SENEA Stock Recent News

Seneca Foods is a small-cap canned vegetables manufacturer that has seen little change in market cap over the past 10 years. In recent years it has undergone operational improvements, resulting in improvements in operating margins, and simultaneously it has seen a significant decrease in competition. The stock is extremely undervalued on all traditional metrics, and when adjusting for the LIFO Reserve, Seneca Foods is a Ben Graham style net-net.

SENEA seems to be undervalued compared to peers based on multiple comparisons. But financial health looks weak, as growth in costs outpaces growth in sales, leading to decreasing profit margins.

While the firm continues to outperform my expectations, several headwinds appear to be emerging in the data. As the cost of labor and commodities remains elevated, profitability is likely to become a bigger issue over the next months than it is today.