u/porridgeconsumer33

Author argues SFM is a value buy after dropping over 50% from its 52-week high and trading below 14x P/E, similar to a prior profitable TSCO trade. The business remains profitable, generates strong cash flow, carries essentially no conventional long-term debt, and is reducing share count, while targeting roughly 10% annual unit growth and expanding private label to support margins. The main risk is that same-store sales have turned slightly negative, which could signal structural slowdown rather than a justified repricing. Author sees a path back to meaningful EPS growth without needing multiple expansion.