Whole Foods Market Inc

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WFM : NASDAQ : Services
$30.91 | %
Today's Range: 30.42 - 31.07
Avg. Daily Volume: 4780900.0
02/17/17 - 4:00 PM ET

Financial Analysis


WHOLE FOODS MARKET INC's gross profit margin for the first 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. WHOLE FOODS MARKET INC has weak liquidity. Currently, the Quick Ratio is 0.85 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 remained unchanged 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 FY17 Q1 FY16
Net Sales ($mil)4918.04829.0
EBITDA ($mil)373.0399.0
EBIT ($mil)184.0252.0
Net Income ($mil)95.0157.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)849.0935.0
Total Assets ($mil)6382.06236.0
Total Debt ($mil)1051.01055.0
Equity ($mil)3292.03262.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin37.3937.03
EBITDA Margin7.588.26
Operating Margin3.745.22
Sales Turnover2.482.49
Return on Assets6.978.43
Return on Equity13.5116.12
Debt Q1 FY17 Q1 FY16
Current Ratio1.531.63
Debt/Capital0.240.24
Interest Expense15.07.0
Interest Coverage12.2736.0


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)318.5328.0
Div / share0.00.0
EPS0.30.46
Book value / share10.349.95
Institutional Own % n/a n/a
Avg Daily Volume4750586.05551893.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 23.19 for the Food & Staples Retailing industry and a discount compared to the S&P 500 average of 26.35. To use another comparison, its price-to-book ratio of 2.96 indicates valuation on par with the S&P 500 average of 2.94 and a discount versus the industry average of 3.84. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
WFM 21.99 Peers 23.19   WFM 8.28 Peers 9.65

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.

 

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.

WFM 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
WFM 22.39 Peers 18.81   WFM NM Peers 2.23

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.

 

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.

WFM'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
WFM 2.96 Peers 3.84   WFM -6.72 Peers -0.13

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
WFM 0.62 Peers 0.55   WFM 1.71 Peers 1.05

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.

 

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

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

 

 

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