US FOODS HOLDING CORP (USFD) Stock Fundamental Analysis
NYSE:USFD - New York Stock Exchange, Inc. - US9120081099 - Common Stock - Currency: USD
Overall USFD gets a fundamental rating of 4 out of 10. We evaluated USFD against 40 industry peers in the Consumer Staples Distribution & Retail industry. USFD has a medium profitability rating, but doesn't score so well on its financial health evaluation. USFD is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year USFD was profitable.
USFD had a positive operating cash flow in the past year.
USFD had positive earnings in 4 of the past 5 years.
In the past 5 years USFD always reported a positive cash flow from operatings.
1.2 Ratios
USFD's Return On Assets of 3.68% is in line compared to the rest of the industry. USFD outperforms 60.00% of its industry peers.
USFD has a Return On Equity of 10.91%. This is comparable to the rest of the industry: USFD outperforms 57.50% of its industry peers.
With a decent Return On Invested Capital value of 8.20%, USFD is doing good in the industry, outperforming 65.00% of the companies in the same industry.
USFD had an Average Return On Invested Capital over the past 3 years of 6.85%. This is in line with the industry average of 7.93%.
The last Return On Invested Capital (8.20%) for USFD is above the 3 year average (6.85%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 10.91% | ||
| ROIC | 8.2% |
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 1.30%, USFD perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
USFD's Profit Margin has declined in the last couple of years.
The Operating Margin of USFD (2.96%) is better than 62.50% of its industry peers.
USFD's Operating Margin has improved in the last couple of years.
USFD has a Gross Margin of 17.25%. This is in the lower half of the industry: USFD underperforms 72.50% of its industry peers.
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 | 2.96% | ||
| PM (TTM) | 1.3% | ||
| GM | 17.25% |
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.
Compared to 5 years ago, USFD has more shares outstanding
USFD has a worse debt/assets ratio than last year.
2.2 Solvency
USFD has an Altman-Z score of 4.42. This indicates that USFD is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of USFD (4.42) is comparable to the rest of the industry.
USFD has a debt to FCF ratio of 6.18. This is a slightly negative value and a sign of low solvency as USFD would need 6.18 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.18, USFD is in line with its industry, outperforming 55.00% of the companies in the same industry.
A Debt/Equity ratio of 1.11 is on the high side and indicates that USFD has dependencies on debt financing.
With a Debt to Equity ratio value of 1.11, USFD is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 6.18 | ||
| Altman-Z | 4.42 |
ROIC/WACC1.05
WACC7.83%
2.3 Liquidity
USFD has a Current Ratio of 1.21. This is a normal value and indicates that USFD is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.21, USFD is in line with its industry, outperforming 57.50% of the companies in the same industry.
A Quick Ratio of 0.71 indicates that USFD may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.71, USFD is in line with its industry, outperforming 57.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.15% over the past year.
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 6.41%.
Measured over the past years, USFD shows a small growth in Revenue. The Revenue has been growing by 7.87% on average per year.
EPS 1Y (TTM)20.15%
EPS 3Y26.53%
EPS 5Y6.38%
EPS Q2Q%31.25%
Revenue 1Y (TTM)6.41%
Revenue growth 3Y8.7%
Revenue growth 5Y7.87%
Sales Q2Q%6.21%
3.2 Future
USFD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.42% yearly.
USFD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.65% yearly.
EPS Next Y22.94%
EPS Next 2Y21.25%
EPS Next 3Y19.65%
EPS Next 5Y11.42%
Revenue Next Year5.01%
Revenue Next 2Y5.35%
Revenue Next 3Y4.9%
Revenue Next 5Y1.65%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 21.49, USFD is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as USFD.
USFD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.18.
With a Price/Forward Earnings ratio of 17.48, USFD is valued on the expensive side.
Based on the Price/Forward Earnings ratio, USFD is valued a bit cheaper than 67.50% of the companies in the same industry.
USFD is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.81, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.49 | ||
| Fwd PE | 17.48 |
4.2 Price Multiples
USFD's Enterprise Value to EBITDA ratio is in line with the industry average.
