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| Comapny name |
: |
Whole Foods Market, Inc |
| Share |
: |
WFMI |
Analysis date |
: |
17-Nov-2007 |
| Stock exchange |
: |
NYSE |
Rating |
: |
8/9 |
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| 1 |
History of Consistently Increasing EPS, Sales & Cash Flow. |
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1) EPS has increased consistently over 5 years? |
Yes |
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2) Sales has increased Consistently over 5 years? |
Yes |
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3) Cash Flow has increased consistently over 5 years? |
Yes |
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4) What is the historical/projected EPS growth rate?
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16.20% |
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| 2 |
Sunstainable Competitive Advantage |
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1) The company has a sustainable competitive advantage? |
Yes |
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Yes, WFMI is the world\\\'s largest retailer of natural and organic foods, with over 155 stores throughout North America and the United Kingdom. |
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| 3 |
Future Growth Drivers |
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1) The company has future growth drivers in place? |
Yes |
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Yes, natural and organic products are becoming increasingly popular among the public. WFMI plans to to open more stores in fiscal year 2007 than they ever have in any 12-month period before.
With fewer than 190 stores, WFMI has significant growth opportunities ahead. None of their current markets are saturated; the top markets allow for a dense concentration of stores, the majority of which are still underserved. |
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| 4 |
Conservative Debt |
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1) The company has Long Term Debt <3x Net Profit? |
Yes |
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2) Long-Term Debt is $
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8.61 Million |
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3) Net Profit is $
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203.80 Million |
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| 5 |
High & Consistent ROE and ROA |
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1) The company has ROE>12-15% over 5 years? |
Yes |
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2) The company has ROA>7% over 5 years? |
Yes |
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| 6 |
Low CAPEX for Maintenance of Current Operations? (Not a key criterion) |
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1) The business requires low CAPEX for maintenance of Current operations? |
Yes |
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2) Is ( Free Cash Flow/Sales Revenue )>5%? |
No |
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| 7 |
Management is Holding/Buying the Stock |
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1) Key Management has not been selling large Proportion of company stock? |
Yes |
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| 8 |
The Stock Price is Selling at a Discount (High Margin of Safety) |
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1) Current operating cash flow/EPS
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$452.66 Million (Cash Flow) |
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2) Projected Earnings Growth Rate
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16.20% |
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3) Number of shares outstanding
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145 Million |
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4) Intrinsic Value
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56.85 |
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5) Share price is below intrinsic value? |
Yes |
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| 9 |
Stock Price is Consolidating or on an Uptrend |
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1) Stock price breaking out of consolidating |
No |
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2) Stock price at a dip on a uptrend |
Yes |
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3) Stock price above 20 or 50 day moving average |
No |
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