VLGEA - Strong TrendNASDAQ:VLGEA currently trades at an attractive value multiple with stable profitability and financial strength. While it doesn’t necessarily scream high-growth company, it does offer potential upside, particularly if earnings expand and/or efficiency improves while trading below both sector and peer valuation norms.
Value Metrics:
P/E (TTM) ~8.9× Deep discount to sector average (~26–28×)
P/S ~0.22× Low multiple reflecting modest margins
P/B ~1.05× Near book value
EV/EBITDA ~4.2–6.1× Below peer typical 7–11× range
ROE / ROIC ~12% / ~10–12% Reasonably strong profitability metrics
Debt/Equity / Z / F ~0.17× / 3.68 / 7 Financially stable with low leverage
Intrinsic Value (αSpread) ~$36.2 Slight undervaluation vs current price (~$34–35)
ValueInvesting.io Fair Price ~$53.6 Suggests major upside if margins/performance improve
From its company profile on Yahoo Finance, “Village Super Market, Inc. engages in the operation of a chain of supermarkets in the United States. It offers grocery, meat, produce, dairy, deli, seafood, prepared food products, and bakery and frozen food products. The company also provides non-food products, including health and beauty care, general merchandise, liquor, and pharmacy products. It operates its supermarkets under the ShopRite and Fairway banners, and specialty markets under the Gourmet Garage banner, as well as operates online stores through shoprite.com, fairwaymarket.com, and gourmetgarage.com, as well as ShopRite app, Fairway app, and Gourmet Garage app. The company was founded in 1937 and is based in Springfield, New Jersey.”
VLGEA trade ideas
Village Super Market Chart Fibonacci Analysis 080425Trading Idea
1) Find a FIBO slingshot
2) Check FIBO 61.80% level
3) Entry Point 34/61.80%
Chart time frame:B
A) 15 min(1W-3M)
B) 1 hr(3M-6M)
C) 4 hr(6M-1year)
D) 1 day(1-3years)
Stock progress:C
A) Keep rising over 61.80% resistance
B) 61.80% resistance
C) 61.80% support
D) Hit the bottom
E) Hit the top
Stocks rise as they rise from support and fall from resistance. Our goal is to find a low support point and enter. It can be referred to as buying at the pullback point. The pullback point can be found with a Fibonacci extension of 61.80%. This is a step to find entry level. 1) Find a triangle (Fibonacci Speed Fan Line) that connects the high (resistance) and low (support) points of the stock in progress, where it is continuously expressed as a Slingshot, 2) and create a Fibonacci extension level for the first rising wave from the start point of slingshot pattern.
When the current price goes over 61.80% level , that can be a good entry point, especially if the SMA 100 and 200 curves are gathered together at 61.80%, it is a very good entry point.
As a great help, tradingview provides these Fibonacci speed fan lines and extension levels with ease. So if you use the Fibonacci fan line, the extension level, and the SMA 100/200 curve well, you can find an entry point for the stock market. At least you have to enter at this low point to avoid trading failure, and if you are skilled at entering this low point, with fibonacci6180 technique, your reading skill to chart will be greatly improved.
If you want to do day trading, please set the time frame to 5 minutes or 15 minutes, and you will see many of the low point of rising stocks.
If want to prefer long term range trading, you can set the time frame to 1 hr or 1 day.
Investing in Boring BusinessesVLGEA is a boring business. It operates a chain of ShopRite groceries stores across PA, NJ, and MD. The company averages a modest 6% sales growth CAGR and has paid a dividend every year since its inception in 1965. I like investing in boring businesses. Stable, consistent returns on shareholder capital can have tremendous compounding effects.
VLGEA sits on a ton of cash, has stable, consistent free cash flows with an unlevered FCF 10Y CAGR of 29%. Although the company faces stiff competition in an industry that already deals with narrow margins, they have flexibility and potential to get to their intrinsic business value of around $31 - $36/share.
I wrote a blog piece about them where I go into more detail, give it a read here: rockvuecapital.wordpress.com
From a technical standpoint, if the stock can hold at this current support level of 22.50 - 23, I would venture to initiate a starter position with a stop loss right below that support. Any price acceleration from the bottom I would add on to my position.
Please let me know if I missed anything, or if I have any blind spots in my analysis, it really helps!
Thanks,
Brandon