USFD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. USFD is cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.79 | ||
| EV/EBITDA | 13.15 |
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 USFD's earnings are expected to grow with 19.65% in the coming years.
PEG (NY)0.94
PEG (5Y)3.37
EPS Next 2Y21.25%
EPS Next 3Y19.65%
5. Dividend
5.1 Amount
USFD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
67.9
+1.57 (+2.37%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners99.37%
Inst Owner Change-0.94%
Ins Owners0.36%
Ins Owner Change4.9%
Market Cap15.65B
Analysts80
Price Target80.99 (19.28%)
Short Float %2.62%
Short Ratio2.49
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)2
Avg EPS beat(2)1.51%
Min EPS beat(2)0.43%
Max EPS beat(2)2.58%
EPS beat(4)2
Avg EPS beat(4)0.19%
Min EPS beat(4)-1.8%
Max EPS beat(4)2.58%
EPS beat(8)4
Avg EPS beat(8)1.84%
EPS beat(12)6
Avg EPS beat(12)5.57%
EPS beat(16)8
Avg EPS beat(16)16.45%
Revenue beat(2)0
Avg Revenue beat(2)-1.9%
Min Revenue beat(2)-1.95%
Max Revenue beat(2)-1.86%
Revenue beat(4)0
Avg Revenue beat(4)-1.62%
Min Revenue beat(4)-1.95%
Max Revenue beat(4)-1.08%
Revenue beat(8)0
Avg Revenue beat(8)-1.99%
Revenue beat(12)1
Avg Revenue beat(12)-1.38%
Revenue beat(16)4
Avg Revenue beat(16)-0.31%
PT rev (1m)-0.71%
PT rev (3m)4.37%
EPS NQ rev (1m)-0.45%
EPS NQ rev (3m)-3.31%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)-0.23%
Revenue NQ rev (1m)-0.34%
Revenue NQ rev (3m)-0.87%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.49 | ||
| Fwd PE | 17.48 | ||
| P/S | 0.41 | ||
| P/FCF | 18.79 | ||
| P/OCF | 13.33 | ||
| P/B | 3.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.15 |
EPS(TTM)3.16
EY4.65%
EPS(NY)3.88
Fwd EY5.72%
FCF(TTM)3.61
FCFY5.32%
OCF(TTM)5.09
OCFY7.5%
SpS164.31
BVpS19.64
TBVpS-9
PEG (NY)0.94
PEG (5Y)3.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 10.91% | ||
| ROCE | 11.07% | ||
| ROIC | 8.2% | ||
| ROICexc | 8.25% | ||
| ROICexgc | 22.98% | ||
| OM | 2.96% | ||
| PM (TTM) | 1.3% | ||
| GM | 17.25% | ||
| FCFM | 2.2% |
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-Score5
Asset Turnover2.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 6.18 | ||
| Debt/EBITDA | 3.23 | ||
| Cap/Depr | 77.85% | ||
| Cap/Sales | 0.9% | ||
| Interest Coverage | 3.95 | ||
| Cash Conversion | 75.26% | ||
| Profit Quality | 168.62% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 4.42 |
F-Score5
WACC7.83%
ROIC/WACC1.05
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)20.15%
EPS 3Y26.53%
EPS 5Y6.38%
EPS Q2Q%31.25%
EPS Next Y22.94%
EPS Next 2Y21.25%
EPS Next 3Y19.65%
EPS Next 5Y11.42%
Revenue 1Y (TTM)6.41%
Revenue growth 3Y8.7%
Revenue growth 5Y7.87%
Sales Q2Q%6.21%
Revenue Next Year5.01%
Revenue Next 2Y5.35%
Revenue Next 3Y4.9%
Revenue Next 5Y1.65%
EBIT growth 1Y8.83%
EBIT growth 3Y35.18%
EBIT growth 5Y10.06%
EBIT Next Year47.18%
EBIT Next 3Y20.23%
EBIT Next 5Y8.72%
FCF growth 1Y0.24%
FCF growth 3Y79.1%
FCF growth 5Y10.66%
OCF growth 1Y2.98%
OCF growth 3Y40.98%
OCF growth 5Y9.09%