Fiscal first-quarter revenue declined 7% year over year to $53 million as net income increased 31% to $6.1 million and EPS jumped 28% to 32 cents. Gross, operating and net margin ascended 748, 455 and 335 basis points to 35%, 18% and 12%, respectively. Return on assets increased 196 basis points to 13% while return on equity shed 72 basis points to 17%. The company has $19 million of cash and cash equivalents and a quick ratio of 1.82, indicating a strong liquidity position. A debt-to-equity ratio of .08 indicates ideal capital structure.
Shares of Balchem have fallen 3% in 2009, in line with the Dow Jones Industrial Average. But the stock trades at a price-to-earnings ratio of 22, indicating a sizable premium to the market and a modest premium to the average peer in the specialty chemicals industry. The stock offers a weak .45% dividend yield.
Village Super Market
(VLGEA - Get Report)
operates a chain of ShopRite supermarkets in the United States. We upgraded Village Super Market to buy on Dec. 5, 2006.
Fiscal third-quarter revenue increased 7% year over year to $293 million as EPS climbed 27% to 47 cents. Same-store sales, an important gauge of year-over-year improvement, jumped more than 7%. The company has a modest $36 million debt-load and over $47 million of cash.
Shares of Village Super Market have enjoyed a 7% climb in 2009 and are up 17% from their March low. The stock trades at a price to earnings ratio of 17, representing a premium to the market, and offers a lackluster 2.8% dividend yield.