Whole Foods Market IncFind Ratings Reports
WHOLE FOODS MARKET INC's gross profit margin for the second 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. WHOLE FOODS MARKET INC has weak liquidity. Currently, the Quick Ratio is 0.91 which 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.
During the same period, stockholders' equity ("net worth") has decreased by 18.52% 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 FY16||Q2 FY15|
|Net Sales ($mil)||3695.0||3648.0|
|Net Income ($mil)||142.0||159.0|
|Balance Sheet||Q2 FY16||Q2 FY15|
|Cash & Equiv. ($mil)||973.0||903.0|
|Total Assets ($mil)||6362.0||6052.0|
|Total Debt ($mil)||1052.0||63.0|
|Profitability||Q2 FY16||Q2 FY15|
|Gross Profit Margin||37.94||38.68|
|Return on Assets||8.0||9.99|
|Return on Equity||15.49||15.0|
|Debt||Q2 FY16||Q2 FY15|
|Share Data||Q2 FY16||Q2 FY15|
|Shares outstanding (mil)||324.8||360.3|
|Div / share||0.14||0.13|
|Book value / share||10.11||11.19|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||6007552.0||5557267.0|
HOLD. This stock's P/E ratio indicates a discount compared to an average of 22.61 for the Food & Staples Retailing industry and a discount compared to the S&P 500 average of 25.05. To use another comparison, its price-to-book ratio of 3.28 indicates a premium versus the S&P 500 average of 2.81 and a discount versus the industry average of 3.83. The current price-to-sales ratio is well below the S&P 500 average, but above the industry average. Upon assessment of these and other key valuation criteria, WHOLE FOODS MARKET INC proves to trade at a discount to investment alternatives within the industry.
|WFM 22.26||Peers 22.61||WFM 10.92||Peers 10.98|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.
WFM is trading at a valuation on par with 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.
WFM is trading at a valuation on par to its peers.
|WFM 21.06||Peers 19.78||WFM 8.24||Peers 2.43|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
WFM is trading at a premium 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.
WFM trades at a significant premium to its peers.
|WFM 3.28||Peers 3.83||WFM -10.25||Peers -2.76|
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.
WFM is trading at a discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, WFM is expected to significantly trail its peers on the basis of its earnings growth rate.
|WFM 0.69||Peers 0.56||WFM 4.29||Peers 6.26|
Premium. 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.
WFM is trading at a premium to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
WFM significantly trails its peers on the basis of sales growth