SUPERVALU Inc

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SVU : NYSE : Services
$4.68 | %
Today's Range: 4.62 - 4.70
Avg. Daily Volume: 3,787,200
09/23/16 - 4:04 PM ET

Financial Analysis


SUPERVALU INC's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. SUPERVALU INC has very weak liquidity. Currently, the Quick Ratio is 0.35 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 31.52% 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 Q1 FY16 Q1 FY15
Net Sales ($mil)5196.05407.0
EBITDA ($mil)220.0244.0
EBIT ($mil)134.0161.0
Net Income ($mil)46.061.0


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)59.0137.0
Total Assets ($mil)4373.04491.0
Total Debt ($mil)2485.02712.0
Equity ($mil)-391.0-571.0


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin14.9914.98
EBITDA Margin4.234.51
Operating Margin2.582.98
Sales Turnover3.964.02
Return on Assets3.724.67
Return on Equity0.00.0
Debt Q1 FY16 Q1 FY15
Current Ratio1.140.96
Debt/Capital1.191.27
Interest Expense53.059.0
Interest Coverage2.532.73


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)265.0263.0
Div / share0.00.0
EPS0.170.23
Book value / share-1.48-2.17
Institutional Own % n/a n/a
Avg Daily Volume3675993.02583737.0

Valuation


HOLD. SUPERVALU INC's P/E ratio indicates a significant discount compared to an average of 20.59 for the Food & Staples Retailing industry and a significant discount compared to the S&P 500 average of 24.84. Normally, for additional comaprison, we would look at the price-to-book ratio; however, this company's price-to-book ratio is negative making the value useless for comparisons. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. After reviewing these and other key valuation criteria, SUPERVALU INC proves to trade at a discount 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
SVU 7.90 Peers 20.59   SVU 2.86 Peers 9.65

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

SVU is trading at a significant discount to its peers.

 

Discount. 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.

SVU is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SVU 7.11 Peers 19.03   SVU 5.00 Peers 1.99

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

SVU is trading at a significant discount to its peers.

 

Premium. 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.

SVU trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SVU NM Peers 3.39   SVU 15.68 Peers -9.18

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

SVU's P/B is negative making this valuation measure meaningless.

 

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

SVU is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SVU 0.07 Peers 0.52   SVU -4.11 Peers 4.03

Discount. 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.

SVU is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

SVU significantly trails its peers on the basis of sales growth

 

 

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