UNITED NATURAL FOODS INC (UNFI) Stock Fundamental Analysis
NYSE:UNFI - New York Stock Exchange, Inc. - US9111631035 - Common Stock - Currency: USD
UNFI gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 40 industry peers in the Consumer Staples Distribution & Retail industry. Both the profitability and financial health of UNFI have multiple concerns. UNFI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
UNFI had positive earnings in the past year.
In the past year UNFI had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: UNFI reported negative net income in multiple years.
UNFI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
UNFI's Return On Assets of -0.89% is on the low side compared to the rest of the industry. UNFI is outperformed by 67.50% of its industry peers.
With a Return On Equity value of -4.18%, UNFI is not doing good in the industry: 67.50% of the companies in the same industry are doing better.
The Return On Invested Capital of UNFI (3.26%) is worse than 65.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UNFI is below the industry average of 8.22%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.89% | ||
| ROE | -4.18% | ||
| ROIC | 3.26% |
ROA(3y)0.7%
ROA(5y)0.09%
ROE(3y)2.8%
ROE(5y)-1.14%
ROIC(3y)3.42%
ROIC(5y)4.16%
1.3 Margins
With a Operating Margin value of 0.66%, UNFI is not doing good in the industry: 72.50% of the companies in the same industry are doing better.
UNFI's Operating Margin has declined in the last couple of years.
UNFI's Gross Margin of 13.36% is on the low side compared to the rest of the industry. UNFI is outperformed by 82.50% of its industry peers.
In the last couple of years the Gross Margin of UNFI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.66% | ||
| PM (TTM) | N/A | ||
| GM | 13.36% |
OM growth 3Y-27.27%
OM growth 5Y-14.68%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.47%
GM growth 5Y-1.21%
2. Health
2.1 Basic Checks
UNFI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
UNFI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for UNFI has been increased compared to 5 years ago.
UNFI has a worse debt/assets ratio than last year.
2.2 Solvency
UNFI has an Altman-Z score of 4.85. This indicates that UNFI is financially healthy and has little risk of bankruptcy at the moment.
UNFI has a Altman-Z score of 4.85. This is in the better half of the industry: UNFI outperforms 70.00% of its industry peers.
UNFI has a debt to FCF ratio of 8.84. This is a slightly negative value and a sign of low solvency as UNFI would need 8.84 years to pay back of all of its debts.
UNFI has a Debt to FCF ratio (8.84) which is in line with its industry peers.
UNFI has a Debt/Equity ratio of 1.21. This is a high value indicating a heavy dependency on external financing.
UNFI's Debt to Equity ratio of 1.21 is on the low side compared to the rest of the industry. UNFI is outperformed by 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 8.84 | ||
| Altman-Z | 4.85 |
ROIC/WACC0.39
WACC8.3%
2.3 Liquidity
UNFI has a Current Ratio of 1.41. This is a normal value and indicates that UNFI is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.41, UNFI is doing good in the industry, outperforming 77.50% of the companies in the same industry.
UNFI has a Quick Ratio of 1.41. This is a bad value and indicates that UNFI is not financially healthy enough and could expect problems in meeting its short term obligations.
UNFI has a Quick ratio (0.51) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 791.67% over the past year.
The earnings per share for UNFI have been decreasing by -41.71% on average. This is quite bad
The Revenue has been growing slightly by 6.62% in the past year.
UNFI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.76% yearly.
EPS 1Y (TTM)791.67%
EPS 3Y-66.96%
EPS 5Y-41.71%
EPS Q2Q%340%
Revenue 1Y (TTM)6.62%
Revenue growth 3Y4.75%
Revenue growth 5Y6.76%
Sales Q2Q%7.48%
3.2 Future
Based on estimates for the next years, UNFI will show a very strong growth in Earnings Per Share. The EPS will grow by 58.43% on average per year.
UNFI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.98% yearly.
EPS Next Y422.95%
EPS Next 2Y203.39%
EPS Next 3Y129.82%
EPS Next 5Y58.43%
Revenue Next Year3.19%
Revenue Next 2Y2.12%
Revenue Next 3Y1.83%
Revenue Next 5Y0.98%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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
With a Price/Earnings ratio of 32.88, UNFI can be considered very expensive at the moment.
Based on the Price/Earnings ratio, UNFI is valued a bit more expensive than 60.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.86, UNFI is valued a bit more expensive.
UNFI is valuated rather expensively with a Price/Forward Earnings ratio of 21.18.
The rest of the industry has a similar Price/Forward Earnings ratio as UNFI.
When comparing the Price/Forward Earnings ratio of UNFI to the average of the S&P500 Index (34.94), we can say UNFI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.88 | ||
| Fwd PE | 21.18 |
4.2 Price Multiples
77.50% of the companies in the same industry are more expensive than UNFI, based on the Enterprise Value to EBITDA ratio.
