One-glance verdict
$98.46 our estimate vs market $45.09
54% below our estimate, below the bear case
Fundamentals snapshot
VLGEA · NMS · Consumer Defensive · Grocery Stores
Current price
$45.09
52-week range
$30.86 - $48.21
Market cap
$667.62M
One-glance verdict
54% below our estimate, below the bear case
Balance sheet
Net debt $190.63M. Interest coverage shows how many times profit covers the interest bill.
What stands out
What this company does
Village Super Market, Inc. runs grocery stores in the United States, selling everything from fresh produce and meats to prepared meals and pharmacy items under brands like ShopRite and Fairway. Their money mostly comes from selling these everyday items to shoppers, and how well they manage the costs of stocking and selling these goods, which affects their profit margins (the percentage of each sales dollar left after paying for the products and running the stores), is key to their success.
Village Super Market, Inc. was founded in 1937 by brothers Nick and Perry Sumas, who immigrated to the United States from Greece. They started by running a produce stand in New Jersey, with a dream of opening their own business. A key turning point came in the mid-1940s when they joined the Wakefern Food Cooperative, which allowed them to operate under the now-familiar ShopRite banner. This partnership provided them with purchasing, warehousing, and marketing support, enabling them to grow and compete in the increasingly challenging grocery industry. Over the decades, Village Super Market has expanded its store count and geographic reach, becoming a significant player in the Northeast.
Village Super Market operates a chain of grocery stores, primarily under the ShopRite and Fairway banners. Think of them as your neighborhood supermarket where you can buy everything you need for your kitchen and home. They offer a wide variety of products, including fresh produce, meats, dairy, baked goods, frozen foods, and pantry staples. In addition to groceries, many of their stores also provide non-food items like health and beauty products, household essentials, and even pharmacy services. Essentially, they aim to be a one-stop shop for everyday needs.
The ShopRite banner represents the largest part of Village Super Market's business, making up about 85% of its revenue. These are the company's traditional supermarkets, found in New Jersey, New York, Maryland, and Pennsylvania. ShopRite stores offer a wide range of products, from fresh groceries to household items, catering to the everyday needs of local families. They are known for their competitive pricing and a broad selection of products, including private-label brands that offer value to shoppers. This segment is the backbone of the company, driving the majority of its sales and customer traffic.
Fairway Market stores represent a smaller, more premium segment of Village Super Market's business, contributing about 3% of revenue. These stores are located in New York City and cater to shoppers looking for a more specialized or upscale grocery experience. Fairway Markets typically offer a wider selection of specialty, gourmet, and prepared foods, appealing to customers who prioritize unique ingredients and high-quality offerings. This segment allows Village Super Market to serve a different customer base with a distinct brand identity compared to its ShopRite stores.
Gourmet Garage is another specialty market segment, making up about 3% of Village Super Market's revenue, and is also located in New York City. These stores focus on high-end, specialty, and urban grocery shopping, often featuring a curated selection of gourmet products and prepared foods. Gourmet Garage appeals to customers seeking convenience and premium options, complementing the offerings of the Fairway Market brand. Together, these specialty banners allow Village Super Market to tap into different market niches within the competitive New York City area.
A portion of Village Super Market's revenue, around 4%, comes from its pharmacy services. Many of its ShopRite and Fairway stores include in-store pharmacies that offer prescription services, over-the-counter medications, and health-related products. This segment adds a crucial health and wellness component to the company's offerings, providing convenience for customers who can fill their prescriptions while doing their regular grocery shopping. It's a way to enhance the overall customer experience and capture additional spending within the store.
Village Super Market's management is focused on continuing to grow and improve its store base. They are investing in remodeling existing stores and opening new, larger locations to enhance the shopping experience and increase sales per square foot (the amount of revenue generated per unit of store space). The company is also looking to improve operational efficiency, which means finding ways to run the stores more smoothly and cost-effectively. Additionally, they plan to continue paying regular dividends (a portion of the company's profits shared with shareholders) to reward investors, signaling confidence in their ongoing financial health and future prospects.
Price history
Earnings history
Click any quarter to read the call summary and what the numbers say.
Is it cheap or expensive?
Our most-likely fair value is $98.46 a share — about 118.4% above today's price of $45.09, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Net debt $190.6M. Interest coverage 19.0x.
Village Super Market, Inc.'s profit covers its interest bill about 19.0 times over. which is stronger than most peers shown here.
Total debt $321.47M Interest coverage 19.02x This is the baseline the peer rows are being compared against.
Total debt $322.68M Interest coverage 20.58x +8% vs VLGEA Has roughly the same debt cushion as VLGEA.
Total debt $526.58M Interest coverage 7.39x -61% vs VLGEA Carries about 2.6x less debt cushion than VLGEA.
Total debt $1.85B Interest coverage 2.76x -85% vs VLGEA Carries about 6.9x less debt cushion than VLGEA.
What you should know
The numbers
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Valuation
Profitability
Health
Growth
Cash flow
Dividend
Metric explainer
Debt comparison
What you should know