US FOODS HOLDING CORP (USFD) Stock Fundamental Analysis
NYSE:USFD - New York Stock Exchange, Inc. - US9120081099 - Common Stock - Currency: USD
Taking everything into account, USFD scores 5 out of 10 in our fundamental rating. USFD was compared to 41 industry peers in the Consumer Staples Distribution & Retail industry. Both the profitability and the financial health of USFD get a neutral evaluation. Nothing too spectacular is happening here. USFD has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
USFD had positive earnings in the past year.
USFD had a positive operating cash flow in the past year.
USFD had positive earnings in 4 of the past 5 years.
USFD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of USFD (3.86%) is better than 60.98% of its industry peers.
USFD has a Return On Equity (11.42%) which is comparable to the rest of the industry.
USFD has a Return On Invested Capital of 8.56%. This is in the better half of the industry: USFD outperforms 68.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for USFD is in line with the industry average of 7.97%.
The last Return On Invested Capital (8.56%) for USFD is above the 3 year average (6.85%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.86% | ||
| ROE | 11.42% | ||
| ROIC | 8.56% |
ROA(3y)3.08%
ROA(5y)1.63%
ROE(3y)8.83%
ROE(5y)4.61%
ROIC(3y)6.85%
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 1.38%, USFD perfoms like the industry average, outperforming 56.10% of the companies in the same industry.
In the last couple of years the Profit Margin of USFD has declined.
The Operating Margin of USFD (3.06%) is better than 63.41% of its industry peers.
In the last couple of years the Operating Margin of USFD has grown nicely.
Looking at the Gross Margin, with a value of 17.38%, USFD is doing worse than 70.73% of the companies in the same industry.
In the last couple of years the Gross Margin of USFD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.06% | ||
| PM (TTM) | 1.38% | ||
| GM | 17.38% |
OM growth 3Y24.36%
OM growth 5Y2.04%
PM growth 3Y47.03%
PM growth 5Y-2.55%
GM growth 3Y3%
GM growth 5Y-0.49%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so USFD is still creating some value.
USFD has less shares outstanding than it did 1 year ago.
The number of shares outstanding for USFD has been increased compared to 5 years ago.
The debt/assets ratio for USFD is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.51 indicates that USFD is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.51, USFD is in the better half of the industry, outperforming 65.85% of the companies in the same industry.
USFD has a debt to FCF ratio of 4.61. This is a neutral value as USFD would need 4.61 years to pay back of all of its debts.
USFD has a Debt to FCF ratio of 4.61. This is in the better half of the industry: USFD outperforms 60.98% of its industry peers.
A Debt/Equity ratio of 1.06 is on the high side and indicates that USFD has dependencies on debt financing.
USFD has a Debt to Equity ratio of 1.06. This is in the lower half of the industry: USFD underperforms 70.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 4.61 | ||
| Altman-Z | 4.51 |
ROIC/WACC1.07
WACC7.97%
2.3 Liquidity
USFD has a Current Ratio of 1.17. This is a normal value and indicates that USFD is financially healthy and should not expect problems in meeting its short term obligations.
USFD has a Current ratio (1.17) which is in line with its industry peers.
USFD has a Quick Ratio of 1.17. This is a bad value and indicates that USFD is not financially healthy enough and could expect problems in meeting its short term obligations.
USFD has a Quick ratio of 0.74. This is comparable to the rest of the industry: USFD outperforms 58.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
USFD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.60%, which is quite impressive.
Measured over the past 5 years, USFD shows a small growth in Earnings Per Share. The EPS has been growing by 6.38% on average per year.
USFD shows a small growth in Revenue. In the last year, the Revenue has grown by 6.32%.
The Revenue has been growing slightly by 7.87% on average over the past years.
EPS 1Y (TTM)23.6%
EPS 3Y26.53%
EPS 5Y6.38%
EPS Q2Q%25.93%
Revenue 1Y (TTM)6.32%
Revenue growth 3Y8.7%
Revenue growth 5Y7.87%
Sales Q2Q%4.49%
3.2 Future
The Earnings Per Share is expected to grow by 11.42% on average over the next years. This is quite good.
Based on estimates for the next years, USFD will show a small growth in Revenue. The Revenue will grow by 1.65% on average per year.
EPS Next Y22.68%
EPS Next 2Y20.86%
EPS Next 3Y18.88%
EPS Next 5Y11.42%
Revenue Next Year5.05%
Revenue Next 2Y5.48%
Revenue Next 3Y5.05%
Revenue Next 5Y1.65%
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
A Price/Earnings ratio of 23.15 indicates a rather expensive valuation of USFD.
The rest of the industry has a similar Price/Earnings ratio as USFD.
When comparing the Price/Earnings ratio of USFD to the average of the S&P500 Index (26.35), we can say USFD is valued inline with the index average.
USFD is valuated correctly with a Price/Forward Earnings ratio of 16.55.
70.73% of the companies in the same industry are more expensive than USFD, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, USFD is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.15 | ||
| Fwd PE | 16.55 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of USFD is on the same level as its industry peers.
