One-glance verdict
Undervalued
$105.13 our estimate vs market $41.13
61% below our estimate, below the bear case
Fundamentals snapshot
Village Super Market, Inc.
VLGEA · NMS · Consumer Defensive · Grocery Stores
Current price
$41.13
52-week range
$30.08 - $48.21
Market cap
$609.11M
Balance sheet
Watch
15.52x Strong cushion
Net debt $191.60M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 3.2% last year.
- Reward Returns 10.9% on equity, ahead of 66% of its peers.
- Risk Stock trades 19.5% above its 5-year average P/E.
- Risk Insider ownership is only 13.6% (peer median: 17.2%).
What this company does
Village Super Market, Inc.
Village Super Market operates a chain of grocery stores, primarily under the ShopRite and Fairway banners, in the northeastern United States. The company earns money by selling everyday essentials like food, pharmacy items, and household goods to local communities. Because groceries are a constant necessity for households, this business model can generate a more stable stream of revenue (the total money a company brings in from sales) compared to companies that sell non-essential products.
How the company got here
Village Super Market was started in 1937 by two brothers, Nick and Perry Sumas, who opened a small produce stand in South Orange, New Jersey. A key turning point came in the mid-1940s when they joined the Wakefern Food Corp. cooperative, a group of store owners who banded together to increase their buying power and share resources. This allowed them to operate under the well-known ShopRite banner, giving them a competitive edge. Over the decades, the company grew by opening and acquiring more stores, primarily in New Jersey. More recently, in 2019 and 2020, the company expanded into New York City by purchasing the specialty markets Gourmet Garage and several locations of Fairway Market.
What it actually does
Village Super Market is a grocery store chain that sells the everyday items you'd expect, like fresh produce, meat, dairy, and baked goods, as well as pantry staples like cereal and canned goods. They also sell non-food items such as health and beauty products, liquor, and general merchandise, and many stores include a pharmacy. The company operates physical supermarkets and also offers online shopping for pickup or delivery through its websites and apps. You would recognize their stores under the names ShopRite, Fairway Market, and Gourmet Garage.
Supermarkets
This is the company's main business, making up the vast majority of its sales. It operates a chain of supermarkets under the ShopRite and Fairway Market brands in New Jersey, New York, Pennsylvania, and Maryland. These stores are what you typically think of as a full-service grocery store, selling a wide variety of food and household products to everyday shoppers. The company makes money when customers purchase these goods. As a member of the Wakefern cooperative, it benefits from the buying power and private label brands (like Bowl & Basket and Wholesome Pantry) that the larger group provides.
Specialty Markets
A smaller, more specialized part of the business operates under the Gourmet Garage banner in New York City. Think of these as smaller neighborhood markets focused on high-quality, specialty, and prepared foods, often catering to city dwellers looking for unique items or a quick meal. Just like the larger supermarkets, this segment earns money by selling food products directly to customers. While a much smaller portion of the company's total business, the acquisition of Gourmet Garage and the urban Fairway Market stores represented a move into a different type of grocery market.
What management is betting on now
The company is focused on modernizing and improving its physical stores. This includes a strategy of building larger, more modern replacement stores for older, smaller locations and remodeling existing ones to improve the shopping experience. They are also investing in technology and equipment to make their operations more efficient (how well the business runs day-to-day with minimal waste). Management is also continuing to grow its online sales, which have become an increasingly important part of the grocery business.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$13.80M
FY2025 Q1
$8.47M
FY2025 Q2
$24.93M
FY2025 Q3
$-10.57M
FY2025 Q4
$11.62M
FY2026 Q1
$10.71M
FY2026 Q2
$50.36M
FY2026 Q3
$-16.29M
Revenue
$572.59M
Net income
$8.96M
Diluted EPS
—
Operating cash flow
$-245.00K
Free cash flow
$-16.29M
Fetching…
Sources
Revenue
$640.96M
Net income
$17.87M
Diluted EPS
—
Operating cash flow
$59.12M
Free cash flow
$50.36M
Fetching…
Sources
Revenue
$582.59M
Net income
$12.00M
Diluted EPS
—
Operating cash flow
$19.66M
Free cash flow
$10.71M
Fetching…
Sources
Revenue
$599.67M
Net income
$15.52M
Diluted EPS
—
Operating cash flow
$21.68M
Free cash flow
$11.62M
Fetching…
Sources
Revenue
$563.67M
Net income
$11.16M
Diluted EPS
—
Operating cash flow
$10.59M
Free cash flow
$-10.57M
Fetching…
Sources
Revenue
$599.65M
Net income
$16.90M
Diluted EPS
—
Operating cash flow
$40.78M
Free cash flow
$24.93M
Fetching…
Sources
Revenue
$557.70M
Net income
$12.80M
Diluted EPS
—
Operating cash flow
$20.18M
Free cash flow
$8.47M
Fetching…
Sources
Revenue
$578.24M
Net income
$15.43M
Diluted EPS
—
Operating cash flow
$22.81M
Free cash flow
$13.80M
Fetching…
Sources
Is it cheap or expensive?
Fair value $105.13 vs current price $41.13
Our most-likely fair value is $105.13 a share — about 155.6% above today's price of $41.13, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $191.6M. Interest coverage 15.5x.
Net debt
$191.60M
Interest coverage
15.52x
Village Super Market, Inc.'s profit covers its interest bill about 15.5 times over. which is stronger than every peer shown here.
Watch
Worse cushion
Baseline
Better cushion
VLGEA
BASELINE
Village Super Market, Inc.
Total debt $320.28M Interest coverage 15.52x This is the baseline the peer rows are being compared against.
Total debt $647.80M Interest coverage 7.39x -52% vs VLGEA Carries about 2.1x less debt cushion than VLGEA.
What you should know
The case for and against VLGEA
3 Rewards
3 Risks
Rewards
-
Revenue grew 3.2% last year.
-
Returns 10.9% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 19.5% above its 5-year average P/E.
-
Insider ownership is only 13.6% (peer median: 17.2%).
-
Operating margin compressed from 1.6% to 1.5% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
11.21x
Forward P/E
—
P/B
1.17x
P/S
0.25x
EV/EBITDA
7.64x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
28.2%
Operating margin
1.5%
Net margin
2.3%
ROE
10.9%
ROA
4.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.62x
Current ratio
1.17x
Quick ratio
0.77x
Total debt
$320.28M
Total cash
$128.68M
Growth
How the business has been compounding
Revenue TTM
$2.40B
Revenue 5Y CAGR
3.4%
EPS TTM
3.67
EPS 5Y CAGR
27.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$100.22M
Free CF TTM
$34.46M
FCF margin
1.4%
Dividend
Shareholder payout
Yield
2.4%
Payout ratio
27.3%
Last ex-div date
2026-04-02