WFMI Stock Report

2-Year Price History

Ockham's Rating

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WFMI Revenue

For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at WFMI through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 1.23x and 0.65x respectively.

Utilizing this range we can see that WFMI’s current Price to Sales per share ratio of 0.32x is significantly below its average levels historically. In fact, with a current price of $17.97, WFMI is a full 67% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for WFMI.

WFMI Cash Earnings

Looking at WFMI specifically in their Cash Earnings capabilities, Ockham views WFMI as significantly below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for WFMI to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 21.97 and a 11.14 low over the same period.

Now that WFMI’s current price is $17.97 and its Price to Cash Earnings ratio is 7.22, we are very positive on its outlook from the cash earnings perspective. In fact, WFMI is now trading a full 57% below its average historical Price to Cash Earnings ratio at these profit per share levels. When our clients ask us why WFMI has great long term potential, the Cash Earnings levels to current stock is one of our primary reasons. But naturally, now we need for the overall market to recognize this disparity.

WFMI Dividends

A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations.