SVU

SUPERVALU INC.

Consumer


Presented:03/03/2014
Price:$6.60
Cap:$1.71B
Current Price:$32.49
Cap:$1.26B

Presented

Date03/03/2014
Price$6.60
Market Cap$1.71B
Ent Value$4.66B
P/E Ratio14.92x
Book ValueN/A
Div YieldN/A
Shares O/S259.68M
Ave Daily Vol4,150,000
Short Int12.93%

Current

Price$32.49
Market Cap$1.26B
SUPERVALU INC., together with its subsidiaries, operates as a wholesale distributor to independent retail customers in the United States. It operates in three segments: Retail Food, Save-A-Lot, and Independent Business. The Retail Food segment operates retail stores that provide groceries and various additional products, including general merchandise, health and beauty care, and pharmacy under the Cub Foods, Farm Fresh, Hornbacher’s, Shop ’n Save, and Shoppers Food & Pharmacy banners. This segment operates a total of 191 stores, including 44 Cub Foods stores primarily in the Minneapolis/St. Paul market; 43 Farm Fresh stores in the Virginia Beach, Virginia market; 6 Hornbacher’s stores in the Fargo, North Dakota market; 42 Shop ‘n Save stores in the St. Louis market; and 56 Shoppers Food & Pharmacy stores in the Washington D.C. and Baltimore market. The Save-A-Lot segment owns and operates 381 Save-A-Lot grocery stores and licenses an additional 950 stores to independent operators. The Independent Business segment provides wholesale distribution of products to independent retail customers comprising single and multiple grocery store independent operators, regional and national chains, mass merchants, and the military. It offers a range of brand name and private-label products, including perishable and nonperishable grocery products, general merchandise, health and beauty care products, and pharmacy products. The company was founded in 1871 and is headquartered in Eden Prairie, Minnesota.

Highlights

After selling the majority of its retail business to Cerberus about a year go - Albertson’s and a handful of other chains - conventional retail grocery represents just a third of Supervalu’s business today. Believing that management has little desire to remain in the retail business, the presenter anticipates that management will look to break up the company over the next one-to-two years. SVU’s remaining businesses, meanwhile, are generally underappreciated by the market, and have the potential to trade at a premium multiple. 

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