margin34.0434.19
EBITDA Margin8.1410.88
Operating Margin4.537.3
Sales Turnover3.353.14
Return on Assets8.3515.42
Return on Equity14.2428.84
Debt Q2 FY14 Q2 FY13
Current Ratio0.860.78
Debt/Capital0.110.16
Interest Expense1.121.22
Interest Coverage17.0221.22


Share Data Q2 FY14 Q2 FY13
Shares outstanding (mil)48.2948.22
Div / share0.00.0
EPS0.240.32
Book value / share5.964.98
Institutional Own % n/a n/a
Avg Daily Volume746425.0959151.0

Valuation


BUY. FRESH MARKET INC's P/E ratio indicates a significant premium compared to an average of 24.41 for the Food & Staples Retailing industry and a significant premium compared to the S&P 500 average of 19.78. For additional comparison, its price-to-book ratio of 6.56 indicates a significant premium versus the S&P 500 average of 2.73 and a significant premium versus the industry average of 3.56. The price-to-sales ratio is well below the S&P 500 average, but well above the industry average. Upon assessment of these and other key valuation criteria, FRESH MARKET INC proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
TFM 46.02 Peers 24.41   TFM 13.60 Peers 13.28

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

TFM is trading at a significant premium to its peers.

 

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

TFM is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
TFM 21.49 Peers 19.44   TFM 0.92 Peers 3.32

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

TFM is trading at a significant premium to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

TFM trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TFM 6.56 Peers 3.56   TFM -40.98 Peers 5.02

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

TFM is trading at a significant premium to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, TFM is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TFM 1.15 Peers 0.61   TFM 16.33 Peers 5.24

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

TFM is trading at a significant premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

TFM has a sales growth rate that significantly exceeds its peers.

 

 

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