SuperValu (SVU)

Add a New Bulls Reason Company: SuperValu (SVU) Current price: Headline: (100 character max) Analysis: Cancel 80% agree 21 votes   Once debt is paid down, company can return money to shareholders Top Contributor: Will Morrissett | Created when NYSE:SVU was $28.83 | Edit | History Debt is abnormally large at the moment because SVU is paying for its acquisition of Albertson's, a high-end grocer. As debt is paid down, the Company can convert more of its cash into shareholder earnings. (100 character max) Cancel 75% agree 4 votes   Can pay down debt without any growth in earnings Top Contributor: Will Morrissett | Created when NYSE:SVU was $28.83 | Edit | History Sales could remain level for years as debt is serviced and EPS will grow more than 0-1%. The current price is too pessimistic. Assume a modest and organic increase in sales over the long term and it's not hard to imagine SuperValu growing earnings at a more impressive rate. (100 character max) Cancel 100% agree 1 votes   "Once debt is paid down, company can return money to shareholders" Top Contributor: Will Morrissett | Created when NYSE:SVU was $28.83 | Edit | History Debt is abnormally large at the moment because SVU is paying for its acquisition of Albertson's, a high-end grocer. As debt is paid down, the Company can convert more of its cash into shareholder earnings. (100 character max) Cancel 0% agree 1 votes   Current valuation assumes almost no growth - any growth at all is upside Top Contributor: Will Morrissett | Created when NYSE:SVU was $28.83 | Edit | History No matter what happens with inflation, people have to eat. At the current price, SVU represents a dreary sentiment for growth in earnings. The current price assumes the company will grow earnings 0% for the next five years followed by a future growth rate of 1% (10% discount assumed, DFCF). (100 character max) Cancel

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