PERFORMANCE FOOD GROUP CO (PFGC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PFGC - US71377A1034 - Common Stock
97.2 USD
-0.18 (-0.18%)
We assign a fundamental rating of 4 out of 10 to PFGC. PFGC was compared to 38 industry peers in the Consumer Staples Distribution & Retail industry. There are concerns on the financial health of PFGC while its profitability can be described as average. PFGC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- PFGC had positive earnings in the past year.
- PFGC had a positive operating cash flow in the past year.
- In the past 5 years PFGC has always been profitable.
- PFGC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- PFGC has a Return On Assets of 1.78%. This is in the lower half of the industry: PFGC underperforms 60.53% of its industry peers.
- The Return On Equity of PFGC (7.12%) is comparable to the rest of the industry.
- PFGC has a Return On Invested Capital (4.40%) which is in line with its industry peers.
- PFGC had an Average Return On Invested Capital over the past 3 years of 5.70%. This is significantly below the industry average of 28.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.78% | ||
| ROE | 7.12% | ||
| ROIC | 4.4% |
ROA(3y)2.78%
ROA(5y)1.95%
ROE(3y)9.59%
ROE(5y)6.83%
ROIC(3y)5.7%
ROIC(5y)4.64%
1.3 Margins
- PFGC has a Profit Margin of 0.50%. This is in the lower half of the industry: PFGC underperforms 63.16% of its industry peers.
- In the last couple of years the Profit Margin of PFGC has grown nicely.
- The Operating Margin of PFGC (1.27%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of PFGC has grown nicely.
- PFGC has a worse Gross Margin (11.81%) than 84.21% of its industry peers.
- In the last couple of years the Gross Margin of PFGC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.27% | ||
| PM (TTM) | 0.5% | ||
| GM | 11.81% |
OM growth 3Y26.14%
OM growth 5YN/A
PM growth 3Y34.27%
PM growth 5YN/A
GM growth 3Y4.3%
GM growth 5Y0.49%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PFGC is destroying value.
- PFGC has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for PFGC has been increased compared to 5 years ago.
- Compared to 1 year ago, PFGC has a worse debt to assets ratio.
2.2 Solvency
- PFGC has an Altman-Z score of 4.69. This indicates that PFGC is financially healthy and has little risk of bankruptcy at the moment.
- PFGC has a better Altman-Z score (4.69) than 65.79% of its industry peers.
- The Debt to FCF ratio of PFGC is 13.96, which is on the high side as it means it would take PFGC, 13.96 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 13.96, PFGC is not doing good in the industry: 68.42% of the companies in the same industry are doing better.
- A Debt/Equity ratio of 1.55 is on the high side and indicates that PFGC has dependencies on debt financing.
- PFGC's Debt to Equity ratio of 1.55 is on the low side compared to the rest of the industry. PFGC is outperformed by 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | 13.96 | ||
| Altman-Z | 4.69 |
ROIC/WACC0.57
WACC7.74%
2.3 Liquidity
- A Current Ratio of 1.67 indicates that PFGC should not have too much problems paying its short term obligations.
- With a decent Current ratio value of 1.67, PFGC is doing good in the industry, outperforming 76.32% of the companies in the same industry.
- A Quick Ratio of 0.70 indicates that PFGC may have some problems paying its short term obligations.
- PFGC's Quick ratio of 0.70 is in line compared to the rest of the industry. PFGC outperforms 57.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 4.41% over the past year.
- The Earnings Per Share has been growing by 41.14% on average over the past years. This is a very strong growth
- Looking at the last year, PFGC shows a quite strong growth in Revenue. The Revenue has grown by 10.55% in the last year.
- The Revenue has been growing by 20.34% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)4.41%
EPS 3Y20.19%
EPS 5Y41.14%
EPS Q2Q%1.72%
Revenue 1Y (TTM)10.55%
Revenue growth 3Y7.54%
Revenue growth 5Y20.34%
Sales Q2Q%10.77%
3.2 Future
- PFGC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.93% yearly.
- The Revenue is expected to grow by 5.38% on average over the next years.
EPS Next Y13.87%
EPS Next 2Y19.83%
EPS Next 3Y18.36%
EPS Next 5Y13.93%
Revenue Next Year7.22%
Revenue Next 2Y6.94%
Revenue Next 3Y5.79%
Revenue Next 5Y5.38%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 21.60, which indicates a rather expensive current valuation of PFGC.
- The rest of the industry has a similar Price/Earnings ratio as PFGC.
- PFGC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.60.
- A Price/Forward Earnings ratio of 15.11 indicates a correct valuation of PFGC.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of PFGC indicates a somewhat cheap valuation: PFGC is cheaper than 68.42% of the companies listed in the same industry.
- PFGC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.6 | ||
| Fwd PE | 15.11 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PFGC is on the same level as its industry peers.
- The rest of the industry has a similar Price/Free Cash Flow ratio as PFGC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.14 | ||
| EV/EBITDA | 14.21 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- PFGC's earnings are expected to grow with 18.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.56
PEG (5Y)0.53
EPS Next 2Y19.83%
EPS Next 3Y18.36%
5. Dividend
5.1 Amount
- No dividends for PFGC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
PERFORMANCE FOOD GROUP CO / PFGC FAQ
What is the fundamental rating for PFGC stock?
ChartMill assigns a fundamental rating of 4 / 10 to PFGC.
What is the valuation status for PFGC stock?
ChartMill assigns a valuation rating of 3 / 10 to PERFORMANCE FOOD GROUP CO (PFGC). This can be considered as Overvalued.
What is the profitability of PFGC stock?
PERFORMANCE FOOD GROUP CO (PFGC) has a profitability rating of 4 / 10.
What are the PE and PB ratios of PERFORMANCE FOOD GROUP CO (PFGC) stock?
The Price/Earnings (PE) ratio for PERFORMANCE FOOD GROUP CO (PFGC) is 21.6 and the Price/Book (PB) ratio is 3.33.