Stock on Watch: Smart & Final Stores, Inc. (SFS)

Company Profile:

Smart & Final Stores, Inc. operates as a food retailer in the United States. The company operates through two segments, Smart & Final and Cash & Carry. It operates non-membership warehouse-style grocery stores under the Smart & Final banner in California, Arizona, and Nevada, as well as under the Cash & Carry banner in Washington, Oregon, California, Idaho, and Nevada. The company’s stores offer fresh perishables and everyday products, such as produce, meat and deli, dairy and cheese, grocery, and beverage products, as well as paper and packaging, and restaurant equipment and janitorial supplies products. It also provides various private label products under the First Street, Ambiance, Cattleman’s Finest, Iris, La Romanella, Montecito, Simply Value, Sun Harvest, and Tradewinds brands. As of June 19, 2016, it operated 306 grocery and food service stores, including 161 Smart & Final Extra! stores, 90 legacy Smart & Final stores, and 55 Cash & Carry stores. Smart & Final Stores, Inc. was founded in 1871 and is based in Commerce, California.

Recent News:

For the third fiscal quarter ended October 9, 2016, the company reported that net sales were $1,394.4 million, representing an 11.9% increase as compared to $1,246.1 million in the same period of 2015. Net income was $7.0 million, as compared to net income of $12.4 million in the same period of 2015.

For the second fiscal quarter ended June 19, 2016, the company reported thatnNet sales were $1,038.3 million, representing a 14.7% increase as compared to $905.1 million in the same period of 2015. Net income was $7.8 million, as compared to net income of $11.0 million in the same period of 2015.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

SFS’s strengths can be seen in its strong growth and robust efficiency compared with its peers. Its revenue and net income have increased over several years.Technical indicators signal the bullish signs, as there is a bullish cross in Stochastic Oscillator and RSI stands at 62.00 with positive bias. We rate Smart & Final Stores, Inc. (SFS) a STRONG BUY.