Village Super Market, Inc. Debt jumped on 766% and EBITDA surged on 37.8%10/07/2020
• About Village Super Market, Inc. ($VLGEA
) • By InTwits
Village Super Market, Inc. reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 4.7% in FY2020 vs. 3.8% in FY2019 vs. 4.2% in FY2016
- Village Super Market, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.0%. At the same time it's in pair with industry average of 37.4%
- CAPEX is quite volatile: $54m in FY2020, $28m in FY2019, $35m in FY2018, $28m in FY2017, $20m in FY2016
- The company has business model with low profitability: ROIC is 7.5%
- It operates with medium-size leverage: Net Debt/EBITDA is 3.6x while industry average is 3.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 9.8%. Revenue growth showed acceleration in FY20Q4 - it increased 19.9% YoY. During FY2016-FY2020 Revenue growth bottomed in FY2017 at -1.9% and was accelerating since that time. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.96 pp from 3.8% to 4.7% in FY2020. During FY2016-FY2020 EBITDA Margin bottomed in FY2018 at 3.6% and was growing since that time.
Gross Margin showed almost no change in FY2020. Gross Margin grew at 0.23 pp per annum in the last 5 years. SG&A as a % of Revenue increased slightly on 0.63 pp from 24.0% to 24.7% in FY2020. SG&A as a % of Revenue grew at 0.41 pp per annum in the last 5 years.
Net Income margin showed almost no change in FY2020.
Investments (CAPEX, working capital and M&A)
In FY2020 the company had CAPEX/Revenue of 3.0%. Village Super Market, Inc.'s CAPEX/Revenue increased slightly on 1.3 pp from 1.7% in FY2017 to 3.0% in FY2020. Average CAPEX/Revenue for the last three years was 2.3%. The company invested a large share of EBITDA (63.8%) to CAPEX.
Return on investment
The company operates at low ROIC (7.5%) and ROE (7.7%). ROIC decreased on 2.0 pp from 9.5% to 7.5% in FY2020. ROE decreased slightly on 0.55 pp from 8.2% to 7.7% in FY2020. ROIC stuck to a declining trend at -1.7 pp per annum in FY2016-FY2020.
Company's Net Debt / EBITDA is 3.6x and Debt / EBITDA is 4.9x. Net Debt / EBITDA jumped on 4.5x from -0.8x to 3.6x in FY2020. Debt surged on 766% while cash surged on 10.4%. During FY2016-FY2020 Net Debt/EBITDA bottomed in FY2019 at -0.8x.
Village Super Market, Inc. has no short term refinancing risk: cash is higher than short term debt (424.5%).
Valuation and dividends
The company's trades at EV/EBITDA 6.4x and P/E 9.5x.
Village Super Market, Inc.'s CEO Robert Sumas has spent 2 years with the company. Village Super Market, Inc.'s CFO is John L Van Orden. John L Van Orden has 5 years tenure at the company.
Financial and operational results
FY ended 07/25/2020
Village Super Market, Inc. ($VLGEA) key annual financial indicators
Village Super Market, Inc. ($VLGEA) key quoterly financial indicators
|Short Term Debt||1||1||1||1||26||2,370.5%|
|Long Term Debt||44||43||48||48||396||730.1%|
|SG&A, % of revenue||23.0%||23.2%||23.8%||24.0%||24.7%||0.6%|
|Net Income Margin||1.5%||1.4%||1.6%||1.6%||1.4%||-0.2%|
|CAPEX, % of revenue||1.2%||1.7%||2.2%||1.7%||3.0%||1.3%|
|mln. $||FY20Q1||FY20Q2||FY20Q3||FY20Q4|| ||YoY change|
|Net Income||3||2||11||9|| ||-59.1%||-73.5%||124.4%||37.2%|
|Short Term Debt||12||13||12||26|| ||690.8%||1,275.3%||1,163.6%||2,370.5%|
|Long Term Debt||128||128||125||396|| ||162.1%||165.3%||161.1%||730.1%|
|Gross Margin||27.9%||27.0%||28.3%||28.9%|| ||-0.0%||-0.5%||0.4%||1.1%|
|EBITDA Margin|| 3.7%|| 3.3%|| 6.0%|| 5.6%|| ||-0.2%||-0.8%||2.6%||2.0%|
|Net Income Margin|| 0.6%|| 0.5%|| 2.4%|| 1.8%|| ||-0.9%||-1.3%||1.2%||0.2%|
Peers in Food Retail
Below you can find Village Super Market, Inc. benchmarking vs. other companies in Food Retail industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.