United Natural Foods Inc

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UNFI : NASDAQ : Services
$43.68 up 0.57 | 1.3%
Today's Range: 43.05 - 44.07
Avg. Daily Volume: 582500.0
03/23/17 - 12:46 PM ET

Financial Analysis


UNITED NATURAL FOODS INC's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. UNITED NATURAL FOODS INC has weak liquidity. Currently, the Quick Ratio is 0.90 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 10.32% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)2285.522047.71
EBITDA ($mil)67.5160.83
EBIT ($mil)46.2744.69
Net Income ($mil)25.4822.68


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)30.6612.48
Total Assets ($mil)2870.02487.02
Total Debt ($mil)561.43456.37
Equity ($mil)1590.231441.46


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin16.0215.32
EBITDA Margin2.952.97
Operating Margin2.022.18
Sales Turnover3.13.34
Return on Assets4.445.25
Return on Equity8.029.06
Debt Q2 FY17 Q2 FY16
Current Ratio2.72.96
Debt/Capital0.260.24
Interest Expense4.443.6
Interest Coverage10.4212.41


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)50.5950.33
Div / share0.00.0
EPS0.50.45
Book value / share31.4328.64
Institutional Own % n/a n/a
Avg Daily Volume576121.0574225.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 21.90 for the Food & Staples Retailing industry and a discount compared to the S&P 500 average of 26.73. For additional comparison, its price-to-book ratio of 1.41 indicates a significant discount versus the S&P 500 average of 2.98 and a significant discount versus the industry average of 3.70. 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 17.58 Peers 21.90   UNFI 8.35 Peers 9.68

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 16.47 Peers 18.68   UNFI 10.99 Peers 2.28

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.

 

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 1.41 Peers 3.70   UNFI -2.70 Peers -0.99

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 0.25 Peers 0.55   UNFI 7.34 Peers 1.38

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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