Whole Foods Market Inc

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WFM : NASDAQ : Services
$28.28 -0.44 | -1.50%
Today's Range: 28.01 - 28.97
Avg. Daily Volume: 5,733,500
10/20/16 - 3:59 PM ET

Financial Analysis

WHOLE FOODS MARKET 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. WHOLE FOODS MARKET INC has weak liquidity. Currently, the Quick Ratio is 0.81 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 decreased by 21.74% 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 ($mil)3703.03632.0
EBITDA ($mil)326.0361.0
EBIT ($mil)209.0255.0
Net Income ($mil)120.0153.0

Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)748.0819.0
Total Assets ($mil)6275.06036.0
Total Debt ($mil)1052.063.0
Equity ($mil)3185.04070.0

Profitability Q3 FY16 Q3 FY15
Gross Profit Margin37.8938.52
EBITDA Margin8.89.93
Operating Margin5.647.02
Sales Turnover2.52.52
Return on Assets7.5810.05
Return on Equity14.9414.91
Debt Q3 FY16 Q3 FY15
Current Ratio1.451.44
Interest Expense12.00.0
Interest Coverage17.420.0

Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)318.8358.6
Div / share0.270.26
Book value / share9.9911.35
Institutional Own % n/a n/a
Avg Daily Volume5659242.06126043.0


HOLD. This stock's P/E ratio indicates a discount compared to an average of 21.86 for the Food & Staples Retailing industry and a discount compared to the S&P 500 average of 24.54. To use another comparison, its price-to-book ratio of 2.87 indicates valuation on par with the S&P 500 average of 2.72 and a discount versus the industry average of 3.50. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
WFM 20.03 Peers 21.86   WFM 10.05 Peers 10.63

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
WFM 18.95 Peers 17.98   WFM 8.49 Peers 2.18

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

WFM 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.

WFM trades at a significant premium to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WFM 2.87 Peers 3.50   WFM -14.89 Peers -5.31

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
WFM 0.58 Peers 0.53   WFM 3.01 Peers 4.03

Average. 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 valuation on par with 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



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