Gordon Tam, CFA
CFA, value, www.top10invest.com, long only

Village Super Market Poses Various Risks And Poor Business Outlook

At a first glance, Village Super Market (NASDAQ:VLGEA) might look like a bargain against its peers. According to the following peer comparisons:

EV/EBITDA Forward P/E Dividend Yield
VLGEA 5.5 13.55 4%
KR 7.44 12.44 1.50%
FDO 8.25 16.3 2.20%
WMF 13.77 25.6 1%

Source: Yahoo Finance

VLGEA values at 5.5x EV/EBITDA while Kroger (NYSE:KR) trades at 7.44x EV/EBITDA and Whole Foods Market (WMF) is at 13.77x EV/EBITDA. VLGEA also offers 4% dividend yield, which is the highest among its peers. If we take the average of net income for the past four years, VLGEA can earn about $25.9 million per year relative to its $350.9 million market cap implying 13.55x P/E multiple.

FY 2013 FY 2012 ...
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