73.17% of the companies in the same industry are more expensive than USFD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.24 | ||
| EV/EBITDA | 13.67 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
USFD has a very decent profitability rating, which may justify a higher PE ratio.
USFD's earnings are expected to grow with 18.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.02
PEG (5Y)3.63
EPS Next 2Y20.86%
EPS Next 3Y18.88%
5. Dividend
5.1 Amount
USFD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
76.39
+1.11 (+1.47%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners101.83%
Inst Owner Change3.37%
Ins Owners0.4%
Ins Owner Change5.37%
Market Cap17.67B
Analysts80.8
Price Target83.95 (9.9%)
Short Float %2.86%
Short Ratio3.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.68%
Min EPS beat(2)-3.94%
Max EPS beat(2)2.58%
EPS beat(4)2
Avg EPS beat(4)-0.68%
Min EPS beat(4)-3.94%
Max EPS beat(4)2.58%
EPS beat(8)3
Avg EPS beat(8)-0.88%
EPS beat(12)5
Avg EPS beat(12)0.39%
EPS beat(16)7
Avg EPS beat(16)7.01%
Revenue beat(2)0
Avg Revenue beat(2)-2.12%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)-1.95%
Revenue beat(4)0
Avg Revenue beat(4)-1.79%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)-1.08%
Revenue beat(8)0
Avg Revenue beat(8)-2.11%
Revenue beat(12)0
Avg Revenue beat(12)-1.78%
Revenue beat(16)3
Avg Revenue beat(16)-0.68%
PT rev (1m)4.13%
PT rev (3m)2.5%
EPS NQ rev (1m)0.6%
EPS NQ rev (3m)0.46%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.68%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.15 | ||
| Fwd PE | 16.55 | ||
| P/S | 0.46 | ||
| P/FCF | 16.24 | ||
| P/OCF | 12.39 | ||
| P/B | 3.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.67 |
EPS(TTM)3.3
EY4.32%
EPS(NY)4.62
Fwd EY6.04%
FCF(TTM)4.7
FCFY6.16%
OCF(TTM)6.16
OCFY8.07%
SpS165.46
BVpS19.95
TBVpS-8.56
PEG (NY)1.02
PEG (5Y)3.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.86% | ||
| ROE | 11.42% | ||
| ROCE | 11.55% | ||
| ROIC | 8.56% | ||
| ROICexc | 8.65% | ||
| ROICexgc | 24.2% | ||
| OM | 3.06% | ||
| PM (TTM) | 1.38% | ||
| GM | 17.38% | ||
| FCFM | 2.84% |
ROA(3y)3.08%
ROA(5y)1.63%
ROE(3y)8.83%
ROE(5y)4.61%
ROIC(3y)6.85%
ROIC(5y)N/A
ROICexc(3y)6.97%
ROICexc(5y)N/A
ROICexgc(3y)19.6%
ROICexgc(5y)N/A
ROCE(3y)9.24%
ROCE(5y)N/A
ROICexcg growth 3Y33.4%
ROICexcg growth 5Y8.01%
ROICexc growth 3Y33.9%
ROICexc growth 5Y7.28%
OM growth 3Y24.36%
OM growth 5Y2.04%
PM growth 3Y47.03%
PM growth 5Y-2.55%
GM growth 3Y3%
GM growth 5Y-0.49%
F-Score7
Asset Turnover2.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 4.61 | ||
| Debt/EBITDA | 3.03 | ||
| Cap/Depr | 75.96% | ||
| Cap/Sales | 0.88% | ||
| Interest Coverage | 4.14 | ||
| Cash Conversion | 88.13% | ||
| Profit Quality | 206.45% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 4.51 |
F-Score7
WACC7.97%
ROIC/WACC1.07
Cap/Depr(3y)75.77%
Cap/Depr(5y)68.92%
Cap/Sales(3y)0.85%
Cap/Sales(5y)0.86%
Profit Quality(3y)184.82%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)23.6%
EPS 3Y26.53%
EPS 5Y6.38%
EPS Q2Q%25.93%
EPS Next Y22.68%
EPS Next 2Y20.86%
EPS Next 3Y18.88%
EPS Next 5Y11.42%
Revenue 1Y (TTM)6.32%
Revenue growth 3Y8.7%
Revenue growth 5Y7.87%
Sales Q2Q%4.49%
Revenue Next Year5.05%
Revenue Next 2Y5.48%
Revenue Next 3Y5.05%
Revenue Next 5Y1.65%
EBIT growth 1Y14.78%
EBIT growth 3Y35.18%
EBIT growth 5Y10.06%
EBIT Next Year45.45%
EBIT Next 3Y20.1%
EBIT Next 5Y8.72%
FCF growth 1Y72.15%
FCF growth 3Y79.1%
FCF growth 5Y10.66%
OCF growth 1Y60.95%
OCF growth 3Y40.98%
OCF growth 5Y9.09%