Highlights

  • Seneca A shows 177.90% basic EPS growth, a P/E of 9.15 and PEG of 0.00.
  • First quarter fiscal 2027 net sales were $405.2 million, against $297.5 million.
  • Net earnings were $19,507 thousand, with diluted earnings per share of $2.85, against $2.14.
  • The company made a voluntary $50.0 million pre-payment on Amended Term Loan A-2.

One-year earnings growth of 177.90%, paired with a trailing twelve-month P/E of 9.15 and an expected-basis PEG of 0.00, puts Seneca Foods Class A common stock (NASDAQ:SENEA) among undervalued growth stocks, with shares trading at USD 155.52 on October 28, 2026, down 0.13%. In its latest disclosures, the packaged fruit and vegetable company filed its annual report for fiscal 2026 on June 11, finalized the purchase price for its Green Giant U.S. frozen business during the quarter ended June 27, 2026, and reported first quarter fiscal 2027 net earnings of $19,507 thousand in early August.

Seneca Foods is based in Fairport, New York, and is incorporated in New York. It describes itself as a leading provider of packaged fruits and vegetables, with 27 facilities in nine states. Its canned, frozen and jarred produce and snack chips are sold under private label and under brands it owns or licenses, including Aunt Nellie's, Libby's, Green Giant and Seneca. Customers include grocery outlets, foodservice distributors, restaurant chains and export buyers in approximately 55 countries. Its fiscal year ends March 31.

Growth: First Quarter Fiscal 2027 Sales, Earnings and Product Mix

Net sales were $405.2 million for the quarter ended June 27, 2026 against $297.5 million a year earlier, an increase of 36.2%. The company said higher sales volumes contributed $96.8 million of the $107.7 million increase, with higher selling prices and product mix contributing $10.9 million. Frozen vegetable sales were $67,900 thousand against $22,937 thousand.

Net earnings were $19,507 thousand against $14,885 thousand. Basic earnings per share were $2.88 against $2.16, and diluted earnings per share were $2.85 against $2.14.

Gross margin was 11.8% against 14.1%. The company said the prior-year quarter benefited from a larger LIFO credit, which was $3.0 million this year against $11.8 million, and that gross margin excluding the LIFO credit was steady year over year. Selling, general and administrative expense was 5.0% of net sales against 6.3%.

Valuation: P/E of 9.15, PEG of 0.00 and Per-Share Book Value

The P/E ratio of 9.15 is measured on trailing twelve-month earnings, and the PEG ratio of 0.00 on an expected basis. Stockholders' equity per common share was $114.34 at June 27, 2026 against $93.82 at June 28, 2025.

Non-GAAP adjusted net earnings, which exclude the LIFO credit, were $17,213 thousand against $6,013 thousand. Cash provided by operating activities was $109.1 million against $53.7 million.

Capital and Balance Sheet: Debt Reduction and Share Repurchases

Cash and cash equivalents were $86,921 thousand at June 27, 2026 against $12,072 thousand a year earlier. Long-term debt was $185,363 thousand against $259,497 thousand, with a current portion of $25,101 thousand. The company made a $50.0 million voluntary pre-payment on Amended Term Loan A-2 with cash on hand and incurred no pre-payment penalty. Interest expense, net, was $3.1 million against $5.4 million.

The senior revolving credit facility provides up to $450.0 million, seasonally adjusted to a maximum of $400.0 million from April through July. The unused portion was $398.6 million, and the facility matures on December 24, 2029.

Seneca repurchased 9,900 Class A shares for $1.4 million in the quarter against 41,937 shares for $3.8 million a year earlier. Treasury stock held 5,442,980 shares, or $227.4 million. As of July 24, 2026, 5,221,238 Class A and 1,549,219 Class B shares were outstanding.

Disclosed Risks and Outlook

Gross margin fell as the LIFO credit declined. Other operating expense, net, was $1.2 million, driven primarily by $1.4 million of transition service fees from the Green Giant U.S. frozen business acquisition. Working capital was $576,051 thousand against $625,200 thousand at March 31, 2026, and the current ratio was 3.77 against 4.11 a year earlier.

The company stated that input costs, including steel subject to import tariffs, remain elevated against historical levels and that price increases to customers may lag cost increases. It also cited weather, which reduced crop yields and the seasonal pack in fiscal 2025. It is party to ordinary course legal proceedings and does not believe an adverse decision would have a material impact.

The company did not issue numerical guidance. It said its seasonal pack began in the quarter, the principal focus is working capital to fund the pack, and it believes operations and existing liquidity will satisfy cash requirements for at least the next twelve months.