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Company name Whole Foods Market, Inc.
Stock ticker WFM
Live stock price [stckqut]WFM[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Fair
EPS growth Good
P/E growth Poor
EBIT growth Good

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $16.08
Target stock price (averages with growth) $16.06
Target stock price (averages with no growth) $11.6
Target stock price (manual assumptions) $31.92

The following company description is from Google Finance: http://www.google.com/finance?q=wfm
Whole Foods Market, Inc. (Whole Foods Market) is a retailer of natural and organic foods and grocer. The Company has one operating segment, natural and organic foods supermarkets. As of September 29, 2013, Whole Foods Market operated 362 stores in the United States, Canada, and the United Kingdom. The Company’s offices are supported by its headquarters, regional offices, distribution centers, bakehouse facilities, commissary kitchens, seafood-processing facilities, meat and produce procurement centers, and a specialty coffee and tea procurement and roasting operation. The Company’s product selection includes grocery, meat, seafood, bakery, prepared foods and catering, coffee, tea, beer, wine, cheese, nutritional supplements, vitamins, body care, and lifestyle products including books, pet products, and household products. The Company’s 365 and 365 Organic Everyday Day Value brands account for approximately half of its brand items.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Whole Foods Market, Inc. as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns. I think that Whole Foods is not the best place for my money, I am removing the company from my Watch List.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Whole Foods Market, Inc. calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $32.02
  • Growth: 0.1
  • Current EPS (TTM): $1.68
  • P/E: 19
  • Future EPS Calc: $2.7
  • Future Stock Price Calc: $51.4
  • Target stock price: $31.92

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I hope that this makes you a Confident Investor.