Village Super Market (NasdaqGS:VLGE.A) - Share price, News & Analysis

Q: What is the Fair Price of VLGE.A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

VLGE.A ($22.97) is trading below our estimate of [[fair value]] ($24.43)

VLGE.A fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	4/6
Financial Health	4/6
Dividends	4/6

VLGE.A Stock Overview

Village Super Market, Inc. operates a chain of supermarkets in the United States.

Rewards

Trading at 6% below our estimate of its fair value

Earnings grew by 20.4% over the past year

Risk Analysis

Earnings have declined by 0.5% per year over past 5 years

Unstable dividend track record

Village Super Market Competitors

Natural Grocers by Vitamin Cottage

NYSE:NGVC

US$351.9m

Ingles Markets

NasdaqGS:IMKT.A

US$1.9b

Weis Markets

NYSE:WMK

US$2.3b

Sprouts Farmers Market

NasdaqGS:SFM

US$3.4b

Price History & Performance

Summary of all time highs, changes and price drops for Village Super Market
Historical stock prices
Current Share Price	US$22.97
52 Week High	US$25.09
52 Week Low	US$21.25
Beta	0.17
1 Month Change	1.06%
3 Month Change	3.80%
1 Year Change	2.45%
3 Year Change	-8.67%
5 Year Change	-1.08%
Change since IPO	502.49%

Recent News & Updates

Jun 24

Village Super Market (NASDAQ:VLGE.A) Has Announced A Dividend Of US$0.25

Village Super Market, Inc. ( NASDAQ:VLGE.A ) will pay a dividend of US$0.25 on the 28th of July. This means the annual...

Shareholder Returns

	VLGE.A	US Consumer Retailing	US Market
7D	2.0%	5.5%	1.4%
1Y	2.5%	2.9%	-8.4%

Return vs Industry: VLGE.A matched the US Consumer Retailing industry which returned 3.1% over the past year.

Return vs Market: VLGE.A exceeded the US Market which returned -9% over the past year.

Price Volatility

Is VLGE.A's price volatile compared to industry and market?
VLGE.A volatility
VLGE.A Average Weekly Movement	2.9%
Consumer Retailing Industry Average Movement	5.8%
Market Average Movement	7.6%
10% most volatile stocks in US Market	17.1%
10% least volatile stocks in US Market	3.1%

Stable Share Price: VLGE.A is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: VLGE.A's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1937	4,724	Robert Sumas	https://myvillagesupermarket.com

Village Super Market, Inc. operates a chain of supermarkets in the United States. Its stores feature specialty departments, such as an on-site bakery, an expanded delicatessen; and various natural and organic foods, ethnic and international foods, prepared foods, and pharmacies. The company operates a chain of twenty-nine ShopRite supermarkets, five Fairway Markets, and three Gourmet Garage specialty markets located in New Jersey, New York, Pennsylvania, and Maryland.

Village Super Market Fundamentals Summary

How do Village Super Market's earnings and revenue compare to its market cap?
VLGE.A fundamental statistics
Market Cap	US$333.44m
Earnings (TTM)	US$23.01m
Revenue (TTM)	US$2.07b

14.5x

P/E Ratio

0.2x

P/S Ratio

Is VLGE.A overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
VLGE.A income statement (TTM)
Revenue	US$2.07b
Cost of Revenue	US$1.49b
Gross Profit	US$583.20m
Other Expenses	US$560.18m
Earnings	US$23.01m

Last Reported Earnings

Apr 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.59
Gross Margin	28.18%
Net Profit Margin	1.11%
Debt/Equity Ratio	21.8%

How did VLGE.A perform over the long term?

See historical performance and comparison

Dividends

4.4%

Current Dividend Yield

62%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is VLGE.A undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VLGE.A?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for VLGE.A. This is calculated by dividing VLGE.A's market cap by their current preferred multiple.
What is VLGE.A's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$333.44m

VLGE.A key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.3x
Enterprise Value/EBITDA	8.5x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does VLGE.A's PE Ratio compare to its peers?

VLGE.A PE Ratio vs Peers

The above table shows the PE ratio for VLGE.A vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	13.1x
NGVC Natural Grocers by Vitamin Cottage	13.3x	n/a	US$351.9m
IMKT.A Ingles Markets	6.9x	n/a	US$1.9b
WMK Weis Markets	19x	n/a	US$2.3b
SFM Sprouts Farmers Market	13.4x	2.0%	US$3.4b
VLGE.A Village Super Market	14.5x	n/a	US$333.4m

Price-To-Earnings vs Peers: VLGE.A is expensive based on its Price-To-Earnings Ratio (14.5x) compared to the peer average (13.1x).

Price to Earnings Ratio vs Industry

How does VLGE.A's PE Ratio compare vs other companies in the US Consumer Retailing Industry?

Price-To-Earnings vs Industry: VLGE.A is good value based on its Price-To-Earnings Ratio (14.5x) compared to the US Consumer Retailing industry average (18.6x)

Price to Earnings Ratio vs Fair Ratio

What is VLGE.A's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

VLGE.A PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	14.5x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate VLGE.A's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of VLGE.A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VLGE.A ($22.97) is trading below our estimate of fair value ($24.43)

Significantly Below Fair Value: VLGE.A is trading below fair value, but not by a significant amount.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Village Super Market forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

9.1%

Forecasted Consumer Retailing industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Village Super Market has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Discover growth companies

Check out Village Super Market's track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.

Past Performance

How has Village Super Market performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-0.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: VLGE.A has high quality earnings.

Growing Profit Margin: VLGE.A's current net profit margins (1.1%) are higher than last year (1%).

Past Earnings Growth Analysis

Earnings Trend: VLGE.A's earnings have declined by 0.5% per year over the past 5 years.

Accelerating Growth: VLGE.A's earnings growth over the past year (20.4%) exceeds its 5-year average (-0.5% per year).

Earnings vs Industry: VLGE.A earnings growth over the past year (20.4%) exceeded the Consumer Retailing industry 19.6%.

Return on Equity

High ROE: VLGE.A's Return on Equity (6.6%) is considered low.

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Financial Health

How is Village Super Market's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: VLGE.A's short term assets ($225.1M) exceed its short term liabilities ($152.7M).

Long Term Liabilities: VLGE.A's short term assets ($225.1M) do not cover its long term liabilities ($399.5M).

Debt to Equity History and Analysis

Debt Level: VLGE.A has more cash than its total debt.

Reducing Debt: VLGE.A's debt to equity ratio has increased from 0.2% to 21.8% over the past 5 years.

Debt Coverage: VLGE.A's debt is well covered by operating cash flow (90.6%).

Interest Coverage: VLGE.A's interest payments on its debt are well covered by EBIT (345.5x coverage).

Balance Sheet

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Dividend

What is Village Super Market current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

4.35%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: VLGE.A's dividend (4.35%) is higher than the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: VLGE.A's dividend (4.35%) is in the top 25% of dividend payers in the US market (3.99%)

Stability and Growth of Payments

Stable Dividend: VLGE.A's dividend payments have been volatile in the past 10 years.

Growing Dividend: VLGE.A's dividend payments have not increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (61.5%), VLGE.A's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (59.9%), VLGE.A's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.7yrs

Average management tenure

CEO

Robert Sumas (81 yo)

4.67yrs

Tenure

US$746,916

Compensation

Mr. Robert P. Sumas has been Chief Executive Officer and a Vice Chairman at Village Super Market, Inc. since 2017 and served as its President since December 2009 until December 14, 2018. Mr. Sumas is respo...

CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD746.92K) is below average for companies of similar size in the US market ($USD2.60M).

Compensation vs Earnings: Robert's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: VLGE.A's management team is considered experienced (4.7 years average tenure).

Board Members

Experienced Board: VLGE.A's board of directors are seasoned and experienced ( 17.4 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/18 00:00
End of Day Share Price	2022/08/18 00:00
Earnings	2022/04/30
Annual Earnings	2021/07/31