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Is this Large Market Cap Stock target price reasonable for Whole Foods Market, Inc. (NASDAQ:WFM)?

The company in question is, Whole Foods Market, Inc. (NASDAQ:WFM) currently with a stock price of 33.54 (1.12% today). The market cap for Whole Foods Market, Inc. is 10783.23, and is in the sector Services, and Grocery Stores industry. The target price for Whole Foods Market, Inc. is 30.24. Currently Whole Foods Market, Inc. is trading with a P/E of 22.23, and a forward P/E of 21.06. Average volume for Whole Foods Market, Inc. is 6010.87 and so far today it is 1478854.

Performance in the last year for Whole Foods Market, Inc. has been -18.00%. For EPS growth, Whole Foods Market, Inc. has seen a growth of -4.90%, and is looking to grow in the next year to 3.28%. More long term stats show that EPS growth has been 15.70% over the last five years and could be 6.06% for the next five years. Whole Foods Market, Inc. has seen sales growth quarter over quarter at -55.60%, with EPS growth quarter over quarter at -51.50%. The 20-day simple moving average is 4.13%, with the 200-day simple moving average coming to 7.35%.

Since the IPO date for Whole Foods Market, Inc. on the 1/23/1992, Whole Foods Market, Inc. has seen performance year to date to be 0.31%. With Whole Foods Market, Inc. trading at 33.54, the dividend yield is 1.63%, and the EPS is 1.49.

So could Whole Foods Market, Inc., be undervalued? Well as said before P/E is 22.23. The PEG is 3.67, P/S is 0.69 and the P/B is at 3.28. The P/cash is 12.72, with P/free cash flow at 138.25.

Whole Foods Market, Inc. ability to deal with debt shows that the current ratio is 1.6, and the quick ratio is 1.2. This is with long term debt/equity at 0.32, and total debt/equity at 0.32.

In terms of margins, Whole Foods Market, Inc. has a gross margin of 34.70%, an operating margin of 5.30% and a profit margin of 3.30%.Payout ratio for Whole Foods Market, Inc. is 35.50%. Return on assets come to 8.40% with return on investment coming to 13.50%.

Insider ownership for Whole Foods Market, Inc., is at 0.30% and institutional ownership comes to 86.40%. Outstanding shares are at 325.09. While shares float is 314.45. The float short is currently 14.64%, and short ratio is 7.66.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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