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NEW YORK (TheStreet) -- Village Super Market (VLGEA - Get Report) has been upgraded by TheStreet Ratings from Hold to Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate VILLAGE SUPER MARKET (VLGEA) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- VLGEA's revenue growth has slightly outpaced the industry average of 1.2%. Since the same quarter one year prior, revenues slightly increased by 6.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food & Staples Retailing industry. The net income increased by 156.8% when compared to the same quarter one year prior, rising from -$6.83 million to $3.88 million.
- Net operating cash flow has significantly increased by 102.30% to $0.05 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 53.72%.
- VLGEA's debt-to-equity ratio is very low at 0.20 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Despite the fact that VLGEA's debt-to-equity ratio is low, the quick ratio, which is currently 0.63, displays a potential problem in covering short-term cash needs.
- VILLAGE SUPER MARKET reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, VILLAGE SUPER MARKET reported lower earnings of $0.35 versus $1.84 in the prior year.
- You can view the full analysis from the report here: VLGEA Ratings Report
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