Whole Foods Market, Inc.
Whole Foods Market, Inc. Fundamental Analysis
Whole Foods Market, Inc. (WFM) shows weak financial fundamentals with a PE ratio of 55.89, profit margin of 1.53%, and ROE of 7.36%. The company generates N/A in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze WFM's fundamental strength across five key dimensions:
Efficiency Score
WeakWFM struggles to generate sufficient returns from assets.
Valuation Score
ModerateWFM shows balanced valuation metrics.
Growth Score
WeakWFM faces weak or negative growth trends.
Financial Health Score
ExcellentWFM maintains a strong and stable balance sheet.
Profitability Score
WeakWFM struggles to sustain strong margins.
Key Financial Metrics
Is WFM Expensive or Cheap?
P/E Ratio
WFM trades at 55.89 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, WFM's PEG of 0.56 indicates potential undervaluation.
Price to Book
The market values Whole Foods Market, Inc. at 3.99 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -0.79 times EBITDA. This is generally considered low.
How Well Does WFM Make Money?
Net Profit Margin
For every $100 in sales, Whole Foods Market, Inc. keeps $1.53 as profit after all expenses.
Operating Margin
Core operations generate 2.86 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.36 in profit for every $100 of shareholder equity.
ROA
Whole Foods Market, Inc. generates $3.67 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
FCF Per Share
Each share generates $1.51 in free cash annually.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
55.89
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.56
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.32
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.58
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How WFM Stacks Against Its Sector Peers
| Metric | WFM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 55.89 | 22.46 | Worse (Expensive) |
| ROE | 7.36% | 1260.00% | Weak |
| Net Margin | 1.53% | -5313.00% (disorted) | Weak |
| Debt/Equity | 0.32 | 0.84 | Strong (Low Leverage) |
| Current Ratio | 1.58 | 2.49 | Neutral |
| ROA | 3.67% | -193380.00% (disorted) | Weak |
WFM outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Whole Foods Market, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility
EPS CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility
FCF CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility