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Fresh Market (Fresh Market) ROE % : 26.05% (As of Jan. 2016)


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What is Fresh Market ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Fresh Market's annualized net income for the quarter that ended in Jan. 2016 was $91 Mil. Fresh Market's average Total Stockholders Equity over the quarter that ended in Jan. 2016 was $351 Mil. Therefore, Fresh Market's annualized ROE % for the quarter that ended in Jan. 2016 was 26.05%.

The historical rank and industry rank for Fresh Market's ROE % or its related term are showing as below:

TFM's ROE % is not ranked *
in the Retail - Defensive industry.
Industry Median: 9.67
* Ranked among companies with meaningful ROE % only.

Fresh Market ROE % Historical Data

The historical data trend for Fresh Market's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Fresh Market ROE % Chart

Fresh Market Annual Data
Trend Dec08 Dec09 Dec10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16
ROE %
Get a 7-Day Free Trial Premium Member Only 51.66 39.49 22.38 21.55 18.93

Fresh Market Quarterly Data
Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 25.49 17.93 19.59 11.34 26.05

Competitive Comparison of Fresh Market's ROE %

For the Grocery Stores subindustry, Fresh Market's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Fresh Market's ROE % Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Fresh Market's ROE % distribution charts can be found below:

* The bar in red indicates where Fresh Market's ROE % falls into.



Fresh Market ROE % Calculation

Fresh Market's annualized ROE % for the fiscal year that ended in Jan. 2016 is calculated as

ROE %=Net Income (A: Jan. 2016 )/( (Total Stockholders Equity (A: Jan. 2015 )+Total Stockholders Equity (A: Jan. 2016 ))/ count )
=65.498/( (328.787+363.171)/ 2 )
=65.498/345.979
=18.93 %

Fresh Market's annualized ROE % for the quarter that ended in Jan. 2016 is calculated as

ROE %=Net Income (Q: Jan. 2016 )/( (Total Stockholders Equity (Q: Oct. 2015 )+Total Stockholders Equity (Q: Jan. 2016 ))/ count )
=91.476/( (339.221+363.171)/ 2 )
=91.476/351.196
=26.05 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Jan. 2016) net income data. ROE % is displayed in the 30-year financial page.


Fresh Market  (NAS:TFM) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Jan. 2016 )
=Net Income/Total Stockholders Equity
=91.476/351.196
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(91.476 / 2079.092)*(2079.092 / 569.521)*(569.521 / 351.196)
=Net Margin %*Asset Turnover*Equity Multiplier
=4.4 %*3.6506*1.6217
=ROA %*Equity Multiplier
=16.06 %*1.6217
=26.05 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Jan. 2016 )
=Net Income/Total Stockholders Equity
=91.476/351.196
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (91.476 / 148.468) * (148.468 / 152.704) * (152.704 / 2079.092) * (2079.092 / 569.521) * (569.521 / 351.196)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.6161 * 0.9723 * 7.34 % * 3.6506 * 1.6217
=26.05 %

Note: The net income data used here is four times the quarterly (Jan. 2016) net income data. The Revenue data used here is four times the quarterly (Jan. 2016) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Fresh Market ROE % Related Terms

Thank you for viewing the detailed overview of Fresh Market's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Fresh Market (Fresh Market) Business Description

Traded in Other Exchanges
N/A
Address
Fresh Market, Inc., is a Delaware corporation and it was founded in 1982. The Company is a specialty retailer focused on creating an extraordinary food shopping experience for its customers. It provides high-quality food products, with an emphasis on fresh, premium perishables and an uncompromising commitment to customer service. As of January 26, 2014, the Company operates 151 stores in 26 states. It offers fresh, carefully selected, high-quality food products focused on perishable categories. Examples of its offerings include hand-trimmed steaks that are aged for tenderness, fresh seafood delivered up to six times per week, hand-stacked produce that is colorfully displayed and French-style baguettes baked in-store each morning. The Company's stores average approximately 21,000 square feet, compared to the approximately 40,000 to 60,000 square foot stores operated by many conventional supermarkets. The Company's distribution strategy is to capitalize on the capabilities of best-in-class third-party logistics providers and, as such, it does not own warehouses, distribution facilities or transportation equipment. The Company outsources substantially all of its logistics functions to third-party distributors and vendors. Its trademarks, including its registered The Fresh Market, Experience the Food and TFM trademarks are valuable assets that reinforce its customers' favorable perception of its stores. The Company's competition varies and includes national conventional supermarkets such as Kroger and Safeway, regional supermarkets such as Harris Teeter and Publix, national superstores such as Wal-Mart and Target, alternative food retailers such as Whole Foods and Trader Joe's, and local supermarkets, natural foods stores, smaller specialty stores and farmers' markets. The Company's stores are subject to various local, state, federal and international laws, regulations and administrative practices affecting its business.
Executives
Jane J. Thompson director 628 GREEN VALLEY ROAD, SUITE 500, GREENSBORO NC 27408
Pamela K Kohn officer: EVP-Chief Merchandising Ofcr. 3001 COLORADO BLVD, DENTON TX 76210
Jeffrey G Naylor director
Bob Sasser director P.O. BOX 2500, NORFOLK VA 23501-2500
Michael Dennis Casey director 1170 PEACHTREE STREE NE STE 900, ATLANTA GA 30309
Robert K Shearer director 400 NORTH ELM STREET, GREENSBORO NC 27403
Michael D Tucci director COACH, 516 W 34TH STREET, NEW YORK NY 10001
Richard A Noll director 1000 EAST HANES MILL ROAD, C/O HANESBRANDS INC., WINSTON SALEM NC 27105
Scott F. Duggan officer: SVP General Counsel C/O THE FRESH MARKET, INC., 628 GREEN VALLEY ROAD, SUITE 500, GREENSBORO NC 27408
Matt T Argano officer: SVP - Human Resources LL FLOORING HOLDINGS, INC., 4901 BAKERS MILL LANE, RICHMOND VA 23230
Steven B Tanger director
Jeffrey C Ackerman officer: EVP-CFO 7201 WEST FRIENDLY AVENUE, GREENSBORO NC 27410
David L Rea director
Craig Carlock director, officer: President/CEO C/O THE FRESH MARKET, INC., 628 GREEN VALLEY ROAD, SUITE 500, GREENSBORO NC 27408
Lisa Klinger other: Former officer C/O THE FRESH MARKET, INC., 628 GREEN VALLEY ROAD, SUITE 500, GREENSBORO NC 27408

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