SuperValu Stock Analysis, Valuation (NYSE:SVU)

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$20.95 $0.31 (1.5%) SVU stock closing price Jun 19, 2018 (Closing)

View the SuperValu stock analysis video on Amigobulls. This is our analyst opinion covering the buy and sell arguments for SVU stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

SUPERVALU INC. Stock Rating 2.2/5

Amigobulls SVU stock analysis uses latest quarter 2018 Q4 financial data like SuperValu revenue growth, profit margins and cash flows. SuperValu valuation forms a crucial part of our stock analysis. Our SuperValu stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy SVU stock?

  • The operating cash flow looks good at 7.0606 times the net income.
  • The price to earnings multiple of 9.1 is attractive when compared with the sector average PE ratio of 21.4.
  • The lower PS ratio 0.1 for SVU stock versus Consumer Staples sector average of 1.6 is a positive for the company.
  • The company has a good Free Cash Flow (FCF) margin of 5.7.

Should you sell SVU stock?

  • The company saw an average annual sales decline of -12.8 in sales over the last 5 years.
  • SuperValu had an unimpressive average operating margin of 1.26 during the Last Twelve Months (LTM).
  • SuperValu's Net margins were poor at 0.3% in the last twelve months.
  • SuperValu has a debt/equity ratio of 3.76, which is worse than the average in the -sectordesc- sector.

Comments on this video and SuperValu stock

Investors can use Amigobulls SuperValu stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

While doing a study of the company financials, SuperValu revenue growth and profit or net income are two main metrics which help in identifying whether SVU stock is overvalued or undervalued. Investors could make use of SVU technical analysis to check whether the fundamental story is reflected in the market sentiment.