92.50% of the companies in the same industry are more expensive than UNFI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.38 | ||
| EV/EBITDA | 6.55 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as UNFI's earnings are expected to grow with 129.82% in the coming years.
PEG (NY)0.08
PEG (5Y)N/A
EPS Next 2Y203.39%
EPS Next 3Y129.82%
5. Dividend
5.1 Amount
UNFI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
27.29
+0.53 (+1.98%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners91.89%
Inst Owner Change5.03%
Ins Owners1.74%
Ins Owner Change-0.51%
Market Cap1.65B
Analysts72.94
Price Target29.2 (7%)
Short Float %8.23%
Short Ratio3.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)59.08%
Min EPS beat(2)16.24%
Max EPS beat(2)101.92%
EPS beat(4)4
Avg EPS beat(4)299.94%
Min EPS beat(4)16.24%
Max EPS beat(4)971.46%
EPS beat(8)8
Avg EPS beat(8)260.35%
EPS beat(12)8
Avg EPS beat(12)167.33%
EPS beat(16)11
Avg EPS beat(16)133.05%
Revenue beat(2)2
Avg Revenue beat(2)1.02%
Min Revenue beat(2)0.53%
Max Revenue beat(2)1.51%
Revenue beat(4)4
Avg Revenue beat(4)1.02%
Min Revenue beat(4)0.53%
Max Revenue beat(4)1.51%
Revenue beat(8)4
Avg Revenue beat(8)-0.84%
Revenue beat(12)4
Avg Revenue beat(12)-1.18%
Revenue beat(16)7
Avg Revenue beat(16)-0.92%
PT rev (1m)9.05%
PT rev (3m)-4.58%
EPS NQ rev (1m)-74.44%
EPS NQ rev (3m)-177.68%
EPS NY rev (1m)0%
EPS NY rev (3m)-12.56%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-1.49%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.88 | ||
| Fwd PE | 21.18 | ||
| P/S | 0.05 | ||
| P/FCF | 7.38 | ||
| P/OCF | 3.25 | ||
| P/B | 1.02 | ||
| P/tB | 1.63 | ||
| EV/EBITDA | 6.55 |
EPS(TTM)0.83
EY3.04%
EPS(NY)1.29
Fwd EY4.72%
FCF(TTM)3.7
FCFY13.55%
OCF(TTM)8.4
OCFY30.79%
SpS532.33
BVpS26.83
TBVpS16.72
PEG (NY)0.08
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.89% | ||
| ROE | -4.18% | ||
| ROCE | 4.13% | ||
| ROIC | 3.26% | ||
| ROICexc | 3.29% | ||
| ROICexgc | 3.74% | ||
| OM | 0.66% | ||
| PM (TTM) | N/A | ||
| GM | 13.36% | ||
| FCFM | 0.69% |
ROA(3y)0.7%
ROA(5y)0.09%
ROE(3y)2.8%
ROE(5y)-1.14%
ROIC(3y)3.42%
ROIC(5y)4.16%
ROICexc(3y)3.45%
ROICexc(5y)4.19%
ROICexgc(3y)4.06%
ROICexgc(5y)5.05%
ROCE(3y)4.33%
ROCE(5y)5.27%
ROICexcg growth 3Y-25.98%
ROICexcg growth 5Y-13.26%
ROICexc growth 3Y-24.44%
ROICexc growth 5Y-9.28%
OM growth 3Y-27.27%
OM growth 5Y-14.68%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.47%
GM growth 5Y-1.21%
F-Score5
Asset Turnover4.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 8.84 | ||
| Debt/EBITDA | 3.6 | ||
| Cap/Depr | 85.59% | ||
| Cap/Sales | 0.88% | ||
| Interest Coverage | 1.33 | ||
| Cash Conversion | 93.05% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 4.85 |
F-Score5
WACC8.3%
ROIC/WACC0.39
Cap/Depr(3y)100.82%
Cap/Depr(5y)94.51%
Cap/Sales(3y)1.02%
Cap/Sales(5y)0.97%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)791.67%
EPS 3Y-66.96%
EPS 5Y-41.71%
EPS Q2Q%340%
EPS Next Y422.95%
EPS Next 2Y203.39%
EPS Next 3Y129.82%
EPS Next 5Y58.43%
Revenue 1Y (TTM)6.62%
Revenue growth 3Y4.75%
Revenue growth 5Y6.76%
Sales Q2Q%7.48%
Revenue Next Year3.19%
Revenue Next 2Y2.12%
Revenue Next 3Y1.83%
Revenue Next 5Y0.98%
EBIT growth 1Y245.16%
EBIT growth 3Y-23.81%
EBIT growth 5Y-8.91%
EBIT Next Year269.93%
EBIT Next 3Y64.78%
EBIT Next 5Y36.13%
FCF growth 1Y-50.55%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-33.38%
OCF growth 3Y-25.59%
OCF growth 5Y-2.32%