Descripción de la empresa
Village Super Market, Inc. operates a chain of supermarkets across the United States, offering a comprehensive array of grocery, meat, produce, dairy, deli, seafood, prepared food, bakery, and frozen food products alongside non-food items such as health and beauty care goods. The company is classified within the Consumer Defensive sector and specifically within the Grocery Stores industry, a classification that typically implies lower sensitivity to economic downturns compared to cyclical industries due to the essential nature of its offerings. On a valuation basis, the company holds a market capitalization of $635.07M and generates annual revenue of $2.39B, while employing a workforce of 2160 individuals. These financial dimensions indicate a mid-sized enterprise that maintains a significant operational footprint, with a market cap that reflects its position as an established but not yet dominant player relative to the largest national supermarket chains. The revenue figure of $2.39B underscores the substantial scale of its retail operations, suggesting a business model capable of generating consistent cash flows necessary to support its debt obligations and dividend payments.
Salud financiera
The company reported a trailing twelve-month revenue of $2.39B and a net income of $54.74M, while its EBITDA stood at $110.75M; the considerable gap between the $2.39B revenue and the $54.74M net income highlights a cost structure where operating expenses, including cost of goods sold, administrative costs, and taxes, consume approximately 97.6% of total sales. Free cash flow for the period was $42.97M, a metric that demonstrates the company's ability to generate liquidity beyond its operational cash needs after accounting for capital expenditures, thereby providing financial flexibility to service debt or return capital to shareholders. The company exhibits a gross margin of 28.3%, an operating margin of 3.7%, and a profit margin of 2.4%, indicating that after covering the direct costs of inventory and all operating expenses, the business retains a modest portion of sales as profit, which is typical for the low-margin grocery retail sector. In terms of leverage, the firm holds $160.10M in cash against $329.14M in total debt, resulting in a debt-to-equity ratio of 63.70, which suggests a leveraged balance sheet where debt obligations are substantial relative to equity but are partially mitigated by significant cash reserves. Short-term liquidity is assessed via a current ratio of 1.23, indicating that the company possesses $1.23 in current assets for every $1.00 of current liabilities, which provides a comfortable buffer against short-term obligations. Management effectiveness is reflected in a return on equity of 11.4% and a return on assets of 4.6%, metrics that reveal the efficiency with which the company utilizes shareholder capital and total assets to generate profits, respectively.
Evaluación de valoración
Valuation metrics for Village Super Market, Inc. include a trailing P/E ratio of 11.27 and a forward P/E ratio listed as N/A, implying that analysts currently lack a consensus on future earnings estimates or that the forward metric is not widely tracked for this specific security at the time of data availability. The price-to-book ratio stands at 1.23, suggesting that the market values the company at 23% above its book value, which may reflect intangible assets, brand equity, or growth expectations not fully captured in the accounting book value. Alternative valuation measures such as a price-to-sales ratio of 0.27 and an EV/EBITDA of 7.26 offer different perspectives on value, indicating that the company trades at a fraction of its sales revenue and possesses a low enterprise value relative to its earnings before interest, taxes, depreciation, and amortization. The stock's trading range over the last year spans a 52-week high of $43.74 and a 52-week low of $30.08, and without the current share price explicitly defined in the source data, the valuation is anchored by this established price band rather than a specific percentage deviation from the high or low. The company exhibits a beta of 0.43, a figure that indicates its share price volatility is significantly lower than the broader market, making it a relatively defensive holding that is less sensitive to macroeconomic fluctuations than the overall S&P 500.
Growth & Income
Growth dynamics for the company show a revenue growth rate of 6.9% year-over-year and an earnings growth rate of 5.9% year-over-year, indicating that earnings are expanding at a pace slightly slower than revenue, which often suggests that the company is prioritizing volume expansion or maintaining disciplined cost controls rather than passing full cost increases directly to consumers. As a dividend payer, the company offers a dividend yield of 2.3% with a payout ratio of 26.2%, a low payout ratio that implies high sustainability as the company retains the majority of its earnings for reinvestment, debt reduction, or to bolster cash reserves against the $329.14M in existing debt. The disparity between the 6.9% revenue growth and the 5.9% earnings growth suggests that while top-line expansion is strong, net income benefits are moderated by the operating margin constraints inherent in the grocery industry. Overall, the company presents a profile of steady, moderate growth supported by a conservative dividend policy and a robust balance sheet capable of sustaining its current trajectory.