United Natural Foods Inc

Find Ratings Reports
UNFI : NASDAQ : Services
$48.89 | %
Today's Range: 47.87 - 48.90
Avg. Daily Volume: 711,800
07/22/16 - 4:00 PM ET

Financial Analysis


UNITED NATURAL FOODS INC's gross profit margin for the third quarter of its fiscal year 2016 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 0.83 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 10.15% 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 FY16 Q3 FY15
Net Sales ($mil)2132.12114.64
EBITDA ($mil)86.2286.52
EBIT ($mil)68.168.97
Net Income ($mil)38.2741.75


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)19.3323.94
Total Assets ($mil)2645.932558.32
Total Debt ($mil)444.97549.41
Equity ($mil)1490.421353.03


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin15.9716.24
EBITDA Margin4.044.09
Operating Margin3.193.26
Sales Turnover3.143.09
Return on Assets4.85.31
Return on Equity8.5310.05
Debt Q3 FY16 Q3 FY15
Current Ratio2.592.73
Debt/Capital0.230.29
Interest Expense4.383.92
Interest Coverage15.5317.59


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)50.3850.09
Div / share0.00.0
EPS0.760.83
Book value / share29.5827.01
Institutional Own % n/a n/a
Avg Daily Volume735310.01053264.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 22.86 for the Food & Staples Retailing industry and a discount compared to the S&P 500 average of 25.03. To use another comparison, its price-to-book ratio of 1.63 indicates a discount versus the S&P 500 average of 2.80 and a significant discount versus the industry average of 3.82. 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 19.02 Peers 22.86   UNFI 9.29 Peers 11.04

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

UNFI is trading at a 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 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 17.83 Peers 19.91   UNFI NM Peers 2.18

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

UNFI is trading at a valuation on par with its peers.

 

Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
UNFI 1.63 Peers 3.82   UNFI -6.65 Peers 1.45

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 0.29 Peers 0.57   UNFI 5.31 Peers 6.36

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.

 

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

UNFI trails its peers on the basis of sales growth

 

 

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