United Natural Foods Inc.

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UNFI : NASDAQ : Distribution Services
$42.79 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 755100.0
02/21/18 - 4:00 PM ET

Financial Analysis


UNITED NATURAL FOODS INC's gross profit margin for the first quarter of its fiscal year 2018 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. UNITED NATURAL FOODS INC has weak liquidity. Currently, the Quick Ratio is 0.76 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 10.02% 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 Q1 FY18 Q1 FY17
Net Sales ($mil)2457.552278.36
EBITDA ($mil)77.5574.55
EBIT ($mil)55.1153.34
Net Income ($mil)30.5129.22


Balance Sheet Q1 FY18 Q1 FY17
Cash & Equiv. ($mil)21.1613.56
Total Assets ($mil)3046.312943.04
Total Debt ($mil)446.99594.3
Equity ($mil)1708.091552.49


Profitability Q1 FY18 Q1 FY17
Gross Profit Margin15.8616.25
EBITDA Margin3.153.27
Operating Margin2.242.34
Sales Turnover3.12.95
Return on Assets4.314.24
Return on Equity7.698.04
Debt Q1 FY18 Q1 FY17
Current Ratio2.252.5
Debt/Capital0.210.28
Interest Expense3.674.52
Interest Coverage15.0311.8


Share Data Q1 FY18 Q1 FY17
Shares outstanding (mil)50.850.58
Div / share0.00.0
EPS0.60.58
Book value / share33.6230.69
Institutional Own % n/a n/a
Avg Daily Volume798633.0899428.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 24.43 for the Food & Staples Retailing industry and a discount compared to the S&P 500 average of 25.51. For additional comparison, its price-to-book ratio of 1.37 indicates a significant discount versus the S&P 500 average of 3.26 and a significant discount versus the industry average of 4.55. 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 17.89 Peers 24.43   UNFI 10.81 Peers 10.67

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.

 

Average. 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 valuation on par 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 14.84 Peers 20.62   UNFI 1.91 Peers 10.93

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 discount to its peers.

 

Discount. 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 discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
UNFI 1.37 Peers 4.55   UNFI 4.03 Peers 6.11

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 0.56   UNFI 9.01 Peers 4.32

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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