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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Graham Osborn who wrote (58158)

10/10/2016 3:39:02 PM

From: E_K_S

Respond to of 77746

Re: United Natural Foods, Inc. (UNFI) -

Those fixed leases will becoming down in 2017 ($56mln) and 2018 ($51mln).

From their latest 10K

COMMITMENTS AND CONTINGENCIES

The Company leases various facilities and equipment under operating lease agreements with varying terms. Most of the leases contain renewal options and purchase options at several specific dates throughout the terms of the leases.
Rent and other lease expense for the fiscal years ended July 30, 2016 , August 1, 2015 and August 2, 2014 totaled approximately $65.4 million , $74.8 million and $65.1 million , respectively.
Future minimum annual fixed payments required under non-cancelable operating leases having an original term of more than one year as of July 30, 2016 are as follows:

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They do own five of their 9 operating/distribution facilities.

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I still would want a lower GN value for a better risk/reward entry point. MY GN valuation calculator says UNFI only 2.67% undervalued w/ a fair value estimate of $42.00/share. I would be interested in the company at $32.00/share or lower which would reflect a 31% undervalued amount.

I will put in my AG and Pending Value Buy watch list.

EKS