United Natural Foods Inc

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UNFI : NASDAQ : Services
$35.66 up 0.71 | 2.03%
Today's Range: 35.15 - 35.93
Avg. Daily Volume: 1040600.0
06/28/17 - 4:00 PM ET

Financial Analysis


UNITED NATURAL FOODS INC's gross profit margin for the third quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. UNITED NATURAL FOODS INC has weak liquidity. Currently, the Quick Ratio is 0.79 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 9.31% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q3 FY17 Q3 FY16
Net Sales ($mil)2369.562132.1
EBITDA ($mil)90.3685.05
EBIT ($mil)68.8966.93
Net Income ($mil)36.5938.27


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)16.1219.33
Total Assets ($mil)2920.592645.93
Total Debt ($mil)469.1444.97
Equity ($mil)1629.231490.42


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin16.3715.97
EBITDA Margin3.813.98
Operating Margin2.913.14
Sales Turnover3.133.14
Return on Assets4.314.8
Return on Equity7.738.53
Debt Q3 FY17 Q3 FY16
Current Ratio2.382.59
Debt/Capital0.220.23
Interest Expense4.234.38
Interest Coverage16.3115.27


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)50.6150.38
Div / share0.00.0
EPS0.720.76
Book value / share32.1929.58
Institutional Own % n/a n/a
Avg Daily Volume976122.0571743.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 21.22 for the Food & Staples Retailing industry and a significant discount compared to the S&P 500 average of 25.75. For additional comparison, its price-to-book ratio of 1.08 indicates a significant discount versus the S&P 500 average of 3.09 and a significant discount versus the industry average of 3.92. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, UNITED NATURAL FOODS 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
UNFI 14.00 Peers 21.22   UNFI 6.93 Peers 9.24

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

UNFI 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.

UNFI 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
UNFI 13.01 Peers 18.42   UNFI 7.00 Peers 1.81

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

UNFI 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.

UNFI 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
UNFI 1.08 Peers 3.92   UNFI -1.59 Peers 11.38

Discount. 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.

UNFI is trading at a significant discount to its peers.

 

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

However, UNFI 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
UNFI 0.19 Peers 0.51   UNFI 9.97 Peers 7.27

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.

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

 

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

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

 

